Tag Archives: US

Tesco to axe 9,000 jobs and cut hours in cost-saving plan

28 Jan 19
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Source https://www.independent.co.uk/news/business/news/tesco-job-cuts-deli-counters-unemployed-nine-thousand-unite-usdaw-a8750501.html

By Caitlin Morrison

Tesco has announced plans to cut up to 9,000 jobs in a simplification plan aimed at cutting costs.

Over the weekend, reports emerged that the supermarket was planning to axe 15,000 roles, and the company faced criticism from unions over the lack of detail provided

Tesco, which employs more than 300,000 people in the UK, said “up to half” of the staff affected by the cuts “could be redeployed to other customer-facing roles”. Senior management roles are also set to go, with the company planning to move to “a simpler and leaner structure”.

The company said it will change the way it manages stock, which will “mean a significantly reduced workload, with fewer hours needed to complete the routines”.

Hours will also be reduced in merchandising, with plans to cut the number of layout changes made in stores.

The group will also close meat, fish and deli counters at “around 90 stores”, but there are no plans to make any significant changes to bakeries in 2019, despite reports to the contrary, the firm said.

Meanwhile, staff canteens will be replaced with self-service kitchens due to “reduced demand”. Some of the job losses are linked to the canteen closures.

“Media speculation over the weekend was premature and we have accelerated our communications to colleagues in order to reduce the significant uncertainty created by incorrect information,” Tesco said in a statement.

“We will be doing all we can to help colleagues affected by these changes, including offering redeployment opportunities wherever possible.”

Jason Tarry, Tesco’s chief executive for UK and Ireland, said: “In our four years of turnaround we’ve made good progress, but the market is challenging and we need to continually adapt to remain competitive and respond to how customers want to shop.

“We’re making changes to our UK stores and head office to simplify what we do and how we do it, so we’re better able to meet the needs of our customers. This will impact some of our colleagues and our commitment is to minimise this as much as possible and support our colleagues throughout.”

Pauline Foulkes, Usdaw’s national officer, said: “Staff at Tesco are shocked and dismayed by the scale of yet another round of potential job losses, which clearly demonstrates the pressure retailers are under in the current very difficult and uncertain economic climate, as the cost cutting continues.

“With the British Retail Consortium estimating that there were 70,000 job losses across the retail sector last year, we need an industrial strategy lead by the government, working with Usdaw and retailers to tackle the crisis on our high streets.

“This is devastating news for staff, who have played a crucial role in Tesco’s turnaround project, contributing to 12 successive quarters of growth, solid Christmas trading and over a billion pounds of profit. We will enter into consultation talks with Tesco, where we will examine the business case for their proposed changes.”

Shares in Tesco were down 2.58 per cent by mid-afternoon on Monday.

Intel plans to invest $11 billion in new Israeli chip plant: report

28 Jan 19
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Source https://www.reuters.com/article/us-israel-intel/intel-plans-to-invest-11-billion-in-new-israeli-chip-plant-report-idUSKCN1PM2GT


U.S. chipmaker Intel plans to spend 40 billion shekels ($10.89 billion) to build a new manufacturing plant in Israel and has asked the Israeli government for a grant amounting to 10 percent of the amount, a local news website reported on Monday.

Talks on the investment between Intel and Israel’s Ministry of Finance began weeks ago and are still ongoing, the report by the Globes website said, adding that Intel’s global management is yet to make a final decision.

The investment, in the southern Israeli city of Kiryat Gat, could eventually be lower, Globes reported, citing unidentified sources.

Intel declined to comment when contacted by Reuters.

The news follows an earlier commitment by Intel to invest about 18 billion shekels ($5 billion) to upgrade its existing factory in Kiryat Gat between 2018 and 2020.

The new agreement with Israel could include an exemption from the tender obligation with the government, and Intel is already preparing physical infrastructure to build the plant in Kiryat Gat, Globes reported.

Santa Clara, California-based Intel is one of the biggest employers and exporters in Israel, where many of its new technologies are developed.

US shutdown cost $3bn, says Congressional Budget Office

28 Jan 19
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Source https://www.bbc.com/news/business-47033219


The partial shutdown of the US government is estimated to have cost the US economy $3bn (£2.3bn).

The loss is expected to slash 0.02% from the country’s growth in 2019, the Congressional Budget Office (CBO) said.

The agency said overall damage amounted to about $11bn, but much of that will be recovered as work resumes.

New trade tariffs could also knock about 0.1% off growth up until 2029, as higher costs prompt lower consumption and investment, it said.

The CBO, the federal agency charged with analysing the economy and budget for Congress, released the estimates on Monday alongside the broader outlook it prepares each year.

The CBO said that prior to the shutdown it expected the US economy to grow by about 2.3% in 2019, slowing from 2018 as a boost from federal spending and 2017 tax cuts fades.

Growth is expected to decelerate further in following years, to an average annual rate of 1.7% through to 2023.

Shutdown details

The shutdown, the longest in US history, was triggered by disagreement over President Donald Trump’s demand that Congress include $5.7bn to build a wall along the Mexican border in a new funding bill.

The stand-off forced about 800,000 federal workers to temporarily go without pay and prompted cutbacks in most major departments, including the State Department, Treasury Department and Department of Homeland Security.

US President Donald Trump ended the impasse on Friday, when he agreed to back a deal to temporarily fund the government until 15 February.

However, he has since said that he is sceptical a deal on border security will be reached before funding expires again.

Funding dysfunction

The CBO said US spending was already an issue, as the government spends significantly more than it takes in.

This problem is expected to intensify in coming years, due in part to the tax cuts approved in 2017, it said.

In 2019 alone, the US deficit is expected to be about $900bn, or 4.2% of total US output. And from 2020-2029, the deficit is expected to average $1.2tr or about 4.4% of GDP each year.

Over the past 50 years, the annual deficit was about 2.9% of GDP, the CBO said.

Barring major policy changes, by 2029 the shortfalls will push US government debt to the highest levels since just after World War II, it said.