#profitability

Median employee compensation is $93,397, while three-year average profit per employee is only about $4,083. This suggests comparatively solid employee compensation despite weak profits during the measurement period. The result may change considerably when the business cycle improves.

https://fair500.com/articles/profit-per-employee.html

Given the headcount of AEG, we are heavily investing in AI. Our strength in AI chip design lies in the vast internal data within our tools, which can be directly leveraged by AI models, a luxury that customers and other AI chip companies simply do not have. That said, it is striking that neither my team nor neighboring teams appear to be working directly with AEG to integrate this AI into our tool workflows. It seems to me that AEG is another den of scammers. Meanwhile, we are laying off many contributing employees while expanding a group that lacks profitability, clear direction, and a viable strategy.

Polygon Labs has announced a new round of layoffs as it finalizes its acquisition of Coinme. This move is part of a strategic shift to transform the company into a blockchain-enabled payments firm. The acquisition of Coinme and Sequence is central to the development of the Polygon Open Money Stack. These workforce reductions follow previous cuts made earlier in the year. The company aims to achieve profitability in 2027 through these strategic changes.

San Francisco, California

https://www.theblock.co/post/408625/polygon-labs-second-round-of-layoffs-2026-finalize-coinme-acquisition

Walgreens Boots Alliance is now under private equity ownership following a significant acquisition. The company is implementing aggressive cost-cutting measures, including widespread layoffs and store closures. This strategic shift aims to streamline operations and improve profitability after a period of financial struggle. Former shareholders received a cash payout with the potential for additional returns from future asset divestitures. The company is fragmenting its business into independent units to focus on core competencies.

Deerfield, Illinois

https://www.kavout.com/market-lens/what-triggered-walgreens-shift-to-private-ownership

Here is the comprehensive statistical breakdown for General Motors in 2026, based on their latest Q1 reporting and updated full-year projections.

Key insight: GM's profitability is currently being driven heavily by their unified "Ultium" battery architecture, which is driving down manufacturing costs across their next-generation fleet, alongside a highly profitable mix of traditional gas-powered trucks and SUVs.

GM's first quarter demonstrated significant margin expansion, driven by disciplined cost management and higher-margin truck and SUV sales.

Revenue $43.62 billion Down 0.9%
EBIT-Adjusted $4.25 billion Up 21.9%
Net Income $2.62 billion Down 5.7%
EPS (Diluted-Adjusted) $3.70 per share Up 33.0%
GMNA EBIT-Adjusted $3.66 billion Up 11.4%
GMNA Margin 10.1% Up 1.3 ppts

In late April, GM raised its full-year EBIT guidance by $500 million. This was triggered by a favorable U.S. Supreme Court decision regarding certain tariffs paid under the International Emergency Economic Powers Act (IEEPA), lowering their expected gross tariff costs for the year to a range of $2.5B - $3.5B.

EBIT-Adjusted $13.5 billion - $15.5 billion
Net Income $9.9 billion - $11.4 billion
EPS (Diluted-Adjusted) $11.50 - $13.50
Automotive Free Cash Flow $9.0 billion - $11.0 billion
Capital Expenditures $10.0 billion - $12.0 billion

GM maintained its core volume leadership while aggressively growing its EV footprint in the first half of the year:

• Overall Market: Maintained overall sales leadership in the U.S. and Canada.
• Trucks: Led the U.S. industry in full-size pickup sales with a 42% market share.
• Fleet: #1 in fleet and commercial deliveries.
• Electric Vehicles (EVs): Now ranked #2 in U.S. EV sales with growing market share, and #1 in Canada.
• Crossovers: Since refreshing their lineup in 2023, crossovers have grown from 40% to over 46% of total GM sales.
• China: Reported its 6th consecutive profitable quarter in China (Equity income of $165 million in Q1).

GM is aggressively returning capital to shareholders while scaling its high-margin software business.

• Share Buybacks: The company retired $800 million in shares in Q1 alone, reducing diluted outstanding shares to 926 million (down from 1.002 billion). This is part of a larger $6.0 billion share repurchase authorization approved in early 2026.
• Dividends: Raised the quarterly dividend by 20% to $0.18 per share (a $0.72 annualized yield).
• Software (OnStar/Super Cruise): Deferred software revenue is projected to end 2026 at $7.5 billion. GM expects to realize an additional $400 million in recognized software revenue in 2026, which operates at roughly a 70% gross margin.

It appears that General Motors is doing extremely well, which begs to the question:
Why the urgency to cut costs?

The food and beverage industry is experiencing significant layoffs across various companies. These job cuts are primarily due to restructuring efforts, cost pressures, and changing consumer demand. Artificial intelligence is not the main reason for these widespread workforce reductions. Companies like Heineken, Nestle, JBS USA, Del Monte Foods, and BeatBox have announced job impacts or facility closures. The industry is adapting to new business challenges and seeking greater profitability.

https://foodinstitute.com/focus/food-beverage-layoffs-arent-about-ai-theyre-about-industry-reinventing-itself/

AI Spending Concerns: Despite billions poured into AI, tech leaders like Amazon, Microsoft, and Google face pressure to show tangible revenue gains. This has resulted in a bumpy trajectory for the tech-heavy Nasdaq.

Some people are getting axed based on profitability today- weren’t on plans, just based on years round performance out of the blue- always make sure that resume is updated- T is never a safe company to work at

Anyone heard the investment community is predicting at least 50% RIF in order to restore profitability and stock price…

https://www.fitchratings.com/entity/mutual-of-america-life-insurance-company-80091235

Rating Action Commentary

Fitch Revises Mutual of America's Outlook to Stable; Affirms IFS Rating at 'BBB+'
Fri 12 Jun, 2026 - 9:49 AM ET

Fitch Ratings - New York - 12 Jun 2026: Fitch Ratings has affirmed the Insurer Financial Strength (IFS) rating of Mutual of America Life Insurance Company (Mutual of America) at 'BBB+'. The Rating Outlook has been revised to Stable from Negative.

The revision of the Outlook reflects Mutual of America's continued balance sheet strength while executing on its strategic turnaround plan. The company produced a modest operating loss in 2025; however, core profitability improved yoy and Fitch views the plan as credible to further improve results through expense reductions and revenue expansion.

Mutual of America's rating is underpinned by its very strong capital position, demonstrated by its regulatory capital ratio, Prism capital model score and its lack of financial leverage. The rating is also highly influenced by the company's business profile, which reflects Mutual of America's position within the niche non-profit, small case retirement plan market and its differentiated approach to distribution, emphasizing underserved and underpenetrated portions of the market. The rating is currently constrained by Mutual of America's challenged profitability.

Key Rating Drivers
Pressured Profitability: Mutual of America's 'BBB+' IFS rating is one notch below the implied IFS rating of 'A-' due to its financial performance and earnings, which is the weakest link. The company reported net income of $2 million for 2025, compared with a net income of $53 million in 2024 and a net loss of $236 million in 2023. Positively, operating results improved yoy with a modest net loss of $15 million in 2025 compared with an operating loss of $155 million in the prior year, excluding the company's sale of the remaining stake in its home office building in New York City. In 1Q26, the company produced a net operating gain of $3 million. Fitch expects a slight loss for the full year 2026, followed by modest profitability in 2027. Profitability will be driven largely by continued reductions in expenses including vendor efficiency, contract rationalization, reduced real estate footprint and workforce optimization.

I have a proposal for the BOD’s I think they will enjoy. Instead of laying off staff we should layoff the entire SLT with AI in order to drive company growth, innovation, and profitability. By now, the Board can already sense they dropped the ball hiring Enrique because he does nothing except lose market cap value. So why not save the company hundreds of millions by laying off the executives? Do you actually think AI would do worse? This company’s currently at its lowest point in history. Some people will read this as a joke but the more you think they more it actually makes sense. Also, think of all the stock comp that will be saved!! Buybacks will actually mean something now.

Did anyone else catch the call this morning talking about locations being closed (context seemed to apply to store and offices). They said they are creating ai gems to define profitability and determine if neighboring locations would absorb customers.

https://open.substack.com/pub/eshap/p/colbert-was-profitable?r=7yaly&utm_medium=ios

Teradata (TDC)
Forward P/S Ratio: 1.9x

Why Do We Pass on TDC?

— Products, pricing, or go-to-market strategy may need some adjustments as its 3.7% average billings growth over the last year was weak

— Inability to adjust its cost structure while its revenue declined over the last year led to a 7.2 percentage point drop in the company’s operating margin

— Free cash flow margin is forecasted to shrink by 20.2 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors.

Morningstar Percentile Rankings Through 5/23.

Fund Name Percentile Rank
MoA Intermediate Bond Fund 98
MoA Retirement Income Fund 94
MoA Clear Passage 2020 Fund 93
MoA Core Bond Fund 90
MoA Clear Passage 2050 Fund 85
MoA Clear Passage 2055 Fund 85
MoA Clear Passage 2060 Fund 84
MoA Clear Passage 2045 Fund 83
MoA Clear Passage 2070 Fund 83
MoA Clear Passage 2065 Fund 81
MoA Mid Cap Value Fund 80
MoA Clear Passage 2040 Fund 79
MoA Clear Passage 2035 Fund 77
MoA Clear Passage 2030 Fund 76
MoA Clear Passage 2025 Fund 75
MoA International Fund 74
MoA Conservative Allocation Fund67
MoA Mid Cap Growth Fund 62
MoA Catholic Values Index Fund 56
MoA Small Cap Value Fund 55
MoA Moderate Allocation Fund 54
MoA Aggressive Allocation Fund 52
MoA Balanced Fund 49
MoA Small Cap Equity Index Fund 45
MoA Mid Cap Equity Index Fund 38

The higher the percentile rank, the worse the performance. MOA funds have tanked. how is overpaid capital mismanagement going to spin this

time to sell Capital Management to raise revenue & get better returns

A new study investigated the financial impact of AI-driven layoffs. Eighty percent of surveyed executives admitted to reducing staff for AI investments. These companies saw no greater financial gains than those retaining employees. Many sacrificed institutional knowledge and goodwill without detectable returns. Companies using AI to amplify employee efficiency achieved the most significant gains.

https://futurism.com/artificial-intelligence/layoffs-ai-automation-backfire

A Gartner study challenges the expected profits from AI-driven layoffs. Many organizations reducing staff with AI found little direct return on investment. The research surveyed 350 large global enterprises. Strongest AI returns came from enhancing employee productivity, not eliminating workers. Companies often underestimate hidden costs and the need for human oversight.

Ann Arbor, Michigan

https://mitechnews.com/artificial-intelligence/ai-layoffs-may-not-be-delivering-the-payoff-ceos-expected-gartner-study-finds/

Commerzbank announced plans to eliminate 3,000 positions. This move is part of its "Momentum 2030" strategy. The bank will invest Euro 600 million in artificial intelligence. These efforts aim to boost profitability and defend against a UniCredit takeover bid. Commerzbank reported a first-quarter net profit of Euro 913 million.

https://www.latestly.com/business/commerzbank-layoffs-germany-based-bank-to-cut-3000-jobs-in-major-pivot-to-defend-against-unicredit-takeover-7423939.html/amp

CDW stock dropped 20% today after Q1 2026 earnings revealed a troubling disconnect: strong revenue growth of 9.2% to $5.68B, but shrinking margins. Gross margin fell from 21.6% to 21.0%, and operating income missed estimates by 18%. The market’s reaction wasn’t panic over one bad quarter — it was a verdict on a deeper structural problem.
CDW is fundamentally a “box sales” company — a distributor that moves IT hardware at scale. For years they’ve been trying to pivot toward higher-margin managed services and software to justify their valuation. That pivot isn’t working. Ironically, the AI hardware bo-m should be their moment, but instead of lifting profitability, it’s exposing exactly the problem: they’re selling more, but making less per dollar of revenue.
The long-term picture is concerning. Cloud providers and manufacturers are increasingly cutting out the middleman, and the managed services opportunity CDW was banking on is being eaten by AWS, Azure, and specialized competitors. With $5B in net debt, a deteriorating margin story, and a business model under secular pressure, CDW looks less like a buying opportunity and more like a potential value trap.

Tomorrow Weatherford will release the Q1 earnings. It’s going to show a strong profitable outcome. Due to the fact they laid off a bunch of people they saved money so it’s profitable. Let’s see what more lies gurish holds for us.

Snap Inc. announced a reduction of approximately 16% of its employees. This move impacts about 1,000 positions. The company anticipates expenses between $95 million and $130 million. These cuts aim to streamline operations and improve profitability. The Santa Monica-based company has made previous job cuts.

Santa Monica, California

https://www.wftv.com/news/business/snapchat-owner-cuts/QDLQ6UJRP42J7NT75Y35CFFDA4/

Kroger will stop its Oklahoma City delivery operations. The service concludes on January 31, 2026. Employees learned of job cuts via a recorded message. Many customers, especially elderly individuals, depend on this service. The company aims for faster delivery and increased profitability.

Oklahoma City, Oklahoma

https://www.news9.com/oklahoma-city-news/kroger-layoffs-shock-workers-and-impact-people-in-rural-communities

Panera Bread is implementing a new transformation strategy called "Panera RISE." This plan involves closing several regional Fresh Dough Facilities. The company is shifting to third-party artisan bakers for dough production. These closures have resulted in 399 employee layoffs across four states. Panera aims to improve profitability and drive sales growth with this restructuring.

https://www.thestreet.com/restaurants/40-year-old-fast-casual-restaurant-chain-panera-bread-lays-off-100s

the bloody cuts from the end of the year aren't enough.

"For 2026, the company expects normalized operating margin of 8.6-9.2%, with the midpoint representing a 50-basis-point (bps) improvement from 2025. Most of this expansion is anticipated to come from lower overhead expenses. The productivity plan is also projected to deliver more than $75 million in year-over-year savings and reduce overhead by nearly 100 bps, as a percentage of sales. These savings will support Newell to offset inflation and higher tariff costs while supporting increased investment in innovation without compromising profitability."

That's the only move Oracle management knows, apparently.

Are there layoff expected in Minimed to return to profitability, to boost share prices? Any thoughts

With the amount of business fraud these agents do and the travel required for the role I don’t see how this position can survive much longer is it really profitable

This bank barely makes any $.

Lucid Motors is reducing its US employee count by 12 percent. Marc Winterhoff, interim CEO, informed employees. The company aims for greater efficiency and profitability. Lucid seeks to become profitable amid a difficult EV market. The cuts do not impact hourly production staff.

https://www.businessinsider.com/lucid-layoffs-read-memo-us-workforce-tesla-rival-2026-2

I believe eventually either Saks or Neiman’s will close stores which are located near each other. Atlanta, Chicago, Beverly Hills, Tyson’s corner, and Bal harbor come to mind. It seems like this will be the next logical move. Whichever of the two has lower profits and higher expenses will be closed.

All health insurers are not doing great currently. Quickly look at their profit margin for the past 2-3 years and it’ll often be low single digit or negative

Medicare advantage is going to be tough again this year, so, not surprised

I do believe HC is essentially in trouble. With 2027 projected MA revenue change of 0.09% which indirectly affects 2026 projections, projected further MA membership attrition (up to 3 million), HC will inevitably shrink.

“They’re choosing profitability over membership in certain books (expecting membership attrition as they reprice / exit margin-dilutive segments).” Basically dropping millions of members where they’re supposedly losing money. It doesn’t look good at all.

Is the company profitable? The stock seemed to tank and not go up at all.

ExxonMobil's Proxxima™ systems are projected to contribute more than 40% of earnings potential by 2030, indicating a strong potential for profitability. The company aims to achieve a return on capital employed of more than 17% with no increase in capital spending, which is a testament to ExxonMobil's execution excellence and disciplined capital allocation. Additionally, the market for Proxxima™ materials could be as much as 5 million metric tons per year, suggesting a significant revenue stream for ExxonMobil.

https://corporate.exxonmobil.com/news/news-releases/2025/1209-exxonmobil-raises-2030-plan-transformation#LowCarbonSolutions

VMware didn’t need all of those employees and Broadcom runs VMware with more efficiency and profitability than most of you thought was possible.

Anyone drinking the Kool-Aid still? Read this: https://simplywall.st/community/narratives/us/diversified-financials/nasdaq-fisv/fiserv/puwknbpq-tech-giants-blockchain-and-fee-pressures-will-erode-profitability-e9qo/updates/3-3-analysts-have-slashed-our-fiserv-fair-value-estimate-from-ab?utm_source=Braze&utm_medium=email&utm_campaign=CommunityDigest

Annual sales declines of 2.6% for the past five years show its products and services struggled to connect with the market

Earnings per share decreased by more than the revenue over the last five years, showing each sale was less profitable

8× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

When do the Board declare no confidence in them ?

There’s no real plan. Just cutting into oblivion won’t magically make the company better, more efficient, or more profitable. And no, AI can’t replace people, unless someone is aiming for an epic fail.

Oracle made $125M on $900M worth of rev from renting out data centers powered by Nvidia GPUs... this works out to a 14% profit margin. That’s a sh---y profit margin in a normal business, it’s VERY modest in a highly volatile industry like this one. It’s much smaller than the roughly 70% gross margin Oracle gets on non-AI services…