COMPANY NEWS IN BRIEF
09 July 2020 | Business
German logistics company DHL plans to cut as many as 2 200 jobs of UK-based workers at Jaguar Land Rover factories, the Unite trade union said.
The job cuts comprise just under 40% of the entire DHL workforce on the contract, the union said. DHL indicated that the half of the job cuts are due to a decline in car production and half are the result of anticipated efficiency savings, the union added.
“DHL must not attempt to make permanent full-time staff redundant while continuing to outsource work to sub-contractors,” Matt Draper, unite national officer for logistics, said.
Last month India's Tata Motors Ltd said it expected to shed about 1 100 temporary jobs at Jaguar Land Rover after it raised the cost-cutting target at its luxury unit by 1 billion pounds (US$1.3 billion) to ride out the disruptions caused by the coronavirus outbreak.
DHL and Jagaur Land Rover were not immediately available for comment. – Nampa/Reuters
US airlines move toward federal loans
The largest US air carriers have all signed letters of intent on federal loans to help them weather the novel coronavirus, with United Airlines warning employees that a surge in outbreaks was hitting bookings, threatening a travel rebound and jobs.
It expects travel demand to remain depressed until a widely accepted Covid-19 treatment or vaccine is found, with no straight line to an industry recovery.
US airline shares closed 5% lower on Tuesday, with United down 7.6%. While travel had picked up in some areas over the past two months from pandemic-driven lows in April, United has seen reservations for travel within the coming month slide after New York.
The slump was most pronounced at United's Newark hub, where near-term net bookings were just about 16% of year-ago levels as of July 1. Raymond James analyst Savanthi Syth said the bookings trend was likely much broader than the New York area.
Andrew Nocella, United's chief commercial officer, told employees at a virtual town hall meeting on Tuesday that its network would be slightly more impacted than other US domestic airlines, sources said after the meeting. – Nampa/Reuters
Facebook boycott organizers
Organizers of a growing Facebook Inc advertising boycott said they saw no commitment to action after meeting with Facebook chief executive Mark Zuckerberg.
More than 900 advertisers have signed on to the Stop Hate for Profit campaign, organized by social justice groups including the Anti-Defamation League (ADL) and Free Press, to pressure the world's largest social media network to take concrete steps.
“They showed up to the meeting expecting an A for attendance,” said Rashad Robinson, president of Color of Change, one of the boycott organizers, during a press call following the meeting.
The campaign, which calls for advertisers to pause their Facebook ads for July, has outlined 10 changes it wants from Facebook, including allowing victims of severe harassment to speak with a company employee and giving refunds to brands whose ads show up next to offensive content that is later removed.
Color of Change said in a statement the only recommendation Zuckerberg and chief operating officer Sheryl Sandberg attempted to address in the meeting was establishing a civil rights position within the company, but they would not commit to making it a senior executive job or defining the role. - Nampa/Reuters
ADNOC to boost oil exports
Abu Dhabi National Oil Company (ADNOC) plans to boost its oil exports in August, the first signal that OPEC and its allies are preparing to ease record oil output cuts next month, three sources familiar with the development told Reuters.
The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC, have been cutting oil output since May by a record 9.7 million barrels per day after the coronavirus crisis destroyed a third of global demand.
After July, the cuts are due to taper to 7.7 million bpd until December although a final decision has yet to be taken. Key OPEC+ ministers hold talks next week.
Industry and trading sources said ADNOC plans to raise its crude oil exports by as much as 300,000 barrels per day in August, citing oil loading programmes by the company.
Gulf OPEC producer the United Arab Emirates will pump according to its output quota under the OPEC agreement, which is 2.590 million bpd, up from 2.446 million in July, the sources familiar with ADNOC's exports and production plans said. – Nampa/Reuters
Uber launches grocery delivery
Uber Technologies Inc further expanded delivery offerings, launching an app-based grocery service in several Latin American and Canadian cities, with the United States to follow later this month.
The company's latest foray into the delivery space is in partnership with Corner shop, a Chilean online grocery provider that Uber has held a majority stake in since October.
Customers in Canada's Montreal and Toronto, eleven Brazilian cities, including Rio de Janeiro and Sao Paulo, four Chilean cities, Colombia's Bogota and Peru's Lima will be able to order groceries from local stores and chains through the Uber Eats app.
In Canada, groceries can be ordered from large chains Walmart Inc and Metro Inc. A launch in U.S. cities is expected later in July, beginning with regional merchants in Miami and Dallas, an Uber spokeswoman said.
Uber said it had some 9,500 active merchants, with grocery-convenience orders increasing by more than 176% since February across the Uber platform. Uber's grocery delivery push comes at a time when its core ride-hailing business is under pressure around the globe because of Covid-19. - Nampa/Reuters