Business News Weekly ─ May 4, 2020
From the headlines:
- Alphabet post sales rise, with the caveat. This was somewhat related higher sales in the beginning of the year
- Facebook sees ads stabilizing
- Model 3 sales lift Tesla’s results
- Microsoft earnings boosted by rise on line work, play
- US tags Amazon as notorious, referring to them tolerating counterfeit sales on its online platforms in foreign countries
- Facebook uses are hot, but ads are cooling off
- Facebook launches a rival to zoom
- Verizon’s wireless business moderates
- Hollywood’s hottest club is on zoom from an article in Bloomberg magazine
“U.S. airline shares tumble as Buffett sell-off adds to worries” ─ from Reuters. U.S. airlines posted considerable losses in the first quarter, and are on track for a dismal second quarter, as travel restrictions and government-mandated lockdowns across the world have brought demand to a virtual standstill. “The world has changed” for the aviation industry, Buffett said at Berkshire Hathaway’s annual meeting on Saturday.
“GE Aviation to cut workforce by up to 13,000 jobs, or 25%” ─ from Reuters. General Electric Co said on Monday it was planning to cut the global workforce of its aviation unit this year by as much as 25%, or up to 13,000 jobs, including both voluntary and involuntary layoffs, citing prolonged aircraft reduction schedules caused by the coronavirus pandemic.
The job cuts are the latest mounting woes for the aviation sector that are now expected to last into 2021 as U.S. passenger air travel demand has fallen by 95%.
“Preppy retailer J.Crew files for bankruptcy” ─ from CNBC. Clothing apparel company J.Crew filed for bankruptcy Monday, marking the first major retail bankruptcy of the coronavirus pandemic. The New York-based retailer had already been struggling under a heavy debt load and sales challenges, suffering from criticism that it fell out of touch with its once-loyal customers. In the past few years, the brand lost its longtime design chief, Jenna Lyons, and famed retail executive Mickey Drexler, who was CEO.