Category: Business

Business news and market updates

  • URBN’s Reclectic is moving from Philly to the suburbs

    URBN’s Reclectic is moving from Philly to the suburbs

    Reclectic, URBN’s discount store, is moving from one Philly-area mall to another.

    The 40,000-square-foot site which opened in 2023 at the Franklin Mall (still widely known to locals by former name Franklin Mills) will relocate to a larger space in Willow Grove Park Mall next month, into the first floor of the former Sears store.

    The move comes as Reclectic’s Franklin Mall lease nears its end and as the store has seen an “overwhelming increase in demand,” said Kevin Dorfmeyer, executive director of strategy, corporate development and Reclectic at URBN.

    Reclectic sells items typically 50% to 60% off the ticket price and includes new, slightly damaged inventory, or items that have cycled through URBN’s clothing rental service, Nuuly. The store sells shoes, clothing, home furnishings, and accessories.

    The Franklin Mall location will close on Feb. 21, and the new site at Willow Grove Park Mall will open on Feb. 27.

    The Reclectic store at the Franklin Mall opened in 2023.

    The company is also looking to expand locations this year, said Dorfmeyer, who described the Franklin Mall store as “extremely successful.”

    To date, URBN has opened Reclectic locations in North Carolina, Illinois, Texas, New York, and Arizona.

    “We’re actively working on expansion into new metro regions across the U.S.,” Dorfmeyer said. “It’s too early to tell now where we’re headed, but, [we’re] looking to expand further.”

    Shoppers are traveling upwards of 30 to 60 miles to visit Reclectic stores, Dorfmeyer said.

    “Our customer loves the thrill of the hunt,” he said. “They’re coming to us to discover new brands, to experiment and play and, quite honestly, just to uncover the possibility with a new type of inventory that we offer in Reclectic.”

    URBN, which was founded in Philadelphia, is the parent company of Anthropologie, Free People, and Urban Outfitters. The business launched Nuuly, a clothing rental subscription, in 2019.

    An assortment of colorful couches and other furniture for sale at Reclectic in the Franklin Mall in August 2023.
  • Trump threatens Canada with 50% tariff on aircraft sold in U.S., expanding trade war

    Trump threatens Canada with 50% tariff on aircraft sold in U.S., expanding trade war

    WASHINGTON — President Donald Trump on Thursday threatened Canada with a 50% tariff on any aircraft sold in the U.S., the latest salvo in his trade war with America’s northern neighbor as his feud with Prime Minister Mark Carney expands.

    Trump’s threat posted on social media came after he threatened over the weekend to impose a 100% tariff on goods imported from Canada if it went forward with a planned trade deal with China. But Trump’s threat did not come with any details about when he would impose the import taxes, as Canada had already struck a deal.

    In Trump’s latest threat, the Republican president said he was retaliating against Canada for refusing to certify jets from Savannah, Ga.-based Gulfstream Aerospace.

    Trump said the U.S., in return, would decertify all Canadian aircraft, including planes from its largest aircraft maker, Bombardier. “If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America,” Trump said in his post.

    Spokespeople for Bombardier and Canada’s transport minister didn’t immediately respond to messages seeking comment Thursday evening.

    The U.S. Commerce Department previously put duties on a Bombardier commercial passenger jet in 2017 during the first Trump administration, charging that the Canadian company is selling the planes in America below cost. The U.S. said then that the Montreal-based Bombardier used unfair government subsidies to sell jets at artificially low prices.

    The U.S. International Trade Commission in Washington later ruled that Bombardier did not injure U.S. industry.

    Bombardier has since concentrated on the business and private jet market in recent years. If Trump cuts off the U.S. market it would be a major blow to the Quebec company.

    Treasury Secretary Scott Bessent warned Carney on Wednesday that his recent public comments against U.S. trade policy could backfire going into the formal review of the U.S.-Mexico-Canada Agreement, the trade deal that protects Canada from the heaviest impacts of Trump’s tariffs.

    Carney rejected Bessent’s contention that he had aggressively walked back his comments at the World Economic Forum during a phone call with Trump on Monday.

    Carney said he told Trump that he meant what he said in his speech at Davos, and told him Canada plans to diversify away from the United States with a dozen new trade deals.

    In Davos at the World Economic Forum last week, Carney condemned economic coercion by great powers on smaller countries without mentioning Trump’s name. The prime minister received widespread praise and attention for his remarks, upstaging Trump at the gathering.

  • Venezuelan lawmakers vote to ease state grip on oil, abandoning self-proclaimed socialist tenet

    Venezuelan lawmakers vote to ease state grip on oil, abandoning self-proclaimed socialist tenet

    CARACAS, Venezuela — Venezuela’s acting President Delcy Rodríguez on Thursday signed a law that will open the nation’s oil sector to privatization, reversing a tenet of the self-proclaimed socialist movement that has ruled the country for more than two decades.

    Lawmakers in the country’s National Assembly approved the overhaul of the energy industry law earlier in the day, less than a month after the brazen seizure of then-President Nicolás Maduro in a U.S. military attack in Venezuela’s capital.

    As the bill was being passed, the U.S. Treasury Department officially began to ease sanctions on Venezuelan oil that once crippled the industry, and expanded the ability of U.S. energy companies to operate in the South American nation, the first step in plans outlined by Secretary of State Marco Rubio the day before. The license authorization by the Treasury Department strictly prohibits entities from China, Russia, Iran, North Korea, or Cuba from the transactions.

    The moves by both governments on Thursday are paving the way for yet another radical geopolitical and economic shift in Venezuela.

    “We’re talking about the future. We are talking about the country that we are going to give to our children,” Rodríguez said.

    Rodríguez proposed the changes in the days after President Donald Trump said his administration would take control of Venezuela’s oil exports and revitalize the ailing industry by luring foreign investment.

    Private companies to control oil production

    The legislation promises to give private companies control over the production and sale of oil and allow for independent arbitration of disputes.

    Rodríguez’s government expects the changes to serve as assurances for major U.S. oil companies that have so far hesitated about returning to the volatile country. Some of those companies lost investments when the ruling party enacted the existing law two decades ago to favor Venezuela’s state-run oil company, Petróleos de Venezuela SA, or PDVSA.

    The revised law would modify extraction taxes, setting a royalty cap rate of 30% and allowing the executive branch to set percentages for every project based on capital investment needs, competitiveness and other factors.

    It also removes the mandate for disputes to be settled only in Venezuelan courts, which are controlled by the ruling party. Foreign investors have long viewed the involvement of independent courts as crucial to guard against future expropriation.

    Will change Venezuela’s economy

    Ruling-party lawmaker Orlando Camacho, head of the assembly’s oil committee, said the reform “will change the country’s economy.”

    Meanwhile, opposition lawmaker Antonio Ecarri urged the assembly to add transparency and accountability provisions to the law, including the creation of a website to make funding and other information public. He noted that the current lack of oversight has led to systemic corruption and argued that these provisions can also be considered judicial guarantees.

    Those guarantees are among the key changes foreign investors are looking for as they weigh entering the Venezuelan market.

    “Let the light shine on in the oil industry,” Ecarri said.

    Some oil workers support overhaul

    Oil workers dressed in red jumpsuits and hard hats celebrated the bill’s approval, waving a Venezuelan flag inside the legislative palace and then joining lawmakers in a demonstration with ruling-party supporters.

    The law was last altered two decades ago as Maduro’s mentor and predecessor, the late Hugo Chávez, made heavy state control over the oil industry a pillar of his socialist-inspired revolution.

    In the early years of his tenure, a massive windfall in petrodollars thanks to record-high global oil prices turned PDVSA into the main source of government revenue and the backbone of Venezuela’s economy.

    Chávez’s 2006 changes to the hydrocarbons law required PDVSA to be the principal stakeholder in all major oil projects.

    In tearing up the contracts that foreign companies signed in the 1990s, Chávez nationalized huge assets belonging to American and other Western firms that refused to comply, including ExxonMobil and ConocoPhillips. They are still waiting to receive billions of dollars in arbitration awards.

    From those heady days of lavish state spending, PDVSA’s fortunes turned — along with the country’s — as oil prices dropped and government mismanagement eroded profits and hurt production, first under Chávez, then Maduro.

    The nation home to the world’s biggest proven crude reserves underwent a dire economic crisis that drove over 7 million Venezuelans to flee since 2014. Sanctions imposed by successive U.S. administrations further crippled the oil industry.

  • Democrats, White House strike spending deal that would avert government shutdown

    Democrats, White House strike spending deal that would avert government shutdown

    WASHINGTON — Democrats and the White House struck a deal to avert a partial government shutdown and temporarily fund the Department of Homeland Security as they consider new restrictions for President Donald Trump’s surge of immigration enforcement. But passage was delayed late Thursday as leaders scrambled to win enough support for the agreement before the midnight Friday deadline.

    As the country reels from the deaths of two protesters at the hands of federal agents in Minneapolis, the White House agreed to separate homeland security funding from a larger spending bill and fund the department for two weeks while they debate Democratic demands for curbs on the U.S. Immigration and Customs Enforcement agency.

    “Republicans and Democrats have come together to get the vast majority of the government funded until September” while extending current funding for Homeland Security, Trump said in a social media post Thursday evening. He encouraged members of both parties to cast a “much needed Bipartisan ‘YES’ vote.”

    Still, all senators weren’t yet on board. Leaving the Capitol just before midnight Thursday after hours of negotiations, Senate Majority Leader John Thune said there were “snags on both sides” as he and Democratic leader Chuck Schumer tried to rally support.

    “Hopefully people will be of the spirit to try and get this done tomorrow,” Thune said.

    Sen. Lindsey Graham, R-S.C., said late Thursday that he was one of the senators objecting. He said Immigration and Customs Enforcement agents were being treated unfairly. He has also opposed House language that would repeal a new law that gives senators the ability to sue the government for millions of dollars if their personal or office data is accessed without their knowledge.

    Democrats had requested the two-week extension and say they are prepared to block the wide-ranging spending bill if their demands aren’t met, denying Republicans the votes they need to pass it and potentially triggering a shutdown.

    Rare bipartisan talks

    The rare bipartisan talks between Trump and his frequent adversary, Senate Democratic leader Chuck Schumer, came after the fatal shooting of 37-year-old Alex Pretti in Minnesota over the weekend and calls by senators in both parties for a full investigation. Schumer called it “a moment of truth.”

    “The American people support law enforcement. They support border security. They do not support ICE terrorizing our streets and killing American citizens,” Schumer said.

    The standoff has threatened to plunge the country into another shutdown, just two months after Democrats blocked a spending bill over expiring federal health care subsidies. That dispute closed the government for 43 days as Republicans refused to negotiate.

    That shutdown ended when a small group of moderate Democrats broke away to strike a deal with Republicans, but Democrats are more unified this time after the fatal shootings of Pretti and Renee Good by federal agents.

    Democrats lay out demands

    Democrats have laid out several demands, asking the White House to “end roving patrols” in cities and coordinate with local law enforcement on immigration arrests, including requiring tighter rules for warrants.

    They also want an enforceable code of conduct so agents are held accountable when they violate rules. Schumer said agents should be required to have “masks off, body cameras on” and carry proper identification, as is common practice in most law enforcement agencies.

    The Democratic caucus is united in those “common sense reforms,” and the burden is on Republicans to accept them, Schumer said.

    “Boil it all down, what we are talking about is that these lawless ICE agents should be following the same rules that your local police department does,” said Democratic Sen. Tina Smith of Minnesota. “There has to be accountability.”

    Earlier on Thursday, Tom Homan, the president’s border czar, stated during a press conference in Minneapolis that federal immigration officials are developing a plan to reduce the number of agents in Minnesota, but this would depend on cooperation from state authorities.

    Still far apart on policy

    Negotiations down the road on a final agreement on the Homeland Security bill are likely to be difficult.

    Democrats want Trump’s aggressive immigration crackdown to end. “If the Trump administration resists reforms, we shut down the agency,” said Connecticut Sen. Richard Blumenthal.

    “We need to take a stand,” he said.

    But Republicans are unlikely to agree to all of the Democrats’ demands.

    North Carolina Sen. Thom Tillis said he is opposed to requiring immigration enforcement officers to show their faces, even as he blamed Homeland Security Secretary Kristi Noem for decisions that he said are “tarnishing” the agency’s reputation.

    “You know, there’s a lot of vicious people out there, and they’ll take a picture of your face, and the next thing you know, your children or your wife or your husband are being threatened at home,” Tillis said.

    South Carolina Sen. Graham said some of the Democratic proposals “make sense,” such as better training and body cameras. Still, he said he was putting his Senate colleagues “on notice” that if Democrats try to make changes to the funding bill, he would insist on new language preventing local governments from resisting the Trump administration’s immigration policies.

    “I think the best legislative solution for our country would be to adopt some of these reforms to ICE and Border Patrol,” Graham posted on X. But he said that the bill should also end so-called “sanctuary city” policies.

    Uncertainty in the House

    Across the Capitol, Speaker Mike Johnson, R-La., told The Associated Press on Thursday that he had been “vehemently opposed” to breaking up the funding package, but “if it is broken up, we will have to move it as quickly as possible. We can’t have the government shut down.”

    On Thursday evening, at a premiere of a movie about first lady Melania Trump at the Kennedy Center, Johnson said he might have some “tough decisions” to make about when to bring the House back to Washington to approve the bills separated by the Senate, if they pass.

    “We’ll see what they do,” Johnson said.

    House Republicans have said they do not want any changes to the bill they passed last week. In a letter to Trump on Tuesday, the conservative House Freedom Caucus wrote that its members stand with the Republican president and ICE.

    “The package will not come back through the House without funding for the Department of Homeland Security,” they wrote.

  • Amazon to lay off nearly 1,000 Philly-area workers at shuttering Amazon Fresh stores 

    Amazon to lay off nearly 1,000 Philly-area workers at shuttering Amazon Fresh stores 

    Amazon plans to lay off nearly 1,000 Amazon Fresh employees in the Philadelphia region as it closes all of the grocery stores.

    The layoffs are planned for the end of April, according to a Thursday WARN Act filing with the Pennsylvania Department of Labor and Industry. They include the employees of all six Philly-area Amazon Fresh locations — 205 at the Northern Liberties store, 189 in Broomall, 161 in Bensalem, 157 in Langhorne, 144 in Warrington, and 127 in Willow Grove, according to the filing.

    The e-commerce giant announced on Tuesday that it would be closing all of its physical Amazon Fresh stores. Some will be converted to Whole Foods Markets, according to Amazon, but the company has yet to say which.

    By the end of April, Amazon also plans to lay off nearly 900 New Jersey employees, the vast majority of whom work in northern counties where there are Amazon Fresh stores, according to a WARN Act filing with New Jersey Department of Labor & Workforce Development.

    The day after announcing the Amazon Fresh closures, Amazon said 16,000 employees companywide would be losing their jobs as part of a broader reorganization.

    “We’ve been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” Amazon said in a statement announcing the layoffs.

    The company said most U.S. employees will have 90 days to look for a new role internally. After that, those leaving the company will receive severance pay, “outplacement services,” and health insurance benefits, as applicable, according to Amazon.

    With its move to shutter the Fresh stores, Amazon has said it will “double down” on online grocery delivery and expand its Whole Foods footprint. Whole Foods, which Amazon bought in 2017, has more than a dozen locations in the Philadelphia area.

    The announcement of Amazon Fresh closures came a year after Philadelphia Whole Foods workers voted to form a union. The workers have since struggled to get the company to negotiate a contract.

    “Amazon Whole Foods, a trillion dollar entity, treats us like robots to be exploited and squeezed for maximum profits,” Jasmine Jones, a Philadelphia Whole Foods worker and member of Whole Foods Workers United, said Tuesday in a statement that noted the company’s Whole Foods expansion plans. “They are making billions of dollars off of our labor and we deserve better pay and benefits.”

  • She planned to sell her old pot for $20. It just fetched $32K at auction.

    She planned to sell her old pot for $20. It just fetched $32K at auction.

    A 30-gallon stoneware crock sat in the corner of Lois Jurgens’ back porch for nearly three decades, collecting dust through Nebraska summers and snow through the winters. Her late husband used it as a makeshift table to rest grilling tongs and platters. They almost never thought of it.

    On Jan. 10, that same crock sold at auction for $32,000.

    “I just couldn’t believe it,” said Jurgens, who turned 91 on the day the crock was sold. “It’s the biggest thing I’ve ever gotten on my birthday.”

    The crock was manufactured by Red Wing Stoneware, probably between 1877 and 1900. The nearly knee-high crock features molded side handles and a cobalt blue butterfly, along with the company name stamped twice. Unlike later models finished with a smoother zinc glaze, the crock is salt glazed, giving it a coarser texture. Despite its many years outdoors, it is still in good condition.

    “It’s very unusual,” said Ken Bramer, the owner of Bramer Auction & Realty in Amherst, Nebraska, which sold the piece. “That’s the first one of those I’ve seen in 40 years of auctioneering.”

    Jurgens, who lives in Holdrege, Neb., said she can’t recall how or when she and her husband acquired the crock.

    “I really don’t know how it came into the family,” said Jurgens, whose husband died in 2022. She has three children and four grandchildren.

    Whatever its origins, Jurgens said, she never imagined it might be valuable. Stoneware crocks were common household items, historically used for food preservation before modern refrigeration. Today, some are still used for fermenting or as decorative objects, and pieces like Jurgens’s are seen as rare collectors’ items. In 2019, a salt-glazed stoneware cooler sold for $177,000.

    “Some people collect strange things,” Bramer said.

    Jurgens had spent the past several months clearing out items from her home that she no longer needed. Last summer, she had a garage sale and considered putting the crock out with the rest, but it never made it to the driveway.

    “It was too heavy for us to handle,” Jurgens said, adding that her daughter helped her with the garage sale. “We just decided we weren’t going to bother with it.”

    Then, earlier this month, she saw a notice in the local Holdrege Daily Citizen newspaper about an upcoming auction for antiques and collectibles, including many Redwing crocks. She called Bramer Auction & Realty, and Bramer offered to stop by Jurgens’s house and take some photos of the crock.

    “I said, ‘Oh my goodness, that’s a good one,’” Bramer said, telling her: “I think you will be pleasantly surprised by what it brings.”

    Jurgens’s son let Bramer know they were prepared to sell it for $20 at the garage sale, and they’d be glad if it fetched more than that.

    “She was hoping for $100,” Bramer said.

    Bramer posted pictures of the crock on his website and Facebook, and offers started pouring in.

    “I was getting calls from collectors all over the United States,” Bramer said. “I knew it was a good piece, but I really didn’t know how good.”

    Since so many calls came in from bidders outside Nebraska, Bramer said he allowed people to call in with offers during the auction on Jan. 10. Jurgens did not attend the auction, as she was at church for a funeral.

    He started bids at $1,000 for the crock, and things escalated quickly.

    “People just started bidding like crazy,” Bramer said, noting that the most he had sold a crock for was about $5,800 last year. “People were standing up in the crowd, and they all had their cameras out, taking pictures and videos of it … it’s something that doesn’t happen every day.”

    The bidding war ended when a crock collector in Kansas offered a whopping $32,000 for the crock. About an hour later, while the auction was still happening, Jurgens walked in with her daughter.

    “I stopped the auction and asked Lois if she’d come up to the front,” Bramer said. “I introduced her to the crowd and said, ‘This is the young lady who had the crock on the back porch.’”

    He asked her how much she thought it sold for.

    “I hope you got $100,” Jurgens said.

    “I think we did just a little bit better,” Bramer replied.

    When he revealed the final number, “she kind of went weak in the knees,” Bramer said.

    Jurgens said she was — and still is — in disbelief.

    “The whole situation kind of left me in shock. Thankful, but in shock,” she said. “I just couldn’t believe it.”

    Bramer said he, too, was stunned by the outcome.

    “It was really fun for both of us to be surprised,” Jurgens said. “I feel guilty that I didn’t even pretend to take care of it.”

    Jurgens said that since the auction, people stop her when they see her out and about and ask her to tell the story. It was first reported by local news personality Colleen Williams.

    “I can’t go anywhere or they recognize me,” Jurgens said.

    She said she plans to give part of her windfall to her church, and she’s still thinking about what to do with the rest.

    “It would have been fun to share with him if he was still alive,” she said of her husband.

    He would have gotten a kick out of his trusty makeshift table being an actual treasure.

    “It was a special day,” she said.

  • 2026 Lexus NX 350: So supple, so fun — so what’s with these controls?

    2026 Lexus NX 350: So supple, so fun — so what’s with these controls?

    2026 Lexus NX 350 F Sport: So much potential.

    Price: $58,010 as tested.

    What others are saying: “Highs: Compliant ride, upscale furnishings, impressive list of standard tech and safety features. Lows: A bit pokey for the segment, F Sport deserves to be sportier,” says Car and Driver.

    What Lexus is saying: “The stylish Lexus luxury crossover.”

    Reality: Not just stylish, but quick, fun, and supple. But don’t change songs or set the cruise.

    What’s new: The midsize SUV from Lexus now features all-wheel-drive standard. It was last redesigned in 2022.

    Competition: Acura RDX, Alfa Romeo Stelvio, Audi Q5, BMW X3, Cadillac XT5, Genesis GV70, Infiniti QX50, Mercedes-Benz GLC, Volvo XC60.

    Up to speed: The F Sport adds a lot of oomph to the NX package. The 2.4-liter four-cylinder engine is turbocharged and creates 275 horsepower.

    It roars to 60 mph in 6.6 seconds, according to Car and Driver. That’s actually a little slower than competitors, but it still feels quick. When left to its own devices, the NX 350 F Sport just seems to aim for 70 to 75 mph.

    Shifty: The 8-speed automatic does its thing well, so you don’t have to. You can, though; the Prius shifter pattern (up-left for Reverse, down-left for Drive) adds a straight-down pull for Manual mode, and then the paddles take over. Toggle to your heart’s content.

    On the road: All-wheel drive and the adaptive suspension combine to make the curves even more fun; the test model rolled through turns and even around corners like a much smaller vehicle. Sport and Sport+ modes are ideal; it can feel a little sluggish in the other modes.

    The interior of the 2026 Lexus NX 350 F Sport definitely grabs your attention, and won’t let go.

    Driver’s Seat: The NuLuxe seats are delightful, agree Mr. Driver’s Seat and the lovely Mrs. Passenger Seat. They hug, they cuddle, they make you happy like a good Lexus should. (The seats, not the happy couple. Or at least we don’t cuddle you.)

    A favorites button on the infotainment screen should help get where you want to go.

    If only all the controls were this simple. Read on.

    Friends and stuff: People in the corners will be moderately happy, with comfortable seats and plenty of room to stretch out. The center seat is perched and the floor has a hump, so you need the person with the most balance sitting there. But only bring along forgiving friends because they’re going to get mad if they feel the front seats at some point.

    Cargo space is 22.7 cubic feet in the back and 46.9 with the seat folded.

    In and out: It’s not too big a leg lift to get into the NX.

    Play some tunes: Oh, for crying out loud, there has to be someone at Lexus who gets as annoyed at the steering wheel buttons as I do. Every time I want to skip a song or replay a song, I’m left to wonder, “Will it take two stabs? One stab? Several stabs?” It always a mystery, while the hover function waits to recognize my thumbs hovering as intended. Do you really want this? Do other drivers on the road want you to have this?

    And that’s not to mention when I want to move several songs forward or back. We’d been having such a good time up till now, but it’s ruined. Just when that dastardly touch pad is gone, too. (Yes, I know it’s been seven years, but it left a mark.)

    Sound from the Mark Levinson Premium Audio ($1,020) system is good, probably an A-. Not super clear but pretty close. A volume knob is too small and fussy to be helpful. The touchscreen is large at 14 inches (part of a $2,865 F Sport package) and easy to operate. But those darn steering wheel buttons.

    Steady speed: On the other side of the steering wheel, the cruise-control buttons add to the sadness. More confusion, and in this instance it would be impossible to pull over to set it.

    Keeping warm and cool: Weird tire-shaped Lexus dials control the temperature, and then the ebony touch pad allows you to heat and cool the seats and adjust the fan or source. But there are all sorts of automatic control adjustments that get way too intricate for someone driving it around for a week, or, more important, trying to adjust things while driving.

    Fuel economy: The test vehicle averaged 21.2 miles per gallon and didn’t budge at all while testing.

    Where it’s built: Cambridge, Ontario.

    How it’s built: Consumer Reports predicts the NX reliability to be a 4 out of 5.

    In the end: The NX is a nice vehicle, if you can live with the controls. I don’t think I could.

    Among competitors, if I wanted to throw caution to the wind, I’d go for the Stelvio — it’s just so much fun to drive. The GV70 is also nice, especially in full EV form.

  • Amazon cuts about 16,000 corporate jobs in the latest round of layoffs

    Amazon cuts about 16,000 corporate jobs in the latest round of layoffs

    Amazon is slashing about 16,000 corporate jobs in the second round of mass layoffs for the ecommerce company in three months.

    The tech giant has said it plans to use generative artificial intelligence to replace corporate workers. It has also been reducing a workforce that swelled during the pandemic.

    Beth Galetti, a senior vice president at Amazon, said in a blog post Wednesday that the company has been “reducing layers, increasing ownership, and removing bureaucracy.”

    The company did not say what business units would be impacted, or where the job cuts would occur.

    The latest reductions follow a round of job cuts in October, when Amazon said it was laying off 14,000 workers. While some Amazon units completed those “organizational changes” in October, others did not finish until now, Galetti said.

    She said U.S.-based staff would be given 90 days to look for a new role internally. Those who are unsuccessful or don’t want a new job will be offered severance pay, outplacement services and health insurance benefits, she said.

    “While we’re making these changes, we’ll also continue hiring and investing in strategic areas and functions that are critical to our future,” Galetti said.

    CEO Andy Jassy, who has aggressively cut costs since succeeding founder Jeff Bezos in 2021, said in June that he anticipated generative AI would reduce Amazon’s corporate workforce in the next few years.

    The layoffs announced Wednesday are Amazon’s biggest since 2023, when the company cut 27,000 jobs.

    Meanwhile, Amazon and other Big Tech and retail companies have cut thousands of jobs to bring spending back in line following the COVID-19 pandemic. Amazon’s workforce doubled as millions stayed home and boosted online spending.

    The job cuts have not arrived with a company on shaky financial ground.

    In its most recent quarter, Amazon’s profits jumped nearly 40% to about $21 billion and revenue soared to more than $180 billion.

    Late last year after layoffs, Jassy said job cuts weren’t driven by company finances or AI.

    “It’s culture,” he said in October. “And if you grow as fast as we did for several years, the size of businesses, the number of people, the number of locations, the types of businesses you’re in, you end up with a lot more people than what you had before, and you end up with a lot more layers.”

    Hiring has stagnated in the U.S. and in December, the country added a meager 50,000 jobs, nearly unchanged from a downwardly revised figure of 56,000 in November.

    Labor data points to a reluctance by businesses to add workers even as economic growth has picked up. Many companies hired aggressively after the pandemic and no longer need to fill more jobs. Others have held back due to widespread uncertainty caused by President Donald Trump’s shifting tariff policies, elevated inflation, and the spread of artificial intelligence, which could alter or even replace some jobs.

    While economists have described the labor situation in the U.S as a “no hire-no fire” environment, some companies have said they are cutting back on jobs, even this week.

    On Tuesday, UPS said it planned to cut up to 30,000 operational jobs through attrition and buyouts this year as the package delivery company reduces the number of shipments from what was its largest customer, Amazon.

    That followed 34,000 job cuts in October at UPS and the closing of daily operations at 93 leased and owned buildings during the first nine months of last year.

    Also on Tuesday, Pinterest said it plans to lay off under 15% of its workforce, as part of broader restructuring that arrives as the image-sharing platform pivots more of its money to artificial intelligence.

    Shares of Amazon Inc., based in Seattle, rose slightly before the opening bell Wednesday.

  • What travelers can expect as Southwest Airlines introduces assigned seats

    What travelers can expect as Southwest Airlines introduces assigned seats

    Southwest Airlines passengers made their final boarding-time scrambles for seats on Monday as the carrier prepared to end the open-seating system that distinguished it from other airlines for more than a half‑century.

    Starting Tuesday, customers on Southwest flights will have assigned seats and the option of paying more to get their preferred seat closer to the front of a plane or seats with extra legroom. The airline began selling tickets shaped by the new policy in July.

    Here’s what travelers can expect as Southwest does away with another of its signature features and becomes more like other airlines:

    Goodbye, A/B/C groups

    Under the open-seat system, Southwest customers could check in starting exactly 24 hours before departure to secure places in boarding lines at departure gates.

    Early check-ins were placed in the coveted “A” boarding group, essentially guaranteeing they would find an open window or aisle seat. Others landed in “B” or “C,” the likelihood of only middle seats being available rising the longer they waited to check in.

    The Dallas-based airline’s unusual seating process began as a way to get passengers on planes quickly and thereby reduce the time that aircraft and crews spent on the ground not making money. It helped Southwest operate more efficiently and to squeeze a few more flights into the daily schedule; the system also was a key reason Southwest remained profitable every year until the coronavirus pandemic.

    The open-seating arrangement became less democratic over time, however, as Southwest also had starting allowing passengers to pay extra for spots near the front of the line.

    Hello, assigned seating

    An eight‑group boarding structure is replacing the find-your-own-seat scrum. Instead of numbered metal columns at departure gates, passengers will file through two alternating lanes once it’s time for their group to board.

    The airline said its gate areas will be converted in phases starting Monday night, a process that could take about two months to complete. Columns that remain standing past Tuesday will have their numbers removed or covered in the meantime.

    Southwest is selling tickets at fares with different seating choices, including standard seats assigned at check‑in or paid preferred and extra‑legroom seats selected at booking. For certain flights, passengers also will have the option of paying for priority boarding beginning 24 hours before departure.

    How it will work

    Newly designed boarding passes will show seat assignments and boarding groups, according to Southwest. A reservation made for nine or fewer people, including families, will assign those passengers to the same boarding group.

    Southwest says the boarding groups are based on seat location, fare class, loyalty tier status, and the airline’s credit card rewards benefits. Passengers who purchase seats with extra legroom will be placed in groups 1-2. Customers with premium fares and the airline’s “most loyal travelers” will also have access to preferential seats and earlier boarding, the carrier said, while those with basic fares will likely be placed in groups 6-8.

    Other changes

    With the switch to assigned seating also comes a revision of the airline’s policy for customers who need extra room. Under the new rule — also effective Tuesday — travelers who do not fit within a single seat’s armrests will be required to purchase an additional seat in advance.

    That represents a change from the airline’s previous policy that allowed passengers the choice to purchase a fully refundable extra seat before arriving at the airport, or request a free one at the gate. Under the updated policy, refunds are still possible but no longer guaranteed and depend on seat availability and fare class.

    In May 2025, Southwest also ended its decades‑old “bags fly free” policy, replacing it with baggage fees for most travelers.

    The changes mark one of the biggest transformations in the airline’s history, as it alters its longstanding customer perks to bring it more in line with the practices of other larger U.S. carriers.

    Why all the change?

    The shift comes amid pressure from investors to increase profitability.

    “We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect,” Southwest CEO Robert Jordan said last year.

    When the Texas-based airline first announced plans in 2024 to switch to assigned seating, it said studies on seating options showed that customer preferences had changed over the years, with the vast majority of travelers saying they now want to know where they are sitting before they get to the airport.

    Jordan said at the time that open seating was the top reason surveyed travelers cited for choosing another airline over Southwest.

  • How Philly helicopter makers cope with uncertainty at today’s Pentagon

    How Philly helicopter makers cope with uncertainty at today’s Pentagon

    Helicopter manufacturer Leonardo has nearly doubled employment at its Northeast Philadelphia factory since the Rome-based multinational aerospace company began winning U.S. military orders for that factory in the late 2010s.

    But the company, whose owners include the Italian government and U.S. investment funds such as BlackRock and Vanguard, has learned what dominant U.S. defense contractors like Boeing have long known: Military planners, policy, and political shifts can stop, delay, or revive long-term contracts, leaving managers scrambling to keep workers and factories busy.

    Given the complexity of parts supply, skilled labor, and other aspects of helicopter production, “it is destabilizing and difficult if you don’t know if you are going to build two or 16 aircraft for a given program year after year,” said Andrew Gappy, vice president of Leonardo Helicopters USA Inc., a retired Marine whose duties included flying Presidents Bill Clinton and George W. Bush on Marine One helicopters.

    In 2018, Leonardo and Boeing celebrated a signal victory. The Air Force ordered 84 MH-139A Grey Wolf helicopters, worth an expected $2.4 billion.

    Grey Wolf is based on Leonardo’s civilian, two-engine AW139, part of a movement by military planners to speed production and streamline costs by basing more big-ticket military machines on large-production civilian products and private-sector construction managers. It’s a model that Korea-based Hanwha hopes to use in winning Navy contracts for its shipyard in Philadelphia.

    More than half the Grey Wolfs would defend nuclear weapons bases in several western U.S. states. Most of the rest would be used to ferry political leaders around Washington in case of an attack on the nation’s capital, replacing aging UH-1N Huey helicopters on duty since the 1970s.

    So far, 19 of those helicopters have been paid for and delivered. Another 12 are funded and nearing completion. But funding for future construction hit unexpected snags.

    After Air Force design changes and a challenge by Lockheed Martin’s Sikorsky unit, which had proposed rival helicopters of its own, Leonardo and Boeing said they started production on the first Grey Wolfs in 2023.

    They planned to keep building a dozen a year for seven years — about a quarter of the Leonardo plant’s annual output. They hoped to win more contracts along the way.

    Last year, the partners had expected to fund future production with $173 million in appropriations as laid out in President Donald Trump’s 2025 budget, plus $210 million in his Big Beautiful Bill, backed by the two Republican senators from North Dakota, home to Minot Air Force Base.

    But those payments didn’t materialize on schedule. The Big Beautiful Bill payments were held up, frustrating the Grey Wolf partners.

    And then in November, Congress’ new National Defense Authorization Act listed more than $100 million retrofitting previously-delivered Lockheed-built helicopters to transport VIPs but just $10 million for the Grey Wolf program — not enough to build a single helicopter.

    The Air Force had justified upgrades of unused aircraft in a budget proposal earlier last year as a cheaper way to acquire helicopters. Grey Wolf defenders objected that the Air Force studies had already verified the new helicopter would be much less expensive to operate.

    The cuts would “starve” the Grey Wolf program, Mike Cooper, Leonardo’s government relations chief, said in December. “It’s hard for businesses to plan, when competitively bid procurements can be abruptly and unilaterally changed.”

    Last fall, a bipartisan group of five Congress members, headed by Rep. Donald Norcross (D., N.J.), whose South Jersey constituents include workers at Boeing and Leonardo, sent Air Force Secretary Troy Meink a letter that they were “troubled” to hear reports that the Air Force was now planning to update old helicopters for VIP transport and evacuation missions, instead of funding the new ones.

    They noted that the Air Force already had selected the Boeing-Leonardo aircraft over two proposals from Lockheed Martin.

    They called the switch an “unprecedented change in procurement,” which “undermines the integrity of the acquisition process, calls into question the criteria” for the original selection, “and raises concern about why an otherwise performing program would be truncated without clear explanation to Congress” or the companies that agreed to the contract.

    They asked the Air Force for any studies it had made to justify the more expensive Jolly Green program, which they said would cost far more to buy and operate. They also noted the impact on workers, suppliers, and finances at Boeing in Ridley Park, Leonardo in Northeast Philly, Leonardo’s Florida testing site, and contractors who had already invested in the program the Air Force has now failed to fund.

    Congress members who represented districts that include additional Boeing or Leonardo facilities support Norcross’ effort. They are Reps. Carlos Gimenez (R., Fla.), Salud Carbajal (D., Calif.), Robert J. Pittman (R., Va.), and John J. McGuire III (R., Va.).

    Lockheed Martin officials said they hadn’t taken business from Leonardo. The military planned to convert older helicopters to VIP carriers by adding new seating at Air Force bases, not at the company’s Sikorsky military helicopter factories in Connecticut or New York.

    Sikorsky’s civilian helicopter plant in Coatesville, Pa., closed in 2022. It was taken over in 2024 by Piasecki Aviation, a Delaware County-based company that has had its own federal contracting and hiring hopes deferred by government and private-sector contracting delays, according to industry sources. Piasecki didn’t respond to inquiries.

    “The MH-139 Grey Wolf is vital to our national defense and supports American jobs,” Norcross said in a statement Jan. 15. “Congress funded the MH-139 because it offers major improvements in speed, range, and survivability.”

    He said the Air Force had not directly responded, “but I will continue pressing the administration.”

    The same week, a key Air Force commander confirmed in an Air Force publication that the first Grey Wolfs had completed their first Minuteman III convoy operation between two Western air bases, noting they are significantly faster, fly farther, and lift more than the helicopters they replace.

    Two sources familiar with the program said the first payments from Congress’ $210 million have been received since that test.

    And on Jan. 20, a new federal appropriations proposal added $60 million to the Grey Wolf program — not the whole $173 million, but more than the $10 million in the earlier law.