#costsavings

We integrating to become more efficient and reduce cost. Don’t matter if you like the decision but tomorrow Xerox supposed to move to Lex CRM platform (a date already slipped) and the date moved again. Jeez. Sales Strategy and Sales Operations (a dangerous d-mb and d-mber) didn’t get the memo from LP about speed I guess. All just want to get on but not helped by delay.

I saw in another thread on here that taking the VSP will save Centene money in the long run. If the next round of layoffs don’t include any severance, how would it be possible to save money for Centene through the VSP?

https://www.trefis.com/stock/xom/articles/603827/exxon-saves-billions-but-margins-still-cut-in-half/2026-06-22

For a company that earned multi billion$ per quarter, it seems minimal reward/high risk to transition to low cost and low capability workforce in a 3rd world country.

The savings seems like it is not worth the risk and also not worth destroying all confidence and loyalty of its HC10 employees.

How much is the total annual target savings of moving to third world country 1/10 salary workforce, low cost engineering, low cost fabrication and procurement?

iHeartMedia initiated a programming realignment today. This initiative includes a new round of layoffs. The company aims to scale its new technology capabilities. It also seeks to achieve $50 million in cost savings. Several employees across multiple markets have been impacted.

https://radioinsight.com/headlines/360118/iheart-starts-programming-realignment-with-ongoing-cuts/

We have to separate fact from opinion.
SF was CFO of WP when FIS acquired WP. She was appointed COO with a primary responsibility of integration of WP and FIS. Integration was so bad FIS paid an additional 950 million in 2022 for acquisition and integration costs. They settled a lawsuit for 210 million associated with the acquisition of WP. Would we agree SF did not properly integrate the two companies?

Next, she is designated as Chief Administrative Officer 2021 to 2022. Primary responsibility included transformation, M&A, and technology. I think all of FIS/WP employees would agree this didn’t happen.

Her reward, appointment as CEO of a Fortune 500 company with experience of only accounting and finance. Company Stock price Dec 16, 2022 was 69.17. Today, it is 37.47. This what 20+ million a year in CEO comp for SF earns you.

When will the firings end? It isn’t ending soon. As part of the agreement with DE Shaw, FIS agreed to 400 million in cost savings. To avoid major disruption in the business and the Warn Act, FIS is laying off people over a three year period.

Follow the money, DE Shaw share sales in subsequent FIS announcements post Dec 2022. They forced these changes. FIS BOD appointments and historical relationships with DE Shaw, Janu Partners and SF. What backroom deals between Goldstein, Ernst and DE Shaw were agreed?

Make it make sense. 20+m a year, stock price free fall, increase in C Suite personnel compared to legacy FIS, advisor fees so high CFO commented on it, nepotism hires with Performance Officer, CAO, HR. What has this C-suite and SF accomplished?

This is the same CEO that created Future Foreward, implemented all these cost savings with promised payouts, delayed payouts, divided up payout over two years and then let people go before payment. This is the FIS culture. A CFO that hates Jacksonville and US culture. A failed CAO from Hertz because they were friends in Cincinnati. BT was her best friend at WP with no accomplishments at FIS. BT is an over priced puppet. Sad part, entire company run by McKinsey.

FIS got what it deserved. SF set out to do what she promised, fire all legacy FIS and the board has done nothing.

I was told by a colleague today that Apps Modernisation are saying that they will accept payment when savings are realised - essentially means free work now, pay later if it all works.

Anyone else get this?

Watch for more "savings" coming. . .

https://www.wsj.com/video/how-ibm-saved-45-billion-using-ai/C3EDE5AB-F38B-4281-8A92-0421C8753129

By: WSJ Leadership Institute
49 min. ago

IBM senior vice president of marketing and communications Jonathan Adashek explains the company's "client zero" initiative, which utilized artificial intelligence and automation to cut $4.5 billion in spending over three years. The IBM executive also explains how the technology is freeing up creative teams from menial tasks and generating more targeted sales leads.

Rackspace Technology is reducing its global workforce by about 15 percent. This move is part of a major business transformation focusing on enterprise artificial intelligence. The company's Executive Committee approved the decision on June 10. Rackspace expects annual cost reductions between $75 million and $85 million from this restructuring. These savings will be reinvested into strategic AI growth initiatives.

https://www.timesnownews.com/business-economy/companies/rackspace-technology-layoffs-why-the-firm-is-cutting-15-of-its-workforce-article-154671687

Rackspace is implementing layoffs targeting legacy service delivery functions. The company's board approved this plan on June 10. These actions align with Rackspace's pivot towards AI. The company expects to realize $75 million to $85 million in annualized savings. This strategic shift aims to streamline operations.

San Antonio, Texas

https://www.bizjournals.com/sanantonio/news/2026/06/16/rackspace-slashes-local-workforce.html

Team,
​First, I want to commend everyone on how beautifully you’ve adapted to our Personal Waste Ownership Initiative. By removing individual trash cans and requiring everyone to carry their own garbage three flights down to the central loading dock, we saved $4,200 annually in plastic liners. More importantly, I’ve noticed a real sense of pride as you carry your banana peels around all day. That is the grit that makes us a family.

​However, Q2 margins are still looking a bit "soft," and frankly, my bonus shouldn't have to suffer for it. To ensure we remain a lean, mean, profit-generating machine, we are implementing the following cost-cutting measures, effective immediately:
​1. The "Breathable Air" Optimization Program
​We’ve noticed a lot of erratic, deep breathing during stressful client calls. To reduce wear and tear on our HVAC filtration systems, the office oxygen levels will be dialed back to a crisp, simulating a productive high-altitude environment (roughly 11,000 feet).
​Action Item: If you feel lightheaded, please utilize the corporate-approved hyperventilation stance (head between knees) on your own time.

​2. BYO-Electricity (Bring Your Own Juice)
​Leaving monitors and laptops plugged into the company grid is costing us thousands. Starting Monday, wall outlets will be locked.
​The Solution: Employees are encouraged to bring their own fully charged power banks from home. For those looking to gamify their wellness, we have installed two Stationary Power-Bikes in the breakroom. If your laptop is dying, you may pedal at a minimum of 85 RPM to generate your own electricity. (Note: Pedaling time does not count toward billable hours).

​3. Micro-Tiered Restroom Subscriptions
​Frankly, the restroom has become a hotbed for unbilled leisure time. To counteract this, we are introducing Tiered Toilet Paper Access:
​Standard Tier (Free): 1 ply, single square per visit, sandpaper grit.
​Premium Tier ($4.99/month): 2 ply, quilted. (Billed directly via payroll deduction).
​Add-on: The Fluorescent Lighting Pass ($1.99/visit). If you choose not to pay, the motion-sensor lights will remain off, allowing you to reflect on your KPIs in total darkness.

​4. Caloric Efficiency & Mandatory Fasting
​The complimentary coffee machine is gone. In its place, we are installing a single, lukewarm Corporate Nutrient Spigot dispensing a gray, flavorless caloric paste. It contains 100% of your daily vitamins, eliminating the need for long, unproductive lunch breaks.
​Bonus: Because chewing is a known distractor, this will strictly be a liquid-diet initiative.

​5. Blinking Quotas
​Studies show that the average human blinks 15–20 times per minute, resulting in roughly 4.8 minutes of total darkness per employee, per day. Across a department of 50 people, that is four hours of unearned sleep daily.
​Please try to synchronize your blinking with your teammates, or better yet, practice the "sustained focus stare." Optical lubricant eyedrops will be available for purchase at the front desk.
​"Efficiency is doing things right. Total corporate austerity is doing things so right it hurts."
​I know change can be uncomfortable, but remember: every penny we save on lightbulbs and toilet paper is a penny that goes directly into securing the company's future (and my new yacht, The ROI).
​Let’s get out there and crush it!

Are ISC under new Honeywell split is going to finish ? Heard there are savings ongoing on transport goods within UK- EU and USA-EU going worldwide. What was the point to make IA and promising future when sites are going to closure ?

Groupon, Inc. announced a restructuring plan to become an AI-native company. The plan includes reducing up to 400 positions globally by the end of the third quarter 2026. Pre-tax restructuring charges are estimated at $7 to $13 million, primarily for severance. Annualized payroll actions are expected to generate $20 to $25 million in cost savings. Groupon raised its full-year 2026 Adjusted EBITDA guidance to $75 to $80 million.

Chicago, Illinois

https://www.stocktitan.net/sec-filings/GRPN/8-k-groupon-inc-reports-material-event-1ecafd00d145.html

I was RIFd yesterday, and I see that severance only pays out unused regular PTO, not protected PTO.

They really pushed employees to NOT use protected PTO as it is meant for illness and other unintended absence. I had built up quite a bit of it, and used regular PTO almost always.

Now I’m thinking the reconfiguration of PTO was more about cost savings than anything else. I was not aware that protected PTO would be forfeited or I would have used that first and foremost.

Very sneaky move Medtronic.

New direct labor ZERO OT policy is an operational disaster waiting to happen. It wasn’t built on output data or bottleneck reviews, yet site leaders are threatened with performance mgmt if deliveries slip. Requiring personal approval from unresponsive executives for every labor exception isn’t management- it’s creating a bottleneck in itself.

Checked with claude, they may save $600 M per year ongoing basis if they get rid of 10 percent people.

They are paying double for Mainframe and Cloud. Also schwab is much leaner at just 35k employees.

They may want to hire talented developers who recently laid off from Amazon or Meta.

But I’m honestly feeling like the Great Recession part two
The fuel costs for offices will be severe as for drivers unless something changes pronto.
But I feel uneasy on all the posts on here.

Companies like BNY and their consulting sidekicks have perfected the art of “economic development,” which mostly means convincing state and local governments that a few hundred cubicles and a ribbon‑cutting justify millions in tax incentives. McKinsey brings the playbook, BNY brings the headcount projections, and suddenly the state is handing out credits like party favors to “stimulate regional growth.”

Once the incentives are locked in, the hiring machine kicks in. States love when companies hire local graduates, and companies love it even more because those hires help them unlock annual tax credits tied to job‑creation commitments. New grads from state schools are especially attractive: they’re local, they’re eligible for incentive programs, and—let’s be honest—they’re cheaper than experienced workers. Salaries vary, but the pattern is predictable: new grads cost less, and incentive‑eligible hires cost even less to the company once the credits hit.

Who negotiates all this? At BNY, it’s typically a mix of Corporate Real Estate, Government Affairs, and Tax/Finance, working quietly behind the scenes to secure incentives without ever mentioning them to the employees whose jobs justify the credits.

And how do new grads help? Simple: every qualifying hire checks a box on the state’s incentive scorecard. The state gets “job creation.” BNY gets tax credits. And the new grads get… well, a selfie with Fabs and welcome to the Bounce House - North Campus.

Cognizant launched Project Leap to transform its operating model for AI-led delivery. This program involves investments in AI capabilities and workforce reskilling. It will also result in employee layoffs as the company shifts to an AI-led pyramid. Cognizant expects to incur $230-$320 million in costs, mostly for severance, in 2026. The company anticipates $200-$300 million in cost savings from this initiative.

https://www.thehindubusinessline.com/info-tech/cognizant-launches-project-leap-for-ai-led-future-signals-layoffs-and-reshaping-of-pyramid-model/article70921384.ece

We have enough intelligent people inside the organization. Cost saving? I don't think so. It usually takes much longer to get low quality work based on my experience with Indian.
Now we oursource our manufacturing jobs to China and white collar jobs to India. What has been left for our younger generation? Must be some dark powers that work behind this, let alone of the greedness of capitalist.

Rumour mill to confirmed that managers M2/M3 are being asked to drop to IC level. Rumor from my M5 level buddy is that the plan is to PIP these folks quickly and work them out without severance. The belief is that most won't be able to show value as IC4/5 if they have been managers for a few years quickly. Saves the company a boatload on severance costs. Also a downgrade might help a few quit themselves again saving seperation costs. The later is already happening in some offices.

Washington Governor Bob Ferguson met with Starbucks CEO Brian Niccol. The meeting agenda was not publicly disclosed. It likely involved Starbucks' new Nashville, Tennessee office. Starbucks plans to relocate its supply chain teams there. Nashville offers lower taxes for the company.

https://www.seattletimes.com/business/starbucks/is-starbucks-breaking-up-with-seattle/

BBC will reduce its workforce by up to 2,000. This represents nearly 10% of its total workforce. The network seeks £500 million in financial savings. The savings plan spans the next two years. Entire channels or services may face potential closure.

https://www.exchange4media.com/media-tv-news/bbc-ps500m-savings-push-nearly-2000-to-be-laid-off-153885.html

Buying SaaS products from vendors sounds simple—subscribe and go—but it’s where a lot of companies quietly lose money or flexibility if they don’t evaluate properly. Citi can save lot of money if they stop all SaaS tomorrow instead of cuts

The University of Maine plans to reduce its budget by $5.6 million. This will result in layoffs for fewer than 10 staff members. UMaine President Joan Ferrini-Mundy announced these changes via email. The university faces an $18 million budget shortfall. Additional cost savings include leaving positions unfilled and using gift funds.

Bangor, Maine

https://www.bangordailynews.com/2026/03/11/bangor/bangor-education/umaine-staff-layoffs-millions-budget-cuts/

I hear AI is axing jobs. KC seems to think its a job eliminator to cut back on people. Rumor Ive heard our CHRO has in mind anyway. Whats the strategy. Productivity or cost savings?

Title says it all. Exxon will not stop untill all engineering and research is done in India or even lower cost countries. There are several studies going on now that are looking at BTC capabilities and off shoring to India. The only jobs will be at the physical plants for operations. Everything else will be outsourced. We already have BTC engineers working at several plants in rotation. Look around and see the future. Costs saving are exxons future. The bottom line is the most important constant and nothing else matters.

Upload the annual budget statement to Claude and ask it to analyze the document for cost‑reduction opportunities. Most expenses come from WIM, and there appears to be a potential savings of $800M by lowering those costs.

Riddle me this:

Will Fiserv ever have the brains to permit WFH with exorbitant fuel costs that are imminent?

Seriously, we were able to work 2.5 years from home with little issue. For those of us who live further away from the office and still drive in, the cost of commuting makes zero sense during these uncertain times.

Seems like Impulse is taking advantage of all the property that Space Park is letting go for cost savings . They are growing fast and have a lot of frustrated NG alumni that have left who were always constantly brought down by status quo NG leadership. Hopefully they’re able to pick up anyone looking for coverage. Also I heard leadership here, at NG, is trying to stop them from recruiting 😂.

Many employees today are feeling the pressure of rising living costs. Housing, groceries, and transportation expenses continue to climb, and commuting to work has become an increasingly heavy financial burden for many families.

For this reason, I believe Canon should seriously consider offering greater flexibility when it comes to working from home.

Across different sectors and regions of the world, many companies are already encouraging remote work where possible. This approach helps reduce unnecessary commuting, lowers fuel consumption, and eases the financial strain placed on employees.

In times when global energy markets remain volatile due to geopolitical tensions involving countries like Iran, Israel, and major powers such as the United States, reducing unnecessary travel is not only economically sensible, it is also responsible.

Allowing employees to work from home when their role permits can help reduce commuting costs, decrease fuel consumption, and improve overall work-life balance. It is a practical solution that benefits both employees and employers.

Flexibility in the workplace is no longer simply a perk; it has become an important way to support employees during a time of economic uncertainty and rising costs.

This YouTube video describes Canon perfectly, as well as most large corporations.

Don’t believe the “collaboration & innovation” propaganda, it’s all about cost savings and making you miserable.

Rules for thee, not for me!

https://www.youtube.com/watch?v=z_p7W3g3UVg

Response was

Using AI to replace a CEO’s decision‑making can be framed as beneficial when the focus is on cost efficiency, consistency, and data‑driven governance, especially in organizations where strategic decisions are already heavily analytics‑driven.

Core Argument: AI as a High‑Precision, Low‑Cost Executive

Replacing a CEO’s decision‑making with AI can be seen as a net positive because it removes one of the most expensive and variable elements of corporate leadership—human executive compensation—while potentially improving decision quality through constant, unbiased, data‑driven analysis.

AI systems don’t demand bonuses, equity packages, or golden parachutes. They operate continuously, process vastly more information than any human, and make decisions based on evidence rather than ego, politics, or fatigue.

Cost Savings: Regaining the CEO Salary

CEO compensation is extraordinarily high across most industries:
• The average CEO salary in the U.S. is about $812,900 per year A.
• At large public companies, total compensation often exceeds $18–23 million annually B C.
• Some CEOs earn over $100 million per year in total compensation packages B.

Replacing this with an AI system—even one requiring significant infrastructure and oversight—would cost a fraction of that. Even a robust enterprise‑grade AI system might cost low millions per year, and often far less, depending on scale.

Savings could range from $800,000 to over $20 million annually, depending on company size.

Those funds could be redirected toward:
• R&D and innovation
• Employee compensation
• Lower consumer prices
• Shareholder returns
• Long‑term strategic investments

Why AI Decision‑Making Can Be Better

1. Data‑Driven Consistency
   AI evaluates every decision using the same logic, the same data, and the same criteria—no mood swings, no biases toward certain executives, no political maneuvering.

2. 24/7 Strategic Awareness
   AI can monitor markets, competitors, supply chains, and internal metrics continuously, not just during quarterly reviews or executive meetings.

3. Faster Decision Cycles
   AI can simulate outcomes, run forecasts, and evaluate risk scenarios in seconds, enabling rapid responses to market shifts.

4. No Ego, No Personal Incentives
   Human CEOs may prioritize:

• Personal legacy
• Compensation tied to short‑term stock price
• Risk‑averse decisions to protect their position
AI has no such incentives and can be optimized for long‑term organizational health.

1. Scalability
   One AI system could theoretically oversee multiple business units or even multiple companies, something no human could do.

Trade‑offs and Constraints
This argument is strongest in contexts where:

• Decisions are highly quantitative (e.g., logistics, pricing, supply chain, finance).
• The company already relies heavily on predictive analytics.
• The culture values efficiency and transparency over charismatic leadership.
• Oversight mechanisms exist to prevent runaway automation or misaligned incentives.

It is weaker in contexts requiring:
• Deep human intuition
• Complex interpersonal negotiation
• Visionary leadership
• Ethical judgment in ambiguous situations

But even here, AI can serve as a powerful co‑pilot or decision‑support system.

A Non‑Obvious Insight

The biggest benefit may not be cost savings or even better decisions—it’s eliminating the single point of failure that a CEO represents. Human executives can burn out, get sick, make emotional decisions, or cling to outdated strategies. AI systems can be versioned, audited, and improved continuously.

I previously shared a compensation comparison showing how much a company like Blackbaud could potentially save by offshoring engineering roles. The analysis was based on publicly available median software engineering salary data, comparing total compensation across regions and calculating how many times less expensive certain markets can be relative to the U.S.

When you run the numbers, the difference in median compensation is substantial, 3 to 6 time cheaper. Scaling that gap across multiple engineering roles makes the financial rationale behind offshoring clearer from a pure cost-structure standpoint. Anyone can verify this by checking compensation sources or using an AI tool to compare median SWE pay levels and compute the multiple. Give a prompt to ask for median salary for different engineering roles in GCC (Global Capability Center) in India

For some reason, my earlier post outlining this math was removed by moderation. I’m simply sharing publicly available data and a straightforward economic comparison to understand the business decision from a financial perspective.

A U.S. software engineer costs 3–6× more than an equivalent engineer in India, with the gap largest at junior levels (5–6×) and narrower for seniors (3–4×). Senior roles are often cut first for maximum savings, followed by juniors, then managers once IC layers shrink. Even modest offshoring saves tens of millions annually despite coordination, time zone, and attrition challenges.

The key question: is your work worth 3–6× the cost? If the answer is yes, then you are safe.

How did I get these numbers? Pick your favorite AI model and paste this prompt.

Prompt

Search the web and retrieve the latest (2024–2026) median total compensation data for Software Engineers in India and the United States at the following US-based companies:
Tier 1 (Top-Tier Big Tech):
• Google
• Meta
• Amazon
• Apple
• Microsoft
Tier 2 (Strong Product / Upper Mid-Tier):
• LinkedIn
• Salesforce
• Uber
• Nvidia
• Adobe
Tier 3 (Established US Tech / Enterprise / Platform Companies):
• Oracle
• Cisco
• Qualcomm
• Walmart Global Tech
• Intuit
For each company:

1. Provide median total compensation in India and in the U.S. in USD.
2. Break it down by role level:
   o Entry (0–2 years, L3/IC1 equivalent)
   o Mid (2–5 years, L4/IC2 equivalent)
   o Senior (5–8 years, L5/IC3 equivalent)
   o Staff/Principal (8+ years, L6+/IC4+ equivalent)
3. For each level, include:
   o Median Base Salary (USD)
   o Median Annualized RSU/Stock (USD)
   o Median Bonus (USD)
   o Median Total Compensation (USD)
4. Calculate the ratio: U.S. median total compensation ÷ India median total compensation for each level — i.e., how many times U.S. employees are more expensive than Indian employees.
5. Use data only from:
   o Levels.fyi
   o Glassdoor
   o Blind
   o AmbitionBox
   o Official compensation reports (if available)
6. Cite all sources with direct URLs.
7. Clearly mention the number of data points used (if available).
8. Convert INR → USD using the current exchange rate and state the rate used.
9. If level mapping differs across companies, normalize levels to the four categories above.
10. Present results in well-structured tables, grouped by company tier.
11. Flag where data is incomplete or sample size is small.

Denver-based Angi Inc. announced 350 layoffs this quarter. The company cited AI-driven efficiency improvements as the primary reason for these cuts. These reductions are projected to save Angi up to $80 million annually. Separately, the National Laboratory of the Rockies cut 134 employees. This was the lab's second round of layoffs in less than a year.

https://www.9news.com/article/money/business-brief/ai-layoffs-denver-economic-aftershocks-golden/73-4fa0ec3c-2fb9-484a-9cec-dd6b6feed6ea

Spotted getting off on the 16th floor. Eyeroll. Expect them to be paid millions to recommend “cost savings” in RIFs that will never materialize.

If an external Advisor or Team becomes part of FINET, does the CRG Market team receive recruiting credit for it? I have observed a significant transfer of FINET oversight to the CRG team. Will a single division be established, leading to everyone ultimately being part of FINET? If that is the case, they could eliminate numerous positions and save a substantial amount of money.

While CEO says Verizon is in drastic cost cutting mode, thus laid off 15K employees last month and another 8-10k will be next month...
While Verizon executives are posting pictures of their DINNERS IN KOREA while attending Samsung meetings in person! So much for cost Savings!!!

I just read a post on LinkedIn from a female CEO praising Cisco HR “leader” for sharing how the shutdown is designed to let workers connect with their families by not having to work. What a crock. Anyone who knows anything about how things work at Cisco knows it’s cost savings. A few days of payroll savings is worth millions. And the reason for the timing is so they can control personnel who would likely be asking for the same days off anyway. Furthermore, if mental health is a concern, why have people work on Christmas Eve? And how do you explain the July shutdown in 2024. Honesty is a wonderful thing; even when it’s not convenient