Company Performance - Starbucks is reducing corporate employees' holiday bonuses by 40% due to poor performance this year, marking the worst year since the pandemic in 2020 [1][3] - Revenue increased less than 1% in the fiscal year ended Sept 29, significantly lower than the double-digit growth in previous years [4] - Operating income dropped 8% in the same period [4] - Global same-store sales fell 2% this fiscal year, only the second such drop in the last 15 fiscal years, with the first occurring in 2020 during lockdowns [6] Bonus Structure and Impact - Corporate workers will receive only 60% of their overall bonuses, with payouts based on personal performance and company results [3] - Senior vice presidents and executives will face larger bonus cuts and will not be eligible for merit raises [9][12] - The portion of bonuses based on company performance considers revenue and operating income, heavily impacting senior positions [4][11] - US employees' bonus goals range from 5% of base pay for rank-and-file workers to 45% of base pay for senior vice presidents [10] Operational Challenges - Sales have slumped due to issues like long wait times of up to 40 minutes and a boycott linked to the company's perceived stance on the war in Gaza [2] - Customers are cutting back on pricey lattes and frappuccinos due to menu price hikes, reflecting broader struggles in the fast-food industry [1] Strategic Changes - New CEO Brian Niccol, who took the helm in September, is focusing on cutting down lines and revamping locations to improve customer experience [5][7] - Niccol has called for extra barista positions to boost efficiency and position Starbucks as a "third place" for customers between work and home [10] - The company plans to fundamentally change its strategy to win back customers and return to growth [8] Market Performance - Starbucks shares have risen 7 5% to $100 68 this year, significantly underperforming the S&P 500's 27% growth during the same period [13]

Group 1 - Citigroup CEO Jane Fraser plans to reduce the number of year-end promotions from 8,000 to just 2,000 employees, indicating a significant cost-cutting measure [1][2] - The expected pay increases for these promotions are limited to 15%, reflecting a tighter compensation strategy [2] - Fraser's turnaround plan includes cutting 20,000 jobs and simplifying business processes to boost profits [2][4] Group 2 - A Citi spokesperson denied the Financial Times report, asserting that promotions are a key part of the talent strategy and that a significant decline in promotions is inaccurate [3] - Fraser's tenure has faced challenges, including allegations of a toxic work environment and ongoing sexual harassment scandals [4][6] - Citigroup reported a smaller-than-expected drop in profit for the third quarter, supported by debt underwriting in investment banking [7] Group 3 - The bank is under investigation by multiple U.S. government agencies regarding its connections to sanctioned Russian billionaire Suleiman Abusaidovich Kerimov [7][8] - The investigations involve the bank's dealings with Heritage Trust, which manages assets owned by Kerimov [8]

Disney CEO Bob Iger sold more than $42 million worth of company stock last week as the Mouse House gears up for a lengthy process to find his successor.Iger, who is two years into his second stint as chief executive after the removal of his handpicked protege Bob Chapek, sold 372,412 shares of Disney on Friday, according to a filing with the Securities and Exchange Commission.The shares were sold at an aggregate market value of $42,667,125.16. 3 Disney CEO Bob Iger sold more than $42 million worth of comp ...

A free-market cable regulator gets nominated as chair of the Federal Communications Commission, setting tongues wagging on Wall Street that much-needed dealmaking will take place. One of the largest media organizations in the world dramatically alters its business model, separating its cable programming from much of the rest of its company to set itself up for some dealmaking.Coincidence? Not even close, according to telecom bankers and lawyers assessing this week’s developments on Wall Street and in Washin ...

Anthropic said Friday that longtime backer Amazon had pumped an additional $4 billion into the artificial intelligence startup, doubling its investment in the firm known for its GenAI chatbot Claude.Amazon will maintain its position as a minority investor and will be Anthropic’s main training partner for AI models, the startup said.Amazon, which is Anthropic’s primary cloud partner, is fiercely competing with Microsoft and Alphabet’s Google to offer AI-powered tools for its cloud customers. 3 Anthropic is ...

Core Viewpoint - A New York state judge ruled that SiriusXM Holdings made it excessively difficult for customers to cancel their subscriptions, violating the federal Restore Online Shoppers' Confidence Act [1][2]. Group 1: Legal Findings - The judge, Justice Lyle Frank, found that SiriusXM's cancellation process was not as easy as signing up, requiring customers to engage with live agents and listen to multiple offers before cancellation [2]. - SiriusXM is mandated to change its cancellation practices to comply with legal standards and is liable for unspecified damages [2]. Group 2: Customer Experience - Subscribers reportedly spent an average of 11.5 minutes to cancel by phone and 30 minutes to cancel online, indicating a cumbersome process [4][5]. - The New York Attorney General, Letitia James, emphasized that the cancellation process should be simplified to protect consumers [6]. Group 3: Company Response - SiriusXM announced plans to appeal the decision made on November 21 and stated its commitment to adhere to a Federal Trade Commission rule that mandates an easy cancellation process [3]. - The "click-to-cancel" rule will take effect on January 14, 2025, further emphasizing the need for companies to streamline cancellation procedures [4].

ChatGPT-creator OpenAI has recently considered developing a web browser that would combine with its chatbot, the Information reported Thursday, and has separately discussed or struck deals to power search features.OpenAI has spoken about the search product with website and app developers such as Conde Nast, Redfin, Eventbrite and Priceline, the report said, citing people who have seen prototypes or designs of the products.The move could pit the Sam Altman-led company against Google, which commands the lion’ ...

Shares of Google parent Alphabet plunged more than 6% on Thursday after the Justice Department asked a federal judge to order a selloff of Google’s Chrome web browser – one of several remedies aimed at breaking up the Big Tech firm’s monopoly over online search.The stock drop signaled anxiety on Wall Street about Google’s future after DOJ attorneys outlined the set of proposed corrections for Google’s business in filings late Wednesday. US District Judge Amit Mehta will have final say over which remedies to ...

PayPal said on Thursday that it was “experiencing a system issue” that appears to be interfering with merchants’ ability to process payments.The San Jose, Calif.-based tech giant issued an incident report on its web site on Thursday saying that the outage “may be affecting multiple products in our Production environment.”“Merchants may be encountering an elevated number of” error messages.PayPal said on Thursday that it was “experiencing a system issue” that appears to be interfering with merchants’ ability ...

Nvidia forecast fourth-quarter revenue slightly above estimates on Wednesday, but still failed to meet lofty expectations of some investors who have made it the world’s most valuable firm.Shares of the Santa Clara, California-based company fell roughly 2% in extended trading. They had closed down 0.8% on Wednesday.The company forecast revenue of $37.5 billion, plus or minus 2% for the fourth quarter, compared with analysts’ average estimate of $37.09 billion according to data compiled by LSEG.“The age of AI ...