cost cutting

AMD takes $948 million in charges

Paul Mah — Tue, 15 Jul 2008 04:04:50 -0400

Chipmaker AMD has said it would take charges totaling a whopping $948 million for the second quarter of this year. The majority of the charges are related to the acquisition of ATI Technologies in 2006, according to a report with the Securities and Exchange Commission (SEC). A fuller picture emerges when the latest charge is combined with the $1.77 billion impairment charge that AMD already took in the last quarter of 2007. What happened is that AMD essentially had written down 50 percent of the $5.4 billion that it assigned against ATI during the acquisition.

AMD has also been conducting layoffs, and has taken aggressive cost-cutting measures in order to break even by the end of the year. This is in the wake of AMD reporting a loss of $358 million in the first quarter. The company's second-quarter financial result is scheduled to be released on July 17.

For more information on this report:
- check out this InformationWeek article

Is procurement rearing its ugly head in IT?

Judi Hasson — Tue, 01 Jul 2008 17:17:32 -0400

There was a time when IT professionals decided on the technology and the equipment to purchase, and then the procurement side of the company would come in and perhaps try to negotiate a better financial deal. Today, with budgets tight and the economy slowed, procurement is getting involved earlier, and with a louder voice, trying to put halt to so-called "maverick spending" and more aggressively clamping down on costs. There is no doubt procurement disciplines can save money. The question becomes whether IT will suffer.

For more on this tug-of-war:
- see this CIOupdate.com article

Big firms could slash 40 percent from IT

Thu, 01 May 2008 06:59:59 -0400

For CIOs and their IT employees at Global 1000 companies, it may not seem like your department's budget is bloated, given all the needs and the long wish list. Yet, the Hackett Group, a research firm, said tough economic times require cutbacks. At the big global companies--those with at least $23.4 billion in revenue and 56,000 employees--between eight percent and 39 percent of baseline spending can be cut, Hackett says, by making application maintenance, application development and implementation, end user support and infrastructure management processes more efficient. Hackett executives say that most companies are surprised by how much they can actually save. "I've seen companies take out 50 percent of their IT operating costs over a few years," says Erik Dorr, Hackett's senior IT research director.

To learn more about cost-cutting strategies:
- See this CIO Magazine article

Fighting irrelevance and achieving your goals

Sun, 25 Mar 2007 20:01:39 -0400

These days, the average CIO is in a tight spot, thanks to cost-cutting and changes in corporate direction and perception. There is a giant divide between what CIOs aspire to accomplish and what they're actually achieving. An InformationWeek survey found that virtually all CIOs believe that their companies are somewhat or very effective at using technology for business innovation. At the same time, almost half said their companies are either becoming more conservative in how they invest in and deploy new technology or are not changing their IT investment strategies significantly. That's exactly the problem. Also, a disproportionate amount of IT dollars are going toward system maintenance, leaving precious little for technological innovation and new projects. To fight the tide, connect the tactical needs of the present with the strategic possibilities of the future. Also, streamline everything you do, offload the grunt work, reinvest freed-up resources back into new initiatives, and push for innovation whenever possible.

Learn more about staying relevant:
- read this article at InformationWeek
- and this sidebar at InformationWeek

ALSO:
- read this blog for five reasons why CIOs should worry
- and this about whether it's the end of the line for CIOs

Bringing IT's appeal back

Sun, 18 Mar 2007 20:01:39 -0400

Working in an IT department can seem like trudging to the salt mines every day--at least if you listen to some techies. Complaints about losing work to outsourcing, cost-cutting, indifferent bosses and small cubicles are common. This perception of the IT workplace as being micromanaged, bureaucratic and creativity-stifling isn't productive for anyone. Finding a way to capture the excitement and pure fun of working on cutting-edge IT projects is key to employee happiness and retention. To do that, do whatever it takes to create excitement, put your efforts back into your employees instead of automatically resorting to outsourcing, make sure IT interacts with the rest of the company, and let IT be more than firefighters. Also, make sure IT professionals know what's expected of them and provide continuous feedback.

Learn more about making IT a better place to work:
- read the article at eWeek

ALSO:
- read this on helping your employees advance

C&L: Heavy workloads lead to burnout

Tue, 24 Oct 2006 20:01:31 -0400

Heavy workloads lead to burnout

There's a great column over at CIO magazine on how increasing workloads not only cause employee burnout but can also impact productivity and morale--both top concerns for any tech leader today. As business expert and author Chuck Martin relates, a survey indicates that many enterprises are overworked and over burdened thanks to cost cutting and new technologies that keep us connected 24/7. The goal for any leader should be to assess current workloads, implement creative retention strategies (such as rewarding teams for putting in extra effort) and approaches for prioritizing and reducing the work pile. The best place to start is at the top, as leading by example can do wonders. -Judy

...

If you missed last Wednesday's Career section, you can always click on over to our archives where you have free access to all of the career news we've printed in the past few months. Here are some announcements regarding career moves.

Donaldson Company has named Mary Lynne Perushek as VP and CIO.

Richard Ross has been named EVP and CIO at The First Marblehead Group.

First Financial Federal Credit Union has tapped Adley Francois as CIO.

JP Rangaswami is the new CIO at BT Global Services.

The new CIO at Harvard Business School is Stephen Laster.

Sam Jabbour is the new CIO at Opodo.

C&L: Heavy workloads lead to burnout

Tue, 24 Oct 2006 20:01:31 -0400

Heavy workloads lead to burnout

...

Donaldson Company has named Mary Lynne Perushek as VP and CIO.

Richard Ross has been named EVP and CIO at The First Marblehead Group.

First Financial Federal Credit Union has tapped Adley Francois as CIO.

JP Rangaswami is the new CIO at BT Global Services.

The new CIO at Harvard Business School is Stephen Laster.

Sam Jabbour is the new CIO at Opodo.

IT is all about being young

Mon, 09 Oct 2006 20:01:35 -0400

Tech industry research analysts says that the next generation of IT professionals will be "versatilists," and that IT enterprises will need to attract some young, savvy tech minds in order to stay competitive. For the mid-level tech manager, that could pose some career hurdles, says Gartner Research, as companies are demanding that tech leaders be on top of emerging Web-based and interactive technologies. The trend toward "young" is also pushing more than a few CIOs out of a job, as CEOs are demanding that IT contribute to growth and not just be focused on cost-cutting.

For more on the "young" trend in IT:
-read the story at Computerworld

ALSO NOTED: Dell recalls Sony-made flammable laptop batteries; Get ready to manage security surveillance technology; and much m

Mon, 14 Aug 2006 20:01:33 -0400

> Dell recalls Sony-made flammable laptop batteries. Article

> Get ready to manage security surveillance technology. Article

> CA announces big layoffs as part of cost cutting plan. Article

> The security debate over network control access and SNF. Podcast

> Veterans agency fast-forwards to encrypt devices, data. Article

> It's the talking on, not holding, a cell phone that brings risk. Article

> Why one state isn't going the Voice over Internet Protocol route. Article

And Finally... It's "used Google" not "googling," says Google. Article

Intel slashes 1,000 jobs

Thu, 13 Jul 2006 20:01:39 -0400

As part of its already-announced cost-cutting initiative, Intel is prepping to layoff off 1,000 corporate managers across its global operations. CEO Paul Otellini says the heavy layer of management currently in place slows decision-making and business response to market and customer needs. And the vendor's leader warns it could just be the first wave of layoffs as Intel scrambles to save money and regain some industry traction against fierce competition from AMD.

For more on Intel's cost cutting efforts:
- read this article at CNet News.com

PLUS: What other market players are doing to grab marketshare. Article