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Tag: restructuring

  • Record-Breaking 5-Year High: Q2 Layoffs Surge in Singapore Amid Business Restructuring

    Record-Breaking 5-Year High: Q2 Layoffs Surge in Singapore Amid Business Restructuring

    Between April and June of this year, Singapore experienced a significant wave of layoffs, with approximately 4,500 workers losing their jobs. This figure represents the highest rate of retrenchment in over five years, showing a 17% increase from the prior quarter. The last time layoffs had reached this level was during the final quarter of 2020 when 5,640 workers were let go.

    The Underlying Reasons

    The spike in retrenchment occurred mainly within sectors focused on international operations, such as information and communications and manufacturing. This trend largely resulted from business restructuring processes. Companies within these sectors are particularly susceptible to various factors impacting their operations, including geopolitical tensions, shifts in trade policies, and fluctuations within the global economy. Their dependence on external demand makes them vulnerable and forces them to continuously reassess their operational models, leading to restructuring and rationalization of their workforce.

    Despite the surge in layoffs, it is important to note that the numbers are still lower than those recorded during the global financial crisis in 2009 and the Covid-19 pandemic. Furthermore, Singapore’s broader labor market has shown resilience during this period. Overall employment grew by 10,700, and the unemployment rate remained at a steady 2%.

    Economic Performance and Projections

    Singapore’s economy expanded by 5.7% year-on-year during the same quarter, a rate slightly slower than the preceding three months but exceeding the government’s full-year forecast. This positive economic performance has led several economists to revise their 2026 growth projections upwards.

    With regard to labor market projections, there was a marked improvement in June. Approximately 43.9% of businesses surveyed indicated plans to increase their workforce in the following three months, an increase from 40.6% in May. Additionally, around 29.3% of firms expected to raise wages during the same period, up from 23.7%. The expectation to lay off staff fell to 2.7% from the previous 3.2%.

    Although these indicators demonstrate the resilience of labor demand, expectations remain below the levels seen before the energy shock triggered by the Middle East conflict. This suggests that businesses are likely to adopt a cautious approach to hiring and wage decisions in the near future.

    Questions & Answers

    What sectors were most affected by the wave of layoffs?
    Primarily, the wave of layoffs occurred within sectors focused on international operations such as information, communications, and manufacturing, largely a result of business restructuring processes.

    What factors make these sectors particularly vulnerable?
    These sectors are particularly susceptible to various factors, including geopolitical tensions, shifts in trade policies, and fluctuations within the global economy. Their reliance on external demand often forces them to reassess their operational models.

    How has the broader labor market in Singapore responded to these changes?
    Despite the surge in layoffs, Singapore’s broader labor market has shown resilience. Overall employment grew, and the unemployment rate remained stable. However, projections indicate that businesses may adopt a cautious approach to hiring and wage decisions in the near future.

  • Commerzbank to Slash 3000 Jobs by 2030, Boosts Profit Forecast Amid Restructuring Plan

    Commerzbank to Slash 3000 Jobs by 2030, Boosts Profit Forecast Amid Restructuring Plan

    In an effort to reassure shareholders of its sustainability as a standalone entity, Commerzbank has unveiled a strategic plan that includes significant job reductions and lofty profit goals. The blueprint, which was shared last Friday, anticipates a layoff of approximately 3,000 additional full-time employees throughout the corporation by the year 2030. This is an extension to the cost-cutting measures previously revealed.

    Refocusing on Future-Oriented Sectors

    Simultaneously, the bank is intending to generate employment opportunities within emerging and forward-looking sectors. As of late 2025, Commerzbank’s global full-time workforce was just shy of 40,000.

    In a previous announcement made in February 2025, Commerzbank had outlined its intention to eliminate 3,900 full-time roles by the conclusion of 2027, with the majority of these cutbacks occurring in Germany. During that announcement, the bank also expressed its intent to increase staffing levels at its Polish branch, mBank, as well as at its Asian locations.

    Boost in Profit during First Quarter

    Commerzbank also released its earnings for the first quarter. The operating profit for the initial three months of 2026 escalated to approximately 1.36 billion euro, while the net profit climbed to 913 million euro. Both of these figures saw a growth of roughly 10 percent compared to the corresponding period in the previous year.

    Commerzbank, as part of its updated strategy, now anticipates higher profits for 2026 than initially projected. The bank is aiming for a net profit of at least 3.4 billion euro, an increase of 200 million euro from the previously stated goal. The bank’s ambitious profit targets for subsequent years are 4.6 billion euro by 2028, and 5.9 billion euro by 2030.

    In 2025, the bank’s profit reached 2.6 billion euro, narrowly missing the record high of 2024, when the bank earned nearly 2.7 billion euro, despite the substantial costs associated with the ongoing restructuring program.

    This updated strategy and the raised profit targets can be interpreted as a reaction to criticisms levelled by Andrea Orcel, CEO of UniCredit, who recently described Commerzbank’s operating performance over the past few years as being beneath par.

    Questions & Answers

    How many job reductions does Commerzbank’s new strategic plan anticipate?
    The plan anticipates a layoff of approximately 3,000 additional full-time employees by 2030, apart from the previously announced cutbacks.

    What are Commerzbank’s profit targets as per the updated strategy?
    The bank is aiming for a net profit of at least 3.4 billion euro in 2026, 4.6 billion euro by 2028, and 5.9 billion euro by 2030.

    How has Commerzbank responded to criticisms regarding its recent performance?
    Commerzbank has responded with an updated strategy, which includes significant job reductions and lofty profit goals, to reassure shareholders of its sustainability as a standalone entity.

  • Lanvin Takes Strides Towards Stability in Q2 Despite Falling Sales: The Power of Restructuring Examined

    Lanvin Takes Strides Towards Stability in Q2 Despite Falling Sales: The Power of Restructuring Examined

    In the words of Zhen Huang, Chairman, Lanvin experienced a steadier second half following a tumultuous year where restructuring efforts started to show promise. Sales for the brand itself, however, observed a downturn of nearly a third.

    The Current Economic Climate and Restructuring Efforts

    Huang explained that despite the tough macroeconomic environment, the company continued to simplify its operations and bolster the long-term position of its brands.

    The luxury conglomerate, a parent to brands like Lanvin, Wolford, Sergio Rossi, and St John, clocked in a full-year revenue of US$281 million, witnessing an 18% dip compared to the previous year.

    This decrease in revenue mirrored a weakened demand in key markets, including EMEA and Greater China. This was also a result of ongoing plans such as shutting down stores and undertaking renovations.

    The gross profit stood at $164 million, yielding a margin of 58%. Meanwhile, the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss slightly reduced to $105.5 million.

    Performance of Individual Brands

    Among all the brands under the group’s umbrella, Lanvin saw the most significant decline with a 30% drop in revenue, which amounted to $68 million.

    Wolford followed suite with a 14% dip in revenue, amounting to $89.1 million. However, the company noticed an uptick in performance in the second half of the year, backed by a robust product inventory and a 19% surge in wholesale revenue.

    Sergio Rossi also experienced a decline in revenue by 30%, bringing it down to $35.2 million.

    Contrarily, St John demonstrated resilience as its revenue experienced a minor 1% drop, amounting to $91.5 million. The brand saw growth in the North American region and an increase in wholesale and e-commerce sales.

    Huang expressed optimism regarding the upward momentum observed in the second half of the year and remained hopeful about the group’s ability to yield sustainable growth over time.

    Questions & Answers

    What was the full-year revenue of the luxury group?
    The group reported a full-year revenue of US$281 million.

    Which brand under the group’s umbrella recorded the sharpest decline in revenue?
    Lanvin recorded the sharpest decline in revenue with a 30% fall.

    Which brand proved to be more resilient and saw growth?
    St John demonstrated resilience by maintaining its revenue with only a 1% drop and experiencing growth in North America with stronger wholesale and e-commerce sales.

  • Cotton On Group Dissolves Inactive Singapore Entity in Strategic Asian Restructuring Move

    Cotton On Group Dissolves Inactive Singapore Entity in Strategic Asian Restructuring Move

    The Australian fashion retail giant, Cotton On Group, has announced the shuttering of its regional division, Cotton On Asia. This decision comes in the wake of a resolution passed by shareholders that approved the winding up of the business and the appointment of liquidators.

    Despite the closure of this regional subsidiary, Cotton On Group has no intentions of withdrawing from the Asian market. Cotton On Australia’s main office has clarified that the liquidated entity was not responsible for operating any stores or hiring employees.

    “We have no plans to exit the Asia region,” a company representative stated.

    It was further explained that Cotton On Asia was an inactive holding company and its existence was no longer necessary. The closure will not affect customers, team members, stores, suppliers or operations within the Asian region in any way.

    Official documents from the Government Gazette reveal that the Singapore-based entity has entered a creditors’ voluntary liquidation. This action was a result of an extraordinary general meeting where members passed a special resolution under the Insolvency, Restructuring and Dissolution Act 2018.

    This move is reportedly part of a more extensive restructuring of the group’s corporate setup in Asia. Although the details have not been specified, it is generally believed that such actions are intended to streamline legal structures and enhance operational efficiency across different markets.

    Cotton On was first established in Singapore in 2007 and over the years have expanded its brand portfolio. The group now includes a variety of brands such as Cotton On, Cotton On Body, Cotton On Kids, Typo, and Rubi.

    The company was founded by Nigel Austin, who still maintains control over the business operations.

    Questions & Answers

    What is the reason behind Cotton On Group closing its regional division, Cotton On Asia?
    The closure is part of a broader restructuring strategy of the group’s corporate setup in Asia, aimed at streamlining legal structures and enhancing operational efficiency across different markets.

    Will the closure of Cotton On Asia affect the company’s operations in the region?
    No, the company has made it clear that the closure of this division will not impact customers, team members, stores, suppliers, or operations within the Asian region.

    Who founded Cotton On Group, and who currently oversees its operations?
    The Cotton On Group was founded by Nigel Austin, who continues to control the business operations.

  • Misto Holdings Boosts Q4 Sales Amid US Business Restructuring: Fila & Acushnet Show Strong Performances

    Misto Holdings Boosts Q4 Sales Amid US Business Restructuring: Fila & Acushnet Show Strong Performances

    In the fourth quarter, Misto Holdings, the parent company of Fila, Titleist and FootJoy, announced an increase in sales growth following a restructuring of its U.S. operations. The firm, based in South Korea, saw a 6.3% year-on-year boost in revenue during this period, reaching KRW915.2 billion (US$612 million). This follows a 3.7% uplift in sales reported in the third quarter.

    Company executives attribute this growth to a combination of factors, despite the prevailing macroeconomic uncertainty. These include a focus on profitability-driven operations, the positive outcomes of restructuring, and robust performance from Acushnet.

    Segment Performance

    Revenue from the Misto segment, which includes Fila and other lifestyle brands, fell by 9.6%. This decrease was primarily due to restructuring and inventory clearance in the U.S. market. However, operating profit improved significantly, reaching KRW74.7 billion, marking a notable recovery from the previous year.

    The Greater China market has emerged as a new area of growth for the company, driven by the expansion of prominent K-fashion brands. In South Korea, demand for Fila’s footwear franchise models remained stable.

    The Acushnet segment reported a sales growth of 10.9%, bolstered by strong sales of golf equipment, such as Titleist T-Series irons and SM10 wedges. Additionally, higher average selling prices for FootJoy golf shoes contributed to this growth.

    Yearly Overview

    For the entirety of FY25, the company’s consolidated revenue grew by 4.7% to reach KRW4.47 trillion. Operating profit surged by 31.6% to KRW 474.8 billion.

    Ho Yeon (Aaron) Lee, CFO of Misto Holdings, reflected on the past year, saying it was a significant period that saw the company reinforce its identity as a global brand portfolio company following a corporate name change.

    He noted that the expansion of the Greater China business, improved profitability in the Misto segment, and solid growth in Acushnet have all contributed to the stability of the company’s earnings.

    Questions & Answers

    What factors led to the growth of Misto Holdings in the fourth quarter?
    The growth was attributed to profitability-focused operations, the restructuring of the U.S. operations, and strong performance from Acushnet.

    How has the Misto segment performed amidst the company’s restructuring?
    Despite a decrease in revenue by 9.6% due to restructuring and inventory clearance, the Misto segment saw an improvement in operating profit, marking a significant turnaround.

    What contributed to the sales growth of the Acushnet segment?
    Increased sales of golf equipment, particularly Titleist T-Series irons and SM10 wedges, along with higher average selling prices for FootJoy golf shoes, supported the 10.9% growth in the Acushnet segment.

  • Hang Seng Bank Axes Jobs in Restructuring

    Hang Seng Bank Axes Jobs in Restructuring

    Hang Seng, a Hong Kong-based lender backed by HSBC, is preparing to make adjustments to its workforce as part of a wider restructuring plan and a move to incorporate more technology into its operations.

    Workforce Reduction

    The company has announced that it will be reducing its core staff by approximately 1 percent in an attempt to streamline roles and improve efficiency. The exact number of jobs at risk has not been divulged by the bank, but it has confirmed that technology will play a central role in enhancing the quality of service and operational efficiency.

    Employees affected by these changes are encouraged to apply for new positions that have been created as a result of the restructuring process.

    Previous Speculation

    This announcement comes in the wake of reports suggesting that Hang Seng was planning to eliminate between 10 and 50 percent of its workforce in certain departments.

    Ownership and Employment

    HSBC maintains a 63 percent stake in Hang Seng, which boasts a workforce of around 8,300 employees. Most of these individuals are based in Hong Kong and mainland China, as of the close of 2024.

    Questions & Answers

    What is the primary reason for Hang Seng’s restructuring?
    The main purpose of the restructuring is to streamline roles and improve operational efficiency within the company.

    How will technology play a role in Hang Seng’s restructuring?
    Technology will be used to enhance the quality of service and operational efficiency in the bank.

    How many employees does Hang Seng currently employ and where are they based?
    Hang Seng has around 8,300 employees, the majority of whom are located in Hong Kong and mainland China.

  • Yeah1 to buy TV firm amid restructuring

    Yeah1 to buy TV firm amid restructuring

    Online entertainment company Yeah1 plans to buy a 51 percent stake in TV and radio company STV amid a major restructuring endeavor.

    The deal is set to be completed this quarter. STV, established in 2008, owns lifestyle TV channel StyleTV, stock and finance channel InfoTV and radio channel Joy FM.

    The deal was announced after Yeah1 founder and chairman Nguyen Anh Nhuong Tong sold his entire 12.89 percent stake on June 1 after 15 years of leading the company from an online news website to the first media company to be listed on the Ho Chi Minh Stock Exchange.

    Several other major shareholders have also been pulling out since February, including DFJ VinaCapital Venture Investment.

    Yeah1 has postponed its annual general meeting twice this year saying more time was needed to prepare important documents.

    It reported post-tax profits of nearly VND28 billion last year after two years of losses.

    Its contract with YouTube was terminated in March 2020 due to a violation of policies, and what began as an operational error has “turned into a real crisis for the company,” Tong once said.

    Yeah1 targets revenues of VND588 billion this year, down 45 percent from 2021 and the lowest since 2017.

    It plans to issue 78.6 million new shares to increase its capital.

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  • Tencent Ordered to Restructure Financial Units

    Tencent Ordered to Restructure Financial Units

    Similar to rival Ant Group, Tencent has also been ordered to set up a holding company to contain its finance-related businesses.

    Regulators told Tencent to place its finance-related businesses into a new financial holdings company for better supervision, according to a Caixin report citing unnamed sources.

    This follows a report last month that said top financial regulators summoned 13 tech giants – including Tencent – to discuss tighter restrictions across various areas including payments linked to financial products, customer data collection, and credit scoring services.

    Tencent and its peers are following a similar path to that of Ant Group which was first to face restructuring to become a financial holding company after it was ordered to do so by China’s central bank.

  • Thai Airways Is On Track With Its Rescue Plan

    Thai Airways Is On Track With Its Rescue Plan

    Thai Airways acting president Chansin Treenuchagron claims the airline is still on schedule with its debt rehabilitation plan. Thai Airways has until February 2nd to submit its plan to the Central Bankruptcy Court in Thailand after it was granted a one-month extension.

    In an attempt to save Thailand’s national airline from going under, the country’s Central Bankruptcy Court approved its restructuring back in September. Having accumulated $11bn in debt, the carrier was set a deadline of January 2nd to submit its full rehabilitation plan. However, the courts gave Thai Airways an additional month to finalize its rescue plan, with a new deadline of February 2nd.

    The extension suggests Thai Airways has been struggling to reach a satisfactory agreement with all parties involved. In a statement, acting president Chansin Treenuchagron offered reassurance that the airline is still on track with its plan.

    The nature of Thai Airways’ debt is complex, with banks, aircraft lessors, lenders, and suppliers all looking for a satisfactory outcome. The airline is ‘moving closer and closer to an agreement’ with its creditors. Before it can submit its plan to the Central Bankruptcy Court, Thai Airways requires approval from its creditors.

    While Thai Airways initially planned to implement the restructuring plan by the first quarter of 2021, it wasn’t able to finalize and submit the details in time. The airline is also working with consultants and advisors to help it deal with all the complexities of the restructuring process. Mr. Treenuchagron added,

    Thai Airways has been in a difficult position for a few years now, with fierce competition from low-cost carriers contributing towards spiraling debt. The airline was in a precarious position before the COVID pandemic had begun, with the downturn in air travel only adding to its woes. By July 2020, Thai Airways had defaulted on over $3bn worth of debt and suspended most of its operations.

    Domestic air travel has remained steady in Thailand for most of 2020, with the country faring better than most in its domestic market. However, a second COVID wave sweeping across Thailand has led to a 60% drop in air travel since the beginning of the year. Thai Airways has resorted to increasingly novel methods of raising capital during the pandemic. This includes selling surplus consumables like salt shakers, aircraft tires, and wine glasses, as well as auctioning off 32 widebody planes.

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  • Founders of Google announce a major corporate restructuring

    Founders of Google announce a major corporate restructuring

    Today, Larry Page and Sergey Brin, the co-founders of Google, announced that they would step down from their respective roles in Alphabet Inc., the parent company of the world’s largest search engine. Continuing forward, current Google CEO Sundar Pichai will take the chief executive officer position at Alphabet while retaining his role at Google.

    This change comes after four years after Google first announced the new public holding company Alphabet, as well as its own transition from a standalone to a subsidiary of that company. When the change occurred, Page and Brin took the positions of CEO and president at Alphabet, Inc, respectively, while Pichai took the reins at Google.

    This new transition reflects Google’s growth in the scale and variety of its ventures and offered services. Page and Brin write, “Today, in 2019, if [Google] was a person, it would be a young adult of 21 and it would be time to leave the roost. While it has been a tremendous privilege to be deeply involved in the day-to-day management of the company for so long, we believe it’s time to assume the role of proud parents,” in a founder’s letter posted.

    This doesn’t mean the co-founders are leaving the company entirely, however. They continue to write, “We are deeply committed to Google and Alphabet for the long term, and will remain actively involved as Board members, shareholders and co-founders. In addition, we plan to continue talking with Sundar regularly, especially on topics we’re passionate about!”

    With this change taking place, newly-appointed Alphabet CEO Sundar Pichai’s responsibilities will now include managing Nest, Waymo, Wing, and other subsidiaries that were related to but not directly affiliated with Google.

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  • UBS to Restructure Investment Bank

    UBS to Restructure Investment Bank

    UBS is going to revamp its investment banking unit along the lines of a wealth management business. The goal is to make the unit leaner and more global.

    Piero Novelli and Rob Karofsky are about to unveil their plans for a revamp of the investment banking business at UBS, according to media reports. The two managers have been in charge of the business for a little less than a year.

    The co-heads are planning to merge certain divisions within the bank in a bid to make the management structure leaner. The advisory service to companies for mergers, acquisitions and IPOs will become the responsibility of Javier Oficialdegui and Ros Stephenson. Currently, the business is led by three regional heads.

    The same brush will be applied to the equity and fixed-income trading, which has been kept separate so far. George Athanasopoulos and Jason Barron will be appointed as co-heads.

    The merger of the units will lead to duplications among managers and hence likely to a reduction of the respective headcount.

    Sergio Ermotti, the CEO of UBS, in 2018 merged North America with the rest of the world in wealth management, a move that helped the bank save $200 million a year, according to an interview with Chairman Axel Weber. By 2021, the sum will reach $600 million. And still, the business hasn’t performed according to expectations.

    Novelli and Karofsky obviously hope to cut costs and boost revenues with the help of a leaner and more efficient structure. Details of their plan will follow later today at an internal event, according to the reports.

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  • Coles partners with Accenture to cut costs

    Coles partners with Accenture to cut costs

    Coles is powering ahead with plans for a more digitally-focused future by signing a long-term agreement with global technology services company Accenture.

    The partnership is part of Coles’ Smarter Selling initiative which is hoped will cut costs to the tune of $1 billion over the next four years through the rollout of new technology.

    As part of the strategy, the supermarket plans to increase automation of manual tasks and use artificial intelligence for quicker and more accurate stock ordering.

    The supermarket giant has amped up its technology since its demerger from Wesfarmers last year, having recently announced a strategic partnership with Microsoft to transform its shopping experience and improve productivity.

    Accenture has a global strategic relationship with Microsoft and will work alongside the tech giant to help Coles deliver “simpler, more efficient, and robust operations”.

    Accenture will also support the modernization of Coles’ supply chain with online grocery leader Ocado, which Coles partnered with in March.

    “We have committed to being technology-led in our stores and throughout our supply chain to reduce costs while delivering an even better shopping experience for customers and making life easier for our team members,” Coles chief executive Steven Cain said.

    “The partnership with Accenture will enable us to deliver the efficiencies we need for long-term sustainability, and provide the agility to respond to rapidly-evolving consumer needs. This is a vital part of Coles winning in its second century,” Cain said.

    As part of the expanded relationship with Accenture, the companies will invest in a joint innovation fund set up to explore new technology applications within Coles.

    “The evolution of the relationship with Accenture reflects the company’s strategy to win together through genuine partnerships with suppliers,” Coles chief information and digital officer Roger Sniezek said.

    “Accenture is a global leader in the digital space and in working together over the past years across a wide range of areas of Coles Group, we have each come to understand each other’s businesses, strengths, and ways of working,” he added.

    “By leveraging this enhanced relationship, we will work together to build Coles’ technological capability, so we have the tools we need to inspire our customers and make life easier for our team members.”

    Accenture will also support the implementation of SAP solutions across procurement, human resources, and finance at Coles.

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  • Toys R Us calls in restructuring advisors

    Toys R Us calls in restructuring advisors

    Toys R Us has appointed restructuring advisors as it struggles under a debt burden, suggesting it may be about to trim its store network.

    Neil Saunders says while the decision is not necessarily a sign of imminent bankruptcy, it is an indication the company is in “a very uncomfortable financial position”.

    “For a robust retailer, debt payments can be challenging. For a retailer struggling to generate sales growth while, at the same time, trying to invest to remain relevant – it can be the difference between success and failure.”

    Saunders says Toys R Us faces a pincer movement.

    “Firstly, it suffers competition from online and physical generalists who happily discount toys to drive customer traffic and sales for stores and websites. Toys R Us has little choice but to price match on some items but has no other categories with which it can balance out eroded margins. Where it fails to price match, it loses sales.

    “Secondly, Toys R Us has lost out in the digital space. Although recent digital investments have been made, the website and general e-commerce proposition are still below par. By our calculations, Toys R Us continues to lose online market share in toys.”

    A further complication for the toy giant is that it operates large and expensive stores.

    “These are increasingly unsuited to what consumers want and expect, and they are steadily becoming less productive and efficient,” says Saunders.

    “Against this backdrop, Toys R Us has to contend with the debt it accumulated as part of the leveraged buyout. In our view, this is an example of private equity damaging retailers by not running them as commercial trading entities but as ATMs.”

    Toys R Us in Asia is operated as a joint venture between the US parent and Fung Retailing. In April, it consolidated its operations in the region by merging the 160-strong Toys R Us Japan chain into the JV, which is 85 per cent owned by Toys R Us.

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  • Coca-Cola to restructure company and cut costs

    Coca-Cola to restructure company and cut costs

    Coca-Cola’s sales declined in the first quarter as it restructured its business, and the world’s biggest beverage maker said it will cut 1,200 jobs starting later this year as it deepens its cost-cutting.

    The maker of Fanta, Sprite and Smartwater said the job cuts will come from its corporate staff around the world. That would represent about a 22-per-cent reduction of its corporate staff of about 5,500, or a 1-per-cent reduction in its total workforce of 100,300 employees, according to FactSet.

    Coca-Cola Co. said the cuts would help it find another $800 million (U.S.) in annualized savings, in addition to the $3 billion the company previously said it is trimming. Most those savings are expected to be realized in 2018 and 2019, it said.

    The cuts are part of a comprehensive review and won’t be concentrated in any one place, the company said.

    The company has also been reshaping its business by selling back its bottling and distribution operations to independent bottlers. That means Coke is becoming more focused on selling concentrates to bottlers and marketing for its brands as its No. 2 executive, James Quincey, prepares to officially take over as CEO next week.

    Quincey has said he plans to focus on making Coke a “total beverage company,” meaning it will more aggressively seek growth in promising drinks other than soda to better reflect changing tastes. The efforts have included putting more marketing behind options like Smartwater, including a carbonated variety of the bottled water.

    When excluding the impact of refranchising, a negative impact from foreign currency exchanges and other structural changes, Coke said its revenue was flat.

    On a global basis, the Atlanta-based company said total sales volume was flat. That reflected a 1-per-cent decline in sodas, and a 3-per-cent increase for the category including water, enhanced water and sports drinks. Volume rose 2 per cent in the category including tea and coffee.

    For the first three months of the year, the company earned $1.18 billion, or 27 cents per share. Excluding one-time gains and costs, it said it earned 43 cents per share, a penny less than analysts expected, according to Zacks Investment Research.

    Total revenue was $9.12 billion in the period, topping analyst forecasts for $8.96 billion.

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  • Nokia announces major restructuring

    Nokia announces major restructuring

    Nokia has announced a restructuring of its mobile unit into two groups, focused on mobile networks and services respectively, in response to the planned departure of the company’s current mobile networks chief.

    The company said it will establish two units called Mobile Networks and Global Services respectively.

    The company’s current chief innovation and operating officer Mark Rouanne will lead up the mobile networks business group, which will be focused on areas including 4G, 5G, cloud core and small cells.

    The Global Services division will meanwhile be led by Igor Leprince, the current executive vice president of global services.

    These executives are taking over from current head of mobile networks Samih Elhage, who is leaving the company on April 1 but will stay on as an advisor until May 31. In a statement, Nokia CEO Rajeev Suri said Elhage has decided to leave now that the integration with Alcatel-Lucent is mostly complete.

    “From helping lead the transformation at Nokia Siemens Networks and creating a disciplined operating model that remains a competitive advantage, to being one of the driving forces behind the acquisition of Alcatel-Lucent and its fast and successful integration, Samih’s contributions to Nokia have been remarkable,” Suri said.

    “He has been a close friend and advisor through times both good and bad, and I fully support his desire for a change.”

    As part of the restructuring, the position of chief innovation and operating officer (CIOO) will be dissolved and the duties split. Responsibility for operations will be transferred to the newly-created position of group chief operating officer (COO), innovation will be taken over by Nokia’s chief technology officer (CTO) and incubation will be assumed by Nokia’s chief strategy officer.

    The group COO position is going to Monika Maurer, currently the company’s COO for fixed networks, while Marcus Weldon will retain the post of CTO and Kathrin Buvac will remain chief strategy officer.

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