World Street | Tesla's woes continue, Volkswagen unionises, Nike layoffs and more

World Street offers a sneak peek into the world of business and economy.

Tesla's woes continue after auto maker was asked to recall most of the Cybertruck models. In a historic win, Volkswagen workers in its Tennessee plant vote to unionise. Nike and UBS join the series of conglomerates looking to slash their workforce, all this and more in the April 22 edition of World Street.

Cybertruck reverses 

The much awaited Cybertruck has been recalled by Tesla due to accelerator issues. The Elon Musk  owned electric vehicle manufacturer been ordered to roll out a recall for around 4,000 Cybertruck models as the accelerator pad shifted away from the pedal when force was applied.

The  3,878 trucks that are recalled are most, if not all, the Cybertrucks that are being driven in the US.

Volkswagen unionises 

Workers of the Volkswagen plant in Tennessee voted to join the United Auto Workers (UAW), winning 73 percent of the vote. The UAW attempted to organise the plant in 2014 and 2019 but failed due to political pressure. This marks the union's first win in organising a non-American automaker.

BlackRock beefs orotection

BlackRock's spending to protect and secure CEO Larry Fink tripled in 2023 to $563,513 to “upgrade the home security systems” while also paying his bodyguards $216,837. Fink has faced backlash over the group's stance on investing from fringe groups and conservative pundits.

Nike losing bounce?

As revenue is set to dip in FY25, Nike has decided to layoff around 740 employees from its headquarters in Oregon. Nike said it will be permanently reducing its workforce at its "world headquarters" in a "second phase of impacts", which will begin on June 28. The total employee count as of May 2023 was 83,700.

UBS too to hand over pink slips 

Swiss banking giant UBS will begin a cost-cutting programme the same month following its take-over of Credit Suisse. The layoffs will affect one in 12 employees in Switzerland and the lender will attempt to cut costs by $10 billion. Around 25-30 percent of Credit Suisse employees will be made redundant, experts said.

China holds rates

In its monthly meeting, the People's Bank of China decided to keep the country's key lending rate stable, following encouraging data coming from the first quarter ended March 31. China's economy grew 5.3 percent in the first quarter on-year, surpassing analysts expectations.

(with inputs from agencies)

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