Visa plans to lay off 1,400 employees, focusing on tech and global partnerships, while the EU raises tariffs on Chinese EVs up to 45.3%, sparking tension with Beijing. ByteDance’s Zhang Yiming tops China’s rich list as global revenue hits $110 billion. Alphabet posts strong Q3 growth with $88.3 billion in sales. Reddit reports its first profit, driven by AI deals and ad gains. All this and more on this edition of World Street.
Visa Trims
Visa is reportedly preparing to lay off around 1,400 employees and contractors by year’s end as part of efforts to sharpen its international business, according to the Wall Street Journal.
Of the planned cuts, approximately 1,000 are in technology positions, while the rest focus on Visa’s merchant sales and global digital partnership roles. Some layoffs began last week, though employees in global digital partnerships will remain onboard until year-end.
Duty Drama
The European Union is raising tariffs on electric vehicles (EVs) imported from China, with rates reaching as high as 45.3% after concluding a high-profile trade investigation. The move has created tension within Europe and spurred warnings from Beijing.
Following its year-long anti-subsidy probe, the European Commission plans to add extra tariffs ranging from 7.8% for Tesla to 35.3% for China's SAIC, in addition to the EU’s standard 10% import duty on cars.
ByteDance Boom
ByteDance founder Zhang Yiming has become China’s wealthiest individual with a net worth of $49.3 billion, surpassing the bottled water magnate Zhong Shanshan, according to the Hurun China Rich List.
ByteDance’s global revenue surged by 30% last year, reaching $110 billion despite a legal battle over its U.S. assets, helping to bolster Yiming’s fortune. The total number of billionaires on the list has also declined, with 142 fewer than the previous year, marking a one-third drop from its 2021 peak.
Market Magnet
Google parent Alphabet announced robust revenue growth for the third quarter on Tuesday, continuing its upward momentum despite regulatory challenges and increasing competition. The tech giant reported $88.3 billion in sales, a 15% YoY increase, exceeding analysts' forecast. Profit also jumped 34% to $26.3 billion.
The strong results underscore Alphabet’s dominance in digital advertising, with Google’s search engine and YouTube continuing to be essential channels for marketers to reach audiences.
Reddit's Profit Pop
Reddit reported its first-ever quarterly profit on Tuesday and projected fourth-quarter revenue above expectations, fueled by content licensing deals for AI training and strong digital ad spending. This news lifted its shares by 22%.
As Reddit gains traction with advertisers, it continues to expand its user base through machine-learning-powered language translation. Content licensing partnerships with Google and Microsoft-backed OpenAI have also contributed to Reddit’s revenue growth.
China Clampdown
The Biden administration has announced that it is finalizing regulations to restrict U.S. investments in China’s AI and other tech sectors deemed risky to national security. Effective January 2, the new rules will be managed by the Treasury's newly established Office of Global Transactions.
The rules, initially proposed in June by the U.S. Treasury, stem from an executive order signed by President Joe Biden in August 2023, covering three critical areas: semiconductors and microelectronics, quantum information technologies, and select AI systems.
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