News

Joby Aviation and Volocopter recently conducted demonstration flights of their electric aircraft in New York City, providing a glimpse into the future of aviation. During a press conference, New York City Mayor Eric Adams announced plans to electrify two heliports, further supporting the development of electric vertical take-off and landing (eVTOL) aircraft. The move is crucial for eVTOL developers, who require significant public investment to establish their commercial air taxi service by the mid-2020s. The eVTOL industry is benefitting from climate commitments by cities, including New York City, to reduce carbon emissions and transition to clean energy. Joby Aviation, with plans for a “city-to-airport” service in New York and Los Angeles, estimates that it could reduce travel time between Manhattan and John F. Kennedy International Airport to just seven minutes.

Google, Meta Platforms (formerly Facebook), and TikTok have received support from Europe’s top court in their battle against an Austrian law that required them to delete hate speech or face hefty fines. The law, introduced in 2021, compelled large tech companies to release regular reports on illegal content. The Court of Justice of the European Union (CJEU) ruled in favor of the three companies, stating that the Austrian law contradicted an EU rule mandating that online service providers should adhere to the regulations of the country where they are established. The ruling cannot be appealed. This decision comes as the European Union implements new regulations, known as the Digital Services Act, which demand that major online platforms take stronger action against illegal and harmful content or risk fines of up to 6% of their annual revenue.

Autonomous vehicle venture Cruise, owned by General Motors, has issued a recall for 950 of its robotaxis after a pedestrian collision in San Francisco. The incident occurred on October 2 when a human driver in another car hit a pedestrian, sending her into the path of the Cruise robotaxi. Following the collision, Cruise grounded all its driverless operations and initiated a federal probe. California regulators also revoked the company’s permits to operate driverless vehicles without human safety drivers.

The investigation revealed defects in Cruise’s automated driving system software, leading to the recall. Cruise is conducting third-party reviews of the incident and is searching for a chief safety officer. The company has also temporarily suspended production of its Cruise Origin driverless vans. Over the course of this year, GM has reported losses of approximately $1.9 billion on Cruise.

WeWork, the office sharing company once valued at $47 billion, has halted shares trading amidst rumors that it will seek bankruptcy protection. Speculation about the company’s financial troubles has persisted for some time, with reports suggesting that WeWork plans to file for Chapter 11 bankruptcy soon. WeWork’s stock, which was valued at over $400 two years ago, is now trading for less than $1. The company’s aggressive expansion, previous failed IPO attempts, and the impact of the COVID-19 pandemic on the commercial real estate market have all contributed to its financial struggles.

Starbucks has unveiled its plan to drive growth by expanding its global presence and saving $3 billion in costs over the next three years. The coffee giant aims to reach 35,000 locations outside of North America by 2030, up from its current count of 20,200 international cafes. Additionally, Starbucks plans to achieve a total of 55,000 locations globally by 2030. The company also announced a $3 billion cost-savings plan, with $1 billion of the savings expected to come from store efficiency improvements.

Moreover, Starbucks revealed wage increases for baristas, aiming to double their hourly income by the end of fiscal 2025. The company’s “Triple Shot Reinvention Strategy” seeks to simplify operations and improve efficiency, addressing recent challenges such as more complex drink orders and increased demand for quick service. Despite accusations of breaking labor laws, Starbucks reported strong fiscal fourth-quarter results, beating analysts’ estimates and boosting its market cap.

Delta Air Lines is taking steps to reduce costs by cutting some corporate jobs, citing higher expenses in areas such as fuel and labor. While the airline did not provide specific figures, it stated that the job cuts would be a “small adjustment” to corporate and management positions. Front-line workers, including pilots, flight attendants, and mechanics, will not be affected by these layoffs. Delta’s decision comes as the company reported strong travel demand and a third-quarter profit of $1.1 billion, up nearly 60% from the previous year.

The airline aims to optimize operations, reduce inefficiencies, and enhance operational reliability as it looks ahead to a normalization of growth in the coming year. Despite recent hiring efforts, Delta had previously encouraged employees to take buyouts during the pandemic when travel demand was significantly impacted. As airlines adjust to changing demand patterns, some carriers, such as Southwest, are considering slowing down capacity growth.

The US job market continues to display strength as employers posted 9.6 million job openings in September, indicating a resilient labor market. Layoffs also decreased, pointing to increased job security for workers. While job openings have decreased since March 2022 when they reached a record high, they remain high compared to pre-pandemic levels. The Federal Reserve aims to cool the economy to control inflation but is facing challenges due to robust hiring and economic growth. The central bank is expected to maintain its benchmark interest rate unchanged.