All articles tagged with #cost containment
The U.S. Postal Service announced immediate restrictions on nonessential spending—limiting hiring, travel, training and other discretionary purchases—to conserve cash as it warns it could run out of funds in early 2027, with plans to reassess restrictions as conditions improve and possible Congress relief or price adjustments under consideration.
Southwest Airlines stock has plummeted 16% in just 16 days, erasing the optimism that had been building around the airline industry's recovery. The company reported subpar second-quarter results, with unit revenue falling 8.3% from last year and management expecting further declines. Rising costs, including labor and fuel, are also putting pressure on Southwest's profitability. The airline plans to adjust its flight schedule and network to boost unit revenue, but analysts believe bolder cost-cutting measures are needed for a true turnaround. Until then, investors are advised to stay away from Southwest Airlines stock.
Financial advisory firm Lazard is set to cut 10% of its staff to reduce costs amid a slowdown in dealmaking. The move comes as the company reported a 7% drop in revenue for the third quarter of 2019. Lazard is not alone in making cuts, as other financial services firms have also been reducing headcount in response to market pressures.
GameStop reported a net income of $48.2 million in Q4 2022, compared to a net loss of $147.5 million in the same period last year. The company is focused on year-over-year profitability improvement while pursuing long-term growth. GameStop plans to cut excess costs, leverage its strengthened financial position to obtain improved terms from suppliers and vendors, and assess partnerships with gaming and retail companies to capture cost-effective top-line growth. The company also plans to build a stronger presence in higher-margin categories like collectibles and toys.