12:18 PM EDT, 09/16/2024 (MT Newswires) -- Gaucho Group Holdings ( VINO ) said Monday it expects to save $1.6 million over the next 12 months through a restructuring and cost reduction strategy.

Over the past year, the company said it has realigned many operational roles and functions to Argentina from the US, benefiting from the more favorable cost of labor and a skilled workforce. Gaucho also said it has implemented further cost-saving measures, such as reducing rental space, negotiating better terms with vendors, and streamlining operations.

"These changes, which follow initial severance disbursements, are poised to take full effect in Q4, setting the stage for enhanced financial performance," the firm said.

Shares of the company were up nearly 14% in recent trading.

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