Latest news with #restructuring
Yahoo
12 hours ago
- Politics
- Yahoo
Trump administration to cut all USAID overseas roles in dramatic restructuring
The Trump administration will eliminate all USAID (United States Agency for International Development) overseas positions worldwide by 30 September in a dramatic restructuring of remaining US foreign aid operations. In a Tuesday state department cable obtained by the Guardian, secretary of state Marco Rubio ordered the abolishment of the agency's entire international workforce, transferring control of foreign assistance programs directly to the state department. The directive affects hundreds of USAID staff globally, including foreign service officers, contractors and locally employed personnel across more than 100 countries. Chiefs of mission at US embassies have been told to prepare for the sweeping changes to occur within four months. 'The Department of State is streamlining procedures under National Security Decision Directive 38 to abolish all USAID overseas positions,' the cable reads, adding that the department 'will assume responsibility for foreign assistance programming previously undertaken by USAID' from 15 June. Among those who cleared the cable was Howard Van Vranken, a former ambassador to Botswana. The best public interest journalism relies on first-hand accounts from people in the know. If you have something to share on this subject you can contact us confidentially using the following methods. Secure Messaging in the Guardian app The Guardian app has a tool to send tips about stories. Messages are end to end encrypted and concealed within the routine activity that every Guardian mobile app performs. This prevents an observer from knowing that you are communicating with us at all, let alone what is being said. If you don't already have the Guardian app, download it (iOS/Android) and go to the menu. Select 'Secure Messaging'. SecureDrop, instant messengers, email, telephone and post See our guide at for alternative methods and the pros and cons of each. Tammy Bruce, the state department spokesperson, confirmed the cable during a press briefing Tuesday afternoon, telling reporters that the incoming actions are just following through on Trump administration promises to destroy the agency. 'So this was a cable, telling our posts exactly what they were expecting to be told, which is that those positions were being eliminated. So it wasn't a surprise. It's nothing new,' Bruce said. 'And, it is exactly what we previewed, in February and March of this year.' The decision to close the agency comes after the Trump administration – under the so-called 'department of government efficiency' (Doge) – eliminated 83% of USAID's programs in a six-week purge after Donald Trump took office. A federal judge had temporarily blocked an executive order by Trump for mass firings at multiple federal agencies, including the state department, and plaintiffs say Rubio's reorganization plan appears to violate that court injunction. The Trump administration says the plan was already underway when the president issued the order, so there's no possible violation. Rubio announced in March that 5,200 of the agency's 6,200 programs worldwide had been terminated, with the surviving initiatives being absorbed into the state department. The closures followed an executive order from Trump on his first day back in the White House on 20 January freezing foreign assistance pending a review. While a waiver was subsequently announced for humanitarian assistance, questions were raised about USAID's future after its website disappeared on 1 February. Two days later, staff received an email telling them not to come to work following a weekend during which its servers were removed and leadership and senior staff fired or put on disciplinary leave. Rubio declared himself that agency's acting administrator after staff were locked out of its Washington headquarters. Amid the cuts, Elon Musk, the billionaire tech entrepreneur and then de facto leader of Doge, gleefully boasted of feeding USAID 'into the woodchopper', while disseminating false claims about its programs – including one assertion that the agency carried out a $50m project to provide condoms in Gaza, a claim that was subsequently proved to be untrue. According to internal documents, senior officials at the agency warned Rubio of the devastating impact that would be caused by the cuts, including 1 million children untreated for malnutrition, up to 160,000 deaths from malaria and 200,000 more children paralyzed from polio over the next decade if they were implemented. Remaining officials at the agency were ordered to destroy classified documents – using shredders and 'burn bags' – in March in an email from USAID's acting secretary, Erica Y Carr. 'Shred as many documents first, and reserve the burn bags for when the shredder becomes unavailable or needs a break,' Carr wrote to staff. The state department declined to comment on the cable, but told the Guardian on the destruction of documents that 'all staff who have managed this process have the appropriate level clearances and have received previous records management training'. This article was amended on 10 June 2025. A previous version inaccurately stated that thousands, not hundreds, of USAID staff globally would be affected by the cuts. This article was updated on 11 June 2025 to include comments from the state department.
Yahoo
12 hours ago
- Business
- Yahoo
Is BMBL Stock a Buy as Bumble Lays Off 30% of Staff?
On June 25, shares of social networking and dating app company Bumble (BMBL) surged 25% following a bold announcement that it would reduce its global workforce by about 30%. Greenlit by the board on June 23, the decision is part of a larger restructuring effort focused on streamlining operations and prioritizing long-term growth. Bumble anticipates one-time charges ranging between $13 million and $18 million, primarily covering severance packages, benefits, and other related expenses. Despite these upfront costs, Bumble expects annual savings of up to $40 million. The funds will be redirected into advancing product innovation and upgrading its technological infrastructure. Dear Nvidia Stock Fans, Watch This Event Today Closely Can Broadcom Stock Hit $400 in 2025? A $2 Billion Reason to Sell Super Micro Computer Stock Now Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Alongside the workforce reduction, Bumble has raised its second-quarter 2025 outlook. The upgraded forecast signals growing confidence in its ability to stabilize financially, even as the dating app industry grapples with challenges like user fatigue and a difficult macro environment. Investors will be watching closely to see whether BMBL stock's upward momentum can continue on the back of this more optimistic outlook. Based in Austin, Texas, Bumble operates two of the world's leading dating platforms: Bumble and Badoo. These apps boast millions of active users and rank among the highest-grossing in the sector. With a market capitalization of $673 million, Bumble positions itself as a platform committed to fostering equitable and healthy relationships. Despite the company's strong brand presence, shares have faced significant pressure over the past 52 weeks, plunging nearly 36%. However, BMBL stock has seen a notable turnaround in recent months, with shares climbing 40% over the past three months and rocketing 24% in just the last five trading days. BMBL stock trades at 6 times forward adjusted earnings and 0.50 times sales, well below industry averages. The steep discount hints at a rare value play, especially if the stock's turnaround gains traction. For investors seeking upside at a bargain, this pricing could be too attractive to pass up. Bumble's fiscal 2025 first-quarter results, released on May 7, painted a mixed picture but contained some silver linings. Revenue slid 7.7% year-over-year (YOY) to $247.1 million. However, the figure still managed to beat analyst expectations, which hovered around $246.5 million. Revenue from the flagship Bumble app fell 6.5% YOY to $201.8 million, while Badoo and other sources saw a sharper decline of 13% to $45.3 million. The firm's user base remained steady with about 4 million paying customers, but average revenue per paying user dipped to $20.24 from $21.84, signaling some pressure on monetization. Adjusted EBITDA dropped 13% YOY to $64.4 million during the quarter. Net earnings also took a 41.5% hit, falling to $19.8 million. EPS declined 31.6% YOY to $0.13, missing the consensus estimate of $0.16 and reflecting ongoing challenges in profitability. The balance sheet showed $202.2 million in cash and cash equivalents against a sizable debt load of $616.1 million as of March 31. Despite these hurdles, the company's outlook appears to be improving. For the second quarter, Bumble forecasts a range between $244 million and $249 million. This marks a notable increase from its previous estimate of $235 million to $243 million. Adjusted EBITDA guidance was also lifted alongside the job cuts, from an earlier range of $79 million to $84 million to a new target of $88 million to $93 million. Analysts have raised expectations for the second quarter as well, forecasting a 36.4% YOY increase in EPS to $0.30. Fiscal 2025 looks even more promising, with the bottom line projected to surge 118% to $0.86 per share. The growth trend is expected to continue into fiscal 2026, with EPS anticipated to rise by 10.5% to $0.95. These estimates suggest that Bumble's cost-cutting and reinvestment strategies may soon translate into stronger financial results. Currently, BMBL stock holds an overall analyst rating of 'Hold.' Among the 16 experts tracking the stock, only one issues a 'Strong Buy' recommendation and another leans toward 'Moderate Buy.' The majority, 12 analysts, maintain a 'Hold' stance while one analyst suggests a 'Moderate Sell' and another a 'Strong Sell" rating. The mixed sentiment reflects ongoing uncertainty about Bumble's ability to fully recover in a competitive market. Still, the Street-high price target sits at $9 per share, indicating potential upside of 38% from current levels. Should Bumble's restructuring and revised guidance translate into sustained growth, Bumble stock could capture investor interest and climb higher. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Associated Press
19 hours ago
- Business
- Associated Press
Clarification by Transat A.T. Inc. following injunction application by Financière Outremont Inc.
MONTREAL, June 27, 2025 /CNW/ - Transat A.T. Inc. ('Transat' or the 'Corporation') announces that on June 27, 2025, it was served with an application for an interlocutory injunction and permanent injunction (the 'Injunction Application') from Financière Outremont Inc. ('Financière Outremont'), a company controlled by Mr. Pierre Karl Péladeau, in connection with the announcement of the agreement in principle published on June 5, 2025, with Canada Enterprise Emergency Funding Corporation ('CEEFC') regarding the restructuring of the debt incurred by Transat under the Large Employer Emergency Funding Facility (LEEFF) program managed by CEEFC during the COVID-19 pandemic (the 'Transaction'). Since the announcement of the agreement in principle, the Corporation's share price has increased from $1.64 at market close on June 4, 2025, to $2.83 at market close on June 27, 2025, representing a 72% increase. As a reminder, upon completion of the Transaction, the outstanding debt with CEEFC will be written-off by nearly 50%, from $772M as at March 31, 2025, to $334M as follows: At no time will the exercise of Warrants or conversion of Preferred Shares result in CEEFC beneficially owning more than 19.9% of the common shares, and therefore, CEEFC will not exert control over the Corporation. The Injunction Application by Financière Outremont aims in particular to prevent the closing of the Transaction, beneficial for the Corporation, unless the Corporation obtains shareholder approval, which the Corporation deems not required. In this regard, the Corporation reiterates that it has rightfully relied on the formal valuation and minority approval exemptions contained in sections 5.5(g) and 5.7(1)(e) of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions, given that the Transaction significantly strengthens the financial position of the issuer, which was becoming extremely precarious due to the size of its debt, as repeatedly disclosed in the Corporation's public filings. The Corporation believes the allegations made by Financière Outremont are unfounded and intends to contest them vigorously and seek dismissal of the Injunction Application. This application does not affect the Corporation's operations. The Corporation recalls that the announced Transaction is the result of discussions initiated over 18 months ago with CEEFC and the review of a range of alternatives conducted through a robust process with the assistance of a special advisory committee of the Board of Directors composed solely of independent directors, with a view to establishing an optimal long-term capital structure for the Corporation. The Transaction was unanimously approved by the Board of Directors on the recommendation of the special committee, which completed its work with the assistance of external financial and legal advisors. The usual conditional approval of the Toronto Stock Exchange was obtained regarding the Preferred Shares component. The Transaction is subject to the finalization of definitive agreements. The Corporation does not intend to comment further on the Injunction Application out of respect for the ongoing judicial process unless circumstances warrant otherwise. For more details on the Transaction, please refer to the press release issued by the Corporation on June 5, 2025, available on SEDAR+ at Caution Regarding Forward-Looking Information This news release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements are identified by the use of terms and phrases such as 'anticipate' 'believe' 'could' 'estimate' 'expect' 'intend' 'may' 'plan' 'potential' 'predict' 'project' 'will' 'would', the negative of these terms and similar terminology, including references to assumptions. All such statements are made pursuant to applicable Canadian securities legislation. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, economic conditions, changes in demand due to the seasonal nature of the business, extreme weather conditions, climatic or geological disasters, war, political instability, measures taken, planned or contemplated by governments regarding the imposition of tariffs on exports and imports, real or perceived terrorism, outbreaks of epidemics or disease, consumer preferences and consumer habits, consumers' perceptions of the safety of destination services and aviation safety, demographic trends, disruptions to the air traffic control system, the cost of protective, safety and environmental measures, competition, maintain and grow its reputation and brand, the availability of funding in the future, the Corporation's ability to repay its debt from internally generated funds or otherwise, the Corporation's ability to adequately mitigate the Pratt & Whitney GTF engine issues, fluctuations in fuel prices and exchange rates and interest rates, the Corporation's dependence on key suppliers, the availability and fluctuation of costs related to our aircraft, information technology and telecommunications, cybersecurity risks, changes in legislation, regulatory developments or procedures, pending litigation and third-party lawsuits, the ability to reduce operating costs through the Elevation program initiatives, among other things, the Corporation's ability to attract and retain skilled resources, labour relations, collective bargaining and labour disputes, pension issues, maintaining insurance coverage at favourable levels and conditions and at an acceptable cost, and other risks detailed in the Risks and Uncertainties section of the MD&A included in our 2024 Annual Report. The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of the Corporation's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. The Corporation considers that the assumptions on which these forward-looking statements are based are reasonable. These statements reflect current expectations regarding future events and operating performance, speak only as of the date this news release is issued, and represent the Corporation's expectations as of that date. For additional information with respect to these and other factors, see the MD&A for the quarter ended April 30, 2025 filed with the Canadian securities commissions and available on SEDAR+ at The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable securities legislation. About Transat A.T. Inc. Founded in Montreal 37 years ago, Transat has achieved worldwide recognition as a provider of leisure travel particularly as an airline under the Air Transat brand. Voted 2025 World's Best Leisure Airline by passengers at the Skytrax World Airline Awards, it flies to international destinations. Air Transat's fleet includes some of the most energy-efficient aircraft in their category. (TSX: TRZ) Media: Alex-Anne Carrier Senior Advisor, Communications and Public Affairs [email protected] Media site: Financial analysts: Jean-François Pruneau Chief Financial Officer [email protected] SOURCE Transat A.T. Inc.
Bloomberg
2 days ago
- Business
- Bloomberg
China South City Creditors Mull Seeking Earlier Wind-Up Hearing
A group of bondholders of defaulted developer China South City Holdings Ltd. is considering to ask the court to move up the date of a wind-up hearing, now scheduled for August. China South City sent a restructuring proposal to the noteholders on June 25, but the creditors have not gotten on board, according to people familiar with the matter.
Yahoo
2 days ago
- Business
- Yahoo
Culp Inc (CULP) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Net Sales: $48.8 million for Q4, flat compared to $49.5 million in the prior-year period. Operating Loss: $2.2 million for Q4, including $1.5 million in restructuring-related expenses. Non-GAAP Operating Loss: $704,000 for Q4, compared to $4 million in the prior-year period. Net Loss: $2.1 million or $0.17 per diluted share for Q4. Adjusted EBITDA: $559,000 for Q4, compared to negative $2.2 million in the prior-year period. Mattress Fabrics Sales: $27.1 million for Q4, up 5.3% year-over-year. Upholstery Fabrics Sales: $21.7 million for Q4, down 8.9% year-over-year. Total Cash: $5.6 million as of the end of fiscal year. Outstanding Debt: $12.7 million as of the end of fiscal year. Free Cash Flow: Negative $17.1 million for the full fiscal year. Capital Expenditures: $2.9 million for the year. Annualized Savings from Restructuring: $10 million to $11 million. Annualized Savings from Integration Effort: Approximately $3 million. Price Increases Annualized Benefit: Expected $2.5 million, effective in fiscal Q2 2026. Warning! GuruFocus has detected 4 Warning Signs with CULP. Release Date: June 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Culp Inc (NYSE:CULP) successfully implemented a restructuring plan that resulted in $10 million to $11 million in consolidated annualized savings. The company achieved a year-over-year sales increase in its Mattress Fabrics business despite an industry-wide decline in overall mattress sales. Culp Inc (NYSE:CULP) has a diversified manufacturing and sourcing platform that provides competitive advantages in a fluid global trade environment. The integration of Mattress Fabric and Upholstery Fabric divisions into a single unified business is expected to generate approximately $3 million in annualized savings. The company extended its credit facility with Wells Fargo for an additional three years, providing liquidity and financing flexibility to support ongoing initiatives. Culp Inc (NYSE:CULP) reported a net loss of $2.1 million for the fourth quarter, although this was an improvement from the prior-year period. Sales in the Upholstery Fabrics segment declined by 8.9% in the fourth quarter due to continued demand deterioration in the home furnishings industry. The company faced significant pressure from recent tariff changes, particularly affecting its Upholstery Fabrics business. Culp Inc (NYSE:CULP) is not providing specific financial guidance for fiscal 2026 due to macroeconomic uncertainty and fluid global trade conditions. The Residential Upholstery business continues to face challenges with low demand and is expected to experience ongoing sales pressure. Q: Could you talk about the current business cadence across Mattress, Residential Upholstery, and Commercial Upholstery and Fabric segments? A: We are encouraged by the Mattress Fabrics business, having won market share in both fabric and covers. The hospitality side of our Upholstery business has a solid pipeline, although some projects were delayed due to tariffs. Residential Upholstery remains challenging due to low demand, despite good product placement. Q: How have tariffs impacted end customer demand across your segments? A: Tariffs have led to price increases being passed directly to consumers. However, consumer demand is more influenced by broader economic factors like inflation and interest rates. The furniture sector is also experiencing a seasonal slowdown, which we hope will improve in the fall. Q: Regarding the $2.5 million pricing action, what revenue assumptions are included in those gains? A: The $2.5 million gain is based on steady-state revenue assumptions, primarily from the Mattress Fabrics side. We are not forecasting additional revenue increases from these price adjustments. Q: How will the various cost-saving initiatives impact the bottom line quarterly throughout fiscal '26? A: The significant fixed cost reductions from the Mattress Fabrics restructuring will continue. New actions, including business integration and price adjustments, will phase in during Q2 and be fully effective by Q3 and Q4. Q: Can you explain the change in approach to inventory markdowns and its impact? A: We adjusted our markdown cadence to better align with actual pricing, resulting in a $1.7 million benefit for the quarter. This change allows us to manage inventory more effectively and maintain consistent performance. Q: How aggressive will you be in paying down debt given the current macro environment? A: We aim to pay down debt as quickly as possible while ensuring working capital needs are met. We have flexibility with our new three-year credit facility to manage debt strategically. Q: What growth investments and market opportunities are you prioritizing in fiscal '26? A: We are focusing on the Mattress Fabrics and hospitality segments, where we see potential for market share gains. Our Residential Upholstery business remains a priority, but we anticipate a lag in demand recovery. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
