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Tag: Labor/Personnel

  • Meta begins third round of layoffs: reports

    Meta begins third round of layoffs: reports

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    Meta Platforms Inc. has started to execute on its latest round of layoffs, according to reports.

    The third round of cuts is part of a plan that Meta
    META,
    +3.70%

    Chief Executive Mark Zuckerberg announced in March in an effort to further slash costs at the social-media company. He said at the time that Meta would lay off about 10,000 workers while closing roughly 5,000 additional roles for which the company had yet to make hires.

    The current rounds of cuts build on at least 11,000 layoffs that were announced last fall.

    See more: Meta steadily rolls out 3-part round of layoffs

    CNBC reported Wednesday that Meta employees in user experience, marketing and recruiting roles indicated they were affected by the current round of cuts.

    Zuckerberg said in a March note to employees, which was also shared as a company blog post, that the company planned to make restructuring moves in its technology groups in late April before making changes to the business groups in late May.

    Reuters reported that the latest layoffs mainly affect employees in non-engineering positions, part of Zuckerberg’s goal of boosting the ratio of engineers at Meta relative to other positions.

    Don’t miss: Meta’s ‘outstanding’ stock rally can keep roaring, analyst says in upgrade

    Meta declined to comment in response to a MarketWatch request for confirmation of the latest layoffs.

    The company is in the midst of what Zuckerberg has dubbed a “year of efficiency,” which comes in response to investor concern last fall about high spending levels at the company alongside the backdrop of declining revenue. Meta has since become arguably the most aggressive of the largest public technology companies in its cost-cutting efforts.

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  • BT sets plan to cut 55,000 jobs by end of decade

    BT sets plan to cut 55,000 jobs by end of decade

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    U.K. telecoms provider BT Group set plans to cut up to 55,000 jobs by the end of the decade as it completes the rollout of high-speed broadband.

    BT Group
    BT.A,
    -7.09%

    says it is aiming to reduce its total labor force, which includes contractors, from 130,000 down to between 75,000 to 90,000 by fiscal 2028 to fiscal 2030.

    “It is not surprising that in an inflationary and high-interest rates environment where costs are higher and increased expenses for servicing debt, telecommunication companies are employing technology to decrease costs wherever possible,” said Albie Amankona, analyst at Third Bridge. 

    U.K.-based mobile operator Vodafone Group
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    +0.30%

    on Tuesday said it would cut 11,000 jobs over three years.

    BT said revenue and adjusted EBITDA for its fiscal year was in line with its outlook but normalized free cash flow of £1.33 billion was at the lower end of guidance due to spending on building the Openreach fiber network.

    For fiscal 2024, it’s targeting revenue and EBITDA growth on a pro forma basis; and normalized free cash flow between £1 billion and £1.2 billion. BT shares dropped 8% in early trade.

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  • Netflix’s password-sharing crackdown is imminent, but the writers’ strike may be causing a delay

    Netflix’s password-sharing crackdown is imminent, but the writers’ strike may be causing a delay

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    Netflix Inc. has teased the U.S. rollout of a password-sharing crackdown, but one analyst wonders if the ongoing writers’ strike is delaying the company’s plans.

    The streaming-media company has already started to clamp down on account sharing in other markets by limiting who can use accounts and charging more for additional access. JPMorgan’s Doug Anmuth wondered if Netflix
    NFLX,
    +0.78%

    was rethinking a broader rollout at the moment, given the prospect of content interruptions.

    See more: Netflix delivers cliffhanger for investors as password-sharing crackdown is delayed

    “Paid sharing is effectively a price increase, w/paid members sharing their password receiving less value for the same price, or potentially paying more to add an extra member. And for borrowers who currently do not pay, paid sharing means either activating their own subscription or being added as an extra member, or losing access to NFLX,” he wrote in a note to clients.

    For that reason, “it’s possible that NFLX may not like the optics of implementing paid sharing while 11,500 WGA writers are on strike, w/production suspended or writing paused across at least a handful of NFLX titles including Stranger Things S5 & Emily in Paris S4, among others,” Anmuth continued.

    Netflix didn’t respond to a MarketWatch request for comment asking when paid sharing will roll out in the U.S., why it hasn’t rolled out yet, and if the delay was at all due to the writers’ strike.

    Opinion: Disney shows streaming wars are destroying all that was good about streaming

    The paid-sharing rollout is a critical element of Netflix’s financial story these days. Netflix estimates that some 100 million people were freeloading off of others’ paid Netflix subscribers, and Anmuth expected that Netflix would be able to get at least 30 million of those to start paying up, whether by becoming add-on members for existing accounts or new subscribers in their own right.

    For that reason, a continuation of the writers’ strike “could further postpone revenue & subscriber acceleration,” he wrote.

    See also: Streaming nirvana is about to become more expensive — and offer less content

    The writers’ strike also threatens to impact Netflix’s other hot initiative: its advertising tier. Anmuth noted that the company’s upfront presentation to advertisers, its first-ever, was turning into a prerecorded event, presumably because the company fears “heavy picketing and protesting” and “less availability of star talent.”

    “[U]ltimately, advertising is closely tied to paid sharing, w/borrowers likely viewing a $6.99 Standard w/Ads plan as a compelling low-priced option,” Anmuth wrote. “Therefore, ramp of the ad tier is also delayed if paid sharing is delayed.”

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  • Dow gains 450 points as U.S. stocks recover after 4 days of losses

    Dow gains 450 points as U.S. stocks recover after 4 days of losses

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    U.S. stocks recovered some ground on Friday, after four days of losses, as shares of regional banks rebounded and the main indexes received a boost from a strong April jobs and Apple’s better-than-forecast earnings.

    What’s happening

    On Thursday, the Dow Jones Industrial Average fell 287 points, or 0.86%, to 33,128. It remains on track for a 1.5% weekly drop.

    What’s driving markets

    In…

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  • Jobs report shows strong 253,000 increase in April. U.S. labor market not cooling much

    Jobs report shows strong 253,000 increase in April. U.S. labor market not cooling much

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    The numbers: The U.S. created a stronger-than-expected 253,000 new jobs in April and wages rose sharply, indicating there’s still lot of demand for labor even as the economy slows.

    The increase surpassed the 180,000 forecast of economists polled by The Wall Street Journal.

    The unemployment rate, what’s more, fell a tick to 3.4% from 3.5%,…

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  • Jobs report shows strong 253,000 increase in April. U.S. labor market not cooling much

    Jobs report shows strong 253,000 increase in April. U.S. labor market not cooling much

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    The numbers: The U.S. created a stronger-than-expected 253,000 new jobs in April and wages rose sharply, indicating there’s still lot of demand for labor even as the economy slows.

    The increase surpassed the 180,000 forecast of economists polled by The Wall Street Journal.

    The unemployment rate, what’s more, fell a tick to 3.4% from 3.5%,…

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  • ADP says U.S. added 296,000 private jobs in April, a nine-month high

    ADP says U.S. added 296,000 private jobs in April, a nine-month high

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    The numbers: Private-sector employment jumped by 296,000 in April and hit a nine-month high, payroll processor ADP said Wednesday, in a sign the U.S. labor market is still going strong.

    The increase in hiring was much larger than expected. Economists polled by The Wall Street Journal had forecast a gain of 133,000 private sector jobs.

    The…

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  • GM Lays Off Hundreds From Product Development in Latest Cost-Cutting Move

    GM Lays Off Hundreds From Product Development in Latest Cost-Cutting Move

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    GM Lays Off Hundreds From Product Development in Latest Cost-Cutting Move

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  • Amazon stock turns around as CFO admits AWS growth rates are declining further

    Amazon stock turns around as CFO admits AWS growth rates are declining further

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    Amazon.com Inc. shares zoomed higher in extended trading Thursday after the company posted its biggest quarterly profit since 2021, but shares turned around after the company’s chief financial officer said in a conference call that cloud revenue is decelerating in the current quarter.

    Amazon AMZN reported that first-quarter revenue grew to $127.4 billion from $116.44 billion in the same quarter last year. Profit reached $3.17 billion, or 31 cents a share, improving from a loss of 38 cents a share a year ago, which was Amazon’s…

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  • BuzzFeed stock plunges over 20% as media company shuts down BuzzFeed News, cuts jobs

    BuzzFeed stock plunges over 20% as media company shuts down BuzzFeed News, cuts jobs

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    BuzzFeed Inc. said Thursday it is shutting down BuzzFeed News and laying off about 15% of its workforce as founder and Chief Executive Jonah Peretti said it has faced “more challenges than I can count.”

    BuzzFeed stock
    BZFD,
    -19.71%

    initially fell as much as 25% after the news. HuffPost and BuzzFeed.com will open “a number of select roles for members of BuzzFeed News,” Peretti said in a memo to staff. HuffPost, which is profitable and enjoys a “loyal direct front page audience,” will be BuzzFeed’s single news brand.

    “We’ve faced more challenges than I can count in the past few years: a pandemic, a fading SPAC market that yielded less capital, a tech recession, a tough economy, a declining stock market, a decelerating digital advertising market and ongoing audience and platform shifts,” Peretti said in the memo.

    “Dealing with all of these obstacles at once is part of why we’ve needed to make the difficult decisions to eliminate more jobs and reduce spending.”

    The CEO also said he and executives could have “managed these changes better.” The integration of BuzzFeed and Complex, which BuzzFeed bought in 2021 for $300 million, “should have been executed faster and better.”

    BuzzFeed went public in December 2021 through a merger with a special-purpose acquisition company, or SPAC. The deal valued BuzzFeed at $1.5 billion.

    The acquisition of Complex, then a joint venture between Hearst and Verizon Communications Inc. that catered to millennials and Gen Zers, was a bid to open up other revenue streams and rely less on advertising.

    BuzzFeed Inc. bought HuffPost from an unit of Verizon in November 2020.

    Peretti said he decided to “overinvest” in BuzzFeed News “because I love their work and mission so much,” which made him slow “to accept that the big platforms wouldn’t provide the distribution or financial support required to support premium, free journalism purpose-built for social media.”

    Chief Revenue Officer Edgar Hernandez and Chief Operating Officer Christian Baesler are leaving as well. The focus going forward is on reducing layers in the organization, streamlining the product mix, “doubling down” on social-media creators, and bringing AI to the sales process, Peretti said in the memo.

    BuzzFeed has about 1,200 employees as of December. It had 1,368 employees across seven countries that month, and announced layoffs hitting about 12% of its workforce.

    Also Thursday, Insider, the news site formerly known as Business Insider, said it was cutting 10% of its workforce due to “economic headwinds.”

    BuzzFeed shares have lost 85% in the past 12 months, compared with losses of around 7% for the S&P 500 index.
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    -0.60%

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  • Jobless claims climb to 245,000 and signal slight cooling in hot labor market

    Jobless claims climb to 245,000 and signal slight cooling in hot labor market

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    The numbers: The number of Americans who applied for unemployment benefits last week rose by 5,000 to 245,000 and pointed to a small erosion in a robust U.S. labor market.

    New jobless claims increased from a revised 240,000 in the prior week, the Labor Department said Thursday. The figures are seasonally adjusted.

    The number of people applying for unemployment benefits is one of the best barometers of whether the economy is getting better or worse.

    New jobless claims are still very low, but they have risen from less than 200,000 in January in a sign the labor market has cooled slightly as higher interest rates dampen U.S. growth.

    Key details: Thirty-five of the 53 U.S. states and territories that report jobless claims showed a decrease last week. Eighteen posted an increase.

    Most of the increase in new jobless claims were in New York, where new filings typically rise during school breaks and fall immediately afterward.

    Other states reported little change.

    The number of people collecting unemployment benefits in the U.S., meanwhile, jumped by 61,000 to 1.87 million in the week ended April 8. That’s the highest level since November 2021.

    The gradual increase in these so-called continuing claims suggests it’s taking longer for people who lose their jobs to find new ones.

    Big picture: Wall Street is watching jobless benefits closely because it’s one of the first indicators to start blinking red when the U.S. is headed toward recession.

    New jobless claims have crept higher this year after touching a 54-year low, pointing to some cooling in a hot labor market. But the labor market is still quite strong

    The Federal Reserve wants the labor market to cool even further to temper a sharp increase in wages and help the bank combat high inflation. A series of interest-rate increases by the central bank have slowed the economy and eventually should curb the appetite for workers.

    Looking ahead: “With talk of deteriorating economic conditions and in the wake of the recent bank failures, businesses may turn more cautious in their hiring practices,” said senior economic advisor Stuart Hoffman of PNC Financial Services.

    “Our view remains that layoffs will rise less dramatically than normally might occur as companies do all they can to avoid shedding workers who have been incredibly difficult to recruit and retain,” said chief economist Joshua Shapiro of MFR Inc.

    Market reaction: The Dow Jones Industrial Average
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    -0.44%

    and S&P 500
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    -0.60%

    were set to open lower in Thursday trades.

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  • Is it safe to live near recycling centers? Questions surge after Indiana plastics site burns.

    Is it safe to live near recycling centers? Questions surge after Indiana plastics site burns.

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    As the fire at an Indiana plastics-recycling storage facility burned over several days and officials scrambled to calm evacuated residents and measure air quality, larger safety questions emerged across a nation that relies on recycling to help offset the impact of teeming landfills and littered waterways.

    Authorities in the eastern part of the state on Sunday finally lifted a dayslong evacuation order after it was determined immediate environmental concerns related to the fire had passed.

    But the man-made disaster had already done its part, leaving many wondering if recycling centers — challenging to regulate because they range from small community-led efforts to major industrial facilities — are as safe as Americans think they are?

    Public health experts told MarketWatch the nation needs to take a harder look at how we store and dispose of chemicals-heavy plastics in particular, along with other recycled materials that can act as a tinderbox in certain conditions. It may be a wakeup call to the scores of Americans who embrace recycling as one of the longest-tested and straightforward solutions to help the environment. What happens after recyclable materials leave the home can be quite another story, however.

    Read: Recycling is confusing — how to be smarter about all that takeout plastic

    Worker safety in the handling of large recycling machinery remains a priority of the Occupational Safety and Health Administration (OSHA) and other agencies, but less scrutiny may be given to the emissions those workers breathe in, and in the case of the Indiana emergency, what pollution community members near a recycling center may be exposed to.

    “Any company, regardless of its intentions, must be held accountable for regulations, not only for the safety of its employees, but for the communities around it,” Dr. Panagis Galiatsatos, a pulmonologist, who is the national spokesperson for the American Lung Association, told MarketWatch.

    “This [Indiana crisis] is alarming — a good deed [such as recycling] undone by the consequences of not having sound safety precautions,” said Galiatsatos, who is also an assistant professor at the Johns Hopkins School of Medicine and helps lead community engagement for the Baltimore Breathe Center.

    As for the fire in Richmond, Ind., a college town and county seat of about 35,000 people near the Ohio border, the city’s fire chief, Tim Brown, made clear that there were known code violations by the operator of the former factory that had been turned into plastics storage for recycling or resale. This dangerous fire was a matter of “when, not if,” Brown said in the initial hours that the fire, whose origin is not yet known, burned.

    The city of Richmond’s official site about the disaster described the fire as initially impacting “two warehouses containing large amounts of chipped, shredded and bulk recycled plastic, [which] caught fire.” The site does offer cleanup help advice.

    Brown, the fire chief, reported that just over 13 of the 14 acres which made up the recycling facility’s property had burned, according to nearby Dayton, Ohio, station WDTN. Brown told reporters the six buildings at the site of the fire were full of plastic from “floor to ceiling, wall to wall,” along with several full semi-trailers. He said Sunday that fire fighters would continue to monitor for flare-ups, according to the Associated Press.

    Richmond Mayor Dave Snow said the owner of the buildings has ignored citations that dinged his operation for code violations, and the city has continued to go through steps to get the owner to clean up the property, including preventing the operator from taking on additional plastic.

    “We just wish the property owner and the business owner would’ve taken this more serious from day one,” Snow said, according to the report out of Dayton, which cited sister station WXIN. “This person has been negligent and irresponsible, and it’s led to putting a lot of people in danger,” the mayor added.

    But some environmental groups say lax enforcement puts citizens at risk.

    “Indiana is already top in the nation for water and air quality violations, but the consequences are too negligible here for industry to adhere to the laws,” said Susan Thomas, communications director at Just Transition Northwest Indiana, a climate justice group based in the state.

    “We need real solutions to the climate crisis, not more false ones that shield chronic polluters from justice,” she said.

    The Environmental Protection Agency (EPA) had collected debris samples from the Richmond fire and searched nearby grounds for any debris, which will be sampled for asbestos given the age of the buildings housing the recycling facility. Residents have been warned not to touch or mow over debris until the sample results are available. Testing was also carried out on the Ohio side of the border.

    No doubt, the catastrophe had impacted daily life. Wayne County, Ind., health department officials and fire-safety officials told residents to shelter in place and reduce outdoor activity if they even smelled smoke. According to the health department’s help line, symptoms that may be related to breathing smoke include repeated coughing, shortness of breath or difficulty breathing, wheezing, chest tightness or pain, palpitations, nausea or lightheadedness.

    Any safer than a landfill?

    When a lens on recycling is widened, it comes to light that how facilities handle their plastic and other materials may not involve much more care than that given to chemical-emitting plastic left to break down in a landfill, say the concerned public health officials.

    Of the 40 million tons of plastic waste generated in the U.S., only 5%-6%, or about two million tons, is recycled, according to a report conducted by the environmental groups Beyond Plastics and The Last Beach Cleanup. About 85% went to landfills, and 10% was incinerated. The rate of plastic recycling has decreased since 2018, when it was at 8.7%, per the study.

    Generally speaking, when plastic particles break down, they gain new physical and chemical properties, increasing the risk they will have a toxic effect on organisms, says the environmental arm of the United Nations. The larger the number of potentially affected species and ecological functions, the more likely it is that toxic effects will occur.

    And although the conditions of the Indiana fire differ from those experienced earlier this year when a Norfolk Southern Corp.
    NSC,
    +0.30%

    freight train carrying hazardous materials in several cars derailed near East Palestine, Ohio, the public’s concern for that event — which also sparked an evacuation after a chemical plume from a controlled burn — spread widely on social media.

    Now, add in Richmond. The public, at large, is increasingly wondering if officials are doing their job to prevent such disasters, and whether the full extent of chemical exposure is known.

    “This [fire in Indiana] overlaps in a general sense the chemical safety question raised by the Ohio derailment — and it shouldn’t have just been raised by that one event, but that certainly brought it into focus,” said Dr. Peter Orris, chief of occupational and environmental medicine at the University of Illinois – Chicago.

    Orris said lasting solutions pushing awareness and safety around the storage and transportation of chemicals and chemical-based plastic must span political differences over the reach of regulation. He recalled a time just after the 9/11 terror attacks when a fresh look at the transportation of toxic chemicals and the storage and shipment of ammonia and other substances that can have nefarious uses in the wrong hands drew support from unusual partners.

    “Shortly after 9/11 a rather broad coalition, including environmental interests such as Greenpeace, and consumer groups, with congressional support, alongside Homeland Security all pushed a model bill about where and how you could transport toxic chemicals, especially going through populated areas,” he said. “Dealing with new concerns around chemicals and recycling plastic may require the same breadth of interests.”

    Already, the Biden administration has shown the will to target chemical exposure in U.S. water. Earlier this year, the EPA moved to require near-zero levels of perfluoroalkyl and polyfluoroalkyl substances, part of a classification of chemicals known as PFAS, and also called “forever chemicals” due to how long they persist in the environment. Both the chemical companies and their trade groups have pushed their own steps toward reducing risk, they say. Exposure to some of the chemicals has been linked to cancer, liver damage, fertility and thyroid problems, as well as asthma and other health effects.

    Read more: Cancer-linked PFAS — known as ‘forever chemicals’ — could be banned in drinking water for first time

    And, Orris stressed, regulating recycling with a one-size-fits-all approach may not work.

    Surprisingly, it can be the smaller recycling facilities that take bigger steps in curbing emissions than their larger counterparts. Orris in recent years reported on efforts of a San Francisco recycling plant that made emissions reduction a priority, including by banning incineration. The same research trip turned up issues with a Los Angeles-area plant, exposing “real problems with its policies and procedures beginning with the neighborhood smell from organic materials to other issues with toxins.”

    How can plastic be so dangerous?

    Specifically, the chemicals that help fortify plastic for its many uses present their own unique conditions.

    As plastic is heated at high temperatures, melted and reformed into small pellets, it emits toxic chemicals and particulate matter, including volatile gases and fly ash, into the air, which pose threats to health and the local environment, says a Human Rights Watch paper, citing environmental engineering research. When plastic is recycled into pellets for future use, its toxic chemical additives are carried over to the new products. Plus, the recycling process can generate new toxic chemicals, like dioxins, if plastics are not heated at a high enough temperature.

    There are other concerns. Plastic melting facilities can emit volatile organic compounds (VOCs) and carcinogens, which in higher concentrations can pollute air both inside facilities and in areas near recycling facilities.

    “Plastics, the way they burn, put out dangerous toxins. And plastic can create its own unique chemistry even when it comes into interaction with benign chemicals,” said Galiatsatos of Johns Hopkins.

    “There are the lung issues from people breathing in these chemicals and the toxins associated with them. But there is more: systemic inflation from breathing in chemicals, and that can lead to heart disease,” he said.

    “I wish we would pay the same amount of attention to plastics, their recycling and their disposal, as we do with sewer systems. When was the last time we heard of a waste system-based cholera outbreak in the U.S.?” he asked rhetorically. “Exactly. That we care about. Yet plastics, especially the burning of chemicals, we treat too lightly.”

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  • Tesla, Netflix earnings due: Cheaper cars, cheaper content, more workout videos, as ‘earnings recession’ seems likely

    Tesla, Netflix earnings due: Cheaper cars, cheaper content, more workout videos, as ‘earnings recession’ seems likely

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    For anyone watching Netflix, the streaming services’ recent moves to cut costs could mean fewer films, lower-budget shows and — depending on your subscription — more ads. For anyone buying a Tesla, its moves to cut prices will make it easier on customers, but harder on profit-seeking investors.

    With both companies reporting results this week, Wall Street will get a look at who still wants a Tesla, amid growing competition, and what kind of growth and viewership anyone can expect from Netflix, as it recalibrates its streaming ambitions and focuses more on profitability following years of rapid growth.

    Netflix Inc.
    NFLX,
    -2.18%
    ,
    which reports first-quarter results on Tuesday, is trying to crack down on shared accounts, and analysts polled by FactSet see subscriptions coming in well below the average. However, BofA analyst Jessica Reif Ehrlich said that first-quarter results would likely “mark the low point” of the year, “reflecting the initial impact of password sharing efforts in select markets.”

    Netflix will report as shareholders’ growing influence over the streaming universe raises questions over what shows and films get streamed, and for how long, as Wall Street tries to wring more bottom-line gains from an industry that boomed before and during the pandemic but burned cash and got crowded in the process. Netflix, along with Walt Disney Co.
    DIS,
    -0.93%
    ,
    have laid off employees, while Warner Brothers Discovery Inc.
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    -1.85%

    fuses its streaming holdings together.

    “We expect Netflix to continue reining in spending, particularly by seeking alternatives to its past practices,” Wedbush analysts Alicia Reese and Michael Pachter wrote in a research note on Thursday. “The company appears to us to be producing fewer feature length films, which we have always viewed as a poor investment, and appears focused on lower cost television content.”

    “We are equally encouraged that Netflix is looking at low-cost content like workout videos, which we believe will present a lot of value to subscribers at very low cost,” they added later.

    The analysts said that they felt Netflix was well positioned, as other streamers rethink their approach to expansion and financials. And they said Netflix “should be valued as an immensely profitable, slow-growth company.” They also said that Netflix’s decision to launch a cheaper ad-supported option was a “great decision” after growth stalled in the U.S. and Canada and the company’s business in Europe, the Middle East and Africa reaches the saturation point.

    For Tesla Inc.
    TSLA,
    -0.48%
    ,
    which reports results on Wednesday, the focus for investors will be on price-cutting and its impact on margins. Still, Potter, an analyst at Piper Sandler, has said Tesla is on a “warpath” and “maintaining its aggressive approach to pricing,” and said investors “should expect relentless price cuts to continue.”

    Base prices for Tesla’s Model S and Model X have fallen by around $5,000, MarketWatch has noted, as the electric-vehicle maker tries to stimulate demand. The company is also selling a more affordable Model Y SUV.

    “Tesla concerns on pricing and a race to the bottom persisted as general sentiment on the stock is souring given recent price cuts after a brief period of stabilization,” TD Cowen analyst Jeffrey Osborne said in a note.

    Tesla will report as the Biden administration tries to take a harder stance on auto pollution. The EPA recently proposed new emissions restrictions intended to hasten electric-vehicle usage, by incrementally curtailing tailpipe emissions each year for vehicle model years 2027 through 2032. However, some analysts said the measures would push prices higher for regular and electric vehicles.

    This week in earnings

    The first-quarter earnings reporting season will pick up steam in the week ahead, with 60 S&P 500 companies, including six from the Dow Jones Industrial Average
    DJIA,
    -0.42%
    ,
    reporting quarterly results, according to FactSet. Those companies will report as Wall Street analysts remain pessimistic about results for the quarter, and the prospect of another so-called “earnings recession” in which profits contract for at least two straight quarters.

    “As of today, the S&P 500 is reporting a year-over-year decline in earnings of -6.5% for the first quarter, which would mark the largest earnings decline reported by the index since Q2 2020 (-31.6%) and the second straight quarter the index has reported a decline in earnings,” FactSet Senior Earnings Analyst John Butters said in a report on Friday.

    After investors cheered JPMorgan Chase & Co.’s
    JPM,
    +7.55%

    quarterly results on Friday — despite Silicon Valley Bank’s collapse and broader recession anxieties — other banking giants, like Bank of America Corp.
    BAC,
    +3.36%
    ,
    Goldman Sachs Group Inc.
    GS,
    +1.44%

    and Morgan Stanley
    MS,
    +1.19%

    report during the week ahead. So does Johnson & Johnson
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    -0.16%
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    after it agreed to pay as much as $8.9 billion to settle scores of lawsuits alleging that its talc baby powder was linked to cancer. Charles Schwab Corp.
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    -1.40%
    ,
    United Airlines Holdings Inc.
    UAL,
    -0.71%

    and AT&T Inc.
    T,
    -0.15%

    also report during the week.

    The calls to put on your calendar

    Supply-chain update, anyone? Shipping rates have fallen. Labor tensions have risen. Railroad safety is under scrutiny. Elsewhere in that industry, hedge funders are applying pressure. Memories of 2021’s supply-chain meltdown are still fresh after it led to shipping delays and put the low-work labor that fuels much of that distribution network under a spotlight.

    At any rate, trucking and logistics company J.B. Hunt Transportation Services Inc.
    JBHT,
    +1.23%

    reports on Monday, while railroad giant CSX Corp.
    CSX,
    +0.13%

    reports on Thursday. Both companies report after a drop-off in demand for goods last year, as inflation remolded consumers’ buying habits. They also report after rail workers threatened to strike over what they said were inadequate sick-time policies. More recently, a group representing the terminal operators at the ports of Los Angeles and Long Beach alleged that dockworkers were disrupting daily operations at the two massive import gateways, as the workers’ union and the terminal operators try to work out a contract. The quarterly financial reports and earnings calls will offer a look at what the year ahead has in store.

    The number to watch

    Credit-card transactions, charge-offs: Credit-card providers Discover Financial Services
    DFS,
    +0.68%

    and American Express Co.
    AXP,
    +0.57%

    report Wednesday and Thursday, respectively. The companies will report after Discover took a hit in January after it forecast credit-card net charge-offs — a measure of debt a company doesn’t think it’ll get back — that were worse than what Wall Street expected. Similar to the results from the big banks, the results from American Express and Discover will tells us how much consumers are still spending, and whether more are falling behind on their bills, as recession anxieties prevail.

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  • U.S. economy forecast to create 238,000 jobs in March. The Fed wouldn’t be happy.

    U.S. economy forecast to create 238,000 jobs in March. The Fed wouldn’t be happy.

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    Normally a big increase in new U.S. jobs is cause for celebration. Not right now.

    The Federal Reserve sees a tight labor market as a big obstacle in getting high inflation under control and wants hiring to slow as soon as possible, but it might not get its wish in March.

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  • Micron Sales Plunge 53%. It Is Cutting More Staff. Better Days Lie Ahead.

    Micron Sales Plunge 53%. It Is Cutting More Staff. Better Days Lie Ahead.

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    Micron


    Technology shares are modestly higher in late trading Tuesday after the memory chip company posted financial results for its fiscal second quarter ended March 2 that were about in line with expectations, as a weak market for PCs and smartphones continued to weigh on the company’s results. Micron also said that as part of its cost-reduction program, it will reduce staff by about 15%—up from a previous plan to cut heads by 10%.

    But there are some promising signs for the memory chip maker.

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  • Disney begins layoffs of 7,000 this week in first of three phases

    Disney begins layoffs of 7,000 this week in first of three phases

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    Walt Disney Co. will begin the process of eliminating 7,000 jobs this week, company Chief Executive Bob Iger said in a memo to staff Monday.

    “This week, we begin notifying employees whose positions are impacted by the company’s workforce reductions,” Iger wrote in the memo, obtained by MarketWatch. “Leaders will be communicating the news directly to the first group of impacted employees over the next four days. A second, larger round of notifications will happen in April with several thousand more staff reductions, and we expect to commence the final round of notifications before the beginning of the summer to reach our 7,000-job target.”

    Disney’s
    DIS,
    +1.64%

    three-phase layoff is “part of a strategic realignment of the company, including important cost-saving measures necessary for creating a more-effective, coordinated, and streamlined approach to our business,” said Iger, who returned last year as CEO following the ouster of Bob Chapek.

    Disney’s stock was up 1.4% in early-afternoon trading Monday. So far this year, shares have advanced 10% compared with the S&P 500 index’s
    SPX,
    +0.16%

    gain of 3.8% over the same period.

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  • U.S. economy speeds up in March, S&P finds, but so does inflation

    U.S. economy speeds up in March, S&P finds, but so does inflation

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    The numbers: The U.S. economy accelerated in March, S&P Global surveys showed, but so did inflation as companies raised selling prices.

    The S&P Global Flash U.S. services-sector index rose to an 11-month high of 53.8 from 50.5 in the prior month. Most Americans are employed on the service side of the economy.

    The S&P Global U.S. manufacturing sector index, meanwhile, increased to 49.3 from 47.3. That’s a five-month high.

    Any number above 50 points to expansion. Figures below that signal contraction.

    The S&P Global surveys are among the first indicators each month to assess the health of the economy.

    Key details: New orders, a sign of future sales, rose for the first time since last September at service-oriented companies.

    Booking at manufacturers fell again, but at the slowest pace in six months. More positively, production increased for the first time since last September.

    Employment rose across the economy as both service companies and manufacturers said they added new workers.

    On the downside, the increase in demand allowed companies to raise prices at the fastest pace in five months.

    Business leaders said rising costs, especially labor, contributed to their decision to raise prices.

    That’s not good news for Federal Reserve officials who worry that rising wages could make it harder to get high inflation under control.

    Big picture: The service and industrial sides of the economies are following different trajectories.

    Americans are spending relatively more money on services such as travel and eating out and spending less on goods. As a result, service companies are still hiring and growing at a faster clip.

    Manufacturers are basically treading water due to the shift in consumer spending patterns as well as the depressive effects of higher inflation and interest rates.

    Adding it all up, though, the S&P reports paint the picture of a expanding economy that is not on the doorstep of recession.

    What remains to be seen is how much the recent stress in the banking sector hurts lending and makes it harder for businesses to borrow and invest.

    Looking ahead: “March has so far witnessed an encouraging resurgence of economic growth,” said Chris Williamson, chief business economist at S&P Global.

    “There is also some concern regarding inflation,” he said. “The inflationary upturn is now being led by stronger service sector price increases, linked largely to faster wage growth.”

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    -0.17%

    and S&P 500
    SPX,
    -0.13%

    fell in Friday trades.

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  • Jobless claims dip to 3-week low of 191,000 — labor market still very strong

    Jobless claims dip to 3-week low of 191,000 — labor market still very strong

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    The numbers: The number of Americans who applied for unemployment benefits last week slipped to a three-week low of 191,000, signaling little erosion in a strong U.S. labor market even as the economy faced fresh strains.

    New U.S. applications for benefits fell by 1,000 from 192,000 in the prior week, the government said Thursday. .

    The number of people applying for jobless benefits is one of the best barometers of whether the economy is getting better or worse. New unemployment applications remain near historically low levels.

    Economists polled by The Wall Street Journal had forecast new claims to total 198,000 in the seven days ended March 18. The numbers are seasonally adjusted.

    Key details: Twenty-eight of the 53 U.S. states and territories that report jobless claims showed a decrease last week. Twenty-five posted an increase.

    Most of the changes were small except in Indiana.

    One potential red flag: The number of raw or actual claims — before seasonal adjustments — was much higher last week compared to the same week a year earlier. But so far there’s little sign of a trend.

    “Even the tens of thousands of recent [high-tech] layoffs have almost completely been absorbed by a powerful labor market that has plenty of expansion left in it,” contended Robert Frick, chief corporate economist at Navy Federal Credit Union.

    The number of people collecting unemployment benefits across the country, meanwhile, rose by 14,000 to 1.69 million in the week ended March 11. That number is reported with a one-week lag.

    These continuing claims are still low, but a gradual increase since last year suggests it’s taking longer for people who lose their jobs to find new ones.

    Big picture: Jobless benefit claims are one of the first indicators to emit danger signals when the U.S. is headed toward recession. It’s still not flashing a red-light, or even a yellow one, as the economy comes under more duress.

    The Federal Reserve, for instance, just raised interest rates to a nearly 16-year high. And the failure of Silicon Valley Bank has put more stress on the U.S. financial system.

    Both of these actions could constrain the economy in the months ahead, curb hiring and potentially boost a low unemployment rate. If so, watch the trend in new jobless claims.

    Looking ahead: “Most companies are either still hiring or are holding onto their employees and seeking other ways to cut costs,” said chief economist Joshua Shapiro of MFR Inc.

    “This is consistent with our view that layoffs will rise less dramatically than normally might occur as companies do all they can to avoid shedding workers who have been incredibly difficult to recruit and retain.”

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    +0.23%

    and S&P 500
    SPX,
    +0.30%

    were set to open higher in Thursday trades. Stocks have been under pressure since the failure of SVB earlier this month.

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  • Amazon’s stock dips 1% as another 9,000 layoffs announced

    Amazon’s stock dips 1% as another 9,000 layoffs announced

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    Amazon.com Inc. is eliminating another 9,000 jobs, the company announced Monday morning.

    In a memo to staff, Amazon
    AMZN,
    -1.25%

    Chief Executive Andy Jassy said the cuts would take place over the next few weeks and primarily affect Amazon Web Services, People Experience and Technology Solutions, advertising and Twitch. [Twitch CEO Dan Clancy broke the news of 400 layoffs to employees in a blog post later Monday.]

    “This was a difficult decision, but one that we think is best for the company long term,” Jassy wrote.

    “For several years leading up to this one, most of our businesses added a significant amount of headcount,” Jassy added. “This made sense given what was happening in our businesses and the economy as a whole. However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”

    The news sent the retailer’s stock down 1% in trading Monday.

    The latest layoffs, amid a challenging macroeconomic climate that has claimed tens of thousands of jobs in the tech industry, follow an earlier round at Amazon, announced in November, that affected more than 18,000 employees. Additionally, Amazon has paused construction of its second headquarters in Virginia.

    At the same time, there are rumblings out of the Beltway that the Biden administration is preparing legal actions against Amazon stemming from investigations into its business practices, according to a report in Politico.

    Amazon is the second Big Tech company this month to announce additional job cuts. Last week, Mark Zuckerberg, CEO of Facebook parent Meta Platforms Inc.
    META,
    +1.12%
    ,
    wrote in a blog post the social-networking company would slash 10,000 more employees as it focuses on a “year of efficiency.” The move drove Meta shares up 7% and helped the company top $500 billion in market value for the first time since June.

    In November, the company said it would cut 11,000 employees, or about 13% of its workforce, in the first layoffs in the company’s 18-year history.

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  • Jobs report shows strong 311,000 gain in February, puts pressure on Fed for bigger rate hike

    Jobs report shows strong 311,000 gain in February, puts pressure on Fed for bigger rate hike

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    The numbers: The U.S. created a robust 311,000 new jobs in February, raising the odds of another sharp hike in interest rates by the Federal Reserve later this month.

    Economists polled by The Wall Street Journal had forecast 225,000 new jobs.

    The increase in employment last month followed a revised 504,000 gain (initially 517,000) in January, the government said Friday.

    The large back-to-back increases could force the Fed to raise interest rates higher than it had planned to slow the economy and loosen up the tightest labor market in decades. The central bank meets March 21-22 to plot its next move.

    A sign advertises job openings outside a business in Illinois. Lots of companies are still hiring, but the economy has slowed and job creation is likely to as well.


    Scott Olson/Getty Images

    Yet there were a few glimmers of hope for the Fed.

    The unemployment rate rose a few ticks to 3.6%. Hourly wages rose just 0.2% to mark the smallest increase in a year. And the share of able-bodied people in the labor force climbed to a three-year high.

    All of these are pressure valves on the labor market and the broader economy from high inflation.

    Investors appeared to put more weight on those factors than another big increase in employment. Stocks rose and bond yields fell.

    Big picture: An expanding U.S. economy has shown lots of resilience in the face of rising interest rates, but analysts doubt the good times can last. Higher borrowing costs typically slow the economy by depressing consumer spending and business investment.

    Just look at the housing market, where soaring mortgage rates have crushed sales and new construction. The same could happen to the rest of the economy if the Fed has to jack up rates more than Wall Street expects.

    Already, a robust U.S. labor market is showing signs of fraying. Job postings have declined, lots of large companies have announced layoffs and workers who lose a job are taking longer to find a new one.

    It just might not be enough for the Fed.

    Market reaction:  The Dow Jones Industrial Average
    DJIA,
    -1.66%

    and S&P 500
    SPX,
    -1.85%

    trimmed premarket losses in Friday trades. The yield on the 10-year Treasury fell to 3.78%.

    Investors hope some signs of cooling in the labor market will encourage the Fed to keep raising interest rates in smaller increments.

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