Latest news with #costsavings
Yahoo
a day ago
- Business
- Yahoo
Lamb Weston sets out savings quest
Lamb Weston Holdings has outlined fresh plans for cost savings, moves that will affect jobs at the potato-products group. The US-listed business, which has faced investor pressure in recent months, is looking to make "at least" $250m in savings. President and CEO Mike Smith said the company was targeting '$200m in annualised run-rate savings and $120m of favourable working capital improvements' by the end of its 2027 fiscal year. 'We expect that these cost savings and working capital improvements together with lower levels of capital expenditures will help drive improved profitability and cash flow,' he said. Last month, Lamb Weston bowed to pressure from shareholders Jana Partners and Continental Grain Co. to revamp its board of directors. Jana Partners had been calling for changes to Lamb Weston's board since it took a minority stake in the company last October and had criticised the business for what it called 'self-inflicted mis-steps' in terms of its performance. Earlier in October last year, Lamb Weston had slashed its profit targets in light of a restructuring plan that includes the permanent closure of a US factory and job cuts. The fresh savings plan includes 'headcount reductions' that amount to around 4% of Lamb Weston's global workforce, the company said yesterday (23 July). The company did not disclose specific numbers but said the cuts 'also reflect the elimination of certain unfilled positions'. Smith added: 'We enter fiscal 2026 with increased discipline around our customer relationships and our cost structure, along with a clear and executable plan of how to win with customers and succeed in a dynamic marketplace. Our Focus to Win plan prioritises markets and channels where we are well positioned to win for the long-term and doing what our team does better than anyone else.' The plan was announced alongside Lamb Weston's annual financial results. Net income fell 51% to $357.2m in the year to 25 May. On an adjusted basis, net income dropped 35% to $478.6m. Net sales were flat at $6.45bn after a 4% rise in the final quarter of the year. Fourth-quarter net income fell 7% but increased 8% on an adjusted basis. Smith added: 'Lamb Weston returned to growth in the second half of the year with momentum in customer wins and retention, delivering financial results above our updated expectations.' Bernstein analyst Alexia Howard described the company's fourth-quarter results as 'very solid' pointing to 'strong volumes and cost containment'. "Lamb Weston sets out savings quest" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Forbes
a day ago
- Business
- Forbes
Looking To Domestic IT Operations For Data Security
Tony Williams Raré, CEO/CIO at Global IT Communications, Inc., overseeing technical and operational strategies for company and customers. In today's global economy, outsourcing is often seen as a cost-saving solution. The global outsourcing market is expected to reach $866.9 billion by 2027, driven by labor arbitrage and operational flexibility. Yet, increasing cybersecurity threats and shifting U.S. policy are forcing businesses to reconsider the long-term implications, especially when handling sensitive data. The Illusion of Cost Savings Outsourcing can initially appear beneficial. A Deloitte outsourcing survey report shows that 57% of businesses outsource to reduce costs. However, while immediate savings are tangible, hidden costs quickly emerge. Quality control, increased management oversight and infrastructure investments all add up. According to the Federal Reserve Bank of Minneapolis, outsourced workers earn significantly less than domestic employees, revealing a cost that is both economic and ethical. More concerning are the risks. IBM's 2024 Cost of a Data Breach Report shows the average breach costs $4.9 million. For companies dealing with protected health information (PHI), financial data or personally identifiable information (PII), those savings can rapidly become liabilities. Who Bears The Risk? While operations are outsourced, accountability stays in-house. A PwC study found that 32% of customers would stop using a brand after only one bad experience. Potential language barriers, poor voice quality or time zone differences can impact service delivery and resolution times. High turnover and minimal training at offshore centers can further reduce service consistency. According to a study by Intercom, 70% of end users feel more loyal to companies that provide support in their native language. HR And Legal Complications Offshore outsourcing introduces HR and legal complications. U.S. labor laws don't apply abroad, raising ethical and PR issues. Enforcement of intellectual property (IP) rights is weaker in many countries, making businesses vulnerable to trade secret theft and insider threats. The U.S. Department of Justice has increased enforcement under the Defend Trade Secrets Act, particularly in cases involving the mishandling of trade secrets offshore. Jurisdictional confusion also hinders legal recourse. If offshore personnel mishandle sensitive data, determining liability across borders becomes nearly impossible. Security And Compliance Failures Another issue is data security. Offshore data centers and cloud environments frequently replicate or store data across multiple jurisdictions—often without customers' awareness—leading to diminished data control and transparency. U.S.-based organizations embracing cross-border outsourcing must therefore navigate a complex web of legal and regulatory frameworks to maintain compliance and visibility over their sensitive information. The U.S. Cybersecurity and Infrastructure Security Agency (CISA) continues to identify third-party and supply chain attacks as top national cybersecurity threats, particularly as more organizations rely on outsourced and offshore vendors. Cross-border data workflows present significant compliance challenges, particularly with standards such as HIPAA, SOC 2 and NIST. Processing sensitive data across jurisdictions with different legal protections increases the risk of unauthorized access, data exfiltration and regulatory violations. Political And Strategic Vulnerabilities Political tensions and evolving trade policies can disrupt outsourcing relationships. The 2024 Republican platform aims to "stop outsourcing and turn the United States into a manufacturing superpower," potentially signaling more restrictions ahead, particularly in government contracts. As geopolitical alliances shift, organizations risk sudden disruptions or surveillance by foreign governments. Even with contracts in place, enforcing U.S.-level protections abroad remains difficult. The Case For Domestic IT Operations The tide is shifting. U.S.-based managed service providers (MSPs) offer several key advantages: • Compliance with domestic regulations like CMMC 2.0 and HIPAA • Seamless communication and customer service • Lower latency and higher service quality • Legal and regulatory alignment Domestic operations can allow for greater control, faster response times and higher accountability. Strategic Reassessment The question businesses must ask is: Do the savings justify the risk? Offshore outsourcing may reduce direct costs, but it exposes organizations to regulatory penalties, customer dissatisfaction and long-term brand damage. To adapt to increasing compliance demands and the evolving security landscape, organizations should consider strengthening their internal governance frameworks—such as implementing role-based access controls and conducting regular third-party risk assessments—to reduce their dependence on outside vendors for sensitive functions. Additionally, investing in cybersecurity training for in-house teams and designating a compliance officer can help ensure ongoing adherence to CMMC 2.0, SOC 2 and NIST standards, even without external partners. For those considering U.S.-based managed service providers (MSPs), it's essential to assess vendor transparency, data residency policies and experience with regulatory compliance. Look for MSPs with clear incident response plans and the ability to customize security frameworks to meet your industry's specific needs. Common pitfalls to look out for include unclear SLAs, vendor lock-in and underestimating the internal preparation needed to manage third-party partnerships. A readiness checklist—including asset inventory, current documentation and executive alignment—can help ensure smoother collaboration. Conclusion The global outsourcing landscape is shifting under the weight of cybersecurity threats, changing regulations and evolving political priorities. Protecting your business's future now means going beyond cost-cutting. Smart enterprises are reassessing their outsourcing strategies, focusing on domestic partnerships, investing in in-house cybersecurity maturity and refining their governance frameworks. The future belongs to businesses that build resilient, secure and ethically grounded operations that safeguard both customer trust and long-term value. 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Wall Street Journal
a day ago
- Business
- Wall Street Journal
Reckitt Benckiser Raises Outlook After Adjusted Profit Beats Expectations
Consumer-goods company Reckitt Benckiser RKT -0.04%decrease; red down pointing triangle reported market-beating adjusted profit as cost savings paid off and raised its full-year outlook. The U.K. company on Thursday said first-half adjusted operating profit, which strips out exceptional and other one-off items, rose 1.8% on year to 1.71 billion pounds ($2.32 billion). A company-provided market consensus forecast 1.66 billion pounds. Reckitt said the rise reflects efficiency improvements and early delivery of costs savings.
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
Lamb Weston Revenue Rises as Restructuring Underway
Lamb Weston Holdings LW 2.35%increase; green up pointing triangle plans to trim its workforce as part of a strategic plan to cut costs and improve its working capital. The French-fry maker on Wednesday said its cost-savings program is expected to deliver at least $250 million of annualized run-rate savings by the end of fiscal 2028. The cost savings include a workforce reduction of about 4%, which also reflects the elimination of certain unfilled positions, said the company.
Reuters
3 days ago
- Business
- Reuters
Julius Baer's first-half profit falls 35% on loan provisions, Brazil unit sale
July 22 (Reuters) - Swiss bank Julius Baer (BAER.S), opens new tab posted a first-half profit of 295 million francs ($370 million) on Tuesday, down 35% year-on-year, pressured by loan loss provisions and a charge related to the sale of its Brazilian wealth management unit. The decline reflected earlier-flagged writedown of 130 million Swiss francs, the bank said, adding that it made strong progress on legacy issues. "We are now in full execution mode of our strategic agenda, focused on our core wealth management lane, balancing sustainable growth and cost discipline with strengthened risk management," CEO Stefan Bollinger told journalists. To date, the bank had no additional loan loss allowances to report, Bollinger added. "Once the credit review has been completed, we'll be in a position to decide whether or not additional loan loss allowances are required," he said. Net new money more than doubled year-on-year to 7.9 billion Swiss francs, bringing assets under management to 483 billion francs, as of end-June, Julius Baer said in its half-year results presentation. Positive effects of solid net new money and rising global equity market valuations were more than offset by the impact of the weaker U.S. dollar and the sale of Julius Baer Brazil in March 2025, the bank said. The bank is on track to achieve 130 million Swiss francs in additional gross cost savings by the end of 2025, according to the statement. ($1 = 0.7975 Swiss francs)
