Random Business News

[Disciple of Fate]

Feels like it is a mix of both in my immediate circle? People work from home for some days, but not all days. So they keep office space that they currently have under 5 year contracts, but aren't actively planning on downsizing. WFH full time and getting rid of expensive individual office space seems like a no-brainer, but the older management still seems intent on having a physical space that is just available for 'their' company. So you end up with full price office space with a half empty office.

[herzlos]

I think it'll depend on the size and role to some extent.

Some examples:

A friend of mine does graphic design for a large company, their office had about 10 staff and most of their customers were remote. So it made a lot of sense for them to let the lease on their city centre office expire and let everyone WFH full time. If they need to meet in person they hire a function room somewhere, but something like WeWork would be ideal even if it was infrequent.

Places that need a physical presence, like a solicitor or estate agent may be forced to keep a proper storefront even if they are rarely needed.

In my case, I work for a big multinational corporation in an office of about 100 staff. With WFH the place is rarely more than 25% occupied but it probably wouldn't save us much money taking up ~25ish desks and a couple of conference rooms at a flexi working space, so we'll renew our lease and stay put. It of course gives us plenty of room for expansion as long as we co-ordinate who is in.

I think there's still definitely a prestige factor to having your own building in a nice location. I'm not sure it makes any difference to me but I'm not in any kind of senior position.

[easye]

The official market is fighting WFH tooth and nail.  It's not just a prestige factor, for those who own buildings it is a huge asset that they can not allow to lose value by making a WFH transition. 


Plus, WeWork had some behind the scenes malarkey IIRC.

[easye]

Four takeaways from Disney's earnings call

www.npr.org/2023/11/08/1211522267/four-takeaways-from-disneys-earnings-call

Disney owns so many global brands, in-person experiences, characters and storylines that when one asset falters, another offsets the loss. The company beat analysts' expectations, with revenues for the quarter and the year growing 5% and 7%, respectively.

For those watching at home, they are:
- Streaming- D+ not profitable
- Resorts and such- Big driver of $$$
- ESPN - Grows YoY
- Cost cutting - Managing debt for buying so much stuff


In other news.....

Actors and studios make a deal to end Hollywood strikes

www.npr.org/2023/11/08/1203789537/hollywood-strike-ends

The Hollywood strike drama is finally ending.

The heads of major studios have agreed to a tentative new three-year contract with SAG-AFTRA, the union representing Hollywood actors, stunt performers, voiceover actors and dancers. The workers have been on strike since July, when they joined screenwriters on their strike. Now, if the performers approve their new deal, Hollywood may soon come to life again.

*************

"In a contract valued at over one billion dollars," it continued, "we have achieved a deal... that includes "above-pattern" minimum compensation increases, unprecedented provisions for consent and compensation that will protect members from the threat of AI, and for the first time establishes a streaming participation bonus." More details will be available in the coming days.

Interested to hear more about the AI protections and Streaming deal.

[easye]

Well, I did not see this coming!

UAW workers at major Ford and GM truck plants vote 'no' on record contract deals

www.npr.org/2023/11/13/1212784685/uaw-workers-vote-no-ford-gm-contract-deal

and here is some discussion about why they voted NO on the new contracts.

www.npr.org/2023/11/14/1212603862/thousands-of-autoworkers-are-voting-no-on-big-3s-record-contracts-hoping-for-mor

A large part of it is distrust. After reading the contract language, he's not convinced Stellantis will follow through with what's been promised, including a conversion to permanent status for temps like himself.

But beyond that, he's frustrated that only by 2027 will autoworkers' wages reach what they were twenty years ago, when adjusted for inflation. Concessions made just before the 2008 financial crisis cut auto wages in half and ended lifelong retirement benefits, relieving the Big 3 of a crippling cost burden.

[easye]

Walrus has been keeping us updated at the source, but here is an article about the Tesla strikes in Sweden:

www.npr.org/2023/11/17/1213157550/tesla-sweden-union-workers-boycott

[easye]

www.npr.org/2024/01/09/1222754258/ftc-kroger-albertsons-grocery

Will the feds block a grocery megamerger? Kroger and Albertsons will soon find out

Will America's two largest grocery store chains get to become one?

That's the question before U.S. regulators, who are deciding whether to block Kroger's $24.6 billion purchase of Albertsons. Several state attorneys general, too, have signaled they might sue to halt the deal.

At stake is a shakeup of the U.S. grocery landscape, where the companies say they face stiffening competition from Amazon, Walmart, Costco and even dollar stores. Employees, state officials and some lawmakers have argued the tie-up would reduce options for shoppers and workers, farmers and food producers.

Kroger, the biggest U.S. supermarket operator with 2,719 locations, owns Ralphs, Harris Teeter, Fred Meyer and King Soopers. Albertsons, the second-largest chain with 2,272 stores, owns Safeway and Vons. Kroger employs about 430,000 people; Albertsons 290,000.

[bobtheinquisitor]

I really hope they block this merger. I don’t want my ability to buy food subject to more anti-consumer behavior. Shit’s bad enough already.

[easye]

Sports Illustrated is dead.....

'Sports Illustrated' lays off most of its staff

www.npr.org/2024/01/19/1225680000/sports-illustrated-lays-off-most-of-its-staff

The publisher of Sports Illustrated sent layoff notices to most — and possibly all — of its journalists on staff on Friday, the staff's union said.

Authentic Brands Group, the magazine's owner, has terminated its licensing agreement with The Arena Group to publish Sports Illustrated, according to Front Office Sports, which first reported news of the mass layoffs.

***************

The layoff news comes a day after the publisher announced a "significant reduction" of its 100-staff member workforce, citing "substantial debt" and missed payments.

Authentic Brands Group did not immediately respond to NPR's request for comment.

Reading between the lines, it looks like the victim of Vulture Capitalism. The new company bought it, used name recognition to get a ton of loans that they then paid to their leadership team, and then let Sports Illustrated fail to make the debt payments on those loans and is now closing them.  As a bonus they are also sticking it to the writer's union too!  Win-win for management!

Yeah Capitalism! I am sure that is exactly the way Adam Smith envisioned it! /S

[pacific]

The same thing happened to most of the video game magazine industry in the UK - from what I read a single company bought them all out and then, as they weren't profitable enough (bearing in mind that they were still making money) closed them down. I am not sure if it was done in a similar manner to the above, but really the people that instigated it need throwing into the sea.

[easye]

I heard a follow-up story on this and I was wrong!

The people who own the rights for SI are different than the people who actually publish SI. The company that published could not pay the licensing fee, and the license was voided. This led to the lay-offs. The two companies are now negotiating a new settlement, and most of the laid-off employees are expected to get their jobs back once that happens.

A few random thoughts:

1. WTF kind of set-up is that?

2. They license SI to gambling and resort companies. If the magazine is dead, is the brand still worth anything?

3. It almost seems like an orchestrated plot to work around Union rules and only hire back the cheapest workers?

[easye]

Another tech company cutting jobs.....

TikTok cuts jobs as tech layoffs continue to mount

www.npr.org/2024/01/22/1226127366/tiktok-cuts-jobs-tech-layoffs-china

Is the trouble in this sector a portent of things to come, or is it just this industry coming back to reality? I recall when the Dot.Com tech-boom ended, and that had a wider impact on the economy in general.

[easye]

More tech sector lay-offs.....

EBay to lay off 1,000 workers as tech job losses continue in the new year

www.npr.org/2024/01/23/1226487001/ebay-to-lay-off-1-000-workers-as-tech-job-losses-continue-in-the-new-year

Online retailer eBay is shedding 1,000 jobs, or about 9% of its workforce, as the company faces a business slowdown that is rippling across the technology industry.

In a blog post, eBay CEO Jamie Iannone wrote that the size of the company's staff and its expenses "have outpaced the growth of our business," which he said prompted the terminations.

In addition, eBay is ending its relationship with many outside contractors.

They site a challenging economy.....

[herzlos]

I find it don't use eBay much these days, to the point I don't even have it on my phone. It's gone from an auction site full of random stuff and bargains to essentially just another online store front with dubious quality control. So I'll use it for low weight, low value stuff (like garden bags, bolts, etc) and stuff I can't find anywhere else, but that's about it.

It also seems to have a terrible reputation amongst sellers for always siding with buyers and allowing scams.

I'm assuming that Amazon and Facebook Marketplace have really hurt eBay.

[Disciple of Fate]

Hard to believe eBay has a staff of 10.000, given the apparently stagnant nature of the site, you wonder what the labor division of those 10.000 is/was. Also the label retailer feels generous, isn't it mostly a third-party facilitator? Not like they sell or warehouse directly, right?