A general view of a Chipotle restaurant on September 15, 2022, in Levittown, New York, United States. (Photo by Bruce Bennett/Getty Images)
Here is a rundown of Cheddar News' top trending market stories of the day.
GDP STILL RISING
U.S. gross domestic product (GDP) increased a healthy 2.9 percent in the fourth quarter. That is slightly slower than the third quarter, but still nothing to scoff at, especially considering rising interest rates, recession fears, and thousands of layoffs in the tech sector (read below).
SMARTPHONE SALES SLUMP
Smartphone sales have been sliding for years, but in 2022 they hit a new low. Global smartphone shipments were down 18.3 percent year-over-year, which is their biggest-ever single decline, according to data from the International Data Corporation (IDC). While Apple had previously bucked the industry trend, its sales were down 14.9 percent last year.
CHIPOTLE HIRING SPREE
Maybe you've never heard of "burrito season" — the period between March and Cinco de Mayo — but Chipotle sure has. The Mexican fast casual chain is hiring 15,000 workers to prepare for its busiest time of year, and it plans to launch a recruitment campaign to attract applicants.
IBM LAYOFFS
Meanwhile, in the tech sector, heavy layoffs continue. IBM is cutting 3,900 jobs on the heels of a quarterly earnings report that missed its own cash flow targets. The legacy computer company is nonetheless anticipating modest but steady growth in 2023.
TESLA EARNINGS
Tesla reported record net income in the last quarter of 2022, and now it's predicting that it will keep its profit margins higher than any other automaker in the coming year — despite the fact that it recently announced a series of steep price cuts on its most popular models.
SOUTHWEST INVESTIGATION
The U.S. Transportation Department is investigating whether Southwest Airlines knowingly scheduled more flights in late December than it could handle amid systemwide delays and cancellations. “DOT is in the initial phase of a rigorous and comprehensive investigation into Southwest Airlines’ holiday debacle that stranded millions,” the department said in a statement.
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
