Business
Nike Says It Will Cut $2 Billion In Costs In A Major Warning For Consumers
Nike, a leading indicator of the global economy, issued a cautionary note on Thursday, citing consumer caution.
Nike lowered its sales forecast for the year and announced cost cuts amid rising concerns that consumer spending is declining globally. The firm expects to save up to $2 billion in costs over the next three years, involving layoffs.
Nike (NKE) shares fell as much as 14% on Friday.
Customers are changing their behavior, preceding discretionary purchases such as pricey footwear and athletic apparel in favor of necessities and experiences such as concerts and trips. Nike is also facing stiff competition from newcomers like Hoka and On Cloud.
Nike Says It Will Cut $2 Billion In Costs In A Major Warning For Consumers
On a conference call Thursday, Nike finance head Matt Friend said that the updated estimate reflects “indications of more cautious consumer behavior around the world.” He cited slow sales in China and the company’s sectors in Europe, the Middle East, and Africa.
Nike observed lackluster demand Outside crucial holiday events such as back-to-school shopping and Black Friday. The company’s e-commerce sales stalled, and competitors provided higher amounts of advertising to tempt customers.
While concerns about a US recession have subsided, European economies are stagnating.
Nike Says It Will Cut $2 Billion In Costs In A Major Warning For Consumers
China, the world’s second-largest economy, is also experiencing growing difficulties, with sluggish consumption being a major drag.
Nike is a multinational corporation known for its athletic footwear, apparel, and equipment. The company was founded in 1964 and has since become a major player in the sports industry.
Nike’s products are popular worldwide and are associated with high-quality performance and style. The brand has a strong presence in various sports, including basketball, running, and soccer, and has collaborated with numerous athletes and celebrities.
Nike Says It Will Cut $2 Billion In Costs In A Major Warning For Consumers
With its innovative designs and marketing strategies, Nike continues to be a dominant force in the global sports market.’
SOURCE (CNN)
Business
Facebook And Instagram Face Fresh EU Digital Scrutiny Over Child Safety Measures
LONDON — The European Union started new investigations into Facebook and Instagram on Thursday, alleging that they are failing to protect youngsters online, in contravention of the bloc’s rigorous digital standards for social media companies.
It’s the latest wave of investigation for parent business Meta Platforms under the 27-nation EU’s Digital Services Act, a broad set of regulations enacted last year to clean up online platforms and protect internet users.
Facebook And Instagram Face Fresh EU Digital Scrutiny Over Child Safety Measures
The European Commission, the bloc’s executive arm, expressed worry that the algorithmic algorithms used by Facebook and Instagram to propose content such as movies and postings could “exploit the weaknesses and inexperience” of minors and encourage “addictive behavior.” It’s concerned that these methods would exacerbate the so-called “rabbit hole” effect, which drives consumers to more distressing content.
The commission is also investigating Meta’s use of age-verification technologies to prevent youngsters from accessing Facebook or Instagram or viewing inappropriate information. Users must be at least 13 years old to create an account on these networks. It also investigates whether the corporation complies with DSA regulations demanding high privacy, safety, and security for children.
“We want young people to have safe, age-appropriate experiences online and have spent a decade developing more than 50 tools and policies designed to protect them,” Meta stated earlier. “This is a challenge the whole industry is facing, and we look forward to sharing details of our work with the European Commission.”
Facebook And Instagram Face Fresh EU Digital Scrutiny Over Child Safety Measures
The most recent DSA lawsuits center on child safety under the DSA, which mandates platforms to implement strict procedures to protect children. Earlier this year, the commission started two separate investigations into TikTok due to concerns about potential hazards to children.
“We are not convinced that Meta has done enough to comply with the DSA obligations — to mitigate the risks of negative effects on the physical and mental health of young Europeans on its platforms Facebook and Instagram,” European Commissioner Thierry Breton stated on social media.
The cases announced on Thursday are not the first for Facebook and Instagram. The DSA is already investigating them over worries that they are not doing enough to combat foreign disinformation ahead of the EU elections next month.
Facebook And Instagram Face Fresh EU Digital Scrutiny Over Child Safety Measures
X, a social media platform, and AliExpress, an ecommerce site, are under investigation for violating EU regulations.
There is no timeframe for the investigations to conclude. Violations may result in fines of up to 6% of a company’s annual global revenue.
SOURCE – (AP)
Business
Microsoft Asks Some Employees In China To Move To Other Countries
According to Chinese official media, Microsoft has asked at least 100 employees in China to consider migrating to other nations.
The reports come as tensions between Beijing and Washington deteriorate over technology such as artificial intelligence (AI) and renewable energy.
Microsoft personnel, particularly involved in cloud computing, were recently offered opportunities to work in the United States, Australia, or Ireland, among other nations, according to a report published Wednesday by state-run media The Paper, citing an unnamed source.
Microsoft Asks Some Employees In China To Move To Other Countries
According to the Wall Street Journal, Microsoft has urged up to 800 employees, most Chinese engineers working on cloud computing and artificial intelligence, to consider relocating. Last year, the Journal reported, citing anonymous sources, that the Biden administration was planning to restrict Chinese corporations’ access to US cloud services.
CNN has contacted Microsoft for comment.
According to a statement from Microsoft (MSFT) that Reuters cited, the company was still committed to China and that giving some employees internal opportunities was part of its regular business.
The business first entered China in 1992, and for decades, it relied on its influential Beijing-based research lab, Microsoft Research Lab Asia, to gain influence.
“Everyone is confused,” an employee told the paper, noting that the impacted employees have less than a month to decide.
Microsoft Asks Some Employees In China To Move To Other Countries
Yicai, a Chinese state-owned financial media site, reported that over 100 staff were affected. It also said that residents had the option not to move.
The reports come the same week President Joe Biden proposed duties on $18 billion in Chinese electric vehicle imports and other products. Biden stated that he was working to prevent unfair competition from China and the US industry from being decimated.
The two economic superpowers have been at odds in the technological realm for years. In October, the Biden administration restricted the semiconductors that American companies may export to China.
In recent months, the United States has joined with its European and Asian partners to block China’s supplies of advanced chipmaking equipment.
Microsoft Asks Some Employees In China To Move To Other Countries
Beijing has responded by setting its restrictions on shipments of germanium and gallium, two materials required for semiconductor manufacturing.
SOURCE – (CNN)
Business
Walmart’s Business Surges As Shoppers Hunt For Low Prices
Businesses ranging from McDonald’s to Home Depot are battling to attract financially challenged customers. However, Walmart is expanding as customers seek low-cost groceries, necessities, and other items.
Walmart reported Thursday that sales at locations open for at least a year grew 3.8% over the previous year. The company upped its sales and profit guidance for the year, indicating that it expects growth to continue.
Walmart’s Business Surges As Shoppers Hunt For Low Prices
According to retail analysts, the largest retailer in the United States has leveraged its size and purchasing power to keep prices lower than competitors despite rising inflation since the outbreak.
Groceries account for more than half of Walmart’s sales, and analysts at Evercore IRI say the company has profited from its pricing advantage, with prices that are approximately 25% lower than traditional supermarkets.
While low—and middle-income customers have traditionally made up the majority of Walmart’s customer base, the company has expanded to include people earning more than $100,000 per year. It stated that its growth last quarter was “primarily driven by upper-income households.”
Walmart’s Business Surges As Shoppers Hunt For Low Prices
“Most Americans remain uncomfortable with food prices and are still actively looking for ways to keep their spending in check,” Neil Saunders, an analyst at GlobalData Retail, said in a note to clients Thursday. This has benefited “Walmart’s favor and has allowed the chain to continue to acquire new customers.”
Meanwhile, department stores, home improvement retailers, and other retail groups have suffered as buyers tighten their belts. Fast-food restaurants have also struggled.
Retail sales have declined overall in recent months.
The business stated this week that Home Depot’s sales at locations operating for at least a year declined 2.8% last quarter. McDonald’s reports that some lower-income Americans are eschewing the restaurant in favor of cooking at home.
Walmart’s Business Surges As Shoppers Hunt For Low Prices
“It’s a challenging consumer environment,” said Ian Borden, McDonald’s CFO, stressing that many people are struggling with inflation, rising interest rates, and shrinking savings.
SOURCE – (CNN)
-
Sports5 months ago
Saints’ Aggressive Play-Calling Ends Up Coming Back To Hurt Them In Loss To Rams
-
Business5 months ago
Federal Court Revives Lawsuit Against Nirvana Over 1991 ‘Nevermind’ Naked Baby Album Cover
-
News5 months ago
The Rise of Woke Ideology in Western Culture
-
Business5 months ago
Wayfair CEO: Employees Need To Work Longer Hours, After Laying Off 5% Off The Company
-
Sports5 months ago
StreamEast Live Sports Streaming: The Ultimate Guide
-
Learning2 days ago
Exploring TVA Nouvelles Quebec’s Premier News Source