Streetbeat News

Labor Issues

EWU

U.K. employment change for the 3-month period ending in November showed an increase of 73K jobs, surpassing the estimated 50K and the previous 50K figure.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 7:05 am

EWU

The U.K. Claimant Count Change for December was reported at 11.7K, significantly lower than the estimated 18.1K and a revision from the prior 0.6K. This indicates a smaller increase in the number of individuals claiming unemployment benefits than expected.

Portfolio Pulse from Benzinga Newsdesk

January 16, 2024 | 7:04 am

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GM

MGA

ROK

STLA

U.S. automakers are expected to increase investment in automation following wage increases agreed with the United Auto Workers (UAW) union. Ford (NYSE:F), General Motors (NYSE:GM), and Stellantis (NYSE:STLA) face higher labor costs after a 25% wage hike. Ford anticipates $1.7 billion in lost profits for 2023 and $8.8 billion over four years due to the labor deal. The shift towards automation could negatively impact UAW workers in the long term. Companies like Rockwell Automation (NYSE:ROK) and Magna International (NYSE:MGA) could benefit as automakers deepen their automation investments.

Portfolio Pulse from Neil Dennis

January 15, 2024 | 7:48 pm

AAPL

Apple Inc. (NASDAQ:AAPL) is reportedly disbanding its 121-member AI team in San Diego, offering employees the choice to relocate to Austin or face termination by April 26. The Data Operations Annotations team, responsible for improving Siri, was informed of the decision, which comes ahead of the launch of Apple's Vision Pro mixed-reality headset. This move is seen as a cost-saving measure or strategic shift in AI operations, amidst Apple avoiding significant layoffs despite missing earnings expectations.

Portfolio Pulse from Benzinga Neuro

January 15, 2024 | 11:39 am

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GOOGL

META

MSFT

The IMF warns that AI could influence 40% of global jobs, with advanced economies facing up to 60% of jobs affected. This could worsen income inequality and social tensions. Companies like Buzzfeed Inc are investing in AI, raising job security concerns. The EU is progressing with AI legislation, while the US is still deciding on regulations. Tech giants like Microsoft, Alphabet, and Meta are focusing on AI and cost control, despite business growth.

Portfolio Pulse from Benzinga Neuro

January 15, 2024 | 6:22 am

AMZN

Amazon.com Inc (NASDAQ:AMZN) is allegedly using 'quiet firing' tactics to reduce its workforce without the negative publicity of layoffs. This includes assigning more employees to low performance brackets, strict office return policies, and not allocating work. Former AWS senior employee Justin Garrison described his departure as a 'silent sacking' and suggested it's a strategy to cut costs without affecting stock prices. Amazon spokesperson denied the claims, stating performance management is expected in a company of Amazon's size. Concerns are raised about losing expertise, particularly in cloud services, but Amazon remains a desirable workplace.

Portfolio Pulse from Bibhu Pattnaik

January 14, 2024 | 7:11 pm

GOOG

GOOGL

NET

Cloudflare CEO Matthew Prince acknowledged the discomfort of watching a viral video of an employee's firing, stating that while the decision to fire was correct, the process should have been more humane. The video, showing a former employee confused about her performance feedback, has sparked criticism of Cloudflare's culture. Prince emphasized the need for improvement in handling such situations. The news comes amid broader tech layoffs, including over 1,000 at Google.

Portfolio Pulse from Rounak Jain

January 13, 2024 | 3:14 am

SBUX

The U.S. Supreme Court has agreed to hear a case involving Starbucks, where the central issue is whether the company illegally fired workers who were pro-union. The outcome of this case could have significant implications for labor relations and unionization efforts within the company and potentially across the industry.

Portfolio Pulse from Benzinga Newsdesk

January 12, 2024 | 7:16 pm

UNP

Union Pacific Corp reported that multiple weather systems have disrupted their rail network, causing road closures and hindering their ability to transport crews, which affects train operations across their network.

Portfolio Pulse from Benzinga Newsdesk

January 12, 2024 | 7:10 pm

META

Instagram, owned by Meta Platforms Inc., has cut 60 technical program manager positions, eliminating a management layer. Impacted employees have two months to find new roles within the company before termination. The cuts align with Meta's 'Year of Efficiency' initiative to improve financial performance and reduce headcount. Instagram is reorganizing product teams around three new focus areas: Creation, Creators, and Friend Sharing, targeting teen engagement. This comes amid a lawsuit from over 40 states accusing Meta of affecting youth mental health and a Senate hearing on child safety. Meta is also implementing content restrictions for teen users on Instagram and Facebook.

Portfolio Pulse from Benzinga Newsdesk

January 12, 2024 | 6:35 pm