Wall Street Journal-Cost Containment Top Strategy For Corporations

Corporations are focusing more of their efforts on reviewing cost structures and looking for new ways to contain or reduce costs. Companies that are doing this have seen a more robust bottom line. On Monday the Wall Street Journal cited some examples:

General Electric CFO referred to the " Focused shrinkage of its financial unit".

Target Corp. said it plans to test stores that will have 50% fewer items.

Intel touted their fourth quarter profit which was achieved through cost cutting. Revenue is down 9.5% and earnings are down almost 50%.

"In reaction to a sharp pullback by consumers during the recession, Corporate America clearly has been on a strict no-fat diet, with banks, airlines and manufacturers among the more high profile industries getting alot skinnier. The aim is getting what investors value most: fatter profits. Corporate cuts have been most notable in in capital spending and payrolls. Capital spending fell roughly 22% last year.

...Citigroup Inc is getting back on its feet in part by reducing" the size and scope of the company" said Chief Executive Vikram Pandit. The slimmer Citi has shed one third of its employees and unloaded $500 billion in assets.

Reported by Pau Vigna and John Shipman WSJ.

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