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Labor Issues

SCHL

Scholastic Corporation and its CEO and President, Peter Warwick, have mutually agreed to extend Warwick's term of employment for an additional year, from August 1, 2024, to July 31, 2025, according to a recent filing.

Portfolio Pulse from Benzinga Newsdesk

January 25, 2024 | 9:24 pm

GM

A third-party probe into GM's Cruise revealed issues with leadership and culture following an October accident involving a pedestrian. The 105-page report, based on interviews with 88 employees and review of over 200,000 documents, found no intent to deceive regulators but identified failures in communication and accountability. Cruise's robotaxi fleet remains grounded, with leadership changes and layoffs following the incident. The company is cooperating with multiple investigations and has updated its software to address the issues identified.

Portfolio Pulse from Benzinga Newsdesk

January 25, 2024 | 8:27 pm

PARA

Paramount CEO Bob Bakish announced layoffs at the company, aiming to operate more leanly and manage costs effectively. The exact number of layoffs was not disclosed. Paramount is also reducing international content spending. The company will report quarterly earnings at the end of February and will provide more details on its 2024 strategy. This news comes amidst industry-wide layoffs and reports of Skydance Media's interest in taking Paramount private.

Portfolio Pulse from Benzinga Newsdesk

January 25, 2024 | 6:35 pm

MSFT

Microsoft Corp (NASDAQ:MSFT) is laying off 1,900 employees from its Gaming division, which includes Activision Blizzard and Xbox, as part of a post-acquisition strategy to align strategies and execution plans. The layoffs represent about 8% of the 22,000 employees in the division. Leadership changes include the departure of Blizzard president Mike Ybarra and chief design officer Allen Adham. A new president will be announced next week. A previously announced survival game by Blizzard is being canceled. These changes follow Microsoft's $68.7 billion acquisition of Activision Blizzard and come ahead of Microsoft's fiscal second quarter 2024 earnings report. Analysts expect strong performance from Microsoft, with Azure's AI workload growth expected to boost revenue.

Portfolio Pulse from Anusuya Lahiri

January 25, 2024 | 3:41 pm

ATVI

MSFT

Microsoft is laying off approximately 1,900 employees from its gaming division, which includes Activision Blizzard and Xbox staff. This reduction accounts for about 8% of the division's workforce. The layoffs are part of a broader trend of job cuts in the tech industry. Microsoft's acquisition of Activision Blizzard, completed in October, aimed to strengthen its position in the gaming market against competitors like Sony.

Portfolio Pulse from Benzinga Newsdesk

January 25, 2024 | 3:18 pm

M

VSCO

Macy's Inc (NYSE:M) stock rose after reports of potential interest from Sycamore Partners in making a bid for the company. This follows Macy's recent rejection of an unsolicited offer from Arkhouse Management Co LP and Brigade Capital Management LP. The private equity firm, known for acquiring brands like Ann Taylor and Talbots, has been in talks with Macy's since late December. Macy's also recently announced a workforce reduction of 13%, affecting about 2,350 positions. Previously, Sycamore Partners nearly acquired Victoria's Secret & Co. (NYSE:VSCO) but withdrew from the deal.

Portfolio Pulse from Nabaparna Bhattacharya

January 25, 2024 | 2:40 pm

USFD

US Foods Holding Corp. (NYSE:USFD) has reached a tentative agreement with Teamsters Local 705, representing its drivers in Bensenville, Illinois. The 5-year contract includes wage, benefits, and healthcare contribution increases, as well as safety enhancements. The agreement is expected to be ratified on February 3, 2024, and is seen as mutually beneficial, recognizing the efforts of the drivers and supporting the company's growth in the Chicagoland area.

Portfolio Pulse from Benzinga Newsdesk

January 25, 2024 | 2:04 pm

XXII

22nd Century Group announced the mutual termination of the employment and retention agreements with CFO R. Hugh Kinsman, according to an SEC filing. Kinsman will continue to serve as the company's CFO on an at-will basis, and the termination is not expected to impact his role within the company.

Portfolio Pulse from Benzinga Newsdesk

January 25, 2024 | 1:39 pm

SPY

Continuing jobless claims came in at 1.833 million, slightly higher than the expected 1.828 million and above the previous 1.806 million. This indicates a small increase in the number of individuals who are unemployed and currently receiving unemployment benefits.

Portfolio Pulse from Benzinga Newsdesk

January 25, 2024 | 1:31 pm

KRON

Kronos Bio has announced the elimination of several executive officer roles, including the Chief Medical Officer, Chief Scientific Officer, and Chief Operating Officer and General Counsel. This restructuring could indicate a strategic shift or cost-cutting measures by the company.

Portfolio Pulse from Benzinga Newsdesk

January 25, 2024 | 1:18 pm