Welcome until the end of February. Here’s a quick rundown of the business and tech news you need to know for the week ahead and which should keep you warm. – Charlotte Cowles
What’s happening? (February 21-27)
Home rentals appeared to be skyrocketing after their lively IPO in December. In its first earnings report as a publicly traded company, the company posted a significant drop in sales and a staggering loss of $ 3.9 billion last week. A large portion of his loss – $ 2.8 billion – can be spent on stock-based compensation related to the IPO. However, the company also faces challenges with disgruntled hosts becoming increasingly frustrated with the company’s cancellation policy and trying to list their properties elsewhere. Even so, Airbnb beat sales expectations, saying it was ready to bounce back once the pandemic eases the burden on the travel industry.
Federal Reserve chairman Jerome H. Powell testified to Congress last week that there were plans to bolster the economic recovery. It was scintillating stuff, as always, and nothing new – he affirmed that the central bank would keep interest rates low and incentives free to flow to support the country’s comeback for as long as necessary. But he also put forward a new idea: an improved government policy to support childcare is an “area to look at” and could attract women back into the labor market after their historic exodus last year.
Difficult to swallow
The head of consulting firm McKinsey was elected from his role last week after an investigation into the consulting firm’s involvement in the opioid crisis. Earlier this month, McKinsey agreed to pay nearly $ 600 million in severance pay to 49 states as it helped Purdue Pharma “turbo-charge” sales of its OxyContin pain relievers, even after the drug company pleaded guilty For misleading doctors and regulators about the risks of OxyContin. McKinsey did not admit any wrongdoing in the settlement, but the evidence against the company made for pretty bad publicity.
What’s next? (February 28th – March 6th)
Twitter makes movements
For the first time in years, Twitter is adding new functions to its platform. To attract more users, the company announced plans to introduce a subscription model for exclusive content and create communities for specific interests. These offerings aren’t that much different from those on other social media platforms, but unlike its competitors, Twitter rarely changes its formula and hasn’t put much energy into growth. So far it has been. The company’s chief executive Jack Dorsey said Twitter plans to increase the number of daily active users by at least 64 percent to 315 million and at least double annual revenue over the next three years.
Work it out
Former WeWork CEO Adam Neumann will reach a $ 480 million settlement in his lengthy legal battle with SoftBank, a Japanese conglomerate that saved the company after Mr. Neumann nearly bankrupted it in 2019 . SoftBank tried to move away from the deal after the pandemic wiped out the demand for coworking spaces, but no dice – it has been involved in a fight with Mr. Neumann since then. Now SoftBank has reached a compromise and agreed to buy half of the originally promised shares. The lawsuit delayed Softbank’s efforts to bring WeWork to the public – whatever it’s worth now.
The battle for $ 15
The House Democrats pushed ahead with the Biden government’s $ 1.9 trillion stimulus package, which includes a move to raise the federal minimum wage to $ 15 an hour by 2025. However, an impartial Senate official ruled that the wage increase was in violation of budget rules that govern what can be included on the bill. These guidelines are stricter than usual as the Democrats rely on a quick process known as budget balancing, which protects the legislation from a filibuster in the Senate and allows it to be passed without Republican support. The Senate must decide whether the wage regulation can remain in place when it takes up the bill this week. In related news, Costco is ahead of the curve, raising the minimum wage for its employees to $ 16 an hour.