Governor Hochul's proposal to allow the closure of up to 5 state prisons with 90 days' notice has survived budget negotiations, leaving communities anxious about potential closures. The language in the preliminary budget agreement aims to increase the operational efficiency of the correctional system, despite previous hopes of excluding it. This decision could impact communities with state prisons, such as Cape Vincent, Ogdensburg, and Gouverneur, which are already affected by previous closures.
Deutsche Bank is cutting 3,500 jobs in non-client-facing areas as part of its plan to reduce operational costs by 2.5 billion euros by 2025. The bank aims to achieve these savings through measures such as simplified workflows and automation. Despite reporting a rise in profit before tax to 5.7 billion euros in 2023, the bank is seeking to save an additional 1.6 billion euros. This move comes after Citigroup announced its plan to cut 20,000 jobs earlier this month, reflecting ongoing efforts within the banking sector to streamline operations and reduce costs.
Intel Corp (INTC) reported a 10% year-over-year increase in Q4 revenue, reaching $15.4 billion, but experienced a 14% decline in full-year revenue. The company achieved $3 billion in cost savings in 2023 and provided a cautious outlook for Q1 2024, projecting revenue between $12.2 billion and $13.2 billion. Despite challenges in the semiconductor industry, Intel's focus on operational efficiency and expansion into new business areas, such as AI and foundry services, may present opportunities for value investors.
The CEO of Sports Illustrated publisher, The Arena Group, Ross Levinsohn, has been fired as part of a series of terminations following an AI scandal. Levinsohn's termination comes after the company terminated its operations president, media president, and corporate counsel last week. The scandal erupted when it was revealed that Sports Illustrated had been using AI-generated content and author headshots without disclosure. The company claimed that the articles in question were product reviews and licensed content from a third-party company, AdVonCommerce, which assured that all articles were written and edited by humans. The recent terminations did not address the AI controversy.
Adena Health in Chillicothe, Ohio, has temporarily halted its cardiac surgical program following an internal review and assessment by HealthLinx. The hospital aims to improve operational efficiency and effectiveness to better serve patients and employees. The pause only affects cardiac surgeries, while cardiology and thoracic and vascular surgery services will continue.
Satellite-imagery and data-analysis company Planet is restructuring and laying off approximately 10% of its workforce, affecting 117 employees. The company aims to increase its focus on high priority growth opportunities and operational efficiency to support its long-term strategy and path to profitability. Planet's CEO takes responsibility for the decisions leading to the layoffs and acknowledges the impact on employees and their families. The company's stock remained relatively unchanged in premarket trading.
Note-taking company Evernote has laid off most of its US and Chile-based employees as its Italian parent company, Bending Spoons, plans to move most of its operations to Europe. The move is aimed at improving operational efficiency and leveraging Bending Spoons' strong employer brand in Europe. Evernote, which has faced challenges in recent years, including app issues and executive departures, previously laid off 129 workers in February. The affected employees have been offered severance packages and health insurance coverage.
