News in Brief: Yahoo job cuts, Argos deal, cyberattack, Deloitte, FTSE

News in Brief

Yahoo to cut its workforce by 15%

Yahoo plans to axe 15% of its workforce in a bid to return the company to profitability.

The job cuts will reduce the number of its employees to about 9,000 by the end of 2016, reported the BBC.

The announcement came as the technology giant reported a £3bn ($4.3bn) loss for 2015.

In a statement, chief executive Marissa Mayer said: "This is a strong plan calling for bold shifts in products and in resources."

She added the move would it would "dramatically brighten Yahoo’s future and improve the company’s competitiveness, and attractiveness to users, advertisers, and partners."

The head-count reduction is the latest part of Mayer's attempt to turn around the troubled internet company, which is struggling to compete against the likes of Facebook and Google.

Sainsbury’s prepares for Argos revolution

Sainsbury’s has sealed its proposed £1.3bn takeover of the Argos owner Home Retail Group, with the grocer planning to win over shoppers in a “bricks-and-clicks” race with its rivals.

The supermarket chain plans to have Argos concessions in nearly all of its large Sainsbury’s stores, as well as offering click and collect points on the combined 100,000 products that the two companies would sell across their 2,000 shops.

A Sainsbury’s takeover of Home Retail, which is subject to approval by regulators, would create the UK’s largest non-food retailer, reported The Independent.

The planned deal took longer to arrange than bosses at Sainsbury’s had hoped. The Independent understands that an initial offer of 140p a share was made back in November 2015, this was rejected but not revealed to the stock market until January 2016.

TalkTalk reveals huge rise in clean-up bill

The clean-up cost of a cyberattack at TalkTalk has more than doubled after thousands of customers have abandoned the company.

The broadband provider said that it would lose £75m to £80m as a result of the hack, significantly more than the £30m to £35m it had predicted in November 2015.

In its third-quarter results, TalkTalk said that it had lost 95,000 customers as a direct result of the attack, reported The Times.

The hack led to the theft of the private information of 157,000 of TalkTalk’s four million customers in October 2015.

Deloitte introduces regulatory compliance service

Consulting firm Deloitte has announced the release of its new regulatory and investor reporting tool, helping banks, asset managers and insurance firms cope with high levels of regulation and complex tax guidelines.

Prisma looks to cut down the compliance burden for its clients by using one set of data to create multiple reports for regulatory and investor requirements, reported Accountancy Age.

The service comes almost a year before the introduction of regulation on packaged retail and insurance-based investment products (PRIIPs), a regulatory breakthrough that will also assist asset managers.

Head of investment management at Deloitte, Mark Ward, commented: "A recent paper from the World Economic Forum recognised the challenge of regulatory cost pressures on asset managers. It also noted that global regulation has meant significant resource has been used to ensure compliance processes are up to date and properly monitored at any given time."

Wood added: “While managers grapple with the legal, operational and technology aspects of this challenge, regulators increased their focus on consistent, timely and accurate disclosures to investors. These circumstances point to a high risk of error and inefficiency.”

FTSE bruised by BP

Britain's top share index fell sharply yesterday (2 February 2016), knocked down by a drop in BP after the oil giant reported its biggest ever annual loss.

The blue-chip FTSE 100 index closed 2.3% lower at 5,922.01 points, with the FTSE down 5% since the start of 2016.

BP shares slumped 8.7%, reported Reuters.

The company's results were worse even than when it counted the costs of the deadly Gulf of Mexico oil spill in 2010, raising questions over the sustainability of its dividend and some concerns over its debt position.

BP shares also suffered their biggest one-day percentage loss since mid-2010