Streetbeat News

Labor Issues

SHEL

Shell PLC (NYSE:SHEL) is reportedly planning to cut at least 20% of jobs in its deals team as part of a broader restructuring effort aimed at reducing costs and focusing on performance, discipline, and simplification. The cuts are part of a strategy to create more value with less emissions, involving portfolio high grading, new efficiencies, and a leaner organization. Shell's CEO Wael Sawan is committed to improving performance and boosting investor returns. SHEL shares rose 1.3% to $65.36.

Portfolio Pulse from Shivani Kumaresan

March 13, 2024 | 1:47 pm

HMC

MZDAY

TM

Toyota Motor Corp (NYSE:TM) has agreed to its labor union's requests for salary and bonus increases for the fourth consecutive year, potentially influencing Japan's wage-price cycle. This move, which led to a surge in the yen and a drop in government bond futures, sets a precedent for wage trends in Japan, impacting over 5 million workers. Similar agreements by Honda Motor Co Ltd (NYSE:HMC) and Mazda Motor Corp (OTC:MZDAY) indicate a broader push for wage growth. These developments could prompt the Bank of Japan to reconsider its negative interest rate policy.

Portfolio Pulse from Shivani Kumaresan

March 13, 2024 | 1:10 pm

SHEL

Shell plans to reduce approximately 20% of its workforce in the deals team as part of a broader initiative to achieve cost savings, according to Bloomberg. This move is indicative of the company's efforts to streamline operations and improve financial efficiency.

Portfolio Pulse from Charles Gross

March 13, 2024 | 9:38 am

GM

GOOGL

TSLA

General Motors (NYSE:GM) has appointed Jens Peter Clausen, a former executive at Tesla and Google, as the new head of Global Manufacturing and Sustainability, replacing the retiring Gerald Johnson. This move is significant as GM aims to compete more aggressively in the electric vehicle (EV) market, particularly in manufacturing batteries and powertrains. Additionally, GM's executive vice president of software and services, Mike Abbott, has resigned for health reasons and is temporarily replaced by Baris Cetinok.

Portfolio Pulse from Benzinga Neuro

March 13, 2024 | 8:07 am

BA

Contract negotiations for 32,000 IAM members at Boeing in the Pacific Northwest have started in Seattle. A strike sanction vote is scheduled for July 17, aiming for at least a 40% wage increase over 3-4 years.

Portfolio Pulse from Benzinga Newsdesk

March 12, 2024 | 7:56 pm

IBM

IBM announced job cuts in its marketing and communications division, as part of a broader trend of downsizing in the tech industry. The announcement was made by IBM's Chief Communications Officer, Jonathan Adashek, in a brief meeting. This move follows IBM's efforts to upskill employees on AI and previous job cuts announced last year. The tech industry has seen significant layoffs, with over 50,000 jobs cut across 204 companies this year.

Portfolio Pulse from Benzinga Newsdesk

March 12, 2024 | 7:15 pm

SNN

Smith & Nephew Plc (NYSE:SNN), a British MedTech firm, plans to overhaul its executive pay structure to align with U.S. standards, aiming to address high executive turnover and align compensation with its U.S. counterparts. This move is part of a broader trend among U.K. listed companies with significant overseas revenues, seeking to attract global talent and maintain competitiveness. The company has experienced four CEOs in the past five years due to executive compensation issues. SNN shares are up 0.37% at $28.04.

Portfolio Pulse from Vandana Singh

March 12, 2024 | 4:26 pm

BABA

EBIZ

JD

ONLN

Alibaba Group Holding Ltd (NYSE:BABA) is investing approximately $640 million in Hong Kong's creative industries over the next five years, aiming to boost its media and entertainment division amidst intense competition. This follows a significant sales increase in its unit, attributed to China's strong box office performance. Alibaba is also enhancing staff incentives by merging stock options with cash rewards, starting April 1, 2024, to improve employee earnings' certainty and liquidity. The stock rose over 2% on Tuesday. Competitor JD.com Inc (NASDAQ:JD) increased salaries for its retail division last year. Alibaba can be accessed through ProShares Online Retail ETF (NYSE:ONLN) and Global X E-Commerce ETF (NASDAQ:EBIZ).

Portfolio Pulse from Anusuya Lahiri

March 12, 2024 | 2:43 pm

WKHS

Workhorse Group is finalizing a workforce reduction of approximately 20%, excluding direct labor, as part of cost-cutting measures to strengthen its financial position. The company is in negotiations for financing to provide a financial runway and is transitioning its Aero business to a DaaS model, which includes stopping drone production and development and terminating related employees. Executive officers have agreed to defer 20% of their cash compensation for at least three months.

Portfolio Pulse from Benzinga Newsdesk

March 12, 2024 | 1:02 pm

LHX

MMM

3M Co announced William M. 'Bill' Brown, former CEO of L3Harris Technologies, as its new CEO effective May 1, 2024, succeeding Michael Roman who will become Executive Chairman. Brown's extensive leadership experience in aerospace and defense at L3Harris and previously at Harris Corporation and United Technologies Corporation positions him well for this role.

Portfolio Pulse from Benzinga Newsdesk

March 12, 2024 | 10:39 am