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Labor Issues

LUV

Southwest Airlines' shares are trading higher, even without any new company announcements. The increase follows a report from Friday stating that the airline plans to reduce pilot hours due to delays in Boeing deliveries.

Portfolio Pulse from Benzinga Newsdesk

May 06, 2024 | 7:53 pm

ENVX

Enovix, a battery developer, has laid off approximately one-third of its staff, according to The Information. This significant reduction in workforce could indicate financial or operational challenges within the company, potentially impacting its future growth and development in the competitive battery technology market.

Portfolio Pulse from Benzinga Newsdesk

May 06, 2024 | 7:26 pm

NSC

Key regulators, including the U.S. Department of Transportation (DOT) and the Surface Transportation Board (STB), have expressed support for Norfolk Southern Corporation's (NYSE: NSC) leadership and strategy, emphasizing the company's focus on safety and service. They have raised concerns about Ancora's plan for NSC, warning it could jeopardize safety and service. The DOT and STB's statements highlight Norfolk Southern's progress in safety and service improvements, while criticizing Ancora's approach and potential impact on the railroad's performance and the broader economy.

Portfolio Pulse from Benzinga Newsdesk

May 06, 2024 | 5:05 pm

SPY

Richmond Fed President Barkin stated that the strong labor market allows the Federal Reserve more time to ensure inflation will decrease. He noted businesses are inclined to increase prices if possible, with the risk being that shelter and services could keep inflation above the target.

Portfolio Pulse from Benzinga Newsdesk

May 06, 2024 | 4:48 pm

AMADY

Amadeus announced that CFO Till Streichert will step down in Q3 of 2024. Luis Maroto, the current CEO, will temporarily take over the CFO responsibilities in addition to his existing duties. The transition indicates a significant change in the company's financial leadership.

Portfolio Pulse from Benzinga Newsdesk

May 06, 2024 | 3:33 pm

TSLA

Tesla (TSLA) has initiated another round of layoffs, affecting employees across various departments including software, service, and engineering. This follows a series of layoffs over the last three weeks, with the total number potentially reaching 20% of its workforce. The layoffs were anticipated after the firing of Rebecca Tinucci and her team, with CEO Elon Musk citing hiring inefficiencies, role duplication, and a need for restructuring for growth as reasons. This comes amid Tesla's recent poor financial performance due to lower-than-expected vehicle deliveries.

Portfolio Pulse from Benzinga Newsdesk

May 06, 2024 | 3:28 pm

SAVE

Spirit Airlines plans to furlough up to 260 pilots in September as part of its right-sizing initiatives to achieve a $100M cost reduction goal. The company aims to resolve issues with loyalty bond and convertible notes holders this summer. The impact of Pratt engine issues on Spirit's business is significant, as stated in their conference call.

Portfolio Pulse from Benzinga Newsdesk

May 06, 2024 | 2:41 pm

MMAT

Meta Materials Inc (NASDAQ:MMAT) shares dropped 24% to $2.55 after announcing an 80% workforce reduction due to liquidity challenges and difficulties in securing financing. The company is exploring strategic options, including asset divestiture, seeking additional financing, or selling the company, with a risk of closing facilities or bankruptcy. MMAT has underperformed with an 89.46% loss year to date, compared to its historical average annual return of -79.45%. The stock's RSI is 58.83, indicating neutral conditions.

Portfolio Pulse from Henry Khederian

May 06, 2024 | 1:50 pm

MMAT

Meta Materials announced a significant workforce reduction, cutting about 80% of its employees, leading to a decrease in its share price.

Portfolio Pulse from Benzinga Newsdesk

May 06, 2024 | 1:48 pm

LAZR

MOON

ROBT

Luminar Technologies, Inc. (NASDAQ:LAZR) is reducing its workforce by 20% and shifting towards an asset-light model to scale production, causing its stock to drop by as much as 13% on Monday. The restructuring includes a partnership with TPK Holding and aims to lower operating costs by $50 million-$65 million annually. Despite shipping lidar sensors to Volvo and a deeper partnership with TPK Holding, a BofA Securities analyst downgraded the stock due to weaker EV demand and a potential need to raise $1 billion in capital. LAZR stock has lost over 74% in the last 12 months. Investors can also gain exposure to LAZR through Direxion Moonshot Innovators ETF (NYSE:MOON) and First Trust Nasdaq Artificial Intelligence And Robotics ETF (NASDAQ:ROBT).

Portfolio Pulse from Anusuya Lahiri

May 06, 2024 | 12:40 pm