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| Hello Insiders! Today's business newsletter covers: - ⚖️ U.S. Department of Justice sues SpaceX for discriminatory hiring practices against refugees.
- 📈 Nvidia reports record sales, beats analyst expectations.
- 🤝 Subway sold for $9.6B.
If you find this newsletter useful, please share it with your friends and colleagues. Thank you. Arbër
p/Arber | |
| 1 | | The U.S. Department of Justice has sued SpaceX for discriminatory hiring practices against refugees and asylum seekers. The investigation has been ongoing since 2020. More: - In 2020, the DOJ's Department for Immigrant and Employee Rights Section received a complaint of employment discrimination from a non-U.S. citizen.
- According to the DOJ, its investigation found that SpaceX failed to fairly consider or hire asylees and refugees because of their citizenship and imposed a ban on their hire regardless of their qualifications, thus violating federal law.
- The DOJ added that its lawsuit aims to win fair consideration and back pay for asylees and refugees who were deterred or denied employment at SpaceX due to the alleged discrimination, as well as civil penalties and policy changes from the company.
- SpaceX has yet to comment on the development.
Question: How can companies in the USA better support refugees and asylum seekers? Join the conversation here. |     | |
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What happened: Nvidia has reported record sales, managing to beat revenue estimates and increasing its net income tenfold YoY. The chipmaker is on pace to continue its positive revenue growth trend and estimates that it could double its revenue by the end of 2023 compared to last year. More details: Nvidia reported $13.51B in revenue, beating the $11.22B Wall Street estimates. The company's net income surged to $6.19B, up from $656M in the same period in 2022. Its gaming division saw a 22% increase in revenue, reaching $2.49B, while its automotive revenue reached $253M, up 15% YoY. Why it matters: The Artificial Intelligence market is estimated to be worth up to $2T by 2030. As AI software requires advanced processors in order to compute data, Nvidia is believed to power as much as 95% of the Machine Learning market, including major players such as ChatGPT. This places the company in a dominant position in what could become the largest industry in technology. | | | |
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| 3 | | Private equity firm Roark Capital is set to acquire Subway for a reported $9.6B. Roark Capital owns brands such as Dunkin', Baskin Robbins, Arbys, etc. More: - The food chain, which had 20,600 locations in 2022, has been struggling in the last decade. The company closed over 7,000 locations in only seven years.
- Until now, the company had been owned by the families of its two founders, Fred DeLuca and Peter Buck, for over 50 years.
- Fred DeLuca served as the company CEO until 2015, when he passed away. His death, combined with the legal trouble that the company faced, was credited as the two of the main reasons behind Subway's negative performance.
- Roark Capital owns brands such as:
- Dunkin',
- Baskin-Robbins,
- Sonic,
- Arby's,
- Buffalo Wild Wings,
- Jimmy John's,
- Auntie Anne's, etc.
- Subway will become the second largest brand that Roark Capital owns in terms of sales, trailing only Dunkin'.
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| 4 | | T-Mobile has announced it is going to cut 5,000 jobs in the US. The figure represents 7% of its total workforce. More: - The company has been implementing an aggressive pricing strategy that has helped it acquire a lot of new subscribers but has also hurt its financial performance.
- The decision comes after the company announced its intention to cut $6B worth of costs.
- T-Mobile's CEO Mike Sievert stated that the cost to attract and retain customers is more expensive than a few quarters ago.
- The jobs cuts will affect only corporate and technology jobs.
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| 5 | | Peloton has reported a drop in new subscribers and a wider-than-expected loss. The company slightly beat revenue expectations, reporting $642.1M. More: - The company reported a net loss of $241.8M, or 68 cents per share, compared with a loss of $1.26B, or $3.72 a share, a year earlier.
- Sales dropped to $642.1M, down from $678.7M.
- It ended the quarter with 3.08 million subscribers, up 4% year over year but 29,000 fewer than in the previous quarter.
- The company faced a hefty price tag for a recall on its bikes' adjustable seats, which could break during use.
- About 750,000 users have requested new seats since the recall was announced in May, more than the company expected.
- Wall Street analysts estimated that Peloton would report $639.9M in revenue.
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| 6 | | Cellares has raised a $255M Series C funding round to expand its industrial-scale cell therapy manufacturing. The round takes its total funding amount to $355M. More: - The company claims that its solution is 10x more productive, 50% cheaper, and has a 75% lower failure rate compared to traditional CDMOs.
- Koch Disruptive Technologies led the funding, with participation from Bristol Myers Squibb, DFJ Growth, Willett Advisors, Eclipse, Decheng Capital, and 8VC.
- The company aims to use the funding round to build a new manufacturing plant in New Jersey, which has the capacity to produce 40,000 cell therapy batches.
- The company is based in San Francisco.
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- Barbie has surpassed The Super Mario Bros. movie to become the highest-grossing movie in 2023. The Greta Gerwig-directed film has earned $1.2B in the box office so far.
- Hugging Face, an AI startup that offers data science tools for companies, has raised $235M from Google, Amazon, Nvidia, Intel, AMD, Qualcomm, IBM, etc.
- Meta has launched Code Llama, an AI tool that aims to help developers become more efficient at coding.
- Dropbox has announced it is going to stop offering its unlimited option.
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INSIDE BUSINESS LEADERBOARD (30 DAYS) |
 | Writer | | Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. | | This newsletter was edited by Aaron Crutchfield | |
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