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Meta’s quarterly earnings delighted investors, for a change, as it set out a plan to reduce costs in a “year of efficiency” and announced a $40bn share buy-back. Revenue fell in the last three months of 2022, year on year, but is expected to rise in this quarter. Still, Reality Labs, the division tasked with creating the metaverse, ran up another loss, of $4.3bn, taking its total loss for the year to $13.7bn.
Sharing the driving seat
After months of sometimes troublesome negotiations, Nissan and Renault announced a restructuring of their two-decade-old alliance, which has been under strain since the fall from grace in 2018 of Carlos Ghosn, who had run both carmakers. The main feature of the agreement is a reduction in Renault’s stake in Nissan to 15% from 43%, with the remainder of Renault’s shares in Nissan to be put into a French trust and the voting rights “neutralised”. Each company will now own a working 15% stake in the other, which tackles a key concern of Nissan that the partnership had been unequal.
ExxonMobil, Chevron and Shell reported record annual profits of $56bn, $37bn and $40bn respectively. All three benefited from the higher price of energy amid the war in Ukraine, though prices have been falling in recent months.
Unilever appointed a new chief executive to replace Alan Jope, who is standing down in July. Hein Schumacher is currently the boss of the world’s largest dairy co-operative, which is based in the Netherlands. He’ll take the reins of the consumer-goods conglomerate amid investor unease about its lagging share price, and criticism from some quarters about its purpose-driven approach to selling mayonnaise.
Salesforce, which is also under pressure from investors to improve its stock performance, appointed three independent directors. This…
2023-02-02 09:18:13 Business this week, February 2nd 2023
Source from www.economist.com On this week of February 2nd 2023, businesses all around the world have continued to face a variety of challenges in the context of an uncertain global economy. As of this week, a wave of new lockdowns has been enacted due to a new surge in Covid-19 cases worldwide, severely restricting the movement of people and goods.
The impact of the pandemic on global business operations is becoming more apparent and widespread with many of the world’s most recognizable companies reporting losses and retrenchment measures. For example, Apple have recently cut several of their staff roles and reduced their production rates; Amazon have reported their first annual profit decline in more than a decade; and Microsoft have taken steps to cut costs and reduce their overall workforce.
In addition, a number of businesses have been forced to make drastic changes in order to survive the pandemic, such as adapting existing business models, shifting to online customer service, and launching new initiatives. This has led to many companies looking to innovate and invest in digital technologies in order to keep up with the ever-evolving digital landscape.
On the positive side, some businesses have reported profits despite the turbulent trading conditions. Companies such as Zoom, who specialize in video conferencing, have seen a dramatic increase in usage due to the demand for remote working and socializing, resulting in a surge in profits. Other digital companies such as Shopify have reported record growth and profits as customers have turned to online shopping during the pandemic.
As a result of the pandemic, businesses have become increasingly aware of the need to be agile in order to stay competitive in the current economy. Despite the lingering effects of the global crisis, many companies have shown resilience and have adapted to the new realities with optimism. It remains to be seen what the future holds for businesses over the coming weeks and months.