Streetbeat News

Labor Issues

BAC

Bank of America has reportedly cut around 20 investment banking jobs in Asia, according to sources cited by Reuters. This move is part of a global restructuring effort in response to a slowdown in deal-making activity.

Portfolio Pulse from Charles Gross

January 23, 2024 | 9:50 am

GOOG

TCEHY

Tencent Holdings Ltd's subsidiary Riot Games is laying off 11% of its workforce, around 530 employees, due to unsustainable costs and the need for a sharper focus. The layoffs will affect non-core development teams and will see the discontinuation of new game development under 'Riot Forge' and adjustments to 'Legends of Runeterra'. The gaming industry has seen over 10,000 layoffs in 2023, with AI's impact on jobs and income inequality being a concern highlighted by the IMF.

Portfolio Pulse from Benzinga Neuro

January 23, 2024 | 7:51 am

NFLX

Scott Stuber, head of Netflix's movie studio, is leaving the company to start his own media business after the March Academy Awards. His departure marks the end of a significant era for Netflix, which is set to announce Q4 earnings later on Tuesday. Netflix has seen substantial growth, with a 50% increase in operating profits over the past year and a recovery post-Hollywood writers' strike. Stuber's exit could affect Netflix's future film strategy and growth.

Portfolio Pulse from Benzinga Neuro

January 23, 2024 | 5:46 am

WFG

West Fraser Timber Co. Ltd. (WFG) has announced the permanent closure of its Fraser Lake Sawmill in British Columbia due to the inability to access economically viable fibre. The closure will affect about 175 employees, though the company plans to offer them opportunities at other operations. This will result in a reduction of West Fraser's Canadian lumber capacity by 160 million board feet and lead to restructuring and impairment charges of approximately $81 million in Q4 2023.

Portfolio Pulse from Benzinga Newsdesk

January 22, 2024 | 10:49 pm

VRM

Vroom, Inc. (NASDAQ:VRM) shares plummeted over 50% in after-hours trading following the announcement that the company is discontinuing its used vehicle dealership operations. The decision is part of the Value Maximization Plan to preserve liquidity and maximize stakeholder value. The plan includes halting transactions on vroom.com, liquidating vehicle inventory through wholesale channels, stopping vehicle acquisitions, and reducing the workforce. CEO Thomas Shortt cited the inability to raise necessary capital in the current market as the reason for the decision.

Portfolio Pulse from Ryan Gustafson

January 22, 2024 | 10:29 pm

NBTB

NBT Bancorp announced that John H. Watt will step down as President and CEO on May 21, 2024. Scott A. Kingsley has been promoted to succeed Watt. Watt will continue to serve on the Board of Directors and will be named Vice Chairman in May. The succession plan was unanimously approved by NBT's Board of Directors after a 10-month process.

Portfolio Pulse from Benzinga Newsdesk

January 22, 2024 | 9:24 pm

SPY

Scott Shellady, known as The Cow Guy, warned of a potential market 'reckoning' in 2024 on Benzinga’s PreMarket Prep. He believes the consumer is the weak link in the economy, and the labor market is not as strong as jobs data suggest. Despite recent equity market highs, with the S&P 500 and SPDR S&P 500 ETF Trust (SPY) reaching record levels, Shellady is skeptical about the sustainability of growth. He points out that consumers are increasingly indebted and predicts that the expected rate cuts by the Federal Reserve will not materialize as hoped, with possibly just one cut instead of several.

Portfolio Pulse from Neil Dennis

January 22, 2024 | 9:08 pm

SEDG

SolarEdge Technologies, Inc. has announced a reduction in its workforce, which has led to an increase in its stock price.

Portfolio Pulse from Benzinga Newsdesk

January 22, 2024 | 7:19 pm

LUV

Southwest Airlines Co. (NYSE:LUV) announced the approval of a new five-year collective bargaining agreement by its pilots, represented by SWAPA. The contract covers nearly 11,000 pilots, offering industry-leading compensation, modified scheduling, and quality-of-life improvements such as paid maternity and parental leave. The agreement also maintains Southwest's operational advantages and introduces a new process for pilot network recovery. This follows the ratification of new agreements by nine union-represented workgroups since October 2022, with negotiations ongoing for two other workgroups.

Portfolio Pulse from Benzinga Newsdesk

January 22, 2024 | 6:38 pm

DIS

NFLX

PARA

Paramount Global (NASDAQ:PARA) is planning to reduce its workforce in February, with layoffs affecting hundreds of employees. While initial estimates suggested 800 job cuts, the actual number is expected to be lower. This follows several rounds of layoffs in the past 14 months. National Amusements, Inc, the majority shareholder, is considering acquisition offers from Apollo Global Management, Skydance Media, and RedBird Capital. Paramount's stock value has decreased significantly since its post-merger peak. The company faces challenges like pay-TV cord-cutting, a weak advertising market, and a loss-making streaming operation. PARA shares are up 2.65% at $13.76.

Portfolio Pulse from Anusuya Lahiri

January 22, 2024 | 6:13 pm