Latest news with #costreduction
The Sun
6 hours ago
- Automotive
- The Sun
Struggling major carmaker to axe 500 jobs in ‘difficult decision' just 3 months after bombshell merger
A MAJOR carmaker is set to axe up to 500 jobs just three months after a shock merger. Back in April, the merger between a luxury supercar maker and an electric car start-up came as a shock. The merger between McLaren and Forseven could result in up to 500 job losses as part of a cost reduction process. It comes after several years of financial difficulty for the supercar company. After the pandemic it faced near bankruptcy in 2020, leading to significant restructuring. Sales continued to plummet in 2023, with the merger hoping to restore its financial position. A spokesperson said that they were proposing "a potential workforce reduction of up to 500 roles across the combined organisation". They added: "The realignment of roles and responsibilities is a necessary step in preparing for the coming together of our two businesses and will ensure that our operations are streamlined to enable resilience and success over the long term." The company said they would provide "comprehensive support and guidance to all those affected" while they try to minimise the impact on employees. "Looking ahead, we remain dedicated to expanding our portfolio of luxury vehicles and delivering the exceptional customer experiences that honour the McLaren legacy," the company said. A consultation process with its 2,500 employee workforce is already underway according to The Evening Standard. It reported that roles are expected to be cut in departments like design and engineering, IT, legal and HR. Jobs that are duplicated across the two companies are most at risk. The cuts could affect employees at McLaren's main base in Woking, in addition to its Bicester, Leamington and Surrey sites. McLaren merged with Forseven in April to form McLaren Group Holdings, with Forseven CEO Nick Collins leading. While McLaren has a long-standing history as a leader in the supercar market, Forseven is still relatively new. The British start-up includes more than 700 industry professionals who are working to launch a luxury range by 2030. An announcement on the Forseven website reads: "Forseven has merged with McLaren Automotive with one clear vision: to become a world-beating automotive business." Abu Dhabi investment company CYVN Holdings is set to finance the new company. As part of the merger, an estimated 300 roles have been created which could reduce the impact of redundancies. Jassem Mohamed Bu Ataba Al Zaabi, Chairman of CYVN hopes to redefine the high-performance and luxury sectors. In a press rele a se announcing the merger, the company said it hoped to "transform McLaren into a high-performing British automotive business on the global stage." Jassem Al Zaabi said: 'I'm personally committed to making this vision a reality. It isn't just about investing, it is about shaping the future of McLaren as a brand, as a business and its place on the global automotive map. "We want to - and we will - push boundaries and deliver groundbreaking innovations that drive real progress in the sector. 'This is the start of an exciting new era for McLaren as a car brand and an automotive business." In addition to McLaren's Automotive business, he also promised to continue working on McLaren Racing's long-term success. This includes "supporting the team in building on their successes, winning more podiums, and inspiring fans worldwide." They added that more details about the vision and strategy going forward will be announced later this year. 2
NHK
16-07-2025
- Politics
- NHK
US nominee to be UN ambassador says he will work to counter China
US President Donald Trump's nominee for ambassador to the United Nations has said he will push to reduce costs and oppose China's growing influence at the global body. Mike Waltz made the comments on Tuesday, while attending a US Senate confirmation hearing on his appointment. Waltz served as national security advisor at the beginning of Trump's second term. But the president appointed him as UN ambassador in May amid criticism over Waltz's use of a private messaging app that resulted in the leak of information about a military operation. Waltz criticized the UN at the Senate hearing, saying, "The UN has ballooned to over 80 agencies with overlapping missions that waste resources." He also said that if confirmed he will push for cost reductions and other reforms. Waltz added he was "confident we can make the UN great again," under Trump's leadership. He also spoke about China, which is the second-largest financial contributor to the UN after the US, and is expanding its influence. Waltz said he supports any initiative to "block and tackle Chinese Communist Party influence." Senator Jeanne Shaheen of the opposition Democratic Party stressed in response that China is moving in to fill the void as the Trump administration presses ahead with budget cuts related to the UN and foreign aid. The senator added that a consistent policy is needed to push back against China's influence.
Yahoo
11-07-2025
- Business
- Yahoo
Intel layoffs surpass 1,600 across US
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Intel Corp. is laying off approximately 1,666 employees across four states this month as part of a company-wide restructuring effort to reduce costs and simplify operations. 'We are taking steps to become a leaner, faster and more efficient company,' Intel said in an email July 9. 'Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.' The job cuts, which begin to take effect July 11, will affect hundreds that work at or report to Intel in California, Oregon, Texas and Arizona, according to recent Worker Adjustment and Retraining Notification filings. About half of those affected — roughly 855 — are based out of Intel's offices and facilities in Santa Clara and Folsom, California. The company is also cutting 529 employees across its four campuses in or near Hillsboro, Oregon, considered to be the heart of the company's research and development operations. Additionally, Intel has given recent layoff notices to 172 workers in Chandler, Arizona and 110 in Austin, Texas, according to WARN filings as of July 11. A spokesperson declined to elaborate on which departments or segments of the company will be affected. In late June, Intel said it will 'wind down' its automotive business within its client computing group. The chipmaker has also started sending layoff notices to hundreds of workers in Israel, where Intel employs roughly 4,000 at its Kiryat Gat campus, Israel-based news outlet Ynet reported. One of CEO Lip-Bu Tan's priorities since taking over in March has been to refocus Intel's core products for a new era of computing shaped by artificial intelligence and reasoning models. Intel, known for its personal computer processors, has lagged behind competitors AMD and Nvidia in the evolving semiconductor market. It reported a net loss of $18.8 billion for 2024, driven in part by its struggles to transition to smaller, more efficient chip designs. 'We are seen as too slow, too complex and too set in our ways — and we need to change,' Tan said in a company-wide letter April 24. He detailed plans to become a more engineering-focused company and remove layers of teams, which has created "unnecessary bureaucracy that slows us down.' Long-term, Tan said he also wants to refine Intel's AI strategy with a focus on emerging areas of interest and to build trust with foundry customers. 'There is no way around the fact that these critical changes will reduce the size of our workforce,' Tan wrote in April. 'This will begin in Q2 and we will move as quickly as possible over the next several months. More details of the changes are likely to come during Intel's upcoming investor call, which is scheduled for July 24. The changes will begin to take place July 11, affecting mostly workers in California and Oregon. Recommended Reading Intel plans to lay off more than 500 Oregon workers
BBC News
11-07-2025
- Business
- BBC News
Council seeks ideas as Beaumanor Hall expected to make £480k loss
A council is seeking ideas to reduce the costs of a historic Leicestershire venue, which is expected to make a £480,000 loss this Hall - built between 1842 and 1854 in Woodhouse - was purchased by Leicestershire County Council in 1974 and has been used as a venue for weddings and other Grade II listed building has never operated at a profit, but the authority said it now wanted to improve the financial position "given growing pressure on the council's finances". A plan to discuss the future options for the venue with local schools, residents, businesses and other groups, is due to be discussed at a cabinet meeting. Helen Butler, cabinet member for resources, said: "The site has a lot of potential. It's currently operating at a loss to the taxpayer, and that's why we want to open up the conversation on what we could do differently." 'Vital council funds' Beaumanor Hall - which was requisitioned by the War Office as a secret listening station to intercept encrypted enemy signals - had to close for ten weeks in April due to structural concerns with the chimneys of the main building. It has since reopened after initial that temporary closure, the site was forecast to make a loss of £449,000, according to a council report, but that figure is now estimated to be more than £480, council is proposing an eight-week consultation from August, involving schools, other customers, the general public and specialist operators within the were considered a "key customer" of the hall, with about 16,000 children using the site each year - the majority for residential venue also employs about 121 staff members who would also be consulted on its future. Butler added: "We deliberately haven't set out any options at this stage so that this can be genuinely open engagement. "It's about looking at what's possible and how we can get to a point where vital council funds don't need to be spent on running the hall."The plan will be discussed at a cabinet meeting on 15 July.
Fast Company
10-07-2025
- Business
- Fast Company
How tariffs are accelerating the shift to nearshore staffing
The potential return of tariffs with a new presidential administration is causing cost structures throughout multiple industries to experience increased pressure. Companies heavily reliant on global outsourcing or imported services might soon encounter substantial disruptions because of proposed tariffs that include a 10% universal rate on all imports and higher rates for strategic sectors, including China. Several businesses are searching for different cost reduction strategies that will protect their profit margins while preventing them from transferring tariff expenses to customers or taking on the costs internally. Organizations are now focusing more on cost management, which drives renewed interest in operational efficiency improvements through intelligent staffing and labor strategies because staffing expenses represent the most significant controllable cost for companies. THE HIDDEN COSTS OF GLOBAL TRADE TENSIONS Tariffs are essentially a tax on doing business globally. If companies can't pass those costs on to customers, they hit the bottom line. And even when they can, the volatility of trade policy makes long-term planning difficult. As a result, many companies are rethinking where and how they operate—not just in terms of production, but in terms of talent. The increasing complexity of compliance, logistics, and taxation in certain offshore locations is leading companies to ask: Is it time to bring some of our operations closer to home? Bringing the work back home—reshoring—might seem like the obvious answer, especially for companies seeking more control and less exposure to global risks. But with U.S. labor costs rising and talent shortages in many industries, reshoring often leads to significantly higher expenses. That's why companies pursuing this path are also looking for ways to offset those increases by finding cost savings in other parts of the business, particularly in areas like staffing, where smarter, nearshore alternatives can provide both financial relief and operational strength. In the face of rising tariffs and global uncertainty, many companies have focused on reshoring their manufacturing operations. But this comes with a price, as production becomes more expensive due to wages and, probably, some raw material components being subject to tariffs. A strategy for this is to rethink not just the manufacturing of the business, but also go beyond manufacturing to all the departments. For example, what departments can you use nearshoring or offshoring strategies to lower costs? This way, while you increase costs in production to be safe from tariffs, you can offset this by cutting costs in other parts of the company. Companies don't need to choose between keeping everything in-house or sending it all offshore. The most resilient strategies combine reshoring where it matters most (like physical production) with nearshoring for talent-driven operations (like customer service, marketing, IT, and finance). This hybrid model allows businesses to cut costs and reduce their exposure to trade and geopolitical risk. Here's why a hybrid staffing model is gaining traction: No Tariffs, Fewer Surprises: While services typically aren't tariffed like goods, working with partners in nearby countries helps avoid disruptions tied to trade policy and international regulation shifts. Save On Your Biggest Expense: Staff is usually a company's biggest expense that can be controlled. By using a hybrid model, you can have a strategy in place to help your company save on its second biggest expense. Aligned Work Hours: Time zone compatibility allows for real-time collaboration, reducing delays and miscommunication. Cultural Alignment: Nearshore teams often share business norms, language fluency, and values that enhance day-to-day interactions. Physical Proximity: Leadership teams can easily visit their nearshore counterparts—or even bring them to HQ—helping to build stronger, more cohesive working relationships. The most forward-thinking companies aren't choosing between reshoring or outsourcing—they're combining both. Reshore what you must: manufacturing, mission-critical logistics, or functions that truly require physical presence. Nearshore what you can: service-based roles like customer support, design, IT, finance, and marketing. This hybrid approach allows businesses to stay flexible, reduce exposure to geopolitical risk, and control costs, all without compromising on quality or culture. In a world where tariffs and trade policies are constantly shifting, nearshore staffing offers a clear path to stability, efficiency, and growth. It's not just a cost-cutting tactic—it's a smart, strategic move that allows businesses to build stronger teams, operate with more certainty, and navigate global disruptions with confidence. A smarter way forward is to combine reshoring and nearshoring—reshoring the functions that must stay close, while nearshoring roles that can be performed remotely without compromising quality or control. As global dynamics continue to evolve, one thing is clear: Companies that rethink their staffing strategies now will be better prepared for whatever comes next.
