Welcome to Morning Brief. I'm Julie Hyman. Let's get to the three things you need to know today.First up, US stocks have rallied to fresh record highs. The driving force behind the gains, at least in the past few days, has been the tech sector. But that could change tonight.Investors are going to be watching results from Mac 7 stocks, including Tesla, Meta, and Microsoft. Wall Street will be watching to see if the massive spend on AI is starting to pay off a little bit more. Plus, it's Fed decision day.The ...

Core Insights - IG Metall is preparing for wage negotiations with German carmakers, warning of potential escalation due to challenges in the automotive sector [1][5] - The German automotive industry is facing significant pressures, including competition from Chinese manufacturers, US tariffs, and lower-than-expected demand for electric vehicles [1][5] Group 1: Wage Negotiations and Union Influence - IG Metall represents a significant force in shaping strategic decisions within major German companies, holding half of the supervisory board seats [2] - The union has successfully negotiated to secure tens of thousands of jobs and investment commitments for German locations, despite employees foregoing billions of euros [3] Group 2: Industry Challenges and Job Cuts - The automotive sector has announced plans to cut nearly 100,000 jobs by 2030, with major companies like Robert Bosch, Volkswagen, and Ford leading the reductions [2][4] - Specific job cuts include Audi (7,500 roles), Continental (10,150 positions), Ford (1,000 jobs), Porsche (1,900 positions), Bosch (18,500 roles), Schaeffler (4,700 jobs), Volkswagen (35,000 positions), and ZF Friedrichshafen (14,000 roles) [4] Group 3: Market Conditions - German vehicle production has stagnated for three consecutive years, with output in 2025 projected to be approximately 11% below 2019 levels [5] - The rise of Chinese competitors, such as BYD, is increasing pressure on German car manufacturers both domestically and through imports [5]

Core Insights - Amazon.com is preparing for another significant round of job cuts, with announcements expected as soon as next week [1] Group 1 - The company is reportedly facing massive job cuts, indicating potential restructuring or cost-saving measures [1]

Core Insights - The rise of AI technology has led to discussions about its impact on the job market, with only 17% of executives reporting job cuts despite productivity gains from AI [1][2][6] - Many companies are choosing to reinvest in their workforce rather than reduce headcount, contradicting the narrative of mass layoffs due to AI [2][6] - The current labor market slowdown has raised concerns about potential AI-driven job losses, although AI is not yet a major factor in these changes according to the Federal Reserve [3][4] Company Actions - Major companies like Salesforce and Lufthansa have announced job cuts attributed to AI, with Salesforce cutting 4,000 customer support jobs and Lufthansa reducing 4,000 administrative positions [4][5] - Duolingo has also ceased using contractors for tasks that AI can perform, indicating a shift in workforce strategy towards automation [5] Labor Market Trends - The EY survey indicates that 34% of companies experiencing productivity benefits from AI are actively hiring individuals with AI expertise, highlighting a skills gap in the labor market [6] - Some companies, like Klarna, have faced challenges with AI transitions, leading to layoffs and subsequent rehiring due to customer service issues [7]

Core Insights - The manufacturing industry experienced 329,000 job separations in October, marking a 0.6% increase from September's 327,000 separations [1] - Job openings rose by 6.5% month-over-month to 410,000, but decreased by about 10% year-over-year from 455,000 [2] - Manufacturing unemployment increased by 18.7% year-over-year to 571,000 individuals, with job losses of 6,000 in September [3] Sector-Specific Trends - The beverage, tobacco, and leather manufacturing sectors gained approximately 3,300 jobs, while nonmetallic mineral products and machinery added 1,500 and 1,300 jobs, respectively [4] - The plastics and rubber products sector faced significant job cuts, losing around 3,500 jobs [4] - The semiconductor and electronic components sector lost about 2,500 workers, and transportation equipment cut 2,400 employees, with half of those from the motor vehicle segment [5] Future Outlook - Job cuts in the transportation equipment sector are anticipated to continue into 2026 due to declining electric vehicle sales, rising costs, and tariffs on materials like aluminum and steel [6] - General Motors is expected to lay off thousands of workers and pause production at its Ultium Cells battery sites starting in January [6] - Tariffs are reportedly discouraging manufacturers from relocating production back to the U.S., particularly in the transportation equipment sector [7]

Job Cuts - Samancor Chrome 考虑在南非裁减多达 2,496 个工作岗位 [1] - 裁员原因是能源成本高企，公司考虑关闭或缩减业务 [1] Operational Changes - Samancor Chrome 正在考虑关闭或缩减业务规模 [1]

Core Insights - HP plans to cut between 4,000 and 6,000 jobs globally by the end of October 2028, as it increasingly adopts AI to enhance product development, which has led to a lower-than-expected profit outlook for the coming year [1][2] - The job cuts are expected to result in annualized savings of $1 billion by 2028, although the restructuring will incur costs of approximately $650 million [2] Company Strategy - The CEO of HP, Enrique Lores, emphasized the significant opportunity to integrate AI into the company to accelerate product innovation, improve customer satisfaction, and enhance productivity [2] - Affected teams will include those involved in product development, internal operations, and customer support [2] Industry Context - The announcement of job cuts at HP aligns with a broader trend where companies are citing AI as a reason for workforce reductions, with other firms like Clifford Chance and PwC also adjusting their staffing in response to technological advancements [4][5] - A report from the National Foundation for Educational Research indicated that up to 3 million low-skilled jobs in the UK could be at risk due to automation and AI by 2035, particularly in trades, machine operations, and administrative roles [3] Financial Performance - HP reported better-than-expected revenues of $14.6 billion for its fourth quarter, with demand for AI-enabled PCs making up over 30% of its shipments during that period [8] - However, rising memory costs, which currently account for 15% to 18% of the cost of a typical PC, could impact profits for HP and its competitors [7][8]

ABN Amro plans to cut 5,200 full-time roles by 2028 https://t.co/1lzE3ZTGyh ...

Amazon informed staffers via a text-email combo. Target asked workers to stay home. Does any of that make job cuts less painful?https://t.co/Ar5pdlgZA3 ...

Layoff Strategies - Amazon 使用短信和邮件通知员工裁员消息 [1] - Target 要求员工居家办公 [1] Employee Impact - 裁员是否减轻痛苦，行业对此表示疑问 [1]