A massive grocery chain is now bumping its wage up to $19, a figure that has increased nearly 30% in the past five years.
In a recent press statement, Sam’s Club emphasized its commitment to supporting its workforce, announcing plans to accelerate pay for nearly 100,000 frontline associates and provide a clear “roadmap” for employee career planning.
Sam’s Club will bump its starting wage to $16 and accelerate pay increases for nearly 100,000 front-line workers, Chris Nicholas, president and CEO, said in a Sept. 17 statement.
Employees’ average hourly rate will be around $19 — a figure that has increased nearly 30% in the past five years, a company statement said.
The company described this initiative as part of a broader strategy involving ongoing investments aimed at creating more meaningful job opportunities and fostering successful teams.
“As competition in the retail sector intensifies, attracting, hiring, and especially retaining quality talent has become a significant competitive advantage,” Sam’s Club stated.
They further highlighted that providing “good jobs” and “fulfilling careers” leads to a more engaged and productive workforce.
Diana Scott, leader of The Conference Board’s U.S. Human Capital Center, noted the importance of increased compensation for companies looking to stay competitive.
“Given the fluctuating market conditions, leaders are increasingly employing compensation strategies that extend beyond base pay, including performance-based initiatives and other strategic priorities,” Scott explained.
This focus on employee support and compensation reflects Sam’s Club’s recognition of the vital role that a dedicated workforce plays in achieving business success.
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A US company now announces painful layoffs in Kansas, affecting nearly 1,700 employees in the state, per a WARN notice.
General Motors has announced significant temporary layoffs at its Fairfax assembly plant in Kansas City, Kansas, as it prepares to cease production of the Chevrolet Malibu sedan.
The company has filed a WARN (Worker Adjustment and Retraining Notification) notice with the Kansas Department of Commerce, informing them that 1,695 employees will be affected by the job cuts.
Under the WARN Act, employers with over 100 full-time employees are required to provide a 60-day notice before laying off 50 or more workers at a single location.
The layoffs are part of GM’s transition as it invests approximately $390 million to retool the Fairfax facility for the production of the new Chevrolet Bolt EV.
GM spokesman Kevin Kelly stated, “To facilitate the installation of new tooling, employees will be placed on a temporary layoff until production resumes in mid-2025.”
This move reflects the company’s efforts to adapt to changing market demands while transitioning its production capabilities.
However, GM isn’t the only company who has advised of upcoming layoffs in Kansas.
Below is a list of other businesses laying off in Kansas this year:
OPmobility. 72 job cuts advised on 9/18.
Penske Logistics. 70 job cuts advised on 9/16.
Vermillion Incorporated. 21 job cuts advised on 9/3.
Market News Today – A US Company Now Announces Painful Layoffs in Kansas.
Applications for unemployment benefits now surge to new highs, a sign that the white-hot labor market is starting to cool off.
First-time applications for unemployment benefits rose last week to 231,000, the highest level since August, per CNN.
Thursday’s data also showed that the number of continuing claims, or applications from people who have filed for unemployment for at least one week, was 1.78 million.
That’s an increase of 17,000 from the prior week, according to the Bureau of Labor Statistics.
The latest numbers come less than a week after the monthly jobs report showed the US economy added just 175,000 positions in April, less than economists expected and a steep drop-off from prior months.
US employers have now added an average of 245,500 jobs per month, versus 2023’s 251,000-per-month average.
Still, hiring remains strong.
Although the unemployment rate ticked up to 3.9%, it as seen the 27th consecutive month that the jobless rate has held under 4%, matching a streak last seen in the late 1960s.
Weekly jobless claims data tends to be volatile but, while one week’s worth of data “does not a trend make,” said Chris Rupkey, chief economist at Fwdbonds.
“We can no longer be sure that calm seas lie ahead for the US economy if today’s weekly jobless claims are any indication.”
“Company layoffs are picking up, hinting at caution on the part of companies as they weigh the outlook for the second half of the year,” he wrote in a note Thursday.
The Federal Reserve has been battling inflation by raising its key lending rate in the hopes of slowing the economy.
While the labor market has so far resisted those efforts, remaining white hot for the past 18 months despite 11 rate hikes from the central bank, Fed Chair Jerome Powell said last week that demand has “cooled from its extremely high level of a couple of years ago.”
Ian Shepherdson at Pantheon Economics said in a note earlier this quarter: “We’d need to see at least a month of elevated readings to convince us that the trend really has turned.”
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A new round of painful layoffs now hits Missouri as a company shuts down a major company, affecting several hundreds of employees.
Yanfeng International Automotive Technology Co. Ltd. has announced plans to close its Riverside, Missouri factory in November 2024, leading to the layoff of 444 employees.
The company filed a WARN (Worker Adjustment and Retraining Notification) Notice with the Missouri Office of Workforce Development, informing local authorities of the impending job losses to facilitate state and local assistance for affected workers.
This closure coincides with General Motors’ decision to halt production of the Chevrolet Malibu at a nearby assembly plant, further disrupting the auto parts supply chain in the region.
Yanfeng’s facility specializes in manufacturing automotive interior components, and the shutdown reflects broader challenges within the automotive industry, including decreased demand and shifts in production.
This announcement follows another recent closure in the area, as automotive manufacturer Adient informed Missouri officials of plans to lay off 172 workers at its facility.
Both shutdowns will impact members of the United Auto Workers Local 710, adding strain to the local economy and workforce.
These job cuts highlight significant challenges facing Missouri’s automotive sector as the state navigates ongoing disruptions in the industry.
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BofA now predicts a fed rate cut of 125 BPS for 2025 and another 75 BPS during the fourth quarter of this year.
In a recent analysis, Bank of America (BofA) examined the Federal Reserve’s 50 basis points (bps) rate cut, characterizing it as a “recalibration” of monetary policy rather than the beginning of a more aggressive rate-cutting cycle.
Despite the Fed’s optimistic outlook, BofA expressed doubts about the effectiveness of these measures, predicting deeper cuts ahead.
The bank forecasts an additional 75 bps reduction in the fourth quarter of this year and 125 bps in 2025.
BofA noted that the Fed’s messaging, particularly in Chair Jerome Powell’s comments and the dot plot, was unexpectedly hawkish despite the recent rate cut.
Powell clarified that the cut was not prompted by labor market concerns but was intended to adjust rates closer to neutral.
The Fed’s Summary of Economic Projections (SEP) maintained a positive outlook, projecting stable growth and a quicker decline in inflation.
The Federal Open Market Committee (FOMC) statement contained significant updates, but they did not align with a dovish interpretation of the rate cut.
BofA highlighted the Fed’s confidence in meeting its inflation targets and remarked that the risks related to inflation and employment were deemed “roughly in balance.”
Notably, the statement included a commitment to “maximum employment,” marking a shift in communication.
Governor Michelle Bowman dissented from the decision, the first such dissent since 2005, indicating some internal disagreement within the Fed.
The SEP released alongside the rate decision was notably optimistic, predicting above-trend growth and a faster path to lower inflation.
While the Fed raised its unemployment forecast to 4.4%, this was viewed as a reflection of current conditions rather than a significant change in outlook.
However, the Fed’s dot plot raised concerns, showing a median forecast of just 100 bps of cuts in 2024, with nearly half the committee anticipating only a 25 bps cut later this year.
BofA suggested this hawkish view could undermine the Fed’s credibility, especially since pre-meeting communications had hinted at a smaller cut.
This divergence may leave the Fed susceptible to market pressures for further reductions.
BofA believes the labor market is likely to remain weak, compelling the Fed to implement a substantial cut in the fourth quarter.
The bank predicts an additional 75 bps cut in 2024 and 125 bps in 2025, leading to a terminal rate of 2.75-3%.
Following the Fed meeting, long-term yields rose slightly, indicating that the central bank’s “recalibration” may not have achieved its intended impact.
BofA concluded that unless economic data consistently shows strength, the Fed may need to abandon its hawkish stance and consider further cuts.
Market News Today – BofA Now Predicts A Fed Rate Cut of 125 BPS For 2025.
A massive US bank now gets hit with an AML investigation over flaws related to its internal controls and crimes risk management.
The Office of the Comptroller of the Currency (OCC) has taken enforcement action against Wells Fargo, raising concerns about the bank’s anti-money laundering (AML) controls and financial crimes risk management.
This development could impact the potential lifting of Wells Fargo’s asset cap and might signal increased scrutiny for other major banks.
On Thursday, the OCC announced it found several deficiencies in Wells Fargo’s AML practices, including issues with suspicious activity reporting, customer due diligence, and customer identification protocols.
The regulatory agreement mandates that Wells enhance its AML and sanctions risk management, secure OCC approval for new offerings, and notify the agency before expanding certain services.
Wells Fargo stated it is already addressing many of the requirements outlined in the agreement and is committed to resolving them with urgency.
Analyst Scott Siefers from Piper Sandler noted that while the formal action was anticipated, it still represents a setback in the bank’s progress to resolve regulatory issues.
Wells Fargo has been under the regulatory microscope since the fallout from its 2016 fake accounts scandal.
Currently, the bank operates under a $1.95 trillion asset cap imposed by the Federal Reserve, one of nine consent orders against it, though six have been lifted since Charlie Scharf became CEO.
The OCC’s 26-page agreement, which did not impose any fines, requires Wells to improve its internal controls and reporting mechanisms related to AML and sanctions practices.
The bank must also enhance its audit program and ensure data integrity for compliance systems.
Jefferies analyst Ken Usdin noted that the broad requirements could impact Wells Fargo’s future growth strategy, but the practical implications remain unclear.
Despite the seriousness of AML issues, Royal Bank of Canada analyst Gerard Cassidy believes this enforcement action will not hinder efforts to lift the asset cap, as it primarily addresses past consumer banking problems.
Wells Fargo has invested significantly in its risk and control operations, hiring around 10,000 employees and increasing spending by $2.5 billion annually since 2018.
This suggests the new regulatory action may not drastically alter overall costs.
Other major banks have also faced scrutiny regarding their AML and sanctions programs.
Bank of America and Citi have highlighted related risks in their recent filings, while JPMorgan Chase continues to disclose ongoing investigations from a 2019 money-laundering incident in India.
Additionally, Canadian lender TD is under investigation for its U.S. AML program related to drug trafficking allegations.
As the financial landscape evolves, the potential for similar enforcement actions against other banks remains uncertain, leaving the industry on alert.
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Market News Today – BofA Now Predicts A Fed Rate Cut of 125 BPS For 2025.
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Best Buy now announces more painful stores closures coming soon after it already shuttered dozens of locations this year.
Best Buy has announced the closure of another location, following a series of shutdowns last year, with additional closures anticipated in 2025.
The consumer electronics retailer confirmed that it closed 24 stores in 2023 and indicated that 10 to 15 more locations will likely shut down in 2024, with a similar number expected in 2025.
This means that over 25 stores could potentially close by the end of 2025.
CEO Corie Barry noted that the company is working to balance its workforce with shifting consumer interests.
CFO Matthew Bilunas added that Best Buy would continue to evaluate its traditional store locations as leases come up for renewal.
The closures are attributed to several factors, including changes in consumer spending habits, inflation, and lingering supply chain issues from the COVID-19 pandemic.
Recently closed locations include stores in California, Colorado, Ohio, Minnesota, Missouri, and Virginia, with a new closure in Gaithersburg, Maryland, set for October 26.
The Gaithersburg store, which opened in the 1990s, is one of approximately 100 locations that have shut down in the past five years.
Best Buy currently operates 1,053 stores, according to its website.
Financial performance has also been a concern, with Best Buy reporting a revenue drop from $9.6 billion to $9.3 billion in the second quarter compared to the same period in 2023.
The company experienced an overall revenue decline of 6% last year.
Barry emphasized that Best Buy is adapting to new consumer behaviors, including a focus on value during sales and willingness to invest in higher-priced technology when necessary.
Despite the challenges, she expressed confidence in the company’s future, stating that there are no indicators suggesting a significant shift in customer behavior.
In addition to store closures in the U.S., Best Buy is expanding in Canada, partnering with Bell Canada to open 167 Express stores by the end of the year.
These smaller locations will feature a curated selection of technology products and will offer in-store pickup for online orders, along with Geek Squad services.
As Best Buy navigates these changes, it continues to face scrutiny over its return policy, with some customers finding ways to circumvent perceived restrictions, while others are eager to snag deals on items like a $149 4K TV before promotions expire.
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Market News Today – Best Buy Now Announces More Painful Store Closures Coming.
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,”UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
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