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Factbox-From Meta to Peloton, companies slow hiring as economy sputters

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© Reuters. FILE PHOTO: A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier/File Photo

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(Reuters) – Decades-high inflation and the fallout from the Ukraine crisis have pressured many companies across the globe to consider laying off people or put a freeze on hiring.

Following is a list of companies that have announced layoffs or frozen hiring to rein in costs:

COMPANIES COMMENTS

Alibaba (NYSE:BABA) Group China’s Alibaba might cut more than 15% of its total workforce, or about

39,000 employees, due to a sweeping regulatory crackdown in China, as well as

slowing sales growth and rising prices.

The world’s largest producer of airbags and seatbelts said it was

Autoliv (NYSE:ALV) Inc reducing headcount to cut costs and adapt to new business conditions, but did

not specify the number.

Cazoo Group Ltd European online car retailer Cazoo said it would cut its workforce by about

15% as it looks to conserve cash.

Carvana Co (NYSE:CVNA) Carvana said it would lay off about 2,500 employees, or 12% of its workforce.

Coinbase (NASDAQ:COIN) Global Coinbase will extend its hiring freeze for the foreseeable future and rescind

Inc a number of accepted offers to deal with current macroeconomic conditions.

Real estate broker Compass will lay off 450 employees, about 10%

Compass Inc of its current workforce, as borrowing costs and inflation pressures rise.

Brazil’s Ebanx laid off about 20% of its staff, or 340 employees.

Ebanx Ltd

Getir Turkey’s Getir plans to cut 14% of its staff globally due to rising global

inflation and costs, a source with knowledge of the matter told Reuters.

Gorillas German grocery app Gorillas will lay off 300 people, cutting its

administrative staff in half.

Henkel AG (OTC:HENKY) & Co Germany’s Henkel, the company behind Schwarzkopf, will cut about 2,000

KGaA positions due to low demand of its shampoos and hair spray, as well as rising

costs and global supply chain issues.

Intel Corp (NASDAQ:INTC) Intel has frozen hiring in PC chip division, according to a memo reviewed by

Reuters. The memo said that some hiring could resume in as little as two weeks

after the division re-evaluates priorities and that all current job offers in

its systems will be honored.

Klarna Swedish Klarna is slashing 10% of its 7,000-strong workforce as a consequence

of a recent steep increase in inflation, fear of a recession and the war in

Ukraine worsening business sentiment.

Lyft Inc (NASDAQ:LYFT) The company said in May it would slow down hiring and assess budget cuts in

some departments.

Meta Platforms Facebook (NASDAQ:META) parent Meta said in May it would slow the growth of its workforce.

Inc

Move About Group Sweden’s Move About Group will cut 17 out of 40 positions due to indirect

AB effects of the war in Ukraine and an excessive cost base.

Netflix (NASDAQ:NFLX) Netflix in May said it has laid off about 150 people, mostly in the U.S., as

the streaming service company faces slowing growth.

Peloton (NASDAQ:PTON) Peloton in February said it will cut about 2,800 corporate jobs as it looks to

Interactive Inc revitalize sagging sales.

Redfin (NASDAQ:RDFN) laid off 6% of its workforce, or 470 employees, and will

Redfin continue reductions until the end of June after demand in May missed

Corporation expectations.

Robinhood (NASDAQ:HOOD) The retail trading platform said in April it was laying off about 9% of its

Markets Inc full-time employees.

Snap Inc (NYSE:SNAP) CEO Evan Spiegel in May told employees the company would slow hiring for this

year.

Automaker Stellantis has indefinitely laid off an unspecified

Stellantis number of employees at its stamping plant in Michigan to mitigate impacts from

various supply chain issues.

Tencent Holdings (OTC:TCEHY) Chinese company Tencent is struggling to cope with the slowing economy, and

might cut between 10-15% of its total workforce this year.

Elon Musk said on June 21 the electric car maker would cut 10% of

Tesla (NASDAQ:TSLA) its salaried staff over three months, as he predicted a U.S. recession was

more likely than not.

Twitter Inc (NYSE:TWTR) CEO Parag Agrawal said in a memo that the social media company would pause

hiring and review existing job offers to determine whether any “should be

pulled back”.

Uber (NYSE:UBER) Uber will scale back hiring and reduce expenditure on its marketing and

Technologies Inc incentive activities, Reuters reported in May, citing a letter from the CEO.

Warner Bros Discovery (NASDAQ:WBD) aims to cut 30% of its ad sales workforce,

Warner Bros or about 1,000 jobs globally.

Discovery Inc

Valmet Oyj Valmet said in May it was in negotiations for temporary layoffs of up to three

months, with about 340 employees part of the talks at its valve factory in

Helsinki due to reduced orders caused by the war in Ukraine and COVID-19

restrictions in China.

Source: Regulatory filings, Reuters stories, company websites

Economy

Futures rise as easing China COVID curbs lift travel, leisure stocks

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© Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 22, 2022. REUTERS/Brendan McDermid

By Shreyashi Sanyal

(Reuters) – Travel and leisure shares propped up U.S. stock index futures after China relaxed some COVID-19 quarantine requirements for international travelers, raising hopes of a revival in global growth.

Airlines, cruises, casinos and hotels were among the gainers in premarket trading after China’s slashing of the quarantine time for inbound travelers by half boosted hopes of a big jump in international travel and spending.

Shares of Walt Disney (NYSE:DIS) Inc rose 2.5% to top the list of gainers on the Dow Jones Industrial Average, after the company’s Shanghai Disney Resort said it would reopen the Disneyland theme park on June 30 after being shut for more than three months.

Spirit Airlines (NYSE:SAVE) and American Airlines (NASDAQ:AAL) Group Inc were the biggest gainers in the sector, rising 4% and 2% respectively.

Melco Resorts jumped 10% and led the rise in the casino sector, closely followed by Wynn Resorts (NASDAQ:WYNN), MGM Resorts (NYSE:MGM) International.

Wall Street’s main indexes started the week on soft footing after worries of surging inflation and an aggressive Federal Reserve dominated sentiment amid few market moving catalysts till the start of earnings season in two weeks.

Investors are now looking at data to determine whether the economy can withstand large interest rate hikes by the U.S. central bank to stamp out inflation.

A survey from the Conference Board is expected to show its consumer confidence index slipped to a reading of 100.4 in June, from 106.4 in May, at 10 a.m. ET.

The S&P 500 and the Nasdaq are set to post losses in June and are on course to log two straight quarterly declines for the first time since 2015.

At 6:49 a.m. ET, Dow e-minis were up 175 points, or 0.56%, S&P 500 e-minis were up 20 points, or 0.51%, and Nasdaq 100 e-minis were up 52.25 points, or 0.43%.

Nike Inc (NYSE:NKE) shed 2.8% as it forecast first-quarter revenue below estimates on expectations of more discounts and pandemic-related disruptions in China, its most profitable market.

Occidental Petroleum Corp (NYSE:OXY) climbed 3.1% after top investor Warren Buffett raised stake in the shale producer.

China ADRs also rose on Beijing easing its COVID curbs, with e-commerce firms Alibaba (NYSE:BABA).com, JD (NASDAQ:JD).com and Pinduoduo (NASDAQ:PDD) up between 1.2% and 1.4%

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Economy

Euro below $1.06 as Lagarde keeps July policy options open

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© Reuters. A shopper pays with a ten Euro bank note at a local market in Nice, France, June 7, 2022. REUTERS/Eric Gaillard

By Saikat Chatterjee

LONDON (Reuters) – The Aussie and the Canadian dollar climbed on Tuesday on firmer oil prices while the euro held below $1.06 as European Central Bank (ECB) President Christine Lagarde offered no fresh insight on the central bank’s policy outlook.

The ECB is widely expected to follow its global peers by raising interest rates in July to check soaring inflation though economists are divided on the magnitude of the rate hike to protect a struggling economic recovery due to high oil prices.

Oil prices are up 10% in barely a week on supply constraint concerns with Brent crude holding above $117, pushing the Canadian dollar and the Australian dollar up 0.3% and 0.4% respectively. [O/R]

“Oil is helping the Norwegian crown and the Canadian dollar to outperform and the euro is again running into resistance at the 1.06 level,” said Kenneth Broux, an FX strategist at Societe Generale (OTC:SCGLY) in London.

The euro held below $1.06 after the ECB’s Lagarde said the central bank would move gradually but with the option to act decisively on any deterioration in medium-term inflation, especially if there were signs of a de-anchoring of inflation expectations.

Money markets are pricing in about 238 basis points (bps) of cumulative rate hikes by mid-2023 compared to around 280 bps two weeks ago.

Broader currency market moves were contained in a big week for markets in economic data terms. German inflation figures are due on Wednesday, French data on Thursday and euro zone numbers on Friday.

At the other end of the dial, higher oil prices caused the partially convertible Indian rupee to open at a record low, and fall further to 78.67 per dollar.

The U.S. dollar index struck a two-decade high of 105.79 this month and was last steady at 103.93.

Elsewhere, the offshore Chinese yuan moved higher after China reduced COVID quarantine for international travellers.

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Economy

China’s economy recovering but foundation not solid, premier says

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© Reuters. FILE PHOTO: Chinese Premier Li Keqiang is seen on a screen as he attends a news conference via video link after the closing session of the National People’s Congress (NPC) in Beijing, China March 11, 2022. REUTERS/Ryan Woo

BEIJING (Reuters) -China’s economy has recovered to some extent, but its foundation is not solid, state media on Tuesday quoted Premier Li Keqiang as saying.

China will strive to drive the economy back onto a normal track and bring down the jobless rate as soon as possible, Li was quoted as saying.

“Currently, the implementation of the policy package to stabilise the economy is accelerating and taking effect. The economy has recovered on the whole, but the foundation is not yet solid,” Li was quoted as saying.

“The task of stabilising employment remains arduous.”

China’s economy showed signs of recovery in May after slumping the previous month as industrial production revived, but consumption remained weak and underlined the challenge for policymakers amid the persistent drag from strict COVID-19 curbs.

China’s nationwide survey-based jobless rate fell to 5.9% in May from 6.1% in April, still above the government’s 2022 target of below 5.5%.

In particular, the surveyed jobless rate in 31 major cities picked up to 6.9%, the highest on record. Some economists expect employment to worsen before it gets better, with a record number of graduates entering the workforce in summer.

Li vowed to achieve reasonable economic growth in the second quarter, although some private-sector economists expect the economy to shrink in the April-June quarter from a year earlier, compared with the first quarter’s 4.8% growth.

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