Tag: Costs

Costs Exceed Revenue for Many Latino-Owned Businesses Since The COVID-19 Pandemic Began, …

NEW YORK, Oct. 12, 2020 (GLOBE NEWSWIRE) — Before the coronavirus pandemic hit, revenue growth of Latino-owned companies was up 10% over last year, but like most other businesses in America, their fortunes have declined dramatically since March, according to the annual Biz2Credit Latino-Owned Business Study for 2020.

Using February as a baseline, the analysts found that the sales of Latino-owned business dropped 42% in March and April and are down 21% during the 12-month period from Sept. 16, 2019 – Sept. 15, 2020. Even more troubling was the discovery that costs for Latino companies that applied for Paycheck Protection Program (PPP) funding have risen higher than their revenues in the ensuing months.

“Many Latino-owned firms are spending more money than they are generating. Their costs, which now include spending on masks and sanitizing measures, now exceed their revenues,” said Biz2Credit CEO Rohit Arora, one of the nation’s leading experts

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Trump administration’s H-1B visa crackdown: Expect big hike in foreign worker wage costs

Tech companies on Tuesday were hit with major changes to the high-skilled worker H-1B visa program that will make them pay foreign employees much higher wages. 

The changes to the skilled visa program were announced by the White House as the Department of Labor announced an interim final rule that aims to bring wages of foreign workers in line with wages paid to US workers in similar roles. The department’s rule takes effect once it’s been published by the Office of the Federal Register.  

The administration has framed the H-1B reforms and foreign employee wage requirement as a way to protect American workers as the coronavirus pandemic pummels the US labor market. 

The Department of Labor said the pandemic combined with potential abuses of the H-1B visa program required “immediate corrective action”. 

“The US Department of Labor is strengthening wage protections, addressing abuses in these visa programs, and ensuring American

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Allstate Announces Transformative Growth Plan, To Incur Costs

In a bid to instill more efficiency in its business operations, The Allstate Corp. ALL undertook a multi-year Transformative Growth Plan. This long-term growth strategy is aimed at steering the company smoothly amid the difficult macro and micro environment, triggered by the coronavirus outbreak.

Pursuant to this, the property and casualty insurer expects to incur a restructuring charge of approximately $290 million pretax with approximately $210-$220 million pretax to be recognized during the third quarter of 2020 and $50-$60 million pretax to be recognized in the fourth quarter of 2020. Rest of the expense will be recognized in the first half of 2021.

The company’s purpose behind this growth plan is to increase its market share in the personal property-liability space. It strives to achieve the by expanding its customer access, improving its customer value and investing in the marketing and technology domain.

For bettering customer access, the company will

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Here’s how the biggest accounting and consulting firms are cutting costs and shrinking headcount



a sign on the side of a building: FILE PHOTO: The KPMG logo pictured during the Viva Tech start-up and technology summit in Paris Reuters


© Reuters
FILE PHOTO: The KPMG logo pictured during the Viva Tech start-up and technology summit in Paris Reuters


Professional services firms have been laying off employees and cutting pay as the coronavirus pandemic has hit their business pipelines. 

Firms have seen clients rein in on spending on consulting and advisory work as economic conditions across industries remain unclear.

The question mark over the economy has also led to less recruiting at these firms, impacting graduates from both undergrad and graduate programs. 

Employees are also staying put more than usual because of an uncertain job market, meaning the firms have to take more proactive steps as opposed to relying on people leaving on their own to help manage headcount.

Business Insider has been keeping track of which firms have announced layoffs, pay cuts, and how they’re thinking about recruitment.

Do you have information about layoffs or pay cuts at professional-services

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improve quality, reduce costs, speed change

On his first day as Ford Motor Co.’s new president and CEO, Jim Farley came armed with a plan to reshape the Blue Oval’s operations and leadership around areas he believes will drive growth, including commercial, electric, and more-affordable vehicles .

Employees were briefed on the plan during a virtual town hall meeting Thursday, when Farley succeeded outgoing president and CEO Jim Hackett.

Jim Farley, Ford’s new CEO (Photo: Ford)

“During the past three years, under Jim Hackett’s leadership, we have made meaningful progress and opened the door to become a vibrant, profitably growing company,” Farley said in a statement. “Now it’s time to charge through that door.”

Under Farley, Ford will work with “urgency” on turning around its automotive operations, he said, by improving quality, reducing costs, and accelerating the restructuring of underperforming businesses.

Farley says the automaker will grow by:

  • Allocating more capital, resources and talent to its
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DOI on Offshore Decommissioning Costs

On September 17, 2020, the Department of the Interior (“DOI”) issued a proposed “Risk Management, Financial Assurance and Loss Prevention” Rule (“Proposed Rule”) intended to address concerns about Outer Continental Shelf (“OCS”) oil and gas decommissioning costs. The Proposed Rule provides revised evaluation criteria for determining when oil and gas lessees, right-of-use and easement (“RUE”) grant holders, and pipeline right-of-way (“ROW”) grant holders may be required to provide additional bonds or other security to ensure compliance with the terms and conditions of OCS leases. These terms include decommissioning responsibilities, i.e., the costs and obligations associated with the removal of infrastructure and equipment used in the exploration and production of offshore oil and gas. The recent economic downturn, plummeting oil prices, and a surge in bankruptcies has increased concern over companies’ ability to pay for these required decommissioning costs.

The Proposed Rule would amend regulations under

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Shell will slash costs, invest in renewables through ‘Project Reshape’

  • Shell has launched a major cost-cutting initiative, months after the price of oil crashed, called ‘Project Reshape.’ 
  • The European major is looking to cut 30% to 40% off the cost of producing oil and gas. 
  • Shell will also look at cost-saving opportunities in its network of 45,000 gas stations as part of the review.
  • The project, first reported by Reuters, is part of the company’s pivot towards renewable energy, and mirrors similar moves by other European majors including BP. 
  • Do you have information about Shell? Reach us at [email protected] or through Signal at 646-768-1657. 
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LONDON – Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources

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Biden’s tax plan could hike costs on largest US banks, study finds

Former Vice President Joe Biden’s proposed tax plan may not just spell bad news for the nation’s wealthiest individuals, but also its wealthiest banks.

The 10 largest banks in the U.S. could see their combined yearly net income decline by more than $7 billion, according to an S&P Global Market Intelligence analysis, owing to a bid to moderately raise the corporate tax rate.

Biden has proposed increasing the corporate tax rate to 28 percent. The Tax Cuts and Jobs Act reduced the corporate tax rate to 21 percent, from 35 percent.

JOE BIDEN’S 2020 TAX PLAN: THE KEY POINTS

The banks that stand to be most negatively affected, according to S&P Global Market Intelligence, are JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Truist Financial Corp.

TRUMP SAYS BIDEN’S CORONAVIRUS

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Strategic Initiatives Aid Hartford Financial, High Costs Ail

The Hartford Financial Services Group, Inc. HIG has been in investors’ good books owing to strategic initiatives and financial strength.

Its return-on-equity (ROE) reflects growth potential. The company’s trailing 12-month ROE of 12.6% compares favorably with the industry average of 7.5%, reflecting its efficiency in utilizing its shareholders’ funds.

Now let’s see what has been working in the stock’s favor.

The company has been taking up strategic initiatives over time to improve its risk profile. A series of well-executed strategic dispositions of its legacy run-off businesses also helped the company. Hartford Financial has been vending non-core businesses for a while now to concentrate on its U.S. operations and enhance its operating leverage. Apart from lowering expenses, boosting profitability and improving returns to its shareholders, these divestitures are increasing the company’s financial flexibility by freeing up more capital.

The company has been putting in efforts to solidify its portfolio through acquisitions.

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How to reduce the costs of running an online business

The pandemic has created enormous opportunities for growth for web-based businesses. But, efficiency is crucial to being successful during this time of crisis.
Image Credit: Shutterstock

In a highly competitive e-commerce market, a healthy bottom line means everything to online business owners when it comes to shaping the future of their venture.

Innovative technology infrastructure needs constant investment in R&D, security and skilled talent, so every little bit of profit earned helps.

But in addition to keeping tunnel-focus on sales and increasing earning potential, merchants can also look for ways to save or cut costs to grow profitability. Finding ways to reducing expenses has become especially critical in the current Covid-19 economy as small businesses continue to bear the brunt of the upheaval brought about by the virus.

There are many ways you can promote your business that require no more than a little dedicated time and creativity. If you

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