Record Layoffs Loom In Shadow Of Industry Push For Electrification And Self-Driving

Autonomous EV drives in China. Getty Automakers are in a bind. Global car sales are slowing faster than they are able to reinvent themselves as transportation service providers focusing on electrification and self-driving vehicles. A prime example of this reinterpretation was Toyota’s announcement of its autonomous e-commerce mobility platform ‘e-Palette’ at this year’s CES in…

Autonomous EV drives in China.
Getty

Automakers are in a bind. Global car sales are slowing faster than they are able to reinvent themselves as transportation service providers focusing on electrification and self-driving vehicles. A prime example of this reinterpretation was Toyota’s announcement of its autonomous e-commerce mobility platform ‘e-Palette’ at this year’s CES in Las Vegas.
ADVERTISEMENT

Many analysts admit that it will be years before investments in new technologies like electric, self-driving cars pays off. Some say, if ever. With sales stagnating in the U.S. and China, carmakers are aggressively cutting fixed costs and strategizing their next move.
Earlier this year, Jaguar Land Rover announced it would slash 4,500 jobs worldwide in response to the sales slowdown caused by Brexit, falling demand for diesel-powered cars and a downturn in China. Meanwhile, Ford just last week, announced it would cut 12,000 jobs and close 5 plants across Europe as it aims to slash $25.5 billion in operating costs over the next few years.

Ford and JLR are not alone. General Motors, Daimler, Tesla, Honda, Fiat Chrysler and Audi have all announced job cuts since January, totaling some 38,000 workers, Bloomberg reports. This appears to be the tip of the iceberg with more layoffs to come.
“The auto industry is staring down the barrel of what we think is going to be a significant downturn, with China’s pace of decline a real surprise,” said Bank of America Merril
Read More From Publisher

Surat diamond firm lays off 80; industry cut 600 jobs since January

Diamond polishers stage dharna in Surat. (File photo)Around 600 diamond polishers in Surat have lost their jobs since January as the industry is “passing through a recession”, with J B & Brothers Pvt Ltd, a leading diamond firm, laying off 80 people on Friday. J B & Brothers Pvt Ltd is a Diamond Trading Corporation…

Diamond polishers stage dharna in Surat. (File photo)Around 600 diamond polishers in Surat have lost their jobs since January as the industry is “passing through a recession”, with J B & Brothers Pvt Ltd, a leading diamond firm, laying off 80 people on Friday.
J B & Brothers Pvt Ltd is a Diamond Trading Corporation sightholder (authorised bulk purchaser of rough diamonds) and receives a stock of rough diamonds from various mines across the globe. Over 2,000-2,200 diamond polishers were employed at the firm before the layoffs.
On Friday morning, 80 of the polishers were informed by the firm’s owners that they were being laid off. They then gathered outside the company premises and requested the security guards to allow
Read More From Publisher

The CEO of $13 billion Citrix says it’s ‘flattering’ that there are so many rumors that it’s going to get acquired: It shows ‘we’re important’ (CTXS, MSFT, VMW, ORCL)

Ever since he took over as CEO of Citrix two years ago, David Henshall has had to deal with a recurring rumor about the cloud software giant — that it’s about to be sold to potential buyers like Microsoft. Indeed, as recently as April, it was reported that the company was looking for a buyer…

Ever since he took over as CEO of Citrix two years ago, David Henshall has had to deal with a recurring rumor about the cloud software giant — that it’s about to be sold to potential buyers like Microsoft. Indeed, as recently as April, it was reported that the company was looking for a buyer willing to pay $15 billion, which would be a premium of about $2 billion over its present market cap. “The topic has come up dozens of times over the years,” Henshall told Business Insider. And he’s come up with an upbeat way to explain such potentially disquieting chatter to his employees. “What I tell our team is that the speculation is a reflection of how successful we’ve been in building relationships with enterprise customers around the world,” he said. “The speculation is flattering. It means we’re doing something right. We’re an important part of the industry.” A market leader Citrix certainly plays a key role in the enterprise tech market. It is the number-one provider of virtual client computing software, which lets the IT department provide employees access to virtual PCs hosted from their network. Citrix controlled 34.2% of that $4.5 billion market in 2018, followed by Microsoft with 20.7%, VMware with 19.2%, Amazon with 5.6%, and Huawei with 1.4%, according to IDC. Founded in 1989, the Fort Lauderdale, Florida-based company is also one of the pioneers of software-as-a-service, which transformed business applications into a web-based service sold based on subscription or pay-per-use models. But Citrix went through big changes recently — changes that were at times rocky and which in part led to speculation that it may be an acquisition target. The company went through layoffs and the departures of key execs in 2015. Then two years ago, the company spun off its GoTo line of online meeting products, and then merged the new corporate entity with remote desktop company LogMeIn. Later that year, Citrix made the surprising announcement that then-CEO Kirill Tatarinov, who took over the previous year, was leaving, a change described as a “mutual separation decision” by the board and Tatarinov. He was replaced by Henshall, a Citrix veteran who has served as the firm’s chief financial officer and chief operating officer. All the while, those acquisition rumors have swirled. Cloud computing explosion Citrix has benefited from the growing push towards cloud computing: Its products and services are especially well-suited to helping employees access their work apps and data from any device, including their smartphones. “Over the last five to six ye
Read More From Publisher

Tesla rival Nio is recalling around 4,800 vehicles after 3 caught fire

The Chinese electric-vehicle startup Nio is recalling 4,803 ES8 SUVs following reports of three vehicles catching fire. The company announced the recall Thursday in a post on its website, saying an issue with an old version of their battery packs had the potential to cause a short circuit. Vehicles produced after October 20, 2018, have…

The Chinese electric-vehicle startup Nio is recalling 4,803 ES8 SUVs following reports of three vehicles catching fire. The company announced the recall Thursday in a post on its website, saying an issue with an old version of their battery packs had the potential to cause a short circuit. Vehicles produced after October 20, 2018, have different battery packs that don’t have the same problem, Nio said. Visit Business Insider’s homepage for more stories. The Chinese electric-vehicle startup Nio is recalling 4,803 ES8 SUVs following reports of three vehicles catching fire. The company announced the recall Thursday in a post on its website, saying an issue with an old version of their battery packs had the potential to cause a short circuit. Vehicles produced after October 20, 2018, have different battery packs that don’t have the same problem, Nio said. Nio intends to replace the batteries in the affected vehicles in the next two months and will compensate customers who have been affected by battery issues. “NIO would like to sincerely apologize to our u
Read More From Publisher

World Cup 2019: No rest for the quickies, says Australia coach Justin Langer

“I would be surprised if either of those guys rest up,” Langer told a news conference. (Reuters)Australia coach Justin Langer thinks it unlikely that frontline quicks Mitchell Starc and Pat Cummins will be rested at the World Cup even if the defending champions have already qualified for the semi-finals. Langer’s side secured their spot in…

“I would be surprised if either of those guys rest up,” Langer told a news conference. (Reuters)Australia coach Justin Langer thinks it unlikely that frontline quicks Mitchell Starc and Pat Cummins will be rested at the World Cup even if the defending champions have already qualified for the semi-finals.
Langer’s side secured their spot in the last four with a 64-run win over hosts England at Lord’s on Tuesday and return to the famous north London ground on Saturday to face neighbours New Zealand in their penultimate round-robin tie.
With the Ashes test series in England to come after the World Cup, Australia might be forgiven for giving the pace duo a rest but Langer said the players would probably not want to put their feet up at any stage of the tournament.
“I would be surprised if either of those guys rest up,” Lan
Read More From Publisher

Quartz lays off business-side employees for second time this year

When Quartz launched in 2012, branded content and custom advertising were its bread and butter. Today, hoping to transform itself into a membership-focused media company and paring down the commercial side of its business in favor of what it says is a focus on doing bigger projects for fewer clients.On June 26, Quartz laid off seven…

When Quartz launched in 2012, branded content and custom advertising were its bread and butter. Today, hoping to transform itself into a membership-focused media company and paring down the commercial side of its business in favor of what it says is a focus on doing bigger projects for fewer clients.On June 26, Quartz laid off seven business-side employees, ranging from junior sales staff to a creative director. The cuts were the second batch of layoffs Quartz has endured this year; another four positions, about one-fifth of its U.K. commercial team, were eliminated at the beginning of 2019.

Altogether, Quartz has seen 25 people, close to 10% of the company headcount, depart either voluntarily or through layoffs over the past 12 months, a majority of them from the business side.
Though Quartz has done some hiring over that same stretch, including a pair of membership editors and several community and customer service specialists, it employs slightly fewer people today than it did at the start of 2019, down from 243 in January to 235, according to a company spokesperson.
The layoffs come as Quartz shifts its focus to paid subscriptions. Site traffic is down 50% year over year, according to Comscore data, sliding from 12 million monthly unique users in May 2018 to 6 million unique users in May 2019. That slide began in 2018, months before Quartz introduced a metered paywall in May 2019. The paywall has had a negligible effect on Quartz’s traffic, multiple
Read More From Publisher

Bustle Digital Group Acquires Nylon

Photo: NylonNylon has been purchased by Bustle Digital Group, according to a release from the publishing group.”Nylon’s bold and colorful legacy has developed a cult like status over the years,” Bustle CEO Bryan Goldberg says in a release. “We will invest heavily in expanding Nylon’s editorial team and advancing its strength in live experiences.”Part of this plan…

Photo: NylonNylon has been purchased by Bustle Digital Group, according to a release from the publishing group.”Nylon’s bold and colorful legacy has developed a cult like status over the years,” Bustle CEO Bryan Goldberg says in a release. “We will invest heavily in expanding Nylon’s editorial team and advancing its strength in live experiences.”Part of this plan includes bringing back the print product, which ceased operations in September 2017. It will not return to its monthly publication calendar, but rather to issues centered around “‘flagship cultural moments’ like Coachella,” according to Variety. Former Nylon president Evan Luzzatto will stick around as part of the deal; the release claims that the sale also includes Nylon’s editorial and design teams. Gold
Read More From Publisher

Andrade has eyes on Canelo, but Sulecki up first

Jun 27, 2019Dan RafaelESPN Senior Writer Close2013 BWAA Nat Fleischer Award winner for excellence in boxing journalism ESPN.com boxing writer since 2005 Five years at USA TodayMiddleweight world titlist Demetrius Andrade, once an all-but-forgotten man due to chronic inactivity, is now one of boxing’s busiest elite fighters.The man called “Boo Boo” hopes that activity –…

Jun 27, 2019Dan RafaelESPN Senior Writer Close2013 BWAA Nat Fleischer Award winner for excellence in boxing journalism
ESPN.com boxing writer since 2005
Five years at USA TodayMiddleweight world titlist Demetrius Andrade, once an all-but-forgotten man due to chronic inactivity, is now one of boxing’s busiest elite fighters.The man called “Boo Boo” hopes that activity — combined with a convincing performance in his upcoming bout — will lead him to the big one: a showdown for the undisputed 160-pound world championship against Canelo Alvarez, boxing’s resident rock star/money man.”I will not turn down a Canelo fight. I won’t sell myself short, but I will not turn down a Canelo fight,” Andrade said this week when asked about the prospect of a fall fight with Alvarez.Alvarez is due to return on Sept. 14 and while talks center on a third fight with former unified middleweight champion Gennady Golovkin, no deal has been struck yet, giving Andrade a glimmer of hope.Of course, Andrade must first deal with what is in his immediate future, and that does not figure to be an easy task. He makes his second title defense against Maciej Sulecki on Saturday (DAZN, 9 p.m. ET) at the Dunkin’ Donuts Center in Providence, Rhode Island, Andrade’s hometown.”I’ll make the proper adjustments to make sure I put on the type of fight I need to put on so when I get my hand raised I’m gonna yell out ‘Canelo!'”

Demetrius Andrade

It will be Andrade’s first fight there in his 11-year professional career. Rhode Island hasn’t been home to big-time boxing since the Vinny Pazienza heyday in the late 1980s and early 1990s, so Andrade is thrilled to bring it back.”It feels good to actually show people from my hometown my skills and talent versus having them watching on TV and not being able to feel the electricity and the vibes,” Andrade said. “Now they can feel the energy of fight week. This is more for them. For me, it’s great. I love it. But I plan on being at the T-Mobile Arena in Las Vegas (eventually) against Canelo though, you know? That’s where I want to be. But this feels good overall just being able to involve New England, Rhode Island and the whole area in boxing.”I’m not fighting Rocky Fielding and I’m not fighting Steve Rolls,” Andrade said, denigrating recent lesser opponents whom Alvarez and Golovkin faced, respecti
Read More From Publisher

Economic Report: Chink in labor market armor? Jobless claims climb to 7-week high of 227,000

Workers on an assembly line at the General Motors Flint Assembly Plant. Most Americans who want a job have found one – and that’s keeping the U.S. economy moving forward. The numbers: The number of people who applied for unemployment benefits in late June jumped to the highest level in almost two months, though so-called…

Workers on an assembly line at the General Motors Flint Assembly Plant. Most Americans who want a job have found one – and that’s keeping the U.S. economy moving forward. The numbers: The number of people who applied for unemployment benefits in late June jumped to the highest level in almost two months, though so-called jobless claims continued to remain extremely low and reflect little sign that the labor market is deteriorating. Initial jobless claims, a rough way to measure layoffs, climbed by 10,000 to 227,000 in the seven days ended June 22, the government said Thursday. Economists polled by MarketWatch estimated new claims would total a seasonally adjusted 216,000.

The more stable monthly average of new claims increased by 2,250 to a still-low 221,250. The four-week average gives a more accurate read into labor-market conditions than the more volatile weekly number. Read: Robots are coming for your jobs — Oregon, Louisiana, Texas have most to lose What happened: Raw or unadjusted jobless claims increased last week primarily in California, Connecticut, Massachusetts and New Jersey and may have been tied to the end of the school year. By and large, new jobless claims have st
Read More From Publisher

Ford to cut 12,000 jobs in European restructuring

FRANKFURT, Germany — Ford said it will cut 12,000 jobs in Europe by the end of next year to try to return the business to profit, part of a wave of cost reductions in an auto industry facing stagnant demand and huge investments to build low emission cars. The challenge of investing in electric, hybrid…

FRANKFURT, Germany — Ford said it will cut 12,000 jobs in Europe by the end of next year to try to return the business to profit, part of a wave of cost reductions in an auto industry facing stagnant demand and huge investments to build low emission cars.

The challenge of investing in electric, hybrid and autonomous vehicles while having to overhaul combustion engines to meet new clean-air rules has forced Europe’s carmakers to slash fixed costs and streamline their model portfolios.

Ford Europe has been losing money for years, and pressure to restructure its operations increased after arch-rival General Motors raised profits by selling its European Opel and Vauxhall brands to France’s Peugeot SA.

Ford said it would close three plants in Russia, a plant in France and Wales, and cut shifts at factories in Valencia, Spain and Saarlouis, Germany. Following the sale of the Kechnec Transmission plant in Slovakia, to Magna, Ford’s manufacturing footprint will be reduced to 18 facilities by end-2020, from 24 today.

“We have largely concluded consultations with
Read More From Publisher