Microsoft is laying off 10,000 workers, or about 5% of its global workforce. In a note to employees, CEO Satya Nadella pointed to the health of the global economy, saying that some parts of the world are in a recession while other parts are anticipating one. The tech giant did not share which parts of its business would be impacted by the cuts. More: - Microsoft will take a $1.2B charge related to severance costs on its quarterly earnings due out next week.
- Microsoft joins a long list of tech companies that have announced significant layoffs in recent months.
- In 2022, the tech sector cut more than 150,000 jobs.
- Microsoft had about 221,000 employees at the end of its fiscal year ended June 30, a 22% increase YoY.
- While speaking on the WSJ plan at the WEF in Davos on Tuesday, Nadella said Microsoft plans to incorporate AI tools like ChatGPT into all its products.
- Last week Semafor reported that Microsoft was considering a $10B investment in OpenAI, the owner of ChatGPT.
- Microsoft shares were down more than 1% during late morning trading on Tuesday.
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Party City has filed for Chapter 11 bankruptcy protection amid reduced sales and a decreasing cash balance. The retailer said it reached a restructuring-support agreement with a group holding more than 70% of its debts that would help reduce its debt load and optimize its capital structure and liquidity. More: - According to a filing with the SEC, Party City said its noteholders would receive equity in the reorganized company, while current shareholders would be wiped out.
- Party City received a $150M bankruptcy loan and plans to use half of it to pay wages, vendors, and other expenses.
- At the end of September, Party City had about $1.67B in debt and $122M in cash and revolver availability.
- Party City shares peaked at $5.52 in January 2022; the shares closed around 34 cents a share on Tuesday.
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Fast fashion brand Shein is in talks to raise up to $3B at a reduced valuation of $64B. Shein is in talks with its current investors, including Abu Dhabi sovereign wealth fund Mubadala, VC group Sequoia China, and private equity firm General Atlantic. More: - Shein was last valued at $100B at its previous fundraising round in April.
- Since then, there has been a sharp downturn in funding and the larger tech sector.
- According to sources, all the investors who participated in the April fundraising round would reprice their investment at the new valuation.
- Shein is looking to raise between $1.5B to $3B in its current round, which is expected to close within months.
- Shein is still planning a U.S. public debut as early as this year.
- The company earned $30B in revenue in 2022.
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Disney is defending CEO Bob Iger against the assertions made by Trian Fund Management owner Nelson Peltz. The company said Peltz does not understand Disney’s business. Peltz’s Trian recently took a $900M stake in Disney and has formally launched a proxy fight for a board seat. More: - Last week, Disney named Nike’s executive chairman, Mark Parker, as its new board chairman, succeeding Susan Arnold.
- The company rejected Peltz’s bid for a board seat and asked shareholders to vote for all current board nominees.
- According to sources, Trian did not support the reappointment of former CEO Bob Iger following Bob Chapek’s departure.
- In November, Iger returned to Disney as CEO after the board fired Chapek, his handpicked successor.
- Peltz has focused on Disney’s decision to acquire Fox in 2019, which was made under Iger.
- Peltz said the deal was overpriced and has saddled Disney with $14B of extra debt, bringing its net debt to over $40B.
- Disney shares were down ~1% during early afternoon trading on Tuesday.
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LVMH, the company behind luxury brands Louis Vuitton, Bulgari, Dior, and others, reached a market cap of €400B ($434B) for the first time on Tuesday. Its shares rose as much as €795.7 per share. The company continued its rally on Wednesday, with shares trading above €800. LVMH is Europe’s most valuable company. More: - Last week, LVMH Chairman and CEO Bernard Arnault named his daughter Delphine Arnault as the new CEO of Christian Dior, replacing Pietro Beccari.
- Beccari was promoted to lead the company’s flagship brand, Louis Vuitton.
- According to a recent report by Bain & Co., global luxury sales rose 22% in 2022 to €353B ($381B).
- According to the report, Gen Z consumers purchase luxury items, including shoes, bags, and jewelry, at age 15, three to five years earlier than millennials.
- Gen Z and the younger Gen Alpha are expected to account for a third of the luxury market by 2030.
- Millennials, Gen Z, and Gen Alpha will account for 80% of all global luxury purchases by 2030.
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Apple is postponing its planned lightweight augmented-reality glasses indefinitely due to technical challenges. The iPhone maker is still planning to unveil its first mixed-reality headset, which combines AR and virtual reality, this year. Apple has been working on the new product for the last seven years. More: - The mixed reality headset is expected to cost around $3,000 and be released to consumers in the fall.
- According to sources, Apple plans to release a lower-cost version of the mixed-reality headset in 2024 or early 2025.
- Earlier iterations of AR glasses, such as Google Glass, failed to gain much traction.
- Google launched the product in 2013 and discontinued the glasses around 2015.
- Apple will compete with Meta’s Oculus VR headsets, which have dominated markets and cost around $1,500.
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- Germany said it would not allow the allies to send over German-made tanks to Ukraine nor send its own systems unless the U.S. agrees to send over U.S.-made battle tanks. The U.S. and other Ukraine supporters in Europe have been against sending western-made tanks to Ukraine.
- U.S. retail sales fell 1.1% in December from November. It is the largest month-to-month decline in a year and the second straight month of declining sales.
- According to the International Energy Agency, global oil demand is expected to reach record highs this year as China relaxes its COVID-19 restrictions. The IEA said global demand for crude oil could increase by 1.9 million barrels a day to a record 101.7 million barrels a day.
- Ukraine’s interior minister and other senior officials were killed in a helicopter crash on Wednesday near Kyiv. At least 14 people were killed in the crash, and 25 people were injured.
- China’s population fell by 850,000 people to 1.4 billion in 2022, marking the first population decline in the country in 60 years.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | 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 and 1972 Fords. | |
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