More job cuts for cell company Sprint
Cellphone company Sprint is eliminating more jobs as it seeks to cut costs and turn around its business. Sprint spokesman Dave Tovar said the country's No. 4 wireless service provider had cut about 2,500 jobs since last fall, or about 8 percent of its workforce. Last week, it notified employees at six customer service centers around the country that it would be closing those locations or reducing the staff there. The latest round of layoffs followed 2,000 job cuts announced in November 2014. Shares of the Overland Park, Kan.-based company are down about 39 percent in the past 12 months. The stock dropped 9.6 percent to $2.60 in afternoon trading Monday.
House hearing for Shkreli rescheduled
House lawmakers have rescheduled a hearing to question former pharmaceutical CEO Martin Shkreli, reviled for hiking the price of a lifesaving drug, due to the weekend blizzard that paralyzed travel on the East Coast. Staffers for the House Committee on Oversight and Government Reform said the hearing will take place Feb. 4. The new date increases the likelihood that the former Turing Pharmaceuticals CEO will be forced to attend, despite attempts by his lawyer to keep Shkreli far from Capitol Hill. Shkreli became the public face of corporate greed last fall, after his company hiked the price of Daraprim, the only approved drug for a rare and sometimes deadly parasitic infection, by 5,000 percent. Since then, the boyish entrepreneur has been deluged with criticism from patients, politicians and the media, with some labeling him the "most hated man in America."
Ford will withdraw from Japan, Indonesia
Ford Motor Co. is pulling out of Japan and Indonesia, saying that market conditions in each country have made it difficult to grow sales or make sustained profits. Neither market is large for the Dearborn, Mich., automaker. Last year Ford sold only 6,100 cars and trucks in Indonesia and only 5,000 in Japan, where it has accused the government of protecting domestic brands. The company in an e-mailed statement said that the decision was communicated to employees and dealers on Monday. Ford will exit the countries before the end of the year and plans to explain to customers its commitment to servicing cars, providing parts and making warranty repairs.
Olive Gardens adds catering with delivery
Orlando-based Olive Garden restaurants launched catering with delivery at their 800 locations nationwide, the company announced Monday. It also comes with the launch of a four new menu items including a create-your-own Tour of Italy and pianadas, a kind of flatbread with grilled chicken and vegetables. The company is pushing its growing to-go business further by offering catered delivery on orders of $125 or more, plus a 15 percent delivery fee. Orders over $500 will have a 5 percent fee. Olive Garden's to-go orders now make up 10 percent of the restaurant's business, CEO Gene Lee said in December, and the company is exploring exactly how to do delivery using third-party services. The deliveries will be made by Olive Garden employees.
Siemens sees sharp rise in quarterly profit
Siemens AG, maker of trains, power turbines and medical machines, said net profit rose 42 percent in the company's most recent quarter compared with a year earlier. For the quarter, Siemens' incoming orders rose sharply, and the company raised its profit estimate for all of 2016, saying it expected "moderate revenue growth" despite a slowing global economy and global trouble spots. Siemens profit jumped to 1.56 billion euros ($1.71 billion) in the October to December quarter, the first in the company's fiscal year, from 1.10 billion euros in 2014. The profit figure beat the estimate of 1.05 billion euros compiled by financial information provider FactSet. The Munich, Germany-based company also said it had struck a deal to buy U.S. simulation software maker CD-adapco for $970 million as part of its effort to grow the digital side of its engineering business. CD-adapco, based in Melville, N.Y., has some 900 employees, revenue of close to $200 million, and double-digit profit margins.
No Charney in American Apparel plan
American Apparel Inc. will reorganize under a plan put forth by its executives, a bankruptcy judge ruled Monday, dashing the plans of founder Dov Charney, who had hoped to return to the company's leadership. The decision puts the Los Angeles-based clothier one step closer to exiting bankruptcy protection. Charney said he does not plan to appeal the ruling. American Apparel, which filed for Chapter 11 in October, backed a reorganization plan that would take the company private and hand nearly 100 percent control to its largest bondholders. Shareholders, including Charney, would be left with nothing. Charney supported an investor group including Hagan Capital Group that submitted two takeover offers in recent months, including a $300 million bid that was rejected by American Apparel's board.