Shopify announced on Tuesday it is cutting 10% of its global workforce, about 1,000 employees. Shopify helps businesses set up e-commerce websites. Founder and CEO Tobi Lütke said the layoffs were necessary as consumers are returning to their old shopping habits and relying less on online orders, which fueled the company’s growth during the pandemic. More: - Shopify plans to cut jobs in all its divisions; however, most layoffs will occur in recruiting, support, and sales.
- Lütke added the company plans to remove duplicate and specialized roles and roles too far removed from building products.
- Shopify shares fell 15% in morning trading on Tuesday; it closed at $31.55, down 14.5% for the day.
- Shopify is down more than 80% from its peak in November of around $175 a share.
- Last month, Shopify completed its 10-for-1 stock split.
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 Some Unilever brands | Image: Unilever Consumer goods conglomerate Unilever released its H1 earnings results on Tuesday, reporting an 8.1% growth in sales YoY. The company reported H1 revenue of €29.6B ($30B) and Q2 revenue of €15.8B ($16B), up 8.8% YoY. First half GAAP operating profit was €4.5B ($4.6B), up 1.7% YoY, and diluted earnings per share were €1.13 ($1.14B), down ~5% YoY. The company plans to pay a quarterly dividend of €0.4268 ($0.43) a share, payable in September. More: - Unilever has been under pressure to increase sales, with analysts saying the company has underperformed during the pandemic compared to its rivals.
- Earlier this year, activist investor Nelson Peltz joined Unilever’s board after taking a 1.5% stake in the company through his Trian Fund Management firm.
- Unilever’s Beauty & Personal Care unit, which includes brands like Dove and Axe, reported H1 revenue of €12.2B ($12.4B), up 7.5% YoY, and Q2 revenue of €6.4B ($6.5B), up 8% YoY.
- Its Home Care unit generated €6B ($6B) in H1 revenue, up 11% YoY, and €3.1B ($3.1B) in Q2 revenue, up 12% YoY.
- It’s Foods & Refreshment unit earned €11.4B ($11.5B) in H1 revenue, up 7% YoY, and €6.3B ($6.4B) in Q2 revenue, up 8% YoY.
- Unilever is facing a lawsuit from its Ben & Jerry’s business over its decision to sell the ice cream brand in Israeli-occupied West Bank.
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Walmart shares fell more than 9% in after-market trading on Monday after the retail giant cut its Q2 and full-year profit expectations. Walmart pointed to inflation, adding that consumers are spending more on necessities like food and gas and less on items like clothing and electronics. The retail company has been aggressively marking down such items to clear its inventory stockpiles. More: - Walmart now expects Q2 adjusted EPS to decrease 8% to 9% and full-year adjusted EPS to decline 11% to 13%.
- Walmart had previously forecasted them to be flat to up slightly for Q2 and to decline 1% for the full year.
- The retailer said it now expects same-store sales in the U.S. to increase 6% in Q2, up from 4% to 5% previously forecasted.
- Walmart shares fell ~8% on Tuesday, closing at $121.98.
- Shares of other retail brands like Target and Amazon also fell. Target closed down ~4% on Tuesday, and Amazon closed down ~5%.
- As the largest grocer in the U.S., Walmart’s performance is often viewed as an indicator of the overall state of the U.S. economy.
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 Image: Eutelsat French satellite company Eutelsat is set to merge with U.K.-based satellite startup OneWeb, with the merged entity valued at $3.4B. The former will acquire all shares of OneWeb, and issue new 230 million shares, with existing shareholders set to own 50% of the combined firm. The merged unit is expected to rake in $1.22B in revenues for the 2022-23 fiscal year, with capex figures for 2023 to 2030 expected to fall between $$733M (€725M) and $885M (€875M). More: - The French and British governments will own 10% and 11% of the new company, respectively.
- OneWeb investor Sunil Bharti Mittal is set to become the co-chairman of the new unit, with Eutelsat’s chairman and CEO expected to continue in their respective roles.
- Similar to SpaceX’s Starlink and Amazon’s Project Kuiper, OneWeb’s goal is to bring broadband to rural areas.
- To accomplish that, 648 satellites would need to be placed in low-earth orbit. As of now, it has 428 satellites in orbit, which will be coupled with Eutelsat’s 36 geostationary satellites.
- In 2020, the U.K. government organized a $500M bailout package, of which Eutelsat was a part, to save OneWeb from the brink of bankruptcy.
- The Russian invasion of Ukraine further derailed its plans after it had to pause its launches from Russia.
- Since then, the company has been using SpaceX’s rockets to launch its satellites in orbit.
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 Image: GE General Electric reported $18.64B in revenue for Q2 2022, beating analysts’ projections of $17.9B. The company’s strong performance in the quarter was due to a rebound in its aviation business, the revenues of which were up by 27%, amounting to $6.13B. Net EPS was $0.78, up ~28% YoY and higher than analysts’ expectations of $0.30 per share. Full-year adjusted earnings per share are expected to fall in the lower range of the predicted range of $2.80 to $3.50 per share. More: - The company’s shares were up 3.9%, reaching $70.99 per share before the start of trading.
- In this fiscal year, the company expects its aviation unit’s revenues to grow by more than 20% and operating profits to reach between $3.8B to $4.3B.
- Inflation and supply chain disruptions are expected to hurt GE’s healthcare unit’s profitability this year.
- As a result, GE lowered its free cash flow forecast for the year by $1B.
- Earlier this year, the company projected free cash flow of $5.5B to $6.5B.
- GE repurchased 4.6 million shares in the last quarter worth $300M, following the board’s approval for its $3B common share repurchase program.
- The company is set to spin off its healthcare and energy business into separate units by early 2024, with the remaining entity to focus solely on the aviation industry.
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3M Co. plans to spin off its healthcare division with the intent to hold a 19.9% stake initially. Later, the company expects to liquidate its shares entirely. As a result of the move, the firm will be able to build up its cash liquidity to offset the macroeconomic issues faced by the firm. Additionally, the company announced it had filed for Chapter 11 bankruptcy for its earplug subsidiary, Aearo Technologies. The company reported adjusted earnings per share of $2.48, beating analysts’ expectations of $2.41. More: - Revenue for the quarter stood at $8.7B.
- The company lowered its full-year earnings per share projections to between $10.30 to $10.80, down from $10.75 to $11.25 earlier.
- As a result of the announcement, shares were up 6.3% in the morning to $142.57 per share.
- 3 M’s healthcare division, which manufactures surgical supplies, bandages, and other pharmaceutical products, raked in $8.6B in revenue last year, accounting for almost 25% of the organization’s figures.
- After the spin-off, the company’s three business groups are forecasted to bring in $26.8B annually.
- The spun-off healthcare business is valued at $45B.
- In response to multiple lawsuits involving its earplug business, the company has set aside $1B to settle claims with an additional $240M fund to support court expenses.
- Lead-plaintiffs’ counsel Bryan Aylstock said he would challenge the bankruptcy petition, arguing that 3 M’s bankruptcy filing should be rejected.
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- Lufthansa canceled 678 flights departing from Frankfurt and 345 flights from Munich after the ground staff represented by the Ver.di union went on a one-day strike. Employees represented by the union are seeking a pay raise of 9.5%. The flight cancellations are set to affect over 130,000 passengers, with more cancellations anticipated for Thursday and Friday.
- Earlier this week, Russia announced that it would limit Nord Stream 1's capacity to 20%, which has resulted in an immediate uptick in gas prices in Europe. Gas prices have increased by over 30% in the last two days. On Tuesday, TTF futures contracts for delivery next month jumped 20% to cross the $212 (€210) per megawatt hour mark.
- McDonald's announced its quarterly earnings, with sales and profits beating analysts' expectations. U.S.-based sales rose 3.7%, with net income totaling $1.19B. Diluted share prices were $1.60 per share. Revenue missed expectations, dropping 3% to $5.72B.
- The IMF cut this year's global GDP growth forecast down to 3.2%, from 3.6% forecast in April. The fund pointed to inflation and tightening financial conditions, as well as geopolitics issues and COVID-related disruptions. It also cut 2023 global GDP growth down to 2.9% from the previously projected 3.6%.
- Credit Suisse CEO Thomas Gottstein is leaving the bank, according to people familiar with the matter. The move is part of an effort to change things at the bank, which has been embroiled in multiple scandals in recent years. An official announcement could come as soon as Wednesday when the bank releases its quarterly earnings.
- Russia announced on Tuesday it will leave the International Space Station after 2024. Yuri Borisov, the director general of Roscosmos, Russia's space agency, said the country will fulfill its obligations for station operations before it leaves.
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 |  | Vanessa Omeokachie is a Researcher at Inside. Her interests include finance, tech, and startups. In her free time, she enjoys reading, hiking, attending music festivals, and traveling. Connect with her on Twitter @VanessaOmeo or through email at vanessa@inside.com |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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