Coursera to reduce global workforce by approx. 10%

Coursera announced a commitment to reduce overall expenses; to reduce global workforce by approximately 10%

• On October 24, 2024, the Company announced a commitment to reduce overall expenses, focus efforts, and prioritize future investments in key initiatives that are expected to drive long-term, sustainable growth.
• "We expect this initiative to generate at least $30 million in annualized structural cost savings, creating capacity for targeted investments, as well as incremental profitability. In connection with this effort, we plan to reduce our global workforce by approximately 10% to better align our cost structure and personnel needs with our business objectives, growth opportunities, and operational priorities."

 

Walgreens plans to close 1,200 stores as it looks for a turnaround

Walgreens Boots Alliance Inc. plans to shutter about 1,200 stores over the next three years in a bid to improve earnings.

The retail and pharmacy chain has struggled in recent years as shopping preferences have changed and consumers have moved to buy more products online. Walgreens previously embarked on a cost-cutting plan largely targeting the retail pharmacy business.

Walgreens announced the three-year plan for store closures alongside its earnings Tuesday morning, with the company noting that about 500 of the closures are expected in fiscal year 2025, which just began.

The company expects the move will prove immediately accretive to adjusted earnings per share and free cash flow.

After a deeply disappointing report three months back that brought a guidance cut and ushered in a 22% one-day stock decline, Walgreens’ latest results are getting a better reception on Wall Street. Shares are up 5% in premarket action Tuesday as Walgreens cleared the consensus view on both revenue and earnings.

The results “reflected our disciplined execution on cost management, working capital initiatives and capex reduction,” Chief Executive Tim Wentworth said in a release.

Walgreens’ revenue rose 6% to $37.5 billion, while analysts were looking for $35.8 billion.

7-Eleven closing more than 400 locations

Several hundred “underperforming” 7-Eleven locations across North America are closing, the convenience store announced.

Seven & I Holdings, the chain’s Japan-based parent company, revealed in an earnings report Thursday that 444 locations of 7-Eleven are shutting down because of a variety of issues, including slowing sales, declining traffic, inflationary pressures and a decrease in cigarette purchases.

A specific list of closing locations wasn’t immediately released. The chain has more than 13,000 stores across the United States, Canada and Mexico, so the number of closures amounts to 3% of its portfolio.

In its earnings release, Seven & I said that while the North American economy is “robust overall,” it noticed a “more prudent approach to consumption” from middle- and low-income earners because of persistent inflation, high interest rates and a “deteriorating” employment environment.

A combination of those factors led to a 7.3% decline in traffic in August, capping off six straight months of declines.

The chain also pointed out that cigarettes purchases, which was once the largest sales category for convenience stores, has fallen 26% since 2019. A marked shift in sales to other nicotine products, like Zyn, hasn’t made up the difference.

Boeing to cut 17,000 jobs over the coming months

Boeing will reduce the size of its total workforce by 10% over the coming months, CEO Kelly Ortberg said in a letter to employees on Friday.

That amounts to around 17,000 jobs, based on the company's December 2023 total workforce numbers.

Ortberg said due to the workforce reductions, Boeing would not proceed with the next cycle of furloughs.

Ortberg also said the 777X program would be delayed until 2026, the 767 freighter program would end in 2027 and the company expects "substantial new losses" in Boeing Defense, Space & Security this quarter.

"Our business is in a difficult position, and it is hard to overstate the challenges we face together," said Ortberg. "Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term."

The company said Friday it expects to report third-quarter revenue of $17.8 billion, GAAP loss per share of $9.97 and operating cash flow of $1.3 billion.

The announcement comes after tens of thousands of Boeing workers voted to strike last month after rejecting the proposed contract.

 

S&P Global Ratings said earlier this week that Boeing is losing more than $1 billion a month from the strike of more than 30,000 machinists, which began Sept. 13 after machinists overwhelmingly voted down a tentative agreement the company reached with the union. Tensions have been rising between the manufacturer and the International Association of Machinists and Aerospace Workers, and Boeing withdrew a newer contract offer earlier this week.

On Thursday, Boeing said it filed an unfair labor practice charge with the National Labor Relations Board that accused the International Association of Machinists and Aerospace Workers of negotiating in bad faith and misrepresenting the plane makers’ proposals. The union had blasted Boeing for a sweetened offer that it argued was not negotiated with the union and said workers would not vote on it.

After talks broke down earlier this week, Boeing said further negotiations didn’t make sense at that point. Jon Holden, president of the striking workers’ union, IAM District 751, on Friday urged a return to the bargaining table.