Business and Tech News - 5.3.24

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Skool Projekt Staff
May 03, 2024

Peloton CEO Barry McCarthy Resigns, Company Announces 400 Layoffs Amid Restructuring and Falling Shares

  • CEO Barry McCarthy steps down after two years, becomes strategic advisor until year-end.

  • Peloton to lay off 15% of staff, approximately 400 employees, as part of cost alignment.

  • Fiscal third-quarter results missed Wall Street expectations on revenue and profit.

  • Interim co-CEOs appointed: Karen Boone and Chris Bruzzo.

  • Restructuring plan includes closing retail showrooms, changing international sales strategies.

  • Projected savings of over $200 million by fiscal 2025, with significant cuts in payroll.

  • Peloton's shares fell over 6% after the announcement and analyst conference call.

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Universal Music Group and TikTok Strike Landmark Deal, Enhance Artist Protections Against AI, Boost Monetization Opportunities

  • Universal Music Group (UMG) and TikTok sign new multi-dimensional agreement.

  • Deal includes protections for artists against generative AI.

  • UMG's artists, including Taylor Swift and Drake, return to TikTok's billion-plus users.

  • TikTok and UMG to remove unauthorized AI-generated music from the platform.

  • Partnership aims to protect human creativity and ensure fair economics for artists.

  • New monetization opportunities linked with TikTok’s e-commerce growth.

  • Deal accelerates artist return to the platform with enhanced tools for engagement.

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FTC Clears Exxon's $60 Billion Pioneer Acquisition with Conditions, Amid Allegations Against Former CEO

  • FTC won't block Exxon's $60 billion acquisition of Pioneer Natural Resources.

  • Deal conditions prevent ex-Pioneer CEO Scott Sheffield from joining Exxon's board.

  • FTC action addresses antitrust concerns, includes a consent decree.

  • Concerns over potential collusive behavior by Sheffield with OPEC+ to influence oil prices.

  • Sheffield reportedly had extensive communications with OPEC about oil market dynamics.

  • Exxon and Pioneer dispute FTC's allegations about their business practices.

  • Exxon plans to close the deal on May 3 and begin integration with Pioneer.

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Apple Beats Q2 Earnings Estimates Amid Sales Dip, Announces Historic $110 Billion Buyback

  • Apple's Q2 earnings slightly above expectations; overall revenue down 4%, iPhone sales fell 10%.

  • Board authorized a record $110 billion in share repurchases, the largest in company history.

  • Apple's net income decreased slightly to $23.64 billion, down from $24.16 billion year-over-year.

  • iPad revenue fell 17%; Mac sales increased by 4% due to new MacBook Air models.

  • Services revenue rose 14.2% to $23.9 billion, highlighting strong growth in this sector.

  • Sales in Greater China dropped 8%, but still exceeded expectations.

  • Apple plans to introduce new iPads and hold significant events in the coming months.

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Google Cuts 200 Core Jobs in U.S., Plans Expansion in Mexico and India Amid AI Focus

  • Google laid off at least 200 employees from its Core organization.

  • Layoffs include significant engineering roles, primarily in Sunnyvale, California.

  • Google plans to hire corresponding roles in Mexico and India.

  • The Core organization supports Google's flagship products and online user safety.

  • Layoffs announced amid Google's broader strategy of global workforce expansion in high-growth areas.

  • Alphabet continues to cut jobs despite a rebound in digital advertising.

  • Google is preparing for its annual developer conference, focusing on new AI integrations.

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Here’s how the markets closed yesterday:

 

 

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