News

Google is reducing its workforce in the global recruiting organization as part of a larger hiring pullback that will span the next few quarters. Brian Ong, Google’s recruiting vice president, informed employees about the significant reduction in a video meeting. This decision was not taken lightly, but based on the expected hiring volume in the coming quarters, it was deemed necessary.

In January, Google’s parent company, Alphabet, announced layoffs affecting roughly 6% of the full-time workforce, including the recruiting organization. While cost-cutting efforts have been ongoing, Alphabet reported a 7% increase in second-quarter revenue. Despite the latest layoffs, employees affected will retain access to offices and online systems for a longer period, addressing criticism from previous layoffs earlier this year.

Hollywood continues to face labor strikes, and Marvel Studios’ visual effects (VFX) workers have joined unionized members’ ranks. The International Alliance of Theatrical Stage Employees (IATSE) announced that the VFX workers unanimously voted in favor of unionizing. This is the first time a unit consisting solely of VFX workers has joined the union.

Ten Sweetgreen employees have filed a lawsuit against the salad chain, accusing seven of its New York City restaurants of racial discrimination. The plaintiffs claim that their co-workers and managers regularly used racial slurs and made racist comments. The lawsuit further alleges that Black employees were not hired or promoted adequately, while Hispanic workers received preferential treatment.

The plaintiffs also assert that complaints made to Sweetgreen’s management and human resources department were ignored. Additionally, the lawsuit includes claims of sexual harassment, with managers making inappropriate comments and physical contact. The plaintiffs are seeking monetary and punitive damages and payment of attorneys’ fees. The lawsuit has been amended to include eight new plaintiffs and additional restaurants. Sweetgreen, currently facing legal responsibility for its managers’ discriminatory conduct as per New York City law, has not yet responded to the allegations.

UPS CEO Carol Tome has stated that the costs incurred by the company for the newly established Teamsters contract are significantly less than the “$30 billion in new money” claimed by the union. Tome emphasized that the agreement is cost-effective and fair, with the majority of compensation being provided in the first year. The contract’s structured increase in costs is viewed as advantageous for UPS, offering a 3.3% compounded annual growth rate. The agreement also addresses work-life balance for employees while preserving weekend delivery options for customers. Avoiding a work stoppage, the contract has prevented potentially severe economic consequences, with a projected $7 billion loss in the US economy within the first 10 days of a strike. UPS shares have experienced a 14% decline since the announcement of the contract.

Citigroup CEO Jane Fraser has unveiled a corporate reorganization plan aimed at reducing management layers and accelerating decision-making within the company. The banking giant will now be divided into five main business lines that report directly to Fraser, eliminating unnecessary complexity across the firm. The restructuring will also include job cuts, the exact number of which is yet to be determined.

The move comes as Citigroup seeks to revitalize its performance and overcome a persistent stock slump. Despite being the third-largest US bank by assets, Citigroup has struggled to regain its footing since the 2008 financial crisis, partially due to its comparatively smaller domestic retail banking presence. The reorganization is expected to be completed by the first quarter of next year.

The European Commission has initiated an investigation into Chinese electric vehicle (EV) imports, examining whether punitive tariffs should be imposed to protect European producers. The investigation aims to address the influx of cheaper Chinese EVs in global markets, which the EU believes are benefiting from state subsidies. The probe, which covers battery-powered cars from China including non-Chinese brands like Tesla, Renault, and BMW, marks a significant case against China for the EU. Tensions between China and the EU have been increasing, and the EU is seeking to reduce its reliance on China for its green transition.

European carmakers are grappling with the challenge of producing lower-cost electric vehicles and competing with China’s lead in the EV market. China’s share of EVs sold in Europe has risen to 8% and is projected to reach 15% by 2025. Shares of Chinese EV producers fell following the EU announcement, while shares of European carmakers experienced mixed reactions. The investigation will examine a range of unfair subsidies, including prices of raw materials and batteries, as well as preferential lending and provision of land.

The United Auto Workers (UAW) union has made some progress in labor negotiations with the Detroit Three automakers, but a deal has not been reached yet, according to UAW President Shawn Fain. The potential strike of 146,000 U.S. autoworkers is only three days away. While Chrysler-parent Stellantis plans to make a counteroffer, the UAW rejected revised offers from Stellantis, General Motors (GM), and Ford Motor (F) on Friday. The UAW initially sought a 20% wage hike but has since trimmed it down to around 36% in total. Key demands from the union include job security guarantees, restoring defined-benefit pensions for all workers, and an end to the use of temporary workers.