Advertisements


3D-printed homes startup Icon enacts "small" round of layoffs

Icon Technology Inc., a prominent Austin startup that has garnered national attention for its 3D-printed homes, said it has made a "small number" of layoffs. The company — which has made headlines for huge funding rounds, a 3D-printed neighborhood coming to Georgetown and a $57 million contract with NASA — acknowledged the job cuts in a Jan. 24 statement to Austin Business Journal but declined to disclose details, including the number of jobs affected. "We made a difficult, but necessary decision….....»»

Category: topSource: bizjournalsJan 24th, 2023

14 tiny-home startups set to transform real estate in 2023 by making housing cheaper, helping owners earn passive income, and more

2022 was a big year for tiny homes as companies started addressing the housing-affordability crisis. They also give homeowners an option to earn passive income. The N1 model by Escape.Courtesy of Escape Homes Tiny homes had a coming-out party in 2022, as more places began building or budgeting for tiny home villages. Affordability, sustainability, and the chance to make extra money caught the eye of homeowners looking for something new.  We compiled 14 tiny-home and accessory-dwelling-unit (ADU) startups to watch in 2023. Tiny homes were not a new invention of 2022, but they picked up a lot of momentum.Whether you're a millennial or Gen Z buyer facing record-high prices, a current homeowner looking to live with less, or a city dweller whose lifestyle shifted during the pandemic, tiny homes can be filled with promise.Elon Musk uses a Boxabl tiny home as a guest house near his Texas home. Boxabl cofounder Galiano Tiramani even shared a video on Twitter of a Tesla hauling a 15,000-pound tiny home.Gimmicks aside, tiny homes are being used as solutions to housing crises in cities like Chicago or Bridgeton, New Jersey — where tiny homes are being used to house former inmates for free after their release. Albuquerque, New Mexico, created Tiny Home Village, which has 30 120-square-foot homes, and is being used as transitional housing and is providing shelter for people without housing. The often-modular approach of tiny homes can help reduce construction costs and make housing cheaper. From all-electric homes to optimizing backyards in the Bay area, the future of housing may look smaller.Tiny homes can range in price and aesthetics, but typically remain under 600 square feet. The median square footage of single-family units in America through the first three quarters of 2022 was 2,294 square feet, according to the Census Bureau.They can also be money makers. Petite, picturesque Airbnbs are popular with Instagram-savvy travelers. In states like California, homeowners are tapping companies that plop prefabricated structures down in their backyards. In one model, a startup collects rent from the tenants of the accessory dwelling units, or ADUs — and pays out a portion to the homeowner.We've compiled a list of the hottest tiny-home companies to look out for in 2023, all shaking up real estate in different ways. Here they are, presented in alphabetical order.AboduAn Abodu home.Courtesy of AdobuAbodu helps homeowners make use of their unused backyard space with accessory dwelling units, or ADUs. The Redwood City, California-based company, founded in 2018, promises customers none of strings some of their competitors require, such as splitting rental income."We don't do any sort of land lease with the owners," John Geary, Abodu's co-founder, said. "Our biggest view is that homeowners should feel free to use their backyard as they see fit and not have it tied to us as a company — or any other company."Instead, Abodu makes its money on customers' initial purchases of its tiny homes. Studios of 340 square feet start at $228,000, though the average purchase among all its offerings is closer to $280,000, according to Geary. Abodu also offers one- and two-bedroom homes in the relatively generous sizes of 500 square feet and 610 square feet, respectively.The company has raised $25 million, according to an August press release. Geary declined to provide Abodu's revenue but said it increased nearly five times in 2021 from 2020. It has placed 100 units in backyards as of 2022, and has more than 100 more units in production, according to Geary.BoxablA Boxabl unit.Courtesy of BoxablBoxabl's factory-built homes may be tiny, but the Nevada-based company is scoring big endorsements from some of the most recognizable names in the homebuilding industry and beyond. In 2022, the company landed an investment from DR Horton — the largest US homebuilder by volume. The company didn't disclose the financial details of the deal, but Galiano Tiramani — a cofounder and director of Boxabl — said the company has now raised more than $100 million, the vast majority of which has come through crowdfunding. That puts the company's valuation at roughly $3 billion. Boxabl delivers its 375-square-foot "Casitas," which the company builds on an assembly line in Las Vegas, to sites via shipping containers and assembles them out into full-fledged homes in less than an hour. The unique assembly method has swirled up interest on social media and helped generate a waitlist of more than 100,000 names, according to Tiramani. Each unit sells for $50,000, not including the cost of installation. Boxabl has produced about 200 homes so far, 156 of which have gone to the Department of Defense for military housing. Boxabl is ramping up production at its existing factory and has secured land next door for an additional facility. Once both are running at full speed, they'll be able to produce about 5,000 units a year, Tiramani said.CasataA Casata unit.James Rodriguez/InsiderWhy rent an apartment when you can lease a tiny home? That's the premise behind the Austin, Texas-based tiny-home company Casata, which earlier this year debuted a community of 66 microhome rentals in the fast-growing Texas capital.Residents — who pay between $1,400 and $1,865 per month — quickly snapped up the homes, which range in size from 378 to 758 square feet. Casata, which launched in 2020, is now planning larger projects in other Texas cities such as Houston, San Marcos, Bastrop, and College Station, while eyeing national expansion in the future. Champion Homes built the inaugural Casata units in a factory near Dallas. Future Casata communities will feature custom floor plans Casata designs and use modular construction, Aaron Levy — the CEO of Casata — told Insider. This means Casata will still build them in a factory, but the homes will sit on foundations like traditional homes and meet the same building codes required for homes built on-site.Casata has raised roughly $2.1 million from a range of investors, including the family office of Adam Neumann — the founder of WeWork. In the next five to seven years, Casata aims to have 30 to 40 communities, which would equal a roughly billion-dollar portfolio, Levy said.CosmicA Cosmic ADU.CosmicThis San Francisco-based startup creates accessory dwelling units equipped to generate enough energy to power themselves and supply energy to the property's main home. The company, which founder Sasha Jokic began in 2021, currently sells two styles: A studio starting at 350 square feet and $190,000, and a one-bedroom unit starting at 450 square feet and $370,000. Cosmic's innovation is a prefabricated platform that draws its power from a lithium-ion battery and thermal energy. Cosmic constructs the carbon-neutral units on-site with sustainable materials once the platform is in place. From start to finish, it takes from six to eight months to create a Cosmic dwelling.Although the units are small now, Cosmic envisions scaling up. "We'll consider ourselves successful once we tackle the problem of housing insecurity with the multifamily homes," Jokic told Insider in May.CoverInside a Cover ADU.Courtesy of CoverCover has a premise. Companies today use an outmoded method to build homes, and they can apply technology they use to design, create, and predictably price products — like cars — to residential construction. Cover has gathered followers and has raised a total of $73.3 million over four rounds through 2021, according to Crunchbase.Cover customizes its backyard dwellings to each buyer and manufactures them in sections at its Los Angeles factory before assembling them on a dedicated site. According to Tech Crunch, the homes currently max out at 1,200 square feet with prices ranging from about $200,000 for a 400-square-foot studio to $500,000 for a three-bedroom house.The production process is swift, taking about 30 days to build and install a home once Cover completes the foundation. As of October 2021, Cover had produced about 20 dwellings, though it expected production to ramp up after moving into its new 100,000-square-foot factory.DveleA Dvele unit.Courtesy of DveleRobots might, one day, build your home.At least, that's if San Diego-based Dvele achieves its lofty vision. The company, which builds modular homes and assembles them on-site, announced in June the closing of $15 million in funding to build an automated, robotic production line at its factory in Loma Linda, California. The idea is to give people the opportunity to personalize their home online, then feed orders to the smart factory, and transport the completed modules — essentially the building blocks of the home — to their permanent site.Dvele doesn't just focus on tiny homes, or "mini homes," as the company calls them. Its floor plans range in size from 400 square feet to more than 3,900 square feet, and prices vary between $200,000 and $1.5 million. That doesn't include the cost of prepping the site, delivering the home, and installing it once it's arrived. The company launched in 2018 and plans to produce about 200 modules this year, Kellan Hannah — Dvele's director of growth — said. While the mini homes require just one module, the larger ones are made of between three and five modules. Once the factory is totally automated and running at full capacity, the company's production should approach 1,500 modules annually, Hannah said. For now, the company is mostly focused on delivering homes to California and neighboring states due to shipping costs, Hannah said.EscapeThe Traveler model by Escape Homes.Courtesy of Escape HomesEscape Homes of Rice Lake, Wisconsin, has been selling tiny homes since 2014, but business has never been this hot. "The pandemic was gasoline on the fire," Dan Dobrowolski — the founder of Escape Homes — told Insider.Urban dwellers searching for greener pastures joined a movement that Dobrowlski says has been building across demographics and age groups. He's seen this in every region where Escape has built homes as large as 388 square feet over the past 8 years, from California to New York, and even in Hawaii. The cost of the homes runs from about $43,600 to $93,261.As the pandemic deepened in 2020, Escape teamed up with the furniture giant IKEA to develop the outlet's first tiny-home offering. The 187-square-foot unit was Escape's Vista Boho XL model outfitted with IKEA furniture, and available through its website. Dobrowolski says the partnership was a "really easy match," with both companies aligned on environmental issues. In other sustainability efforts, Escape has introduced some all-electric models. Other models were already close to being all-electric, but changing out cooking appliances, water heaters, and furnaces brought them to the next level, Dobrowolski said. Escape is also trying to transform neighborhoods. In 2020, the company opened its Escape Tiny Home Village — a cluster of 10 homes in a converted Tampa Bay, Florida, trailer park. The homes only take up about 20% of the acreage, leaving room for ample green space. Dobrowolski calls it  a "neighborhood of the 21st century." "It's a much more efficient use of space, but at the same time gives you what people still think of as the American dream," Dobrowolski said.GetawayA Getaway cabin.Courtesy of GetawayThis tiny-abode-hospitality company based in Cambridge, Massachusetts, has created nature-filled experiences without common amenities like WiFi or TV in an effort to help people — especially big-city dwellers — unplug. At a base price of $109 per night, guests can stay in these tiny homes in 19 outdoorsy environments from Shenandoah National Park in Virginia near Washington, DC; to Mount Vernon, Washington, near Seattle. The 780 cabins of up to 200 square feet are stocked with bedding, cooking supplies and an outdoor-camping setup. "Growing up in rural Minnesota I was always surrounded by nature," Jon Staff — a cofounder and the CEO of Getaway — said. "When I returned to nature later in life, I fell in love with the idea of living simply in nature and making frequent disconnection part of my routine."The company announced in June that it would add 9 new locations including places in Indianapolis, St. Louis, Cincinnati, Columbus, Ohio; Greenville, South Carolina; and Milwaukee, Wisconsin. The expansion would boost Getaway's offerings to 1,000 cabins.In 2021, Cerates led the startup's Series C funding, in which Getaway raised over $41 million.IconAn Icon home.Joshua Perez/Courtesy of IconFounded in 2017 in Austin, Texas, Icon has dominated the 3D-printed-housing market with technology that has brought over 24 homes to the United States and Mexico — the largest number of such structures completed by a construction company. It has so far raised $451 million from investors.In 2021, the company worked with an Austin-based developer who brought a version of its 3D-printed home to market with prices starting from around $450,000. Others are eyeing the company's technology as proof-of-concept for affordable and emergency-housing communities of the future.Icon is now expanding the scope of its operations in collaboration with the United States Army to create moveable training barracks that, once completed, will count as the largest 3D-printed structures in the Western Hemisphere. The company is also working with NASA to develop construction systems to create infrastructure and habitats on the moon and beyond.MinimalisteA Minimaliste home.Courtesy of JP MarquisQuebec City-based Minimaliste builds and transports tiny homes specifically designed for the climate surrounding the designated plot of land they will sit on. Founded in 2015, Minimaliste gained popularity for prefabricated tiny homes that are able to withstand wild weather conditions — from extreme heat to frigid temperatures — by regulating the temperature inside the tiny home with efficient heat pump and air conditioning systems.Unlike most tiny homes, Minimaliste homes come with a heat pump and air-conditioning system. Minimaliste has built over 100 homes, though scaling up is not the company's goal, JP Marquis — a cofounder of Minimaliste — told Insider. Instead, it's focused on process, or making sure steps such as choosing materials, design, and delivery go smoothly, he said. "We invested a lot in the recipe," he said.Customers can buy Minimaliste's custom homes of up to 382 square feet, or choose from one of the company's pre-designed layouts such as Nomad, a 165-square-foot home with a minimalist design for about $65,000. Most Minimaliste clients are based in New York, California, Washington and Ontario, Canada, but it's getting increased interest from people in southern US states such as North Carolina, South Carolina, Texas, and New Mexico, Marquis said. MolivingA Moliving unit.David MitchellMoliving is introducing luxurious, sustainable, and affordable hospitality experiences to the tiny-house movement. The New York-based company has a fleet of prefabricated 399-square-foot trailers with additional deck space. It can expand or shrink the supply to meet seasonal demands, which helps lower the cost of the luxury digs, Jordan Bem — one of the company's cofounders and the CEO — told Insider. The first location for one of Moliving's mobile hotels will open during peak tourist season later this summer in a lush, mountainous hideaway in the Hudson Valley town of Hurley, New York, Bem said. It will have 60 suites starting at about $249 per night, he said.But when the weather gets cold in New York, Moliving will simply take its accommodations elsewhere. "We take our suites, and trailer them to the next destination, something that is perfectly opposite, like Palm Beach, for example," Bem said. The nomadic business model eliminates off-season expenses, such as shutting down for a few months, or costs associated with climate, he said.Bem invested nearly $7 million into the business, which recently closed a seed round of funding — which the modular investor SG Blocks led — in June, he said. In 2022, Moliving won the American Business Award for startup of the year in business services, and a Titan Business Award. New Frontier DesignA New Frontier tiny home.Studio Bull/New Frontier DesignDavid Latimer founded bespoke tiny-home outfit New Frontier Design in 2015 in Nashville, Tennessee, out of a desire to perfect a product from the design phase through to completion. The detail-oriented craftsman builds highly customizable tiny homes that he told Insider are mostly purchased by clients in Western states like California, Washington, and Idaho. Latimer said his clients often use his product as a luxury solution for the hurdles associated with building on remote properties, such as restrictive permitting issues and high construction costs.New Frontier counts Olivia Wilde among its all-star client roster, as well as "some of the wealthiest people on earth," according to Latimer. The company's tiny homes range in size from about 250 square feet to 450 square feet with prices sometimes exceeding $350,000. Latimer estimated he's built 60 to 70 highly customized homes to date. An added bonus in the tiny-house space for Latimer? "It's a vehicle for intentional living," he said. "You can't mindlessly consume." The space constraints simply won't allow for it.OBY CooperativeAn OBY Cooperative house.Courtesy of OBY CooperativeThe OBY Cooperative gets its name from the development debates between NIMBY (Not In My Backyard) versus YIMBY (Yes In My Backyard) camps. OBY instead stands for "Our Backyard" and imagines a future beyond the debate."It doesn't have to be yes or no, but just the understanding that collectively all of this land is ours," Declan Keefe — a cofounder of OBY Cooperative, in Oakland, California — said. OBY is in the process of establishing its first unique land-lease agreement with an owner and a tenant.The cooperative seeks out homeowners who want extra income from an accessory dwelling unit, and pairs them with tenants who are utilizing housing vouchers. It aims to ink 35-year agreements under which it permits, builds, manages, and maintains the ADUs of about 650 square feet on residential properties, at no cost to the homeowner. Homeowners can earn around $500 a month for the rental.A unique element of the cooperative is a plan to eventually sell shares of the rental unit to other members of the community. OBY is also tackling sustainability. The unit itself is all-electric and runs on net-zero energy. Even the construction process is carbon neutral and powered by solar energy. Keefe said the first tenant is expected to move in within the coming months. The homeowner has been an active participant in the endeavor, leaning on a legal background to help them draft equitable contracts, he said.United DwellingA United Dwelling property in Los Angeles, where median home prices are over $1 million, according to Zillow.Courtesy of United DwellingSteven Dietz — the founder of United Dwelling — thinks he has a solution to Los Angeles' housing crisis. After a career in venture capital, Dietz wanted to make an impact on his community and in 2019 decided to tackle housing affordability through increasing attainable inventory. His team started by transforming garages, but found them to be inadequate. In part, a 2019 California state law that streamlined the construction process of ADUs made Dietz's vision possible. United has so far built 60 homes, with 300 more in the permitting process, according to Dietz, who said their sizes range from 328 square feet to 1490 square feet. The homes start at $195,900, including demolition and design, permitting, and solar water and power systems."I can see a way we get to where affordability is removed as a problem in probably five to seven years," Dietz told Insider. "You just have to build enough new homes to pull down the price at the low end of the market." Dietz says units have been filled by working-class people who were suffering through brutal commutes. Teacher's aides, EMTs, and nurses who were driving over two hours to their jobs are now just minutes away.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJan 1st, 2023

Here are 55 real-estate companies that laid people off this year as high mortgage rates and a softening economy ravaged the industry in 2022

Tough economic conditions are taking a toll on big public companies and tiny startups alike. See how these firms, from Compass to Zillow, have coped. A Redfin sign in front of a house for sale.Sundry Photography/Shutterstock CBRE, JLL, and Ribbon are the latest real-estate firms to lay off employees. The layoffs have impacted more than 13,000 workers and come as demand for mortgages has reached its lowest level since 1997. Insider rounded up 55 of the firms who have cut staff amid a cooling housing market. 2022 was a tough year for the real estate industry as many companies were forced to lay off staff because high mortgage rates depressed homebuying demand.Deals that were once profitable for the industry and home purchases that had been affordable for everyday people have been getting slammed by or because of the higher borrowing costs.The aggressive interest-rate hikes by the Federal Reserve and a looming recession have resulted in layoffs galore across the real-estate world, whose stormy seas have triggered worry elsewhere in the economy. The cutbacks are sobering for an industry that just a year ago was flying high with home-price appreciation, increasing rents and plentiful funding for proptechs. The downsizing began in the mortgage industry with Better's Zoom layoffs at the end of last year. That abrupt move came amid expectations for a big slowdown in 2022, and residential brokerages like Compass, Redfin, and Side followed suit as transaction volumes skid.With signs of distress spreading through the office market and among homebuilders, and rate hikes anticipated into 2023, layoffs are mounting. The Mortgage Bankers Association — the industry's largest trade group — anticipates an attrition rate as high as 30%, according to a spokesperson.Indeed, more industry jobs are likely on the line with demand for mortgages now its lowest level since 1997, per the MBA. Some of the latest and notable casualties came from real estate marketplace giant Zillow, consumer lender Finance of America, and international vacation rental company Vacasa.Insider is keeping track of where job cuts are taking place in the residential and proptech sectors, including at companies that have wielded an axe more than once. The companies with layoffs are listed below in alphabetical order.Do you know of other real estate tech or mortgage-related layoffs? Were you affected by them? email anicoll@insider.com or rdavis@insider.com.Amerifirst Home MortgageA couple signing mortgage documents.Getty ImagesPortage, Michigan-based Amerifirst Home Mortgage plans to layoff 59 employees in early 2023 as rising mortgage rates continue to depress homebuying demand, MiBiz reported. "Rising interest rates have impacted the nation's home mortgage industry including Amerifirst," Mark Jones, the company's CEO, told MiBiz in a statement. "Unfortunately, the resulting slowdown forced our company to scale back operations and reduce our workforce."Just days after the layoff announcement, Amerifirst revealed that it is being acquired by Union Home Mortgage, Crain's Detroit reported.AnywellA coworking space.Dowell/Getty ImagesIsraeli proptech startup Anywell, a company that creates hybrid workspaces, announced in August that it will lay off 50% of its workforce in a restructuring. The move impacted 11 employees, primarily from Anywell's operational staff. Anywell's latest round of layoffs came just five months after it raised $10 million in a Series B round. A total of 14 employees have left the company since March. The company added that it plans to focus on software-based solutions.Apartment ListA New York City apartment complex.Getty ImagesApartment listing services are facing mounting economic pressure.Mathew Woods, CEO of ApartmentList.com, announced on LinkedIn on August 31 that the company was laying off 29 people, or approximately 10% of its workforce. Woods said the company was "reacting to market conditions."BetterBetter employees at the company headquarters in New York City.BetterThe online mortgage lender Better started laying people off earlier than most of the companies on this list.In December, CEO Vishal Garg cut 900 employees via Zoom meeting, a move that made headlines around the world. Before the layoffs, Better employed about 9,000 people, 7,000 of whom were hired since the start of the pandemic.The company has since announced another wave of layoffs, cutting 3,000 more employees in March. Insider reported some employees found out they were being laid off when their bank statements received direct deposits for severance payments or when they abruptly lost access to their work computers.The company, which has said it still plans to go public this year, announced voluntary buyouts for employees in some positions and departments in April. Garg, Better, and the blank-check company trying to take the mortgage company public have received formal inquiries from the Securities and Exchange Commission about their business operations and the company's former chief operating officer's claims about corporate malfeasance.BlendNima Ghamsari, the founder and CEO of Blend.BlendBlend, the publicly traded mortgage-tech company that builds software for major mortgage lenders, laid off 200 people, or 10% of the company, in April, according to a filing with the Securities and Exchange Commission first reported by HousingWire.The company had been signaling it had hard times ahead since the end of last year, as declining loans were forecast to hit the company just as hard as its clients, who are the ones actually lending.BungalowThe Biden administration unveiled a plan to tackle the affordable housing crisis in May.E. Jason Wambsgans/Chicago Tribune/Tribune News Service via Getty ImagesBungalow, a company that turns traditional single-family homes and apartments into coliving spaces for roommates, laid off 75 people, or 35% of its workforce, in June, according to Layoffs Tracker and posts by former employees on LinkedIn.The company raised $75 million last year from a mix of investors, led by Deer Park Road Management, with Coatue, Khosla Ventures, Founders Fund, and Atomic also investing. The round valued the company at $600 million.CBREiStockCommercial real estate behemoth CBRE conducted a round of layoffs in mid-December, although it is unclear how many workers have been impacted, according to LinkedIn posts from former employees.The move comes just months after the company announced it would cut more than $400 million in costs during its Q3 earnings call in October, real estate publication The Real Deal reported.Clear CapitalThe Good Brigade/GettyClear Capital, a real estate appraisal technology company, laid off 27% of its workforce on October 14, according to Layoffs Tracker and LinkedIn posts from former employees. The layoffs will impact 378 employees – about 27% of the company's workforce as rising interest rates result in a significant decrease in volume from its customers."Clear Capital is restructuring all company divisions to reduce expenses and support our future business strategy amidst today's housing market reality," CEO Duane Andrews told Insider.CompassA Compass sign in front of a home.Smith Collection/Gado/Getty ImagesThe residential brokerage Compass announced it laid off 10% of its workforce — about 450 employees — in June as residential transactions slowed down. The layoffs did not include real-estate agents, who are independent contractors and not directly employed by the company.Compass, which went public in April 2021 at roughly $20 a share, is down almost 80% over the past two years and trading below $5 a share. The company also plans to combine some offices and pause its plans to expand and acquire other companies.A laid-off employee talked to Insider's Zoe Rosenberg about their experience."My lingering thought is that whatever the impacts of the IPO and the impacts of our rapid expansion across the country, the impacts of the market on our futures — is just that those impacts didn't seem to be handled appropriately, or in the best manner for the associates' longevity with the company," they said.ConveneConveneConvene, a hospitality and co-working company based in Manhattan, laid off 54  employees on December 10, according to commercial real estate publication Bisnow. "Like many companies, we've had to reassess the organizational structure of Convene to best position the business for future growth in an increasingly challenging and dynamic macro environment," the company's CEO Ryan Simonetti wrote in a LinkedIn post about the layoffs. "Unfortunately, this meant making the incredibly tough decision to say goodbye to a number of Convene team members this week."Divvy HomesDivvy Homes is a rent-to-own company headquartered in San Francisco.xeni4ka/Getty ImagesDivvy Homes, a rent-to-own real estate company, in September laid off 40 employees, representing more than 12% of its workforce, according to Layoff Tracker.The San Francisco-based company has raised more than $1.5 billion since it was founded in 2017 and is backed by large investment firms such as Andreessen Horowitz and Tiger Global Management."Although we recognized these macroeconomic challenges in late summer 2022 and took steps to substantially reduce our cost structure in response, it unfortunately was not enough," Kyle Zink, Divvy's VP of Marketing, told Insider."Realistically, the macro environment is likely to remain volatile and challenging for the foreseeable future. As a result, we needed to adjust headcount to reflect the new reality today," Zink continued.Finance of America MortgageA couple signing mortgage documents.Getty ImagesFinance of America Mortgage, a multichannel mortgage lender headquartered in Plano, Texas, laid off hundreds of employees between the second and third quarters of 2022, HousingWire reported in August. The layoffs impacted employees in the US and in the Philippines where workers performed back office tasks such as appraisal checklists, according to HousingWire. "The discontinuation of the forward mortgage originations segment will allow FOA to optimize its resources and prioritize businesses that have a distinct market opportunity and greater growth potential," FOA Interim CEO Graham Fleming said in a press release.First Guaranty Mortgage Corp.A couple signing a mortgage document.Getty ImagesFirst Guaranty Mortgage Corp., a Plano, Texas, lender, laid off 80% of its employees, The Dallas Morning News, and paused making new loans in late June, fueling speculation that the company was going to go bankrupt. The company was backed by the major asset manager Pimco.Just a few days after cutting 471 employees, the company filed for Chapter 11 bankruptcy protection, with more than $473 million in debt. The company, which originated $11 billion in mortgages last year, had projected it could originate only $5 billion to $6 billion in mortgages this year.Flagstar BankFlagstar Bank's logo.Flagstar BankFlagstar Bank, a Michigan bank, cut its mortgage staff by 20% in April. In a statement to HousingWire explaining the 420-employee layoffs, CEO Alessandro DiNello cited interest rates rising "at the fastest rate this century." In the first quarter of 2022, the company's mortgage originations were down 40% from the first quarter of 2021.FlyHomesFlyhomes cofounder and CEO Tushar Garg.FlyhomesFlyHomes, an online brokerage service, cut 40% of its staff, or about 300 people, in November as the company seeks to "preserve capital through uncertain economic conditions," according to a LinkedIn post from the company. The move comes just five months after FlyHomes let go of 20% of its staff, or about 200 people, in July. The company blamed economic headwinds and rising interest rates, according to a report by GeekWire. The Seattle-based company has raised more than $310 million since it opened in 2016. Some of its investors include Andressen Horowitz, Camber Creek, and Spencer Rascoff, who co-founded Zillow. HomepointHome for sale. Joe Raedle / Getty ImagesPhoenix, Arizona-based mortgage lending company Homepoint laid off 117 employees on November 17 as rising interest rates took a toll on homebuyer demand, according to the Phoenix Business Journal. Overall, the company has let go of nearly 500 employees across four states such as Texas, Florida, Michigan, and Arizona in 2022, according to the Mortgage Professionals of America Magazine. The layoffs are part of a broader cost-cutting plan that is estimated to save the company over $100 million after it posted a more than $44 million loss on its Q2 earnings report, MPA Magazine said.HomewardPhoto courtesy of HomewardAustin, Texas-based startup Homeward, which is pioneering the "move now, sell later" transaction, laid off another 25% of its workforce in November, according to a post on the company's LinkedIn page. The move comes just months after the company let go of 20% of its workforce in August as housing transactions dropped. "We don't know how long real estate will continue to soften, so we must plan for a less active market," Tim Heyl, Homeward's CEO, wrote in an email to employees in August, according to a report by The Austin-American Statesman.Since it started in 2018, the company has raised more than $500 million from investors such as LiveOak, Javelin Ventures, and KeyStone Bank. Homeward raised $136 million in its Series B round, which closed in May 2021, according to Crunchbase.HomieSalt Lake City.Darwin Fan/Getty ImagesHomie, an online discount brokerage in Utah, laid off another 40 employees from its Salt Lake City location in October. The round of layoffs account for approximately 13% of its workforce, and brings the company's total cuts for the year up to 159, according to Layoff Tracker.CEO Johnny Hanna said the changing real-estate market and record-low inventory contributed to the decision to trim staff.InspectifyJosh Jensen, the CEO of Inspectify.InspectifySeattle-based home inspection startup Inspectify laid off 16 people on November 28 as rising interest rates and low homebuyer demand cooled-off the red-hot housing market, according to the Puget Sound Business Journal.Inspectify CEO Josh Jensen told the paper that the company still employs about 51 people following the layoffs. Interfirst MortgagePreforeclosure typically begins after three months of missed mortgage payments.AsiaVision/GettyInterfirst Mortgage, a lender based in Chicago, Illinois, plans to let go of 75 employees next month due to rising interest rates, reports Housing Wire. The layoffs will be effective as of January 21, 2023. The move comes just one month after the company let go of 371 employees from its Chicago and North Carolina offices. In all, Interfirst Mortgage has laid off nearly 500 employees over the last 12 months, according to a report by Crain's Chicago Business.JLLChristian Ulbrich, global CEO of JLL.JLLCommercial real estate brokerage JLL laid off employees from its New York and Chicago offices in November, but it remains unclear how many employees were impacted, Bisnow reported, citing multiple sources. "JLL is continuing with measures which were already underway to align our operational structure with our global transformation and reinforce our focus on managing costs," a company spokesperson told Bisnow.JPMorgan ChaseThe JPMorgan Chase corporate headquarters in New York City.Mike Segar/ReutersThe layoff wave hasn't affected only smaller lenders and proptech startups.America's largest bank, JPMorgan Chase, laid off more than 1,000 mortgage employees in June, Bloomberg first reported.The layoffs were a result of "cyclical changes in the mortgage market," a bank spokesperson told Bloomberg.Juniper SquareJuniper Square is a commercial real estate software startup.Ty ColeCommercial real estate software startup Juniper Square laid off 14% of its staff in August, said Chief Marketing Officer Matt Lawson. Lawson said the move primarily impacted Juniper's sales division. Despite the round of layoffs, the company's staffing total will still likely be 20% above last year's, he added. Since opening its doors in 2014, the proptech startup has raised more than $108 million from investors that include Ribbit Capital, Zigg Capital, and Ovo Fund. The company raised more than $75 million in its Series C funding round in September 2021.KeepeKeepe provides home-repair services.Peathegee Inc/Getty ImagesKeepe, a Seattle home-repair company, cut an unspecified number of workers from its small workforce in June, GeekWire reported. (GeekWire counted a total of 36 Keepe employees on LinkedIn.)The company provides home-repair services for other businesses, such as property managers and large corporate landlords.Keller MortgageKeller Mortgage is a division of the brokerage Keller Williams.Maskot/GettyThe mortgage arm of the major brokerage Keller Williams, Keller Mortgage, laid off 150 new hires in October, then laid off many more employees in May, a round that former employees described as "big," "massive," and "huge," according to The Real Deal.The division is largely focused on purchase mortgages because of its relationship with the brokerage.KiaviKiavi offered loans to real estate investors.Daniel Grizelj/Getty ImagesSan Francisco-based startup Kiavi, which offers loans to real estate investors, has felt the impact of rising interest rates on its customers. The company laid off 14 employees in July, representing about 7% of its workforce, HousingWire reported. Kiavi grew quickly in recent years, and in May announced that it had surpassed $10 billion in loans to real estate investors since it opened in 2013.  KnockA for-sale sign in front of a house.Getty ImagesIn March, Knock, a startup that helps homeowners make an offer on a new house before selling their old one, laid off 46% of its staff, roughly 120 employees, Bloomberg reported.At the same time, it halted its plan to go public via special-purpose acquisition company in March. The company had planned to go public at a $2 billion valuation but instead raised $70 million in equity and $150 million in debt in a private funding round that included the movie director M. Night Shyamalan as one of the investors.LandingBlake Callahan / Getty ImagesFully-furnished apartment provider, Landing, conducted a second round of layoffs on December 14, although it is unclear how many employees were let go, according to a report by AL.com. The move comes after the company let go of 110 employees on October 6 and reshuffled another 70 positions to different parts of the country.The company was founded in San Francisco but moved its headquarters to Birmingham, Alabama, in 2021 with the goal of creating more than 800 full-time jobs in the state. Today, the company has a workforce of nearly 900 in the Birmingham area.LevAlexander Spatari/Getty ImagesCommercial real estate finance platform Lev laid off 30 employees on December 7, which represents approximately 30% of the company's workforce, according to a report by The Real Deal.The move comes at a time when commercial real estate property values are falling because of low demand for office and other Class A space, according to CRE data firm Green Street.Mr. CooperMortgage applications have tumbled as interest rates have risen.SAUL LOEB/Getty ImagesThe mortgage lender Mr. Cooper, formerly known as Nationstar, has had two separate rounds of layoffs this year, one of 250 employees and another of 420 employees, or roughly 5% of the company's employees, according to The Real Deal.Like other mortgage lenders, it was hit hard by rising rates, with its direct-lending business declining by 32% year over year.NotarizeBuying a home often requires a notary.Dragana991/Getty ImagesNotarize, a Boston remote-notary service, laid off one-quarter of its staff — or about 110 people — in May, TechCrunch reported.While Notarize is not a traditional real-estate company, it was boosted greatly during the pandemic by the boom in remote real-estate transactions. Many states loosened their rules about in-person notaries and other traditional closing procedures to allow transactions to continue during the early waves of COVID-19.Notarize CEO Pat Kinsel said the layoffs were a result of "the state of the economy and world events" and that it may be harder than expected to raise further investment in the company. The company has raised $213 million since its founding in 2015, most recently a $130 million Series D last year.Offerpadsturti/Getty ImagesOfferpad, a Chandler, Arizona-based iBuying company, laid off approximately 7% of its workforce on November 11 after the company posted a more than $80 million net loss on its Q3 earnings report, according to a report by the Phoenix Business Journal.The company has raised more than $335 million from big-name investors such as homebuilder Taylor Morrison and private equity firm Blackrock, according to Crunchbase. Offerpad went public in September 2021 with a special purpose acquisition company called Supernova Partners. The company's stock has since lost more than 94% of its value, causing Offerpad to receive a delisting notice from the NYSE in November 2022.OpendoorAn Opendoor office.Opendoor Technologies/GlassdoorOpendoor laid off 550 employees on November 2, according to a blog post on the company's website. Founded in 2015, San Francisco-based Opendoor is America's biggest home-flipping company. It's also known as an instant buyer, or iBuyer, which means it buys up single-family homes across the country, lightly renovates them, then resells them for a profit.The move impacted about 18% of Opendoor's workforce across all departments, the blog post said. Opendoor also offered laid-off employees job transition services and a severance package that includes at least 10 weeks of pay."We did not make the decision to downsize the team today lightly but did so to ensure we can accomplish our mission for years to come," Opendoor CEO Eric Wu wrote in the blog post. "And while we may be navigating a once-in-40 year market transition, it doesn't take away the difficulty, frustration, and sadness downsizing brings."OrchardProspective homebuyers and a real-estate agent.Getty Images.Orchard, a startup that helps homeowners buy a home before selling their current home, laid off 180 people, or about 25% of its workforce, on November 17 at a time when homebuyers were increasingly leaving the real estate market, according to Layoffs Tracker. Orchard became a unicorn last year. It was valued at $1 billion after a $100 million funding round led by Accomplice. The company previously laid off about 10% of its staff in June because of "mounting economic uncertainty," according to a LinkedIn post. PacasoPacaso co-founders Spencer Rascoff and Austin Allison.PacasoPacaso, a real estate investment company founded by former Zillow executive Spencer Rascoff, laid off approximately 30% of its workforce on October 11, citing concerns about a global recession, according to The Real Deal. Since its founding in October 2020, Pacaso has raised more than $1.5 billion in seven funding rounds, with more than $1.3 billion coming from debt. In September 2021, the company picked up more than $125 million in a Series C round from 11 investors, including Alumni Ventures, SoftBank's Vision Fund, and Fifth Wall.PennymacKrisanapong Detraphiphat/Getty ImagesPennymac, a California nonbank lender, laid off another 80 employees in October primarily from its Roseville, Westlake, Agoura, Moorpark, and Pasadena locations in California, according to HousingWire. The move comes after the company laid off almost 450 employees across two rounds earlier this year. The first round was announced in March, while the second was announced in May, with the layoffs occurring up to July, according to HousingWire.RealiReali sought to simplify the real estate transaction process.The Good Brigade/Getty ImagesSan Francisco Bay area company Reali shuttered its operations in August, affecting 140 employees, TechCrunch reported. The company cited rising interest rates and a bad market for raising capital as the primary reasons for the shutdown. Reali, which was founded in 2016 in Israel, sought to simplify real estate transactions by allowing customers to buy and sell homes in a single, coordinated transaction. This would have eliminated the need for contingencies and paying two mortgages at once. The company raised a $100 million Series B round in August 2021.Realtor.comFirst-time buyers are up against a market where active listings have dropped nearly 67% since 2020, according to Realtor.com.Denis Novikov / Getty ImagesRealtor.com, one of the most recognizable real estate marketplaces in the world, said in September that it was downsizing its workforce. David Doctorow, the company's CEO, cited slow sales volume and economic headwinds as catalysts for the downsizing, according to Inman.com. A spokesperson declined Insider's request to comment on the move.RedfinRedfin CEO Glenn Kelman.Courtesy of ComparablySeattle-based real-estate brokerage Redfin laid off 862 employees, or 13% of its staff, on November 9, according to a memo posted on the company's website. The move comes after the company laid off 6% of its staff of almost 6,500 in June. Overall, employment at the company has declined by 27% since April 30, the memo said. "A layoff is awful but we can't avoid it," Redfin CEO Glenn Kelman wrote. "We plan to keep increasing our share of the market, but that market in 2023 is likely to be 30% smaller than it was in 2021." The company also said on November 9 that it was shutting down its home-flipping, or iBuying, business, called RedfinNow.RhinoA for-rent sign outside a house.ejs9/Getty ImagesThe New York insurance-tech startup Rhino laid off 57 employees, or more than 20% of its staff, in February, The Real Deal reported.Rhino is one company in a growing group of proptech startups that pays renters' security deposits in exchange for small but nonrefundable monthly payments.The company is part of the Kairos portfolio, a group of related startups led by the investor Ankur Jain. The layoffs came a year after Rhino raised $95 million in a round led by 2021's most active venture investor, Tiger Global Management.RibbonA New York City apartment complex.Getty ImagesNew York City-based startup Ribbon, a software-as-a-solution company for real estate agents, laid off 170 employees — or approximately 85% of its workforce — in November, Business Insider reported. The layoffs come months after Ribbon laid off 136 employees in July as the company seeks profitability, Inman reported. Over the last year, Ribbon has doubled its market footprint to eight states, including Ohio, Arkansas, and Florida, among others. Ribbon has raised more than $900 million since it was founded in 2017. Some of the company's big-name investors include Bain Capital Ventures, Greylock, and Goldman Sachs.Rocket MortgageThe Rocket Mortgage logo.Rocket MortgageRocket Mortgage, the largest mortgage lender in the country formerly known as Quicken Loans, has avoided layoffs by offering 8% of its workforce voluntary buyouts, providing months of compensation, medical benefits, and early stock vesting, National Mortgage Professional reported. It is unclear how many employees have taken the buyout offers.SideA family talking to a real-estate agent.Getty ImagesSide, a startup that provides white-label brokerage services like marketing tools to independent brokerages, laid off 10% of the company's workforce. It cut roughly 40 people in June, Inman reported.In June, a fundraising round brought the company to a unicorn valuation and within striking distance of going public.CEO Guy Gal said in a statement provided to Inman and other outlets that the company grew too quickly to adequately onboard new employees and that leadership decided it needed to slow down growth in the face of the condition of the global economy.SonderSonder CEO Francis Davidson.Cassidy AraizaSonder, one of the multiple proptech companies to go public during a rush of SPAC deals, laid off 21% of its corporate employees and 7% of its frontline hospitality staff in June, Business Travel News reported.Sonder operates short-term rental properties in apartment buildings, including some apartment buildings that it operates entirely as hotels.CEO Francis Davidson said in a meeting, according to Business Travel News, that the layoffs were part of a plan to prepare the company for shifting market dynamics that value profitability over growth. Earlier in the month, Satyen Pandya, Side's chief technology officer, left the company, according to a Securities and Exchange Commission filing.Sprout MortgageMortgage rates have trended down recently.JenniferPhotographyImaging/Getty ImagesSprout Mortgage, which touted itself as the largest originator of nonqualified mortgages, laid off all of its more than 300 workers and shut down operations earlier this month, as HousingWire first reported.Sprout Mortgage is the latest nonqualified-mortgage lender to shutter after the closure of First Guaranty Mortgage Corp.The news prompted a class-action lawsuit from laid-off employees who said they hadn't received paychecks for their last few weeks of work.SundaeRows of suburban houses.David Jay ZimmermanSundae, a marketplace that allows homeowners to sell their homes to investors who then rent out the homes, laid off 15% of its staff, though the total number of people laid off is unclear, HousingWire reported.The layoffs were in June, when Bloomberg reported investors had begun to slow their purchases of homes across the country to rent out because of higher borrowing costs.TomoThe Tomo cofounders Greg Schwartz and Carey Armstrong.TomoTomo, a mortgage startup that focuses on lending to home purchasers, laid off 44 people, or almost one-third of its workforce, in May, Insider previously reported.Greg Schwartz, the company's CEO and cofounder, said the layoffs were a result of the "recent shift in the mortgage and venture-capital markets due to the rapid increase in interest rates."VacasaVacasa rents vacation homes like this one in Montana.Courtesy of Ryan VillinesVacation rental startup Vacasa announced it laid off 280 employees on October 21, in a move that impacted approximately 3% of its workforce, the company confirmed.The layoffs come just weeks after Rob Greyber took over as CEO. It was already trimming staff over the summer, when about 25 salespeople received pink slips.Vacasa has struggled to become profitable since going public in 2021. The company lost $2 million in adjusted earnings in the third quarter of 2022, though it was better than its projected loss of $15 million to $20 million, according to its quarterly report. "We do not take these decisions lightly, but we continuously assess our business, striving to optimize our resources and teams to be efficient and align with our priorities," a company spokesperson told Insider.VeevAmit Haller, Chief Executive Officer and co-founder of VeevVeevVeev, a modular homebuilding company based in San Mateo, California, laid off 100 employees, or about 30% of its workforce, on November 11. The move primarily impacted workers who helped build high-rise housing units, according to a report by CalCalist. The move comes just eight months after the company raised more than $400 million in a Series D round from investors who included Fifth Wall and JLL Ventures. Veev said in a press release that it raised the capital to expand its operations in the US.Wells FargoA Wells Fargo office.Justin Sullivan/Getty ImagesWells Fargo laid off workers across its home-lending operations in April but declined to describe the size or scope of the layoffs to Insider or other outlets.That same month, the company reported that revenues within its home-lending operation were down 33% year over year. The company's chief financial officer, Mike Santomassimo, appeared to forecast further layoffs during its first-quarter earnings call."We've started to reduce expenses in response to the decline in volume and expect expenses will continue to decline throughout the year as excess capacity is removed and aligned to lower business activity," Santomassimo said.The company did not provide further updates about the scope of the layoffs on an earnings call Friday.The WingInside one of The Wing's co-working spaces.Evelyn Hockstein/For The Washington Post via Getty ImagesThe Wing, a New York-based coworking startup that made office spaces for women, shut down its operations in August, according to Layoff Tracker. The company that was founded by Audrey Gelman and Lauren Kassan in 2016 raised more than $117.5 million in funding from investors such as WeWork and Sequoia Capital.Zeus LivingZeus Living rents fully furnished homes.Courtesy of Christopher WillsonZeus Living, a furnished home rental company, laid off 64 employees on October 20 as the company continues to seek profitability and sustainable growth, according to the San Francisco Business Times. The layoffs come approximately 18 months after the startup cut more than 60% of its labor force due to business impacts resulting from COVID. "Like many companies in our industry, we are not immune to the effects of market volatility, inflation, war, and the possibility of a recession," Anni Jones, director of PR for Zeus, told Insider in an emailed statement. Zeus has raised more than $150 million from investors like Picus Capital and Y Combinator since it opened in 2015.ZillowZillow's website shows a series of price cuts on an Atlanta home.ZillowZillow laid off 300 employees as the company pivots to focus on hiring technology and engineering staff, TechCrunch reported on October 26. The layoffs primarily impacted employees in Zillow Offers, its sales team, and staff at Zillow Home Loans, the company's mortgage lending arm. The move comes nearly a year after Zillow laid off 25% of its workforce after shuttering its iBuying program known as Zillow Offers. "As part of our normal business process, we continuously evaluate and responsibly manage our resources as we create digital solutions to make it easier for people to move," a company spokesperson told Seeking Alpha. "This week, we have made the difficult — but necessary — decision to eliminate a small number of roles and will shift those resources to key growth areas around our housing super-app. We're still hiring in key technology-related roles across the company."ZumperAn apartment listed for rent in Manhattan.Bizzarro Agency LLCWhile most of the layoffs have struck the residential-purchase market, companies focused on rentals haven't escaped unscathed.In June, the rental marketplace Zumper cut 15% of its staff, mostly in the sales and customer-service departments, The Real Deal reported. It is unclear how many employees were cut.Axel Springer, Insider Inc.'s parent company, is an investor in Zumper. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 27th, 2022

Wells Fargo faces another setback with $1.7 billion penalty

The bank has been ordered to pay billions in fines to settle investigations stemming from its treatment of customers within its retail bank. Happy hump day. Dan DeFrancesco in the Big Apple, and I'm loving this New York story about the internet's newest obsession with nepotism in Hollywood. Wall Street, obviously, is no stranger to nepotism either, which made me curious: What's your favorite family lineage in finance? Drop me a line with some suggestions. Today, we've got stories on the latest in the FTX debacle, layoffs at Tom Brady's crypto company, and why your chances of getting a new car for the holidays are looking slim. But first, Wells Fargo heads to the penalty box, again. If this was forwarded to you, sign up here. Download Insider's app here.Charles Scharf is the CEO of Wells Fargo.Tom Williams/Getty Images1. Wells Fargo faces the music.The regulators have once again come knocking at Wells Fargo, and it ain't pretty.Wells Fargo was ordered to pay $2 billion back to customers and pay a $1.7 billion civil penalty by the Consumer Financial Protection Bureau (CFPB) for illegal activity involving auto loans, mortgages, and deposit accounts that impacted over 16 million accounts. Here's a rundown of what the CFPB investigation uncovered:Wrongfully repossessing borrowers' vehicles, in addition to incorrectly charging fees and interest on auto loans.Denying changes to mortgages that led to wrongful foreclosures on some customers' homes. Surprise overdraft fees, which occurred even though customers had enough money in their accounts.Freezing access to accounts due to a faulty automated filter, which led to customers being locked out of their account for, on average, two weeks. And while $3.7 billion is quite a large amount of money, it's not unfamiliar territory for the bank.Less than three years ago, Wells paid $3 billion to settle an investigation by the Justice Department and the Securities and Exchange Commission around its fake-account scandal, which involved employees setting up millions of fraudulent accounts for customers without their knowledge in an effort to meet unrealistic sales targets. The latest fine won't come as a complete shock to the bank. Wells has already paid out $1.3 billion to 11 million accounts related to auto-loan-servicing issues, the CFPB said. Charlie Scharf, the bank's CEO, understood the mess he was getting when he took over the bank in 2019. (Check out our org chart on the changes that Scharf has made among Wells' leadership since he took over.)But Scharf still needs to contend with an asset cap imposed by the Federal Reserve that limits the bank's growth. And as the fines continue to pile up, some will ask the question: Can Wells ever straighten itself out?For Scharf's part, this is all part of a transformation that needed to take place at the bank."We have made significant progress over the last three years and are a different company today," Scharf said in a statement. "We remain committed to doing the right thing for our customers and working closely with our regulators and others to deal appropriately with any issue that arises."But others, including the regulators themselves, might beg to differ."Wells Fargo is a corporate recidivist," CFPB Director Rohit Chopra told reporters on a call Tuesday, according to The Wall Street Journal, adding that the settlement "should not be read as a sign that Wells Fargo has moved past its longstanding problems."Click here to read more about Wells Fargo's $3.7 billion settlement with the CFPB. In other news:Tom Brady reacts after an attempted trick play results in an interception.Kirby Lee-USA TODAY Sports2. Your (PE-backed) doctor will now see you. Private-equity firms see a big opportunity buying up companies staffing hospitals' emergency rooms with doctors. But the investment hasn't come without controversy, the Financial Times reports. Inside PE's push into healthcare.  3. From "The Great Resignation" to "Quiet Quitting," these are the trends that defined the workplace in 2022. Experts broke down what was a wild year in the labor market, and made some predictions for what to expect in 2023. Here's what the workplace will look like next year. And while we're at, here are some picks from VCs on the hottest future-of-work trends in 2023.4. So about that donation... FTX is trying to claw back donations and political contributions as it looks to put a dent in the massive amount of money it owes creditors. Meanwhile, FTX founder Sam Bankman-Fried appeared to be caught taking a little tiger snooze during his extradition hearing. And a small New England town where an FTX exec bought $6 million worth of real estate and restaurants is getting worried.5. It wasn't all bad news for startups this year. There were 174 US startups that reached unicorn status (a valuation of at least $1 billion) at some point this year. And while some have already seen those drop, and more could follow, it's still an interesting look at the state of the startup community. From film studio A24 to cloud-storage provider Wasabi Technologies, these are the 174 US startups that hit the unicorn mark.  6. An NFT platform cofounded by Tom Brady just laid off dozens of employees. Autograph, whose board included the recording artist known as the Weeknd, closed earlier this year a $170 million Series B round that was led by Andreessen Horowitz and Kleiner Perkins. More on the cuts here. 7. THL just bought a majority stake in a company that helps marketers manage promotional materials. The PE firm agreed to buy a stake in Bynder, which works with companies like Spotify, Puma, and KLM, in a deal valuing it at over $600 million. Here's why THL wants in on the digital-asset-management space. 8. There's parties, and then there's renting out an entire island in the Maldives and goodie bags with Dior jewelry. The CEO of a concierge company for VIPs explains what it's like planning parties with multimillion-dollar budgets. Take a peek inside how the ultra-wealthy party. 9. Wellness perks are all the rage in luxury homes, but not the kind you think. The wealthy aren't as interested in gyms and swimming pools these days. Instead, they want plunge pools and infrared saunas in their high-end houses. Two brokers featured on "Million Dollar Listing" break down what's in at luxury homes. 10. This December might not actually be one to remember. Sellers of big bows for cars, which became a staple of popular culture thanks to Lexus' holiday commercials, have seen sales drops this year. That could be indicative of fewer cars being purchased as a gift this season, The Wall Street Journal reports. Here's why you should get comfortable with your current ride. Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London.  Read the original article on Business Insider.....»»

Category: personnelSource: nytDec 21st, 2022

The method to Elon Musk"s Twitter madness reveals itself

Beyond the chaos and the hubbub, Elon Musk's Twitter has a master plan that's not always obvious, but is coming closer to fruition — if only slightly. Welcome to the working week. This is Matt Weinberger, deputy editor of tech analysis, filling in once again for Jordan Erb. By the time you read this, I'll have spent my weekend playing a ton of the new "God of War: Ragnarök" for the PlayStation 5.On Friday, the United States observed the Veterans Day holiday. And if you're just coming back from a three-day weekend — oh man, you missed a lot. The theme of last week was chaos and hubris, amid a massive wave of tech layoffs and the turmoil at Twitter under new owner Elon Musk.Those themes continued to show themselves as the weekend approached, as Musk has already walked back his strongest rhetoric on remote work at Twitter, Amazon paused the ability for its employees to move across teams, the implosion of crypto exchange FTX continues to unfold, and Salesforce insiders say that they were set up for failure ahead of last week's layoffs.Let's check out the news.If this was forwarded to you, sign up here. Download Insider's app here.Elon MuskHANNIBAL HANSCHKE /Getty Images1. The method to the Twitter madness emerges. It's been chaos at Twitter in the short reign of Elon Musk. But even as its infamously mercurial new owner has fomented confusion with mass layoffs, new policies, and an unsuccessful launch of a new approach to account verification, the bigger picture is starting to become clear.Insider's Grace Kay writes that Musk's plans to bring longer video uploads and payments to Twitter is just the first step towards his vision of building a super-app that can do almost anything. Social media expert Matt Navarra says that while the takeover may seem haphazard to outsiders, Musk definitely has a master plan.Meanwhile, Musk is renewing his outreach to Twitter employees, telling them that remote work may be okay in some cases after all, softening his previous remarks. He also pledged that he's only ever an email away if anyone at the company has concerns. At the same time, some now-former Twitter employees allege in a new lawsuit that the company "persuaded" them to stick around through Musk's acquisition — and then laid them off without the amount of severance that they were led to believe they would be eligible for. Musk, for his part, has made cost-cutting a big priority at Twitter, telling employees last week that he had "PTSD" from previous recessions.Read more about Musk's master plan here.In other news:Amazon Web Services CEO Andy Jassy.Associated Press2. The drama at FTX is giving sitcom vibes. A report last week indicated that FTX, the major crypto exchange that filed for bankruptcy, was actually run by a small circle of friends who shared an apartment in the Bahamas and occasionally entered into romantic relationships with each other. Read more about Sam Bankman-Fried's sitcom-style living situation here.3. Amazon limits internal mobility even as it slashes jobs. As part of a cost-cutting maneuver, Amazon has been slashing jobs even as it freezes hiring. Insider's Katherine Long reports that employees who had their jobs cut have three months to find a new gig at the company — but the freeze means that no other team can take them. Read more about the move, and the employee reaction, here.4. A surprise tax bill of as much as $30,000. The CEO of tech startup GravyWork told the Wall Street journal that a remote employee who spent time working in California and Austin, where the company isn't registered, led to an unwelcome surprise in the form of major taxes, fees, and headaches.5. Salesforce insiders say they were set up to fail. Last week, Salesforce laid off workers who it said were underperforming. Insiders at the cloud computing giant said the company's performance review system set even the top salespeople up to fail. Read more about the inside story on the Salesforce cuts here.6. How much YouTube creators are actually making. The economic picture may be pretty downbeat, but YouTube creators tell Insider that their earnings are remaining fairly steady. Here's how much YouTube creators say they're actually making per 1,000 views. 7. The heavyweights of venture capital beat a strategic retreat. Firms like Tiger Global and Coatue are famous for cutting humongous checks to startups, one after the other. But after they helped spark a deal frenzy in 2021, they're pulling back and "licking their wounds" this year as their big bets fizzle out, Insider reports. Read more about how their nontraditional approach to tech investing backfired here.8. Lucid Motors is messing with Texas. Electric vehicle manufacturer Lucid is picking a legal fight with Texas over state laws requiring that cars be sold via dealerships. Insider reports that the battle has high stakes for EV startups, which prefer to follow in Tesla's footsteps and sell straight to customers, but it could also slow down Lucid's ability to deliver vehicles.Odds and Ends:Justin Sullivan/Getty Images, Twitter9. "Jesus" is verified. The jokester behind the popular Jesus Christ account on Twitter tells Insider how Elon Musk's new Twitter Blue got him verified after 14 years on the platform. The anonymous Twitter-er says that the verification was the icing on the cake of the long-running bit, which has seen people send him both death threats and prayer requests.10. $400,000-plus homes, straight from the 3D printer. Construction giant Lennar and 3D printing startup Icon have taken the lid off their plan to build what they say will be the largest community to date of 3D-printed homes. Those homes, starting in the mid-$400,000s, will start being move-in ready as soon as next year. Take a look at their plans for the community here.Keep updated with the latest tech news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.Curated by Matt Weinberger in San Francisco. (Feedback or tips? Email mweinberger@insider.com or tweet @gamoid.) Edited by Hallam Bullock (tweet @hallam_bullock) in London.Read the original article on Business Insider.....»»

Category: personnelSource: nytNov 14th, 2022

Layoffs are crushing the real-estate industry, and Redfin and Opendoor are the latest victims. Here are 44 companies that have shed jobs due to the fast-cooling housing market.

Tough economic conditions are taking a toll on big public companies and tiny startups alike. See how these firms, from Compass to Zillow, have coped. A Redfin sign in front of a house for sale.Sundry Photography/Shutterstock Redfin and Opendoor are the latest real-estate firms to lay off employees. The layoffs come as demand for mortgages has reached its lowest level since 1997. Insider rounded up 44 of the firms who have cut staff amid a cooling housing market. The layoffs at Redfin and Opendoor are the latest signs of trouble for the embattled real-estate industry.Deals that were once profitable for the industry and home purchases that had been affordable for everyday people have been getting slammed by or because of the higher borrowing costs.The aggressive interest-rate hikes by the Federal Reserve and a looming recession have resulted in layoffs galore across the real-estate world, whose stormy seas have triggered worry elsewhere in the economy. The cutbacks are sobering for an industry that just a year ago was flying high with home-price appreciation, increasing rents and plentiful funding for proptechs. The downsizing began in the mortgage industry with Better's Zoom layoffs at the end of last year. That abrupt move came amid expectations for a big slowdown in 2022, and residential brokerages like Compass, Redfin, and Side followed suit as transaction volumes skid.With signs of distress spreading through the office market and among homebuilders, and rate hikes anticipated into 2023, layoffs are mounting. The Mortgage Bankers Association — the industry's largest trade group — anticipates an attrition rate as high as 30%, according to a spokesperson.Indeed, more industry jobs are likely on the line with demand for mortgages now its lowest level since 1997, per the MBA. Some of the latest and notable casualties came from real estate marketplace giant Zillow, consumer lender Finance of America, and international vacation rental company Vacasa.Insider is keeping track of where job cuts are taking place in the residential and proptech sectors, including at companies that have wielded an axe more than once. The companies with layoffs are listed below in alphabetical order.Do you know of other real estate tech or mortgage-related layoffs? Were you affected by them? email anicoll@insider.com or rdavis@insider.com.AnywellA coworking space.Dowell/Getty ImagesIsraeli proptech startup Anywell, a company that creates hybrid workspaces, announced in August that it will lay off 50% of its workforce in a restructuring. The move impacted 11 employees, primarily from Anywell's operational staff. Anywell's latest round of layoffs came just five months after it raised $10 million in a Series B round. A total of 14 employees have left the company since March. The company added that it plans to focus on software-based solutions.Apartment ListA New York City apartment building.Getty ImagesApartment listing services are facing mounting economic pressure.Mathew Woods, CEO of ApartmentList.com, announced on LinkedIn on August 31 that the company was laying off 29 people, or approximately 10% of its workforce. Woods said the company was "reacting to market conditions."BetterBetter employees at the company headquarters in New York City.BetterThe online mortgage lender Better started laying people off earlier than most of the companies on this list.In December, CEO Vishal Garg cut 900 employees via Zoom meeting, a move that made headlines around the world. Before the layoffs, Better employed about 9,000 people, 7,000 of whom were hired since the start of the pandemic.The company has since announced another wave of layoffs, cutting 3,000 more employees in March. Insider reported some employees found out they were being laid off when their bank statements received direct deposits for severance payments or when they abruptly lost access to their work computers.The company, which has said it still plans to go public this year, announced voluntary buyouts for employees in some positions and departments in April. Garg, Better, and the blank-check company trying to take the mortgage company public have received formal inquiries from the Securities and Exchange Commission about their business operations and the company's former chief operating officer's claims about corporate malfeasance.BlendNima Ghamsari, the founder and CEO of Blend.BlendBlend, the publicly traded mortgage-tech company that builds software for major mortgage lenders, laid off 200 people, or 10% of the company, in April, according to a filing with the Securities and Exchange Commission first reported by HousingWire.The company had been signaling it had hard times ahead since the end of last year, as declining loans were forecast to hit the company just as hard as its clients, who are the ones actually lending.BungalowThe Biden administration unveiled a plan to tackle the affordable housing crisis in May.E. Jason Wambsgans/Chicago Tribune/Tribune News Service via Getty ImagesBungalow, a company that turns traditional single-family homes and apartments into coliving spaces for roommates, laid off 75 people, or 35% of its workforce, in June, according to Layoffs Tracker and posts by former employees on LinkedIn.The company raised $75 million last year from a mix of investors, led by Deer Park Road Management, with Coatue, Khosla Ventures, Founders Fund, and Atomic also investing. The round valued the company at $600 million.Clear CapitalThe Good Brigade/GettyClear Capital, a real estate appraisal technology company, laid off 27% of its workforce on October 14, according to Layoffs Tracker and LinkedIn posts from former employees. The layoffs will impact 378 employees – about 27% of the company's workforce as rising interest rates result in a significant decrease in volume from its customers."Clear Capital is restructuring all company divisions to reduce expenses and support our future business strategy amidst today's housing market reality," CEO Duane Andrews told Insider.CompassA Compass sign in front of a home.Smith Collection/Gado/Getty ImagesThe residential brokerage Compass announced it laid off 10% of its workforce — about 450 employees — in June as residential transactions slowed down. The layoffs did not include real-estate agents, who are independent contractors and not directly employed by the company.Compass, which went public in April 2021 at roughly $20 a share, is down almost 80% over the past two years and trading below $5 a share. The company also plans to combine some offices and pause its plans to expand and acquire other companies.A laid-off employee talked to Insider's Zoe Rosenberg about their experience."My lingering thought is that whatever the impacts of the IPO and the impacts of our rapid expansion across the country, the impacts of the market on our futures — is just that those impacts didn't seem to be handled appropriately, or in the best manner for the associates' longevity with the company," they said.Divvy HomesDivvy Homes is a rent-to-own company headquartered in San Francisco.xeni4ka/Getty ImagesDivvy Homes, a rent-to-own real estate company, in September laid off 40 employees, representing more than 12% of its workforce, according to Layoff Tracker.The San Francisco-based company has raised more than $1.5 billion since it was founded in 2017 and is backed by large investment firms such as Andreessen Horowitz and Tiger Global Management."Although we recognized these macroeconomic challenges in late summer 2022 and took steps to substantially reduce our cost structure in response, it unfortunately was not enough," Kyle Zink, Divvy's VP of Marketing, told Insider."Realistically, the macro environment is likely to remain volatile and challenging for the foreseeable future. As a result, we needed to adjust headcount to reflect the new reality today," Zink continued.Finance of America MortgageA couple signing mortgage documents.Getty ImagesFinance of America Mortgage, a multichannel mortgage lender headquartered in Plano, Texas, laid off hundreds of employees between the second and third quarters of 2022, HousingWire reported in August. The layoffs impacted employees in the US and in the Philippines where workers performed back office tasks such as appraisal checklists, according to HousingWire. "The discontinuation of the forward mortgage originations segment will allow FOA to optimize its resources and prioritize businesses that have a distinct market opportunity and greater growth potential," FOA Interim CEO Graham Fleming said in a press release.First Guaranty Mortgage Corp.A couple signing a mortgage document.Getty ImagesFirst Guaranty Mortgage Corp., a Plano, Texas, lender, laid off 80% of its employees, The Dallas Morning News, and paused making new loans in late June, fueling speculation that the company was going to go bankrupt. The company was backed by the major asset manager Pimco.Just a few days after cutting 471 employees, the company filed for Chapter 11 bankruptcy protection, with more than $473 million in debt. The company, which originated $11 billion in mortgages last year, had projected it could originate only $5 billion to $6 billion in mortgages this year.Flagstar BankFlagstar Bank's logo.Flagstar BankFlagstar Bank, a Michigan bank, cut its mortgage staff by 20% in April. In a statement to HousingWire explaining the 420-employee layoffs, CEO Alessandro DiNello cited interest rates rising "at the fastest rate this century." In the first quarter of 2022, the company's mortgage originations were down 40% from the first quarter of 2021.FlyHomesFlyhomes cofounder and CEO Tushar Garg.FlyhomesFlyHomes, an online brokerage service, cut 20% of its staff, or about 200 people, in July. The company blamed economic headwinds and rising interest rates, GeekWire reported. The Seattle-based company has raised more than $310 million since it opened in 2016. Some of its investors include Andressen Horowitz, Camber Creek, and Spencer Rascoff, who co-founded Zillow. HomewardHomeward CEO Tim Heyl.HomewardAustin, Texas-based startup Homeward, which is pioneering the "move now sell later" transaction, laid off 20% of its workforce in August as housing transactions dropped. "We don't know how long real estate will continue to soften, so we must plan for a less active market," Tim Heyl, Homeward's CEO, wrote in an email to employees, according to a report by The Austin-American Statesman.The company has raised more than $500 million since it opened in 2018 from investors such as LiveOak, Javelin Ventures, and KeyStone Bank. Homeward raised $136 million in its Series B round, which closed in May 2021, according to Crunchbase.HomieSalt Lake City.Darwin Fan/Getty ImagesHomie, an online discount brokerage in Utah, laid off another 40 employees from its Salt Lake City location in October. The round of layoffs account for approximately 13% of its workforce, and brings the company's total cuts for the year up to 159, according to Layoff Tracker.CEO Johnny Hanna said the changing real-estate market and record-low inventory contributed to the decision to trim staff.JPMorgan ChaseThe JPMorgan Chase corporate headquarters in New York City.Mike Segar/ReutersThe layoff wave hasn't affected only smaller lenders and proptech startups.America's largest bank, JPMorgan Chase, laid off more than 1,000 mortgage employees in June, Bloomberg first reported.The layoffs were a result of "cyclical changes in the mortgage market," a bank spokesperson told Bloomberg.Juniper SquareJuniper Square is a commercial real estate software startup.Ty ColeCommercial real estate software startup Juniper Square laid off 14% of its staff in August, said Chief Marketing Officer Matt Lawson. Lawson said the move primarily impacted Juniper's sales division. Despite the round of layoffs, the company's staffing total will still likely be 20% above last year's, he added. Since opening its doors in 2014, the proptech startup has raised more than $108 million from investors that include Ribbit Capital, Zigg Capital, and Ovo Fund. The company raised more than $75 million in its Series C funding round in September 2021.KeepeKeepe provides home-repair services.Peathegee Inc/Getty ImagesKeepe, a Seattle home-repair company, cut an unspecified number of workers from its small workforce in June, GeekWire reported. (GeekWire counted a total of 36 Keepe employees on LinkedIn.)The company provides home-repair services for other businesses, such as property managers and large corporate landlords.Keller MortgageKeller Mortgage is a division of the brokerage Keller Williams.Maskot/GettyThe mortgage arm of the major brokerage Keller Williams, Keller Mortgage, laid off 150 new hires in October, then laid off many more employees in May, a round that former employees described as "big," "massive," and "huge," according to The Real Deal.The division is largely focused on purchase mortgages because of its relationship with the brokerage.KiaviKiavi offered loans to real estate investors.Daniel Grizelj/Getty ImagesSan Francisco-based startup Kiavi, which offers loans to real estate investors, has felt the impact of rising interest rates on its customers. The company laid off 14 employees in July, representing about 7% of its workforce, HousingWire reported. Kiavi grew quickly in recent years, and in May announced that it had surpassed $10 billion in loans to real estate investors since it opened in 2013.  KnockA for-sale sign in front of a house.Getty ImagesIn March, Knock, a startup that helps homeowners make an offer on a new house before selling their old one, laid off 46% of its staff, roughly 120 employees, Bloomberg reported.At the same time, it halted its plan to go public via special-purpose acquisition company in March. The company had planned to go public at a $2 billion valuation but instead raised $70 million in equity and $150 million in debt in a private funding round that included the movie director M. Night Shyamalan as one of the investors.LandingLanding rents fully-furnished apartments.Mikhaila Friel/InsiderFully-furnished apartment provider Landing announced that it laid off 110 employees on October 6 and reshuffled another 70 positions to different parts of the country, according to AL.com. The company that was founded in San Francisco moved its headquarters to Birmingham, Alabama, in 2021 with the goal of creating more than 800 full-time jobs in the state. Today, the company has a workforce of nearly 900 in the Birmingham area.Mr. CooperMortgage applications have tumbled as interest rates have risen.SAUL LOEB/Getty ImagesThe mortgage lender Mr. Cooper, formerly known as Nationstar, has had two separate rounds of layoffs this year, one of 250 employees and another of 420 employees, or roughly 5% of the company's employees, according to The Real Deal.Like other mortgage lenders, it was hit hard by rising rates, with its direct-lending business declining by 32% year over year.NotarizeBuying a home often requires a notary.Dragana991/Getty ImagesNotarize, a Boston remote-notary service, laid off one-quarter of its staff — or about 110 people — in May, TechCrunch reported.While Notarize is not a traditional real-estate company, it was boosted greatly during the pandemic by the boom in remote real-estate transactions. Many states loosened their rules about in-person notaries and other traditional closing procedures to allow transactions to continue during the early waves of COVID-19.Notarize CEO Pat Kinsel said the layoffs were a result of "the state of the economy and world events" and that it may be harder than expected to raise further investment in the company. The company has raised $213 million since its founding in 2015, most recently a $130 million Series D last year.OpendoorAn Opendoor office.Opendoor Technologies/GlassdoorOpendoor laid off 550 employees on November 2, according to a blog post on the company's website. Founded in 2015, San Francisco-based Opendoor is America's biggest home-flipping company. It's also known as an instant buyer, or iBuyer, which means it buys up single-family homes across the country, lightly renovates them, then resells them for a profit.The move impacted about 18% of Opendoor's workforce across all departments, the blog post said. Opendoor also offered laid-off employees job transition services and a severance package that includes at least 10 weeks of pay."We did not make the decision to downsize the team today lightly but did so to ensure we can accomplish our mission for years to come," Opendoor CEO Eric Wu wrote in the blog post. "And while we may be navigating a once-in-40 year market transition, it doesn't take away the difficulty, frustration, and sadness downsizing brings."OrchardProspective homebuyers and a real-estate agent.Getty Images.Orchard, a startup that helps homeowners buy a home before selling their current home, announced on LinkedIn in June that it had laid off 10% of its staff because of "mounting economic uncertainty."The company subsequently released a spreadsheet of laid-off employees' names and contact information to recruiters to help them find new roles. The spreadsheet contained the names of 46 employees as of July 18. Orchard became a unicorn last year. It was valued at $1 billion after a $100 million funding round led by Accomplice.PacasoPacaso co-founders Spencer Rascoff and Austin Allison.PacasoPacaso, a real estate investment company founded by former Zillow executive Spencer Rascoff, laid off approximately 30% of its workforce on October 11, citing concerns about a global recession, according to The Real Deal. Since its founding in October 2020, Pacaso has raised more than $1.5 billion in seven funding rounds, with more than $1.3 billion coming from debt. In September 2021, the company picked up more than $125 million in a Series C round from 11 investors, including Alumni Ventures, SoftBank's Vision Fund, and Fifth Wall.PennymacKrisanapong Detraphiphat/Getty ImagesPennymac, a California nonbank lender, laid off another 80 employees in October primarily from its Roseville, Westlake, Agoura, Moorpark, and Pasadena locations in California, according to HousingWire. The move comes after the company laid off almost 450 employees across two rounds earlier this year. The first round was announced in March, while the second was announced in May, with the layoffs occurring up to July, according to HousingWire.RealiReali sought to simplify the real estate transaction process.The Good Brigade/Getty ImagesSan Francisco Bay area company Reali shuttered its operations in August, affecting 140 employees, TechCrunch reported. The company cited rising interest rates and a bad market for raising capital as the primary reasons for the shutdown. Reali, which was founded in 2016 in Israel, sought to simplify real estate transactions by allowing customers to buy and sell homes in a single, coordinated transaction. This would have eliminated the need for contingencies and paying two mortgages at once. The company raised a $100 million Series B round in August 2021.Realtor.comFirst-time buyers are up against a market where active listings have dropped nearly 67% since 2020, according to Realtor.com.Denis Novikov / Getty ImagesRealtor.com, one of the most recognizable real estate marketplaces in the world, said in September that it was downsizing its workforce. David Doctorow, the company's CEO, cited slow sales volume and economic headwinds as catalysts for the downsizing, according to Inman.com. A spokesperson declined Insider's request to comment on the move.RedfinRedfin CEO Glenn Kelman.Courtesy of ComparablySeattle-based real-estate brokerage Redfin laid off 862 employees, or 13% of its staff, on November 9, according to a memo posted on the company's website. The move comes after the company laid off 6% of its staff of almost 6,500 in June. Overall, employment at the company has declined by 27% since April 30, the memo said. "A layoff is awful but we can't avoid it," Redfin CEO Glenn Kelman wrote. "We plan to keep increasing our share of the market, but that market in 2023 is likely to be 30% smaller than it was in 2021." The company also said on November 9 that it was shutting down its home-flipping, or iBuying, business, called RedfinNow.RhinoA for-rent sign outside a house.ejs9/Getty ImagesThe New York insurance-tech startup Rhino laid off 57 employees, or more than 20% of its staff, in February, The Real Deal reported.Rhino is one company in a growing group of proptech startups that pays renters' security deposits in exchange for small but nonrefundable monthly payments.The company is part of the Kairos portfolio, a group of related startups led by the investor Ankur Jain. The layoffs came a year after Rhino raised $95 million in a round led by 2021's most active venture investor, Tiger Global Management.RibbonRibbon is a software-as-a-service startup from New York City.Alexander Spatari/Getty ImagesNew York City-based startup Ribbon, a software-as-a-solution company for real estate agents, laid off 136 employees in July as the company seeks profitability, Inman reported. The move came after the company doubled its market footprint last year up to eight states, including Ohio, Arkansas, and Florida. Ribbon has raised more than $900 million since it was founded in 2017. Some of the company's investors include Bain Capital Ventures, Greylock, and Goldman Sachs.Rocket MortgageThe Rocket Mortgage logo.Rocket MortgageRocket Mortgage, the largest mortgage lender in the country formerly known as Quicken Loans, has avoided layoffs by offering 8% of its workforce voluntary buyouts, providing months of compensation, medical benefits, and early stock vesting, National Mortgage Professional reported. It is unclear how many employees have taken the buyout offers.SideA family talking to a real-estate agent.Getty ImagesSide, a startup that provides white-label brokerage services like marketing tools to independent brokerages, laid off 10% of the company's workforce. It cut roughly 40 people in June, Inman reported.In June, a fundraising round brought the company to a unicorn valuation and within striking distance of going public.CEO Guy Gal said in a statement provided to Inman and other outlets that the company grew too quickly to adequately onboard new employees and that leadership decided it needed to slow down growth in the face of the condition of the global economy.SonderSonder CEO Francis Davidson.Cassidy AraizaSonder, one of the multiple proptech companies to go public during a rush of SPAC deals, laid off 21% of its corporate employees and 7% of its frontline hospitality staff in June, Business Travel News reported.Sonder operates short-term rental properties in apartment buildings, including some apartment buildings that it operates entirely as hotels.CEO Francis Davidson said in a meeting, according to Business Travel News, that the layoffs were part of a plan to prepare the company for shifting market dynamics that value profitability over growth. Earlier in the month, Satyen Pandya, Side's chief technology officer, left the company, according to a Securities and Exchange Commission filing.Sprout MortgageMortgage rates have increased significantly so far this year.JenniferPhotographyImaging/Getty ImagesSprout Mortgage, which touted itself as the largest originator of nonqualified mortgages, laid off all of its more than 300 workers and shut down operations earlier this month, as HousingWire first reported.Sprout Mortgage is the latest nonqualified-mortgage lender to shutter after the closure of First Guaranty Mortgage Corp.The news prompted a class-action lawsuit from laid-off employees who said they hadn't received paychecks for their last few weeks of work.SundaeRows of suburban houses.David Jay ZimmermanSundae, a marketplace that allows homeowners to sell their homes to investors who then rent out the homes, laid off 15% of its staff, though the total number of people laid off is unclear, HousingWire reported.The layoffs were in June, when Bloomberg reported investors had begun to slow their purchases of homes across the country to rent out because of higher borrowing costs.TomoThe Tomo cofounders Greg Schwartz and Carey Armstrong.TomoTomo, a mortgage startup that focuses on lending to home purchasers, laid off 44 people, or almost one-third of its workforce, in May, Insider previously reported.Greg Schwartz, the company's CEO and cofounder, said the layoffs were a result of the "recent shift in the mortgage and venture-capital markets due to the rapid increase in interest rates."VacasaVacasa rents vacation homes like this one in Montana.Courtesy of Ryan VillinesVacation rental startup Vacasa announced it laid off 280 employees on October 21, in a move that impacted approximately 3% of its workforce, the company confirmed.The layoffs come just weeks after Rob Greyber took over as CEO. It was already trimming staff over the summer, when about 25 salespeople received pink slips.Vacasa has struggled to become profitable since going public in 2021. The company lost $2 million in adjusted earnings in the third quarter of 2022, though it was better than its projected loss of $15 million to $20 million, according to its quarterly report. "We do not take these decisions lightly, but we continuously assess our business, striving to optimize our resources and teams to be efficient and align with our priorities," a company spokesperson told Insider.Wells FargoA Wells Fargo office.Justin Sullivan/Getty ImagesWells Fargo laid off workers across its home-lending operations in April but declined to describe the size or scope of the layoffs to Insider or other outlets.That same month, the company reported that revenues within its home-lending operation were down 33% year over year. The company's chief financial officer, Mike Santomassimo, appeared to forecast further layoffs during its first-quarter earnings call."We've started to reduce expenses in response to the decline in volume and expect expenses will continue to decline throughout the year as excess capacity is removed and aligned to lower business activity," Santomassimo said.The company did not provide further updates about the scope of the layoffs on an earnings call Friday.The WingInside one of The Wing's co-working spaces.Evelyn Hockstein/For The Washington Post via Getty ImagesThe Wing, a New York-based coworking startup that made office spaces for women, shut down its operations in August, according to Layoff Tracker. The company that was founded by Audrey Gelman and Lauren Kassan in 2016 raised more than $117.5 million in funding from investors such as WeWork and Sequoia Capital.Zeus LivingZeus Living rents fully furnished homes.Courtesy of Christopher WillsonZeus Living, a furnished home rental company, laid off 64 employees on October 20 as the company continues to seek profitability and sustainable growth, according to the San Francisco Business Times. The layoffs come approximately 18 months after the startup cut more than 60% of its labor force due to business impacts resulting from COVID. "Like many companies in our industry, we are not immune to the effects of market volatility, inflation, war, and the possibility of a recession," Anni Jones, director of PR for Zeus, told Insider in an emailed statement. Zeus has raised more than $150 million from investors like Picus Capital and Y Combinator since it opened in 2015.ZillowZillow's website shows a series of price cuts on an Atlanta home.ZillowZillow laid off 300 employees as the company pivots to focus on hiring technology and engineering staff, TechCrunch reported on October 26. The layoffs primarily impacted employees in Zillow Offers, its sales team, and staff at Zillow Home Loans, the company's mortgage lending arm. The move comes nearly a year after Zillow laid off 25% of its workforce after shuttering its iBuying program known as Zillow Offers. "As part of our normal business process, we continuously evaluate and responsibly manage our resources as we create digital solutions to make it easier for people to move," a company spokesperson told Seeking Alpha. "This week, we have made the difficult — but necessary — decision to eliminate a small number of roles and will shift those resources to key growth areas around our housing super-app. We're still hiring in key technology-related roles across the company."ZumperAn apartment listed for rent in Manhattan.Bizzarro Agency LLCWhile most of the layoffs have struck the residential-purchase market, companies focused on rentals haven't escaped unscathed.In June, the rental marketplace Zumper cut 15% of its staff, mostly in the sales and customer-service departments, The Real Deal reported. It is unclear how many employees were cut.Axel Springer, Insider Inc.'s parent company, is an investor in Zumper. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 9th, 2022

Tesla just celebrated its 12th year as a public company. Here are the most important moments in its history.

Take a tour through Tesla's history from Silicon Valley startup to the world's most valuable car company. Tesla Model 3.Tesla On June 29, 2022, Tesla celebrated its 12th anniversary as a public company.  Tesla closed out its first day of trading in 2010 with a market cap of $2.22 billion. It's now worth roughly $700 billion.  The company put electric cars on the map.  On June 29, Tesla celebrated its 12 year as a public company. Since its IPO in 2010, Elon Musk's electric-car company has contented with high highs and low lows. And through all the twists and turns, Tesla managed to put electric vehicles on the map and become the most valuable car company on the planet. Tesla's journey from fledgling startup to EV juggernaut hasn't always been smooth sailing. While the company has notched plenty of achievements, it's also experienced its fair share of setbacks. Here's a breakdown of the company's most defining moments since its founding. July 2003: Tesla Motors is founded by a group of Silicon Valley engineers.Martin Eberhard, co-founder of former CEO of Tesla Motors, poses next to an electric motor.Paul Sakuma/ AP PhotoWhile Elon Musk, Tesla's current CEO, has led Tesla for the majority of its existence, he wasn't always at the helm of the company. Tesla, named after the famous physicist Nikola Tesla, was incorporated in 2003 by two engineers, Martin Eberhard and Marc Tarpenning. Later co-founders included JB Straubel, Ian Wright, and Musk. Eberhard served as CEO until August 2007, and left the company shortly thereafter. February 2004: Elon Musk invests.Musk in 2006.Joanne Ho-Young Lee/MediaNews Group/The Mercury News via Getty ImagesMusk led the company's Series A funding round in 2004, contributing $6.5 million and joining Tesla's board as chairman. August 2006: Musk reveals Tesla's Master Plan.Musk.Thomson ReutersIn 2006, Musk published a blog post entitled "The Secret Tesla Motors Master Plan (just between you and me)" in which he laid out Tesla's long-term mission: to help transition the world away from fossil fuels and toward clean energy. "Some readers may not be aware of the fact that our long term plan is to build a wide range of models, including affordably priced family cars. This is because the overarching purpose of Tesla Motors (and the reason I am funding the company) is to help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy, which I believe to be the primary, but not exclusive, sustainable solution." November 2007: Ze'ev Drori named CEO.Ze'ev Drori.Robert Galbraith/ReutersTesla announced Drori would take the helm at Tesla at the end of November. An Israeli engineer and tech veteran, Drori was tasked with bringing Tesla's first car, the Roadster, to market by the first quarter of 2008.  February 2008: Tesla's first Roadster is delivered.The Tesla Roadster.TeslaDrori managed to bring the Roadster into production on time and the first vehicle was delivered to Musk, who was serving as the company's chairman at the time. To celebrate the occasion, Musk jumped in the Roadster and led four other prototype Roadsters packed with engineers down Highway 101 and University Avenue in Palo Alto, California.  March 2008: The company begins regular production of the Roadster.Tesla RoadsterScott Olson/Getty ImagesBy mid-March, the company had met its goal of getting regular production of the Roadster up and running. At the time, Drori referred to the event as a "milestone for the company and a watershed for the new era of electric vehicles." Tesla produced the Roadster, which priced at $109,000, until January 2012 and in total sold 2,450 of them.October 2008: Musk assumes title of CEO.REUTERS/Noah BergerBy October, Tesla was feeling pressure created by the financial crisis. "The global financial system has gone through the worst crisis since the Great Depression, and the effects are only beginning to wind their way through every facet of the economy. It's not an understatement to say that nearly every business will be impacted by what has unfolded in the past weeks, and this is true for Silicon Valley as well," Musk said at the time.Musk announced he would be taking over the company and that there would be layoffs. He also pushed the launch date of the Model S sedan, Tesla's next vehicle, from 2010 to mid-2011.  November 2008: Tesla secures $40 million in financing and avoids bankruptcy.Elon Musk, CEO of Tesla Motors, listens as Governor Brian Sandoval of Nevada speaks during a press conference at the Nevada State Capitol, September 4, 2014 in Carson City, Nevada.Max Whittaker/Getty ImagesBy November 2008, the company's financial situation had worsened and Tesla was on the brink of bankruptcy. To help restore Tesla's coffers and speed up Roadster production, the company's board of directors approved $40 million in convertible debt financing."Even then, we only narrowly survived...We actually closed the financing round on Christmas Eve 2008. It was the last hour of the last day that it was possible," Musk said in 2015.    March 2009: Tesla unveils a prototype of its second car, the Model S sedan.Elon Musk and Tesla designer Franz von Holzhausen at the Tesla Model S media launch in Hawthorne.Fred Prouser/ReutersTesla unveiled its second car, the Model S, in March 2009 in Hawthorne, California at the SpaceX headquarters.  By May 12, 2009, Tesla had already surpassed 1,000 reservations for the Model S.   May 2009: Mercedes-maker Daimler takes a 10% stake in Tesla for $50 million.Elon Musk and Daimler Board Member Thomas Weber talk about the deal on Fox Business news.YouTube/Every Elon Musk VideoThe $40 million in financing helped get Tesla through its darkest hour, but the company needed more resources to further develop its battery technology. Tesla and Daimler had already been in partnership for about a year working on an electric Smartcar. But by May, Daimler made a long-term bet on Tesla by taking a 10 percent stake in the company. The two companies agreed to work together on developing battery and electric drive systems.In June 2009, Tesla also received a $465 million loan from the Department of Energy, which it repaid by May 2013.   June 2010: Tesla goes public.CEO of Tesla Motors Elon Musk waves after ringing the opening bell at the NASDAQ market in celebration of his company's initial public offering in New York June 29, 2010.REUTERS/Brendan McDermidTesla offered 13.3 million shares at $17 per share. The company raised $226.1 million. Shares closed at $23.89, valuing Tesla at $2.2 billion. October 2, 2011: Elon Musk reveals Model S beta.REUTERS/Stephen Lam In late 2011, Tesla showed off a near-production version of the Model S to about 3,000 early reservation holders. Musk revealed that the vehicle would get 320 miles per charge and go from 0 to 60 mph in 4.5 seconds. "The oil companies said electric cars can't work, but the truth is, they don't want them to work. But here it is. They would say this car is the equivalent of a unicorn. Well, tonight you had the opportunity to ride a unicorn," Musk said at the event.February 2012: Tesla reveals the Model X SUV.Alex Davies / Business InsiderJust a few months later, Musk unveiled a prototype of the Model X, the company's first SUV. The vehicle's most novel feature was its falcon-wing doors. By February 2012, the company had amassed advance sales of more than $40 million. At the time of its reveal, Tesla aimed to have the Model X in production by 2014. However, it wouldn't actually enter production until the end of 2015.   June 2012: Tesla begins delivery of Model S.Tesla Chief Executive Office Elon Musk celebrates at his company's factory in Fremont, California, June 22, 2012, as the car company began delivering its Model S electric sedan.ASSOCIATED PRESSIn a major milestone, Tesla started delivering the Model S to customers in June 2012.September 2014: Tesla decides to expand out of California with a second factory in Nevada.Tesla MotorsTesla announced its plans to build its giant battery factory, dubbed the Gigafactory, in February 2014 and ultimately decided to built it in Sparks, Nevada. The original site was 1,000 acres, but in June 2015 the company purchased an additional 1,864 acres of adjacent land.April 2015: Tesla reveals the Powerwall, a giant rechargeable battery for your home, and its Powerpack, a battery for commercial use.Tesla's newest product "Powerwall" is unveiled on stage in Hawthorne, Calif., Thursday, April 30, 2015. Tesla CEO Elon Musk is trying to steer his electric car company's battery technology into homes and businesses as part of an elaborate plan to reshape the power grid with millions of small power plants made of solar panels on roofs and batteries in garages.AP Photo/Ringo H.W. ChiuTesla made a big push into energy when it unveiled the Powerpack and Powerwall at an event in Hawthorne, California in 2015.Musk said that batteries were the "missing piece" of Tesla's business model and claimed that 160 million Powerpacks could power the United States.The company followed up in a statement on its website declaring that "Tesla is not just an automotive company it's an energy innovation company."September 2015: Model X deliveries begin.Tesla CEO Elon Musk speaks during an event to launch the new Tesla Model X Crossover SUV on September 29, 2015 in Fremont, California.Justin Sullivan/Getty ImagesTesla had originally planned to launch its Model X SUV in late 2013 or early 2014, but production delays forced the company to push back deliveries by almost two years. The vehicle's highly-specialized features, like its signature doors made it complicated to manufacture on a mass scale.     October 14, 2015: Tesla launches Autopilot to customers.YouTube/TeslaTesla began rolling a software update that activated its new advance driver-assistance system, Autopilot. Since late 2014, Tesla had included the necessary radar, camera, and ultrasonic sensors to make Autopilot work. With Autopilot switched on, a Model S could automatically stay centered in its lane and brake and accelerate to keep up with traffic. These remain the basic functions of Autopilot.  March 2016: Tesla unveils the Model 3, its first mass-market car.TeslaMusk unveiled the much-anticipated Model 3 on March 31, 2016. He announced that the car would get 215 miles or more per charge and go from 0-60 mph in less than six seconds. Tesla planed a starting price of $35,000, though that price point was never widely available. May 2016: A man is killed while using Tesla Autopilot in his Model S.National Transportation Safety BoardThe first fatal Autopilot accident occurred in May 2016, but word didn't get out about the incident until more than a month later. On June 30, government regulators revealed they were looking into a tie between the fatal accident and Tesla's Autopilot feature. Tesla issued a statement calling the incident a "tragic loss."According to Tesla's statement, the Model S was driving down a divided highway when a tractor-trailer cut across the highway perpendicular to the vehicle. "Neither Autopilot nor the driver noticed the white side of the tractor-trailer against a brightly lit sky, so the brake was not applied. The high ride height of the trailer combined with its positioning across the road and the extremely rare circumstances of the impact caused the Model S to pass under the trailer, with the bottom of the trailer impacting the windshield of the Model S," Tesla said.   June 2016: Tesla announces plans to purchase Solar City for $2.6 billion.APThe company made a $2.6 billion bid to acquire SolarCity, a solar installation company run by Musk's cousin. Not surprisingly, the deal was controversial from the start, primarily because SolarCity was about $3 billion in debt and the deal was seen as a bailout. Further complicating the matter, Musk was also the chairman of the company.  July 2016: Elon Musk reveals Tesla Masterplan Part Deux.ReutersIn 2016, Musk revealed the second part of his company's "master plan," which outlined four key goals: 1. Develop "stunning" solar roofs that seamlessly integrate with Tesla's battery storage.2. Roll out more affordable vehicles "to address all major segments."3. Advance its self-driving technology so that it is "ten times safer" than manual driving. 4. Roll out a car-sharing program that enables Tesla owners to make money by renting out their autonomous car. Over the years, Musk has repeatedly touted Tesla's plans for self-driving vehicles that can earn their owners passive income. But this robotaxi vision is still a long way off. November 2016: Tesla buys a German engineering company to help it push further into automation.YouTube/iPhone-FanMusk made it clear in early 2016 that automation was the future for Tesla. During a shareholder meeting in June, Musk said that he saw a huge opportunity in "building the machine that makes the machine." So it wasn't all that surprising when Tesla announced it was buying Grohmann Engineering, a German firm that specializes in designing systems for manufacturing automation.  November 2016: Tesla officially gets into the solar business.Elon Musk, Chairman of SolarCity and CEO of Tesla Motors, speaks at SolarCity's Inside Energy Summit in Midtown, New York.Thomson ReutersTesla closed its deal with SolarCity in November 2016.Some Tesla shareholders alleged that the deal amounted to a bailout that unfairly enriched Musk's family, sparking off a lengthy legal battle. Musk won the case in April.     February 2017: Tesla rebrands.APIn 2017, the automaker dropped the "motors" from its name in a move meant to reflect the fact that Tesla no longer just sold cars.  July 2017: Tesla launches the Model 3.Tesla Model 3.TeslaTesla launched the Model 3 in July 2017.  The first cars went to Musk and Tesla employees. Getting the Model 3 — a more affordable, mass-produced vehicle — to market was crucial for Tesla to grow its reach to become profitable. What ensued was months of "production hell," as Tesla ramped up production to thousands of cars per week. November 12017: Tesla unveils the Semi conceptTeslaAt an event at Tesla's Hawthorne, California, facility, the automaker showed off its Semi truck concept. With a center-mounted seat, the Semi promised a range of 500 miles and a 400-mile range after 30 minutes of charging. Musk even claimed it would have self-driving capabilities.The Semi has been delayed multiple times, but Tesla now says it will go into production in 2023. November 2017: Tesla unveils the Roadster conceptTeslaAt the Tesla Semi's unveiling, the company took the opportunity to tease another future product: the Roadster. Tesla claimed the $200,000 sports car would hit 60 mph in just 1.9 seconds. After delays, it's set to go into production in 2023. February 2018: Musk's Tesla Roadster goes to space.SpaceX via Getty ImagesIn February 2018, the rocket company SpaceX, another Musk venture, launched its founder's Tesla Roadster into orbit during a test launch of its Falcon Heavy rocket. A dummy dubbed "Starman," wearing a SpaceX spacesuit, was strapped into the driver's seat.  The car is currently orbiting the Sun.  August 2018: Musk tweets that he is "considering taking Tesla private at $420" a share.AP PhotoHe also said that he'd "secured" funding. The tweet would kick off an SEC investigation into Musk's tweeting habit. September 2018: The SEC charges Musk with making "false and misleading statements" about taking Tesla private.Brendan Smialowski/AFP via Getty ImagesThe agency accused Musk of misleading the public, claiming that he knew he didn't have a deal to take Tesla private. Eventually, the two settled. Musk had to step down as the chairman of Tesla's board of directors. Both he and Tesla were fined $20 million. The agreement stipulated that, going forward, Tesla lawyers needed to approve any of Musk's tweets containing material information about the company. March 2019: Tesla unveils the Model Y, its fourth vehicle.Tesla's Model Y.Tesla Motors/Handout via ReutersIn March 2019, Tesla revealed its fourth vehicle to date. Tesla said the Model Y would be able to travel 300 miles on a charge and seat seven people. October 2019: Tesla starts production at its new Shanghai factory.A Tesla logo is seen at a groundbreaking ceremony of Tesla Shanghai Gigafactory in ShanghaiReutersTesla became the first western automaker to own a factory in China without a joint venture. The factory, located in Shanghai, would help Tesla better supply the world's largest car market with its most popular vehicle, the Model 3. November 2019: Tesla unveils the Cybertruck pickup.FILE PHOTO: News: Tesla CybertruckReutersMusk unveiled the Cybertruck at an event on November 21, 2019. Tesla said the radically designed truck would be able to tow 14,000 pounds and travel 500 miles on a single charge.All did not go off without a hitch, though, as a demonstration meant to show the strength of the "armored" glass used in the truck left two huge cracks in it. The Cybertruck was supposed to be on sale already. Now Tesla says it'll hit streets in 2023. It's been beat to market by electric pickups from Ford, General Motors, and Rivian Automotive. March 2020: Tesla starts delivering the Model Y.Tesla Model Y/TeslaTesla started delivering the Model Y SUV to customers just as the global pandemic hit the US. June 2020: The Tesla Model S becomes the first EV to get a 400-mile range rating by the EPATeslaThe Tesla Model S Long Range Plus achieved an EPA-rated range of 402 miles, making it the first EV to do so. The company achieved this through cutting down on weight and maximizing regenerative braking.The Model S has since been beat by the Air, a sedan from the California startup Lucid Motors. But the Model S is still one of the longest-range electric cars you can buy today. July 2020: Tesla says it's turned a profit for four quarters in a row for the first time.Elon Musk.Alexi Rosenfeld / Contributor / gettyAfter burning through cash for years, Tesla hit its stride and started turning a consistent profit. The feat teed it up for being added to the S&P 500 index later that year. December 2020: Tesla builds 500,000 cars in a year.Tesla Model Y vehicles.Visual China Group / GettyTesla delivered 499,550 vehicles in 2020, just shy of its goal of half a million units. February 2021: Tesla spends $1.5 billion on bitcoin.Bitcoin tumbled to well below $20,000 over the weekend, before rebounding somewhat on Monday.Anadolu Agency/Getty ImagesAmid a cryptocurrency gold rush, Tesla announced it had bought $1.5 billion worth of bitcoin in January of 2021. It said it planned to accept the currency as a payment for Tesla cars, but that didn't last long. The value of bitcoin has plummeted in recent months, meaning Tesla's crypto bet is likely under water. June 2021: Tesla starts delivering the Model S Plaid, its fastest car ever.Tesla Model S Plaid.TeslaTesla announced the Model S Plaid at an even in September 2020, and started shipping it to customers in June 2021. Tesla's most powerful and fastest vehicle ever, the Plaid has three motors that propel it to 60 mph in a claimed 1.99 seconds. It now costs $135,990. October 2021: Tesla becomes a $1 trillion company.Tesla's share price soared to new heights in 2021.NDZ/Star Max / Contributor via GettyTesla's share price skyrocketed for the better part of 2020 and 2021 as the company proved its profitability and grew sales. In October 2021, as its share price crested $1,000, Tesla's market cap surged past $1 trillion. It joined powerhouses like Apple, Alphabet, Amazon, and Microsoft. December 2021: Tesla moves its headquarters to Texas.Tesla Giga Texas manufacturing facility during the "Cyber Rodeo" grand opening party on April 7, 2022 in Austin, Texas.SUZANNE CORDEIRO/AFP via Getty ImagesAfter announcing the move in October, Tesla officially moved its headquarters out of Silicon Valley to Austin, Texas in December. Musk also moved to Texas, where SpaceX's launch site is. March 2022: Tesla opens its third car factory near Berlin.One of the first Tesla Model Y SUVs leaves the assembly line at Tesla's Berlin factory.picture alliance / ContributorAfter months of bureaucratic delays and environmental protests, Tesla kicked off production at its new factory near Berlin in March. Tesla is building Model Y SUVs there for the European market. April 2022: Tesla opens Austin, Texas, Gigafactory.CEO of Tesla Motors Elon Musk speaks at the Tesla Giga Texas manufacturing "Cyber Rodeo" grand opening party on April 7, 2022 in Austin, Texas.SUZANNE CORDEIRO/AFP via Getty ImagesMere weeks after opening its third vehicle plant in Germany, Tesla opened a fourth, marking the occasion with a "Cyber Rodeo" party. The company makes the Model Y there. It also plans to eventually build the Cybertruck pickup at the sprawling facility. June 2022: Tesla moves to cut 10% of salaried staffA Tesla Model 3.David Zalubowski/APAmid a broader economic downturn, Musk outlined plans to cut 10% of Tesla's salaried staff in June. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJul 11th, 2022

"Recession Is On Its Way" - Dallas Fed Shows Factory Activity Slumps For 9th Straight Month

"Recession Is On Its Way" - Dallas Fed Shows Factory Activity Slumps For 9th Straight Month While the headline Dallas Fed Manufacturing Activity Index printed better than expected (-8.4 vs -15.0), it remains in contraction (less than zero) for the 9th straight month (the longest streak since 2016)... Source: Bloomberg And in fact, the better than expected print was driven solely by 'hope' as current production tumbled in January but 'expectations' for future production rose... Source: Bloomberg Surprisingly, while the outlook for six-months ahead improved (but remains negative)... ...you wouldn't know it judging by the responses that The Dallas Fed decided to release for publication... notice a pattern? Food manufacturing We had a customer in the pet food segment significantly decrease its orders due to an inventory backlog. Uncertainty from the overall economic downturn is affecting our long-term strategy. Business is sluggish. We’re seeing increased illiquidity in our customer base. Beverage and tobacco product manufacturing We are still seeing input costs increase. We had let our gross margin erode over the last couple of years and are now playing catch-up. We are raising prices faster than our inputs increase in a bid to restore an acceptable gross margin. This is resulting in slightly increased dollar sales and increased gross margin, but decreased unit sales. We also had many of our older 3G-based [wireless] credit card readers that we mistakenly thought also had 4G capability stop working due to the phase-out of 3G. New 4G/5G radios are on a several-month back order. Some unknown share of our sales decline is due to lack of credit card readers at the point of sale. Textile product mills Uncertainty is high. Holiday sales were stronger than expected, but January is slow versus last year. Delivery times are down, but future demand and sales sentiment are low. Paper manufacturing Activity continues to slip, and selling prices are coming down. We still can’t find any workers and, with our six-month projection, we have quit looking. Printing and related support activities We have definitely seen a slowdown in activity compared to prior months. It's as if the spigot got turned off. All our supply-chain constraints are pretty much gone, with delivery times much more like prepandemic times. We have work coming up but right now are very slow and struggling to get our hourly workers even 32 hours per week. Chemical manufacturing Lost production due to Winter Storm Elliot caused tightening of our inventory levels. We are seeing a slowdown in orders and clients unwilling to hold additional inventory. Primary metal manufacturing Recession is on its way. The residential building and construction industry has seen a significant decrease in orders across the extrusion industry. Also, imports of aluminum extrusions from South America, Mexico, Malaysia, Vietnam, Turkey and India are at record highs. Mexico is gaining more and more business in the U.S. due to not having to pay Section 232 tariffs, whereas U.S. domestic extruders are paying the tariff via our raw aluminum or billet purchases. If action is not taken, the U.S. aluminum extrusion industry as we know it today will be shutting down capacity and plants. Machinery manufacturing We are seeing improvement in the business climate. Our competitors are coming to us to supply their customers. Additionally, we are purchasing new machines to add capabilities in our business and further vertically integrate our manufacturing. This will improve our profitability and reduce lead time to produce our products. Order volume has been going down, and we expect the trend to continue. Raw material pricing seems to be stable at the present time. Current federal policies are killing small businesses. From diesel prices to shortages, everything costs so much more. Computer and electronic product manufacturing We provided significant (10 percent or more) raises in December after a midyear raise in July 2022. We felt that this was essential in order to keep our employees, and we have successfully retained everyone we wanted to keep. We hope not to need to do another round of raises midyear. Since our employees are blue-collar workers, inflation hits them particularly hard, and they are more willing to look for another job for a 10–15 percent pay increase. We are investing in more automation and removing process bottlenecks to increase productivity and reduce lead time. Transportation equipment manufacturing We have a bleak outlook until the Federal Reserve stops interest hikes and the administration seeks energy independence. We are starting to see some customers pushing delivery out due to market uncertainty. Furniture and related product manufacturing Requests for bids continue at a steady rate; we have not yet seen a contraction. The only change is, when posting job openings, we actually have people responding—this is a big change and likely a sign of some layoffs after the holidays from other companies. The biggest issues facing our company are increased regulations and contact from federal, state and local entities regarding a variety of topics. Often it feels as a small business that the government does not want us to succeed. Miscellaneous manufacturing We continue to see large fluctuations in raw material pricing from order to order. Pricing has not corrected from the metals market shutdown in March 2022. Most lead times for raw material remain longer than in previous years. Order volumes remain flat across all markets we serve—automotive OEM [original equipment manufacturers], plumbing and ammunition. Raw material costs and lead times have declined since 2022. Not exactly a picture of the 'strong as hell' economy we hear from The White House? Tyler Durden Mon, 01/30/2023 - 11:20.....»»

Category: worldSource: nyt39 min. ago

"Labor Hoarding": New Theory Emerges To Explain The Lack Of Labor Market Collapse

"Labor Hoarding": New Theory Emerges To Explain The Lack Of Labor Market Collapse Setting aside how credible any data released by the BLS now is - considering that not just this website but even the Philly Fed has challenged the accuracy of the Payroll reports' Establishment survey, while Goldman recent found that actual layoffs as indicated by state WARN notices are far higher than those seasonally adjusted by the Department of Labor, there was one data point that prompted quite a few commentators to scratch their heads. Recall that one of the reasons stocks were pleasantly surprised by the jobs report is that not only did payrolls dip again (if printing as usual above average), but average hourly earnings slumped. But there was more: alongside the decline in wages, average hours worked also declined (which had a material impact on the average wages, and had hours been flat, the decline in average wages would have been even more pronounced). Why does this matter? Well, as Goldman trader Rich Privorotsky wrote on Friday, the deceleration in wage gains as of late and "the shirking of hours worked is in no way consistent with a wage spiral, and in fact suggests something unusual might be happening as corporates reluctant to shed hard to find labor are shrinking the work-week/hours worked rather than cutting payrolls." This would make intuitive sense if one assumes that employers are still smarting from the difficulty to find workers in the post-covid months when millions of low and medium-income workers simply exited the workforce. As such, if everyone is convinced that the coming recession will be light, employers are more tempted to shrink (in some cases aggressively) their employees' hours rather then engage in layoffs, especially if they are concerned they will have difficulty finding workers in a few months (all of this, of course, assumes that the recession will be "shallow" whatever that means). As evidence, Privorotsky shows the decline in the average employee workweek as proxied by both the Philadelphia and Empire Fed's surveys. Others at Goldman agree, and in a note published by the bank's economist team looking at the ongoing rebalancing in the labor market (available to pro subs), they found that while Labor demand still remains high it is now falling: "The trend has admittedly become murkier recently as measures of job openings have diverged. But the average of these measures is still declining, and business surveys also suggest that total labor demand is still coming down." Here is the interesting part in the Goldman report, : Labor supply has at most a bit more room to recover. The discussion about labor supply during the pandemic has mostly centered on “missing workers,” and for the first couple of years there was indeed room for the labor force participation rate to rebound as fiscal support and Covid fears faded. But we noted last summer that the participation rate had already largely recovered, and the small increase in December to 62.3% brought it to our year-end target that embedded some further cyclical recovery to offset an ongoing downward trend driven by demographics. While prime-age participation is still a bit below its pre-pandemic rate, the overall participation rate has now nearly returned to the CBO’s estimate of the trend implied by demographic changes, as shown on the left of Exhibit 4, and a new paper by economists Bart Hobijn and Ayşegül Şahin also suggests that the gap is largely closed. The remaining labor supply shortfall relative to pre-pandemic trends actually comes less from reduced participation than from a decline in average work hours. In another paper, Şahin, R. Jason Faberman, and Andreas I. Mueller use data from a supplement to the New York Fed’s consumer survey to show that workers’ desired work hours dropped sharply during the pandemic and remained depressed at least through the end of 2021, when their data end, with much of the decline coming from people classified as outside of the labor force who occasionally enter it, such as retirees. New research by Dain Lee, Jinhyeok Park, and Yongseok Shin shows that average hours have fallen since 2019, especially among college-educated prime-age men and among those who work the longest hours, as shown on the right of Exhibit 4. Because, as the authors note, these workers work far longer hours than is typical for US workers let alone those in other high-income countries, this change might persist to some extent. Maybe the best discussion on this topic comes from Amberwave co-founder Stephen Miran, who earlier today tweeted some of his observations on why the US is still not in a recession, and concludes that "the principal reason is the missing construction layoffs.  Mortgage rates shot up from 3% to 7%, making buying a home unaffordable for many folks.  Normally, one expects a slowdown in construction activity and layoffs.  But, construction employment is at all time highs!" The principal reason is the missing construction layoffs. Mortgage rates shot up from 3% to 7%, making buying a home unaffordable for many folks. Normally, one expects a slowdown in construction activity and layoffs. But, construction employment is at all time highs! pic.twitter.com/AepOyF113r — Stephen Miran (@SteveMiran) January 22, 2023 Arguing that in light of the dramatic slowdown in activity in the construction sector, "we'd expect huge layoffs"  with "expected layoffs in the neighborhood of 500k to 800k jobs, and with multipliers, this would be 1 to 3 million total losses. That's a real recession." But these layoffs still haven't taken place, prompting Miran to proposed several explanations why not: 1. They will.  (Maybe, but I don't see -any- sign of them in the data...yet.). There are some reasons for expecting the layoffs to eventually come.  In particular, the huge divergence between the number of homes being sold and the number of homes currently under construction, which will presumably come down as homes are completed. 2. The extraordinary backlog of homes demand due to pandemic changes in the economy like wfh.  This is a possible explanation, but presumably at some point runs out? 3. Labor hoarding by builders, i.e. holding onto employees for fear of being able to replace them if necessary in a tight labor market.  Miran says that he is "generally dismissive of labor hoarding for the economy as a whole, but more sympathetic in the building sector.  Why?" The principal reason is the Infrastructure Investment and Jobs Act, passed in 2021.  As I pointed out at the time in WSJopinion, the IIJA is going to further fuel inflation. Going into CY2023, there's going to be ~$38 billion of Federal spending on construction and other projects kicking in. In CY24, it'll be closer to $54 billion.  Assuming some multipliers, these go a long way to offsetting a big chunk of the decline in private structures spending. (Ignore the decline in direct spending here, that's largely the offsets from reduced spending on phrama or subsidies to GSEs) In other words, I suspect builders are holding onto employees because the $$$ being spent by Uncle Sam on construction are going to start kicking in this year.  Given a historically tight labor market where employees seem to have all the power, they'd rather hold onto the workers Why lay off your workers now if you expect real difficulty in hiring them back if building starts to pick back up, particularly for nonresidential construction? While this may well be the most likely explanation, and one which will be tested most easily by the severity of the coming recession (if indeed there is labor hoarding within construction, an extended deterioration in the sector will only result in an even more acute collapse in construction jobs in the near-term), there is another possible explanation, namely that financial conditions have eased significantly since September: stocks, mortgage rates, the dollar. It's not difficult to imagine a world in which home prices fall by 10% or so, but given strong wages, resilient stocks, and falling mortgage rates, final demand stays robust.  Given the historic run up in home prices, builders are still very profitable at those levels. In other words, maybe builders expect a surge of private demand in the near future and are therefore holding onto their employees. Miran's conclusion is spot on, and boils down to the following: The missing construction layoffs ARE the missing recession.  If they come, we'll have a recession.  There's a reason for expecting them to come (homes under construction lagging sales), and reasons for expecting them not to (future demand picking up, private & public) Watching this sector will give us a clue as to whether we'll see a recession or not.  In the meantime, real incomes are accelerating on lower inflation, and as I've stressed 100x, financial conditions easing ought to induce a pickup in GDP growth There is thus some chance the economy reaccelerates before those layoffs come, and the recession is avoided.  However, in that case, the Fed will be goaded into a new hiking cycle, as inflation will pick back up, and the recession will be delayed and not avoided. Afternote: there's a race between the exhaustion of the backlog & the coming construction layoffs, vs. a reacceleration of the economy on easing financial conditions & IIJA boosting construction demand. Which of these forces wins the race determines whether we have: Recession, or Burst of growth, followed by new hiking cycle, followed by recession In other words, we will either get a recession, if construction employment suddenly tumbles, or we will get a transitory growth burst - largely on the back of the market pricing in the coming Fed pause - which will avoid a round of mass layoffs in construction, which will however lead to even more inflation, and an even more aggressive hiking cycle, leading also to recession. Tyler Durden Mon, 01/23/2023 - 18:00.....»»

Category: worldSource: nytJan 23rd, 2023

Futures Steady As Fed Blackout Begins, China On Holiday, Earnings Galore

Futures Steady As Fed Blackout Begins, China On Holiday, Earnings Galore US equity futures were little changed, trading in a narrow ten point range during a muted overnight session on Monday as investors braced for a moderation in Fed rate increases after the Fed mouthpiece suggested a 25bps hike is now the baseline (coming at a time when the Fed is now in a quiet period until the Feb 1 FOMC meeting), while bracing for a busy week of earnings. S&P 500 and Nasdaq futures each rose 0.1% at 7:45 a.m. ET after both underlying benchmarks rallied on Friday. The tech-heavy Nasdaq 100 Index has posted three weeks of gains, the longest winning streak since mid-August. 10Y TSY yield rose 2bps to 3.50%, while the dollar rebounded from nine-month lows against the euro and a group of other currencies, after a slew of Federal Reserve officials laid out the case for a downshift in the Fed's rate-tightening campaign. China and most Asian markets were closed for the Lunar New Year holiday. In premarket trading, Tesla rose more than 2% as sentiment toward the EV maker recovers after aggressive price cuts are seenas helping it gain market share. Salesforce climbed 4.1%  after hedge fund Elliott Investment Management took a substantial activist stake in the enterprise software giant. Western Digital shares gained 1.4% after a Bloomberg report that the company and Kioxia are progressing in their merger talks. Western Digital would spin off its flash business and merge it with Kioxia, creating a publicly traded company in the US, according to people familiar with the matter. Spotify shares advanced 2.6% in US premarket trading, after Bloomberg reported that the music streaming company is said to be planning job cuts as soon as this week, amid layoffs in the broader tech industry. Bank stocks are lower in premarket trading following their best day since November on Friday. In corporate news, Germany’s antitrust regulator opened an investigation into PayPal over potential obstruction of competitors. Here are some other notable premarket movers: AMD and Qualcomm rise after they were upgraded at Barclays, while Applied Materials declines amid a downgrade. Barclays says it’s more positive on semiconductor companies with data center, PC and handset exposure, but remains negative on semiconductor capital equipment stocks. AMD gains 2.5%, Qualcomm advances 2.1%, Applied Materials declines 2% Pliant Therapeutics surges 69% after the biotech announced data from its phase 2 trial for bexotegrast, its treatment for idiopathic pulmonary fibrosis (IPF), prompting analysts to raise their price targets on the stock. Western Digital shares gain 1.4% after a Bloomberg report that the company and Kioxia are progressing in their merger talks. Western Digital would spin off its flash business and merge it with Kioxia, creating a publicly traded company in the US, according to people familiar with the matter. Keep an eye on Warner Music as it was downgraded to equal-weight from overweight at Barclays, which said the recording company’s financial performance has been too volatile to justify a premium valuation. Peer Universal Music is maintained at overweight. Keep an eye on Flywire as it was initiated with an equal weight rating at Morgan Stanley, with the broker expecting faster growth due to the payments company’s “significant competitive product advantages” and untapped potential with global colleges and universities. Planet Labs stock could be in focus after it was initiated at equal-weight by Morgan Stanley, which expects the wireless telecom firm to boost annual revenue by 20%-25% over the next two-to-five years and achieve positive free-cash flow toward the end of that period. Deutsche Bank expects another volatile year for US software stocks as investors look for a bottom amid weakening fundamentals. Downgrades Check Point, Matterport, Workday, CrowdStrike and SentinelOne, while raising Shopify and Confluent. PTC Inc. is upgraded to overweight from sector weight at KeyBanc, with analysts saying the US software provider could be “one of the best” free cash flow growth stories over the next three years. Investors are increasingly contrasting the US picture with a relatively rosier outlook for Europe, which many reckon will manage to dodge recession this year. Forecasts of a US recession in the second half of 2023, the ongoing wrangling in Congress over the debt ceiling and signals from companies weighed on equity index futures, which struggled to build on Friday’s momentum that lifted S&P 500 after four days of losses. On Friday Fed Governor Christopher Waller, one of the more hawkish officials at the US central bank, joined other policymakers in backing another moderation in the size of rate increases when they next gather. Investors are also weighing the incoming stream of corporate earnings for signs of how corporate margins are holding up against inflation and economic slowdown pressures. By contrast, ECB policymakers Klaas Knot and Peter Kazimir spoke in favor of continuing with half-point interest-rate increases at the next two meetings, adding to the hawkish comments made last week by fellow ECB officials. And while there were several notable bullish calls over the weekend, most notably at Goldman where traders clashed over the fate of the market, one place where there was no change in the dour mood was Morgan Stanley whose strategist Michael Wilson said that the improving sentiment toward US equities is at odds with a backdrop of weakening economic data and earnings: “The question is when will equity indices price the current weakness in the leading data and the eventual weakness in the hard data?,” said the strategist, who ranked No. 1 in last year’s Institutional Investor survey. “We think it’s this calendar quarter.” Earnings were also a concern for JPMorgan strategist Mislav Matejka, who notes that the environment will be particularly challenging this year, with corporate pricing power starting to reverse, just as margins are near record-high in the US and in Europe. European stocks also opened higher as they looked to continue their solid start to the year but gains have since evaporated with the Stoxx 600 now trading flat. Tech, miners and real estate are the strongest performing sectors while chemicals and travel underperform. The Stoxx 600 index was steady, having risen nearly 7% this year, almost double the S&P 500’s gain. Meanwhile, the euro strengthened to the highest since April 2022. The single currency is up almost 2% this year against the greenback, after falling nearly 6% last year. “The market has decided recession risks were overdone for Europe and you can see that in the outperformance of European stocks and the euro,” Rabobank strategist Jane Foley said. Here are some of the biggest European movers on Monday: Intesa gains as much as 3.3% after Citi said the Italian lender remains adequately capitalized even after latest charges linked to EBA guidelines that will impact capital this year Atos rises as much as 6.2%, after French weekly Le Journal du Dimanche reported that engineering firm Astek was interested in buying a stake in Atos’ data and cybersecurity unit Evidian Boliden rises as much as 2.9% after Berenberg raised to buy from hold and lifted price target. The miner is well placed to benefit from the rally in commodity prices, Berenberg writes GTT rises after the French group acknowledged the suspension of a decision by the Korea Fair Trade Commission relating to its activities with Korean shipyards in relation to LNG carriers National Express shares jump after the public transport group announced its German rail subsidiary won a €1b contract to operate the RE1 and RE11 Rhein-Ruhr-Express lines until 2033 ISS shares rise as much as 3.3%, with Morgan Stanley saying the organic growth and free cash flow reported by the Danish facilities manager is ahead of prior expectations Symrise drops as much as 8.6% after a larger- than-anticipated margin miss. Peers Givaudan and Croda also fell DSM falls as much as 5.5% after the Dutch chemicals and ingredients group extended the acceptance period for shareholders to tender ordinary shares Juventus shares fall as much as 13% in Milan after authorities penalized the soccer team, with a cut in its point standing because of how it accounted for player transfers Informa shares fall on Monday after UBS downgrades to neutral from buy, saying the consensus has largely priced in a recovery in the events firm’s China business Earlier in the session, Asian stocks rose with Japan leading gains as much of the region was closed for the Lunar New Year holiday, as prospects for slower Federal Reserve policy tightening lifted investor sentiment. The MSCI Asia Pacific Index was up 0.4%, on track for its highest close since June 9, driven by gains in Tokyo-listed technology shares including Keyence and Tokyo Electron. Key share gauges also rose in India. Trading overall was light with markets shut in Greater China and a number of other countries. Asian equities have been outperforming global peers this year amid optimism over China’s reopening and its easing crackdown on large tech companies. While further moderation in Fed rate hikes should be another tailwind for the region, questions linger over the outlook for the global economy. Federal Reserve Governor Christopher Waller, one of the more hawkish officials at the US central bank, Friday joined other policymakers in backing another moderation in the size of rate increases when they next gather. “If the inflation rate drops as expected, and the Fed finally decides to stop raising interest rates, it would then be positive for stock prices in the long term, but we are probably not there yet,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd. in Tokyo. The MSCI Asia benchmark is up 7.7% so far in 2023, more than double the gain in the S&P 500 Index, and is trading above technical levels often seen as overbought. Japan’s Topix has underperformed with a rise of less than 3% amid expectations the nation’s central bank may move away from its ultra-easy monetary policy. Japanese equities rose, following US peers higher as comments from Federal Reserve officials calmed concerns over aggressive monetary tightening.  The Topix Index rose 1% to 1,945.38 as of the market close in Tokyo, while the Nikkei 225 advanced 1.3% to 26,906.04. Keyence contributed the most to the Topix’s gain, increasing 2.8%. Out of 2,161 stocks in the index, 1,832 rose and 263 fell, while 66 were unchanged. “The rebound of US Nasdaq had a positive influence on Japanese equities, as it cooled concerns over tech-related stocks,” said Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Ltd. “While the stock market rallied on potential easing of monetary tightening by the Fed officials, it might be still early to be optimistic about the economic situation,” Sera said. Australian stocks ticked higher, extending their winning streak to four days. The S&P/ASX 200 index rose 0.1% to close at 7,457.30. Energy and technology stocks contributed the most to the benchmark’s advance. Karoon was the top performer after reporting higher reserves at its Bauna oil project in Brazil. In New Zealand, the S&P/NZX 50 index fell 0.2% to 11,948.72 In FX, the diverging rate bets pressured the dollar, which stayed just off nine-month lows against a basket of peers. The Bloomberg Dollar Spot Index dropped as much as 0.3% before paring, and the greenback weakened against all of its Group- of-10 peers apart from the yen. Scandinavian and Antipodean currencies were the best performers. Pressure on the greenback has increased after last week’s weak retail sales data and a slump in business equipment production reinforced the challenges for the world’s biggest economy. The euro rose as much as 0.7% to 1.0927, the highest since April 21, before paring. Options gauges however point to downside risks for the euro. The pound rose to a seven-month high of 1.2448. Gilts advanced, led by the front end of the curve The yen was sold in the Asia session and Japanese bond futures extended gains as the BOJ’s offer of five-year loans drew strong demand, spurring traders to cover their short positions. Institutional investors have turned bullish on the yen for the first time since June 2021 as speculation mounts over the future of the BOJ’s ultra-easy monetary policy In rates, Treasuries drift lower with the curve steeper and long-end yields cheaper by up to 2.5bp on the day. No strong catalyst for price action with S&P 500 futures little changed near top of Friday’s range. US 10-year yields trade just over 3.50%, cheaper by ~2bp vs Friday’s close with bunds and gilts slightly outperforming in the sector; front-end Treasuries steady, steepening 2s10s and 5s30s by ~1bp.US auctions resume Tuesday with $42b 2-year note sale, ahead of $43b 5-year and $35b 7-year notes Wednesday and Thursday. Euro-area bonds followed US Treasuries. Focus Monday will be on the host of ECB speakers including for hints on the direction of policy ahead of next week’s rate decision. US session is light on calendar events with Fed speakers in quiet period ahead of Feb. 1 policy announcement. In commodities, crude futures advance with WTI gaining 0.5% to trade near $82.00. G7 is considering two price caps for Russian oil products, one for expensive products such as diesel or gasoline and another for cheaper products e.g. fuel oil, via Politico citing EU diplomats. India is planning to lower gold import duty to prevent the increase in smuggling, according to Reuters sources. Spot gold has been waning from its USD 1,935.41/oz overnight peak, with traders citing profit-taking following the yellow metal’s recent run higher. LME Copper printed a +6month peak overnight given the positive demand picture and supply-side concerns regarding Peru. Bitcoin is supported on the session and resides at the top-end of a USD 22.94k-22.30k range, albeit it is yet to re-test the January 21st YTD peak of USD 23.35k. Today's calendar is relatively quiet with just the Leading index on  deck. Market Snapshot S&P 500 futures little changed at 3,987.75 STOXX Europe 600 up 0.2% to 453.10 MXAP up 0.5% to 167.79 MXAPJ up 0.2% to 551.49 Nikkei up 1.3% to 26,906.04 Topix up 1.0% to 1,945.38 Hang Seng Index up 1.8% to 22,044.65 Shanghai Composite up 0.8% to 3,264.81 Sensex up 0.6% to 60,975.85 Australia S&P/ASX 200 little changed at 7,457.27 Kospi up 0.6% to 2,395.26 German 10Y yield little changed at 2.18% Euro up 0.4% to $1.0902 Brent Futures up 0.5% to $88.07/bbl Brent Futures up 0.5% to $88.07/bbl Gold spot down 0.1% to $1,924.23 U.S. Dollar Index down 0.30% to 101.71 Top Overnight News from Bloomberg Responding to massive state aid the US is providing for its green transition, European Council President Charles Michel is proposing steps to strengthen the bloc’s economies that would involve a new bond program to even out the different financial situations of EU member states The ECB should continue with half- point interest-rate increases at the next two meetings and the time to slow the pace of hikes is “still far away,” according to Governing Council member Klaas Knot ECB Governing Council member Olli Rehn said “there are grounds for significant increases” in the key interest rate in the winter and early spring, reiterating comments he’d made earlier in the week Japanese government representatives at the BOJ’s December policy meeting requested an urgent time out in a likely sign of their surprise at planned adjustments to the bank’s yield curve control program Some BOJ board members said the bank must communicate clearly that adjustments to the conduct of yield curve control aim to make easing more sustainable and aren’t a policy shift toward an exit, according to minutes of December policy meeting Australian central bank chief Philip Lowe’s prospects for an extension of his role are far from clear-cut, according to economists, with some highlighting political hurdles to his reappointment A more detailed recap of overnight news courtesy of Newsquawk Asia-Pacific stocks began the week with a positive bias but with gains capped amid mass closures across the region. ASX 200 was rangebound as weakness in the defensive sectors was counterbalanced by gains in energy and tech, in which the latter took impetus from last Friday’s outperformance in the Nasdaq after Netflix’s strong subscriber numbers and Google’s announcement to cut its workforce by 12,000. Nikkei 225 was the biggest gainer and rose above 26,900 to print a fresh monthly high where it then met some resistance, while overnight newsflow was extremely light and China, Hong Kong, Taiwan, South Korea, Singapore, Malaysia, Indonesia and Vietnam are all closed for the Lunar New Year holiday. Top Asian News China's box office film sales totalled CNY 1.34bln on the first day of the Lunar New Year holiday (2022 1.45bln YY; 2021 1.67bln YY), via SCMP. China CDC chief epidemiologist said the possibility of a large-scale rebound of a COVID outbreak during the next two or three months is very small as 80% of China’s population has already been infected, according to Reuters. Furthermore, China reported that COVID-19 deaths in the week leading to the Lunar New Year topped 12,600. Japanese PM Kishida said will pick the new BoJ Governor by taking the economic situation in April into account and it is too soon to say if there is a need to change the government-BoJ accord, according to Reuters. It was also separately reported that PM Kishida said the government will nominate the new BoJ Governor in February. BoJ December meeting minutes stated the central bank will add some easing if necessary and several members said the effect of powerful monetary easing will continue even if the BoJ widens the yield target band. Furthermore, a few members said the BoJ must clearly explain that widening of the yield band is not a move eyeing the exit from ultra-loose policy, while a member said the BoJ must conduct a review of its policy framework sometime in the future. New Zealand’s ruling Labour Party voted to choose Chris Hipkins as the new PM and Carmel Sepuloni was named as the Deputy PM, while incoming PM Hipkins stated that Finance Minister Robertson indicated that he wants to continue in the role, according to Reuters. European bourses are modestly firmer, Euro Stoxx 50 +0.2%, amid a relatively quiet start to the week given the mass APAC closures from the Lunar New Year holiday. Sectors have a similar mild positive bias with Tech and Basic Resources the marginal outperformers. Stateside, futures are essentially unchanged, with the ES capped by 4k and the Fed blackout period underway going into the second busiest week of earnings this season. Banks including Wells Fargo (WFC), Bank of America (BAC) and JPMorgan (JPM) are said to be planning payment wallets to compete with the likes of PayPal (PYPL) and Apple Pay (AAPL), according to WSJ. Top European News UK electricity network operator National Grid had emergency coal-fired plants warm up amid expectations of tight supply and increased demand due to cold weather, while it will pay households to use less power during early Monday evening, according to FT. UK has started a post-Brexit review of EU's investor fund regulations amid concerns that Europe is not acting fast enough on appropriate safeguards, according to FT. Ireland’s Foreign Affairs Minister has described ongoing NI Protocol talks as "very challenging", according to BBC's Parker; “We would hope that those negotiations would be successful but they are very challenging.” French President Macron said Germany is to join the new hydrogen pipeline project between Spain and France, according to Reuters. Fitch affirmed Ireland at AAA; Outlook Stable and affirmed Norway at AAA; Outlook Stable, while it affirmed Hungary at BBB; Outlook Cut to Negative from Stable. ECB ECB’s Knot said to expect the ECB to hike by 50bps in February and March, followed by more steps in May and June, according to Reuters. ECB's Nagel says ECB is to return inflation to target without causing a recession, via Econostream; thinks this will be achieved by the end of 2024/25.   ECB's Villeroy said the ECB will continue to raise rates, but possibly at a slightly slower pace than in recent months, but will do so to a level necessary to keep inflation under control, via Econostream. FX The DXY has eased further to the benefit of most peers across the board as the Fed blackout period commences with a 25bp hike almost entirely priced in. AUD and NZD are among the outperformers ahead of inflation data, with AUD/USD surpassing 0.70 and NZD/USD testing 0.65. EUR continues to benefit from hawkish ECB guidance, EUR/USD above 1.09 at best, while JPY is the relative laggard after dovish December minutes. CHF gleans modest support from Credit Suisse lifting its SNB forecast for March to 50bp vs prev. 25bp while the CAD is relatively steady pre-data/Wednesday's BoC. Brazil and Argentina aim for greater economic integration and decided to advance discussions regarding a common South American currency that could be used for financial and commercial flows, according to an article jointly penned by the countries' leaders. Fixed Income Hawkish ECB vibes continue to hold sway as sellers fade upticks in debt, Bunds sub-138.00, Gilts under 104.00 after brief bounces to 138.44 and 104.63 respectively. T-notes a bit more resilient as Fed hawk Waller joins 25bp hike advocates for February's FOMC, 10 year bond within 115-07/114-30 range vs last Friday's 115-02 close Commodities Crude benchmarks are somewhat choppy in contained ranges of circa. USD 1/bbl given the mass APAC closures; though, prices overall are underpinned by a rosier demand picture. Kuwait temporarily suspended operations at three ports on Sunday due to bad weather, according to state news agency KUNA. US Treasury Secretary Yellen said western countries are working on price caps for Russian refined petroleum products to ensure the continued flow of diesel but added it is complicated and there is a possibility that things may not go to plan, according to Reuters. G7 is considering two price caps for Russian oil products, one for expensive products such as diesel or gasoline and another for cheaper products e.g. fuel oil, via Politico citing EU diplomats. EU Securities Watchdog ESMA says EU gas price cap could impact the orderly functioning of markets and impact financial stability, according to a draft report cited by Reuters. Japanese insurers will raise insurance by about 80% on ships carrying LNG in Russian waters, according to Nikkei. Netherlands seeks to close the Groningen gas field this year which is the largest in Europe and earthquake-prone, while an official noted that it was very dangerous to keep operating the field and that they aim to shut it by October 1st but would wait to see if there is a shortage of gas after the winter, according to FT. India is planning to lower gold import duty to prevent the increase in smuggling, according to Reuters sources. Spot gold has been waning from its USD 1,935.41/oz overnight peak, with traders citing profit-taking following the yellow metal’s recent run higher. LME Copper printed a +6month peak overnight given the positive demand picture and supply-side concerns regarding Peru. Geopolitics Joint French-German statement following a summit between French President Macron and German Chancellor Scholz stated they will support and assist Ukraine for as long as necessary and they support efforts to prosecute perpetrators of war crimes, according to Reuters. Furthermore, French President Macron commented at the summit that he doesn’t rule out sending Leclerc tanks to Ukraine and that training time needs to be taken into account, while he added that sending tanks should not endanger France’s own security. German Defence Minister Pistorius said he thinks there will be a decision soon regarding tanks for Ukraine whichever way it may fall, while it was also reported that German Foreign Minister Baerbock said Germany would not stand in the way if Poland sends Leopard tanks to Ukraine, according to Reuters and French television LCI. A Russian warship armed with hypersonic missiles will participate in joint naval exercises with China and South Africa in February, according to Reuters. Russian Kremlin says that there have been no announcements yet on whether President Putin will run for another term in office in 2024. EU ministers have agreed a new sanctions package against Iran, according to the Swedish EU Presidency. US Event Calendar 10:00: Dec. Leading Index, est. -0.7%, prior -1.0% DB's Jim Reid concludes the overnight wrap Morning from an exceptionally cold and misty England. I've been feeling dreadful after a virus struck me down on Friday. I've had three very bad colds since the end of November, an ear infection, and now a virus that for the first time in this spell has given me a fever! My wife has had a similar path over the last two months and the kids have all had strep A. The difference is that within 2-3 days they bounced back completely whereas us old timers can't get a break this winter and have to look after their hyperactivity at the weekends while we lie on the sofa feeling sorry for ourselves. We've done more covid tests as a family recently than we needed to do throughout the entire pandemic. All negative! I can only assume that our immune systems had a break for 2 plus years around covid and are now taking a winter to rev back up! We'll get the latest health check on global growth momentum this week amid releases of Q4 US GDP (Thursday) and global PMI numbers (tomorrow). US leading indicators today will also be of note as we are around levels only previously associated with recessions. In addition, PCE, personal spending (both Friday) and durable goods orders (Thursday) will also be released. Key central bank events will include the BoC decision, and Summary of Opinions and minutes from the BoJ's shock December meeting (all Wednesday). In earnings, all eyes will be on Microsoft (tomorrow), Tesla and ASML (both Wednesday), amongst others. The Fed are now in their blackout period so the usual mini vol around Fed speakers won't be there this week. However, there are quite a few growth signposts to engage markets. We'll expand upon a few of the key upcoming events now. It's not a top tier release but today's US leading indicators (consensus -0.7% vs -1.0% last month and likely around -5.5% YoY) will likely remain at levels only previously associated with recessions. Last month the Conference Board, who publish this series, said the following: “Only stock prices contributed positively to the US LEI in November. Labor market, manufacturing, and housing indicators all weakened—reflecting serious headwinds to economic growth… The US LEI suggests the Federal Reserve’s monetary tightening cycle is curtailing aspects of economic activity, especially housing. As a result, we project a US recession is likely to start around the beginning of 2023 and last through mid-year.” This is interesting as we felt when we did our 2023 outlooks we were the opposite way round to consensus. We expected a good start for risk assets this year but a very bad end to the year on our long-standing H2 23 recession call. To be honest, the US data has generally been poorer than anticipated this year so far which is fascinating as markets are rallying hard. We'll get a good read on global growth momentum with tomorrow's global flash PMIs which will take into account China’s reopening and falling gas prices. Then we'll see how growth was faring going into this year with Q4 US GDP on Thursday. Our economists expect +3.2% annualised (consensus +2.7%). Interestingly they expect +1.8% for Q1 with H2 being where the US recession hits. Consensus on Bloomberg is around 0% for Q1 so that's a potential battle ground once actual hard data comes through. Other notable data releases on Thursday include durable goods orders, new home sales, and the Chicago Fed national activity index. All will be closely watched for signs of weakness seen in the data so far this month. Friday’s core PCE release will occupy the Fed's minds on their blackout period ahead of next week's FOMC. Our economists don't expect the same declines as recently seen in CPI as some of the stronger components in PPI last week are better correlated to PCE components. They expect a +0.4% monthly gain in the core PCE price index. With that Fed blackout, ECB speakers will take center stage, especially today with Lagarde being the highlight. Dutch CB chief Knot continued his recent hawkish rhetoric over the weekend suggesting that “We made a step down in December from 75 to 50 basis points — that will be the pace for a multiple number of meetings… So that means at least the two in February and March.” So that will challenge the Euro rates bulls after the recent rally. We saw a big reversal from the yield lows (+20bps on 10yr Bunds) on Thursday (and into Friday) after Lagarde's hawkish Davos commentary. Knot is also on the agenda again tomorrow. You'll see the full list of speakers in the day-by-day week ahead at the end. Back across the pond, the BoC are expected to hike 25bps on Wednesday. A few weeks ago many were expecting a pause but a recent stretch of firm data has moved the consensus back in favour of a hike. Over in Asia, key data releases for Japan will include the aforementioned PMIs and the Tokyo CPI (Thursday). Aside from the BoJ's Summary of Opinions for the January meeting, the minutes of the December meeting will also be released and our economists highlight the importance of analysing how the decision to double the yield curve control range was reached. Elsewhere in the region, the Lunar holidays will curtail a lot of the week's activity with many bourses shut until midweek with China shut all week. In corporate earnings, Microsoft will kick off the reporting season for Big Tech tomorrow, with the rest of the group reporting next week. All eyes will be on Tesla post-market on Wednesday ahead of earnings from traditional automakers next week as investors try to grasp trends for EV demand. Other earnings highlights are in the calendar at the end. This morning in Asia many major equity markets are closed for the Lunar New Year holiday with, as mentioned, mainland Chinese markets remaining shut until January 30. Amid a subdued trading, the Nikkei (+1.21%) is the standout performer, mirroring Friday’s strong finish on Wall Street after a broad rally in the US tech stocks. Meanwhile, the S&P/ASX 200 (+0.12%) is also trading in positive territory in early trading. In overnight trading, US equity futures tied to the S&P 500 (-0.09%) and NASDAQ 100 (-0.09%) are just below flat ahead of the start of a busy week of earnings. Meanwhile, yields on 10yr USTs (-1.28bps) edged lower to trade at 3.47% as we go to press. Yields on 10yr Japanese Government Bonds (0.38%) remained below the BoJ’s 0.5% ceiling after the central bank said it will provide 1trn yen of collateralised loans for banks as it attempts to keep rates from rising. In the FX market, the dollar index (-0.24%) declined for the fourth consecutive day to trade at 101.78 amid concerns over US economic growth. Recapping last week now. The strong start to the year for risk assets took a bit of a pause mid-week on heightened US recession risks, only to close out strongly again. The S&P 500 rose sharply on Friday (+1.89%) to leave the S&P 500 'only' down -0.66% on the week. Tech stocks led the rally on Friday with the NASDAQ up +2.66% (up +0.55% on the week), with positively received earnings releases from the likes of Netflix, and news of cost reduction at Google, helping. The Stoxx 600 rallied +0.37% on Friday but was fairly flat (-0.09%) on the week. Bonds also saw decent sized swings on the week with the 10yr Treasury yield +8.7bps to 3.48% on Friday, their largest move up since mid-December, but still down -2.5bps for the week but having traded as low as 3.32% on Wednesday. Over in Europe, there was a similar sell-off on Friday in fixed income as the market had to face a hawkish end to the week from the ECB speakers (especially Lagarde). 10yr bunds rose +11.2bps on Friday to 2.177%, the largest increase since the end of December, although for the week as a whole they were up just +0.9bps. Yields on 10yr OATs (+14.0bp) and BTPs (+21.8bps) also increased significantly on Friday but were down -0.9bps and -1.8bps for the week respectively. Commodities again had a decent week following continued optimism surrounding China’s reopening. WTI crude was up +1.82% over the week to $81.31/bbl (+1.22% on Friday), its highest closing level since mid-November. Brent crude also rallied over the week, up +2.476% (+1.71% on Friday). Tyler Durden Mon, 01/23/2023 - 08:02.....»»

Category: blogSource: zerohedgeJan 23rd, 2023

Charlie Javice has been fooling the world for years, long before founding Frank or allegedly defrauding JP Morgan. Here"s why they bought it.

Investors and media billed Charlie Javice as a groundbreaking young entrepreneur, until JPMorgan Chase sued her for millions of dollars of fraud. Charlie Javice; Arif Qazi/InsiderInvestors and media billed Charlie Javice as a groundbreaking young entrepreneur, until JPMorgan Chase sued her for millions of dollars of fraud.The ambitious entrepreneur Charlie Javice had been the subject of glowing profiles in Forbes, Fast Company, Inc. Magazine, and Insider since she was barely out of high school. Her financial aid startup, Frank, was featured in the New York Times, CNBC and Wall Street Journal. She'd been featured on Forbes's 30 Under 30 list and hailed by Wharton Business School as "the voice of a microfinance generation."In the past week, all that came crashing down. Barely a year after selling Frank to JPMorgan Chase & Co. for $175 million, the bank accused the 30-year-old of fabricating almost four million client names and emails — the overwhelming majority of her company's users.Javice's lawyer called her a "whistleblower" and said JP Morgan's decision to fire and sue her was a pretext to avoid paying her. But an Insider investigation, based on a review of company documents, media appearances and interviews with 10 former mentors, employees, and others who knew Javice, suggests that she had a history of exaggerating her accomplishments.Although she positioned herself as an innovator with groundbreaking solutions to student loans and solving global poverty, Javice's greatest talent may have been in leveraging elite institutions and national news outlets to gain an ever-growing platform. As Javice accumulated accolades and media appearances, no one — including Insider — seemed to question the fundamental claims of her businesses until the day JPMorgan alleged the numbers simply didn't add up.Over and over, Javice earned plaudits in the media for projects whose impact she overstated. Glowing profiles missed inaccuracies that could have been caught with a basic fact-check, focusing instead on her youth and status as one of a small number of women startup founders. One journalist even introduced Javice, then 19, to a key Frank investor.Despite a public record that raised questions about Javice and Frank — including warnings from the Department of Education and Federal Trade Commission, and a wage theft lawsuit from Frank's cofounder — news outlets and investors kept buying into the narrative that Javice spun. In one case, Javice pivoted her entire business model without realizing her new concept was part of a heavily regulated industry that required various approvals, but framed this as a learning moment.Now JPMorgan is alleging that Javice was involved in what would be the largest exaggeration of all. By the start of 2021, Frank was claiming to have 4.25 million users, according to JPMorgan's suit. In reality, it never had more than around 250,000, the bank claims. After leaving the University of Pennsylvania's Wharton business school, Javice traded on her reputation, bolstered by glowing profiles, as a successful entrepreneur.biiIf Javice's career before the suit had positioned her to be one of the future titans of her industry, JPMorgan's allegations may have put her on the trajectory to be the next Elizabeth Holmes, Sam Bankman-Fried or Adam Neumann.Javice and two attorneys representing her did not respond to a request for comment. Javice has lodged her own lawsuit against JPMorgan, alleging that the company tanked Frank's value by treating the startup's customer base as a marketing opportunity and fired her in order to avoid having to pay a $20 million retention bonus.A deeper dive into Javice's early claims would have revealed a history of questionable statements. In a 2018 interview with Insider, Javice claimed Frank secured an average of $28,000 for its users, and was helping students get "thousands off their tuition." That figure is more than twice the average aid disbursed to college students in the 2015-2016 school year, the most recent year for which data is available.But Frank didn't have any kind of magic formula to double the amount of aid students were receiving, student-aid expert Mark Kantrowitz told Insider. All Frank was doing was making it simpler to fill out standard federal financial aid paperwork, a form called the FAFSA."Frank did nothing that would have affected the amount of aid the students would have received had they filed the FAFSA on their own," Kantrowitz said. "That would not have led to a doubling of the amount of financial aid."  When Frank was describing how much aid its users received, "it appeared that they made up figures at random," Kantrowitz said. Lofty goals and big talk Javice gained a degree of finance-world fame while still in high school as a founder of PoverUp, a small microfinance organization with huge ambitions. Her brother and co-founder Elie posted on Facebook in 2011 that its goal was to reach 100 million high school, college and graduate students worldwide.PoverUp was styled as a nonprofit that would harness small student contributions to make loans to entrepreneurs in poor countries in order to lift them out of poverty. It came with a compelling origin story, where Javice had volunteered at a refugee camp on the Thai border with Myanmar and been inspired to create the startup. (Javice was there as part of a student travel and learning experience that now costs around $6,000 per trip.)Javice's goal for PoverUp was to "save the world. Nothing less," said Howard Finkelstein, a lawyer who helped her set the company up and served on its advisory board.The startup gave Javice the first taste of a symbiotic relationship with media outlets that would carry on for more than a decade. After graduating from a private Westchester high school to attend Wharton Business School, her involvement in PoverUp garnered her a spot on Fast Company's 2011 list of 100 Most Creative People and a complimentary writeup in Forbes. PoverUp was ranked as one of the "11 coolest college startups" by Inc. Magazine, while Wharton called Javice "the voice of a microfinance generation" in a video it has since removed from YouTube.There was this air about her where she wanted everyone to know that she was an up and coming leader in the field, that she had been anointed.Soon after landing a spot on Fast Company's list, Javice appeared on a CNBC reality television special featuring anti-democratic billionaire Peter Thiel where entrepreneurs under the age of 20 vied against each other for a $100,000 Thiel Fellowship. Javice has said she was offered that grant but turned it down, but a rejection email obtained by The Daily Beast shows the then-president of the Thiel Foundation informing her that she was not selected.Javice traded on her reputation as a could-have-been Thiel Fellow and Fast Company designee throughout her time at Wharton, according to PoverUp's Tumblr and a person who knew her at Wharton."There was this air about her where she wanted everyone to know that she was an up and coming leader in the field, that she had been anointed," that person said.But there were fissures emerging between how Javice was heralded in writeups and the reality behind her businesses. Insider found no evidence that PoverUp registered as a nonprofit, and two of the three microlenders that Inc. reported were in talks to partner with PoverUp said that nothing came of the meetings. Despite Javice telling Wharton Magazine in 2013 that PoverUp raised $300,000 from friends and family, a former board member told Insider that it never disbursed a single loan. "She really didn't get much traction," said Finkelstein, the lawyer. "When she finished school, she basically gave that up."Pivoting and spinningAfter Javice graduated from Wharton in 2013, she immediately turned toward her next startup. The venture would end with a lawsuit in an Israeli court and, by Javice's own telling, her firing all her employees after losing hundreds of thousands of dollars.Javice, along with Israeli entrepreneur Adi Omesy, had initially set out to build Tapd — a company that connected young workers with job opportunities via text message, according to an archived version of Tapd's website. That idea seems to have fizzled.Do you have a tip or insight to share? Contact reporter Katherine Long via phone or the encrypted messaging app Signal (+1-206-375-9280), or at klong@insider.com. Contact reporter Jack Newsham via Signal (+1-314-971-1627), or at jnewsham@insider.com.Tapd next pivoted to building an alternative credit score for college students. That concept attracted investors, but it also failed after she said the company learned it would need to secure regulatory approvals to operate as a credit bureau. Javice had apparently sold investors on a business before she was sure how to operate it legally – a strategy almost par for the course in the startup world, where entrepreneurs often pitch themselves as "disrupting" the existing modes of doing business."Little did I know that there was this whole body of regulation," she said on a 2021 Planet Economics podcast, complying with which would cost "millions of dollars a year." "That was a no-go." On another podcast Javice recalled that by 2016 she was "$500,000 in the red" and in an interview described needing to fire "all my employees." "It was the worst thing I've ever had to do," she said in the interview with Authority Magazine, which has since deleted the article. "A lot of my employees were close friends, and still won't talk with me to this day. They didn't understand that it wasn't a personal decision."Javice's Tapd co-founder Omesy, who on LinkedIn also calls himself a co-founder of Frank, sued Javice in Israel in 2017 for unpaid wages and failing to award him 10% equity in the company. Omesy additionally claimed that his salary for one month was drawn from Javice's personal bank account.Tapd faced a judgment for about $35,000 in 2021. Omesy didn't respond to Insider's requests for an interview.While the story of Tapd seemed to be one of failure and contentious mismanagement, Javice would spin that turmoil into a story of triumph. The young founder made the crisis part of her personal success story, omitting the lawsuit and framing the layoffs as a teaching moment. Tapd would be rebranded as Frank, a new startup with a new mission and a new pitch.In a 2020 email to an online magazine about a possible feature on Javice, obtained by Insider, Frank's public relations representative described it as "miraculous" that Frank had gotten so far. "Charlie's first company fizzled after 18 months, so after losing all her investors' money, she convinced every one of them to fund her next company, Frank."A media feedback loopWhen Javice launched Frank in 2017, she came prepared with a story readymade for the ways that entrepreneurs and the outlets that cover them talk about success. Building a startup is hard, failure is almost inevitable, and real leaders learn from that adversity to find their true calling.Journalists bit, and she soon tapped into a media feedback loop. Javice was important because she appeared in major news outlets, and major news outlets covered her because she was important. Javice made the podcast circuit, speaking about "the merits of being an entrepreneur," why "rejection is a numbers game," and "Frank's journey to reach almost 10 million households." She was heralded as a "female disruptor." Insider featured her twice, in 2018 and 2021.The complications of her past leadership at PoverUp and Tapd, especially the lawsuit, never appeared. In 2019, she landed a spot on Crain's New York Business 40 Under 40 list and Forbes's 30 Under 30 — even as she continued to make inaccurate statements about the field she was supposed to be an expert in, student aid.Javice's 2018 op-ed in the New York Times had a lengthy correction appended, for instance. So did a piece in the Wall Street Journal that was built around an interview with her. In a 2019 appearance on New York's ABC news station, she claimed that college students left $40 billion in financial aid on the table every year — a number that student aid expert Kantrowitz called "bogus."In an earnings call this month, JPMorgan Chase & Co. CEO Jamie Dimon said the bank's acquisition of Frank was "a huge mistake."Jim Watson/Getty ImagesMeanwhile, a journalism connection would help her land a key investor. Dominic Chu, a reporter for CNBC, had given a teenage Javice a tour of Bloomberg's headquarters, as the PoverUp team chronicled on a Tumblr post from around 2011. Chu later introduced her to Michael Eisenberg, the founder of Israeli firm Aleph Venture Capital. Aleph, an early backer of WeWork, convinced other investors to hop on board, including Silicon Valley firm Slow Ventures, which invested $100,000 in Frank's 2017 seed round, Slow partner Sam Lessin said.Aleph "is a firm we really like and collaborate with a lot," Lessin wrote in an email. The "check was a quick angel one for us," he added, "to be supportive."Ten years later, after Frank had been acquired by JP Morgan, Eisenberg tweeted his thanks at Chu for the introduction. "Charlie Javice is one of those folks who, at the age of 20, made me think 'what have I done with my life?'" Chu responded. "Congrats to Charlie on a great entrepreneurship story...and to your team on a successful startup investment story!"Chu declined to comment on the record. Eisenberg did not respond to repeated requests for comment.In interviews, Javice continued to cast herself as a mold-breaking entrepreneur."I built a business and raised funds out of college, turning down a finance job, even though I was told I would fail because I didn't have business experience," she told Insider in 2021, in an article titled "3 leadership tactics a 28-year-old founder who's raised $20 million for her startup lives by." "My impatience to achieve my goals helped me see past that 'conventional wisdom' to take a risk that landed me where I am today."But even the account circulated by Javice's press team, that she had convinced every one of her old investors to buy in to Frank, had holes in it.At least one big-name investor described in several news accounts as a Frank backer told Insider his actual involvement was minimal. Despite being included in a list of investors that included Aleph and Marc Rowan, the chairman of Apollo Global Management, Tusk Ventures didn't actually cut a check to Frank, according to its founder Bradley Tusk."My consulting firm did a little work for Frank and got paid in equity, which is why you see us on the cap table," he said. "I only met Charlie once.""I painted a rosier picture than things truly were."At Frank, Javice admitted she sometimes painted a more positive picture of the company's health than was supported by the facts."Being a founder, I'm obviously skewed towards being overly optimistic – and sometimes that works to your advantage, sometimes it doesn't," she said on a 2021 podcast. "And there were definitely times where I painted a rosier picture than things truly were."Frank's public statements about its user base were all over the map. In April 2017, Frank's website said "thousands" of families using its service had received "$75 million in free aid." (That same website had stock images of people, including of "smiling mature woman" and "good looking cheerful manager," labeled as actual users.) In November 2018, Frank's website said it had helped 300,000 families unlock over $7 billion in aid.Frank stuck with the "over 300,000" figure for more than two years. But suddenly, in January 2021, the company began claiming that it served "over 4.25 million students," according to archived versions of its website and tweets from Frank's account referenced in JP Morgan's lawsuit. In reality, Frank only ever had about 250,000 users, according to JPMorgan's legal complaint.I cried at work a lot.Javice maintained a public persona of a savvy entrepreneur, doling out advice to would-be founders about the keys to success. Internally, she was pressuring employees to grow Frank's user base, two former employees told Insider. One recalled that Frank struggled to build name recognition through multiple rebrandings. "Figuring out how to grow was not very strong," this employee said. "There wasn't a clear direction all the time.""It was all about growth," another employee said, describing weekly meetings with Javice and then-chief growth officer Olivier Amar. The two leaders emphasized repeatedly in those meetings that "we need to follow through for the people who are investing in this." Amar told this employee that if Frank didn't meet specific user metrics, "then you're gonna lose your job." Amar did not respond to requests for comment.Both former employees said working at Frank cratered their mental health. "I cried at work a lot," one said.Meanwhile, Frank was facing scrutiny from government agencies, including the Department of Education and the FTC, over allegations that it was misrepresenting its products and relationship to the federal government, Insider has previously reported. Both agencies threatened Frank with legal action unless it changed its practices, and Frank settled with the DOE. An early Frank investor, though, later touted the company's influence with the Department of Education.Javice "made waves with the US Department of Education that resulted in key policy changes for American families," Aleph Venture Capital founder Eisenberg wrote in a blog post in 2021 celebrating Frank's acquisition. Eisenberg's Aleph Venture Capital also backed WeWork, whose founder, Adam Neumann, shown here, was ousted from the company in 2019 after revelations of mismanagement botched WeWork's IPO.Jackal Pan/Visual China Group via Getty ImagesAfter JPMorgan acquired Frank, the bank set out to turn what it thought were the startup's more than 4 million users into JPMorgan customers. Last January, JPMorgan sent a marketing email to a batch of about 400,000 Frank users."The marketing campaign was a disaster," the bank alleged in its lawsuit. About 70% of the emails bounced back, and only 103 of the email's 400,000 recipients clicked through to Frank's website. JPMorgan launched an internal investigation.The bank alleges its investigation found that Javice and Amar had hired a New York data science professor to create more than 4 million fake profiles on Frank. Javice and Amar supplemented those fake Frank profiles with email addresses purchased from data brokers, according to the bank's lawsuit.The marketing campaign was a disaster.The lawsuit is now prompting many of the same institutions that propelled Javice's rise to begin interrogating her exaggerations. Forbes published a lengthy takedown of Javice this week, though without mention that the magazine had previously included her on its 30 Under 30 list. Investors have distanced themselves or gone quiet. JPMorgan has gone from embracing Javice as a financial wunderkind to accusing her of being a serial fabulist – though the brazen nature of Javice's alleged fraud has prompted questions about why JPMorgan didn't catch on sooner. "In every aspect of her interactions with JPMC, Javice had a choice," the bank, which once touted its acquisition of the "fastest growing college financial planning platform," alleged in its lawsuit: Reveal the truth about her startup and accept that Frank was not as valuable as she claimed, or lie to inflate Frank's value."Javice chose each time to lie," it concluded.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderJan 21st, 2023

See 32 pitch decks that some of the hottest proptech startups used to raise millions from top VCs like SoftBank and a16z

Even in a cooling market, real-estate-tech firms are essential as home-buying and building management move online. Here's how founders raised money. Cove.tool cofounders (from left) Daniel Chopson, Sandeep Ahuja, and Patrick Chopson built a platform that drastically cuts down the amount of time it takes to analyze a building's energy efficiency. They raised $5.7 million.Cove.tool Proptech was never hotter than 2021, where it raised a record of $30 billion. VC investment fell by 38% in 2022, but the technological transformation of real estate continues. These pitch decks reveal how 32 different startups pitched their visions and products to investors. Real estate's technological transformation was well underway before the pandemic drove it into hyperspeed. Early innovators like Zillow showed that there was a place for real estate on the internet, while investments from firms like SoftBank showed that big money was paying attention.But when COVID reshuffled the deck, and interest rates were at record lows, the sector exploded with interest, and record investment. Now, interest rates are rising, and some of proptech's stars have sunk, layoffs have abounded, and investment was down 38% in 2022. But startups and venture capital continue to drive real estate tech's ambitions forward, backing companies that 3D-print carbon-neutral homes, bring home-buying transactions entirely online, and that make it easier than ever to become a landlord of all — or part — of a property.Insider has collected 32 pitch decks that successful firms have used to raise funding from VCs and private-equity firms.Check out the full collection below. Residential real estateAndrew Luong (left) and Justin Kasad, who raised a $39 million Series A for their single-family rental startup Doorvest.DoorvestThe residential real-estate market surged into the beginning of 2022, with low interest rates driving record-high home price appreciation. Renting got a lot more expensive, too, with and everyone started flocking to invest in apartment buildings. Then, as the Fed began to pump the brakes, housing has cooled, cutting valuations for any company focused on the residential space.However, this sector has been a major focus for proptech companies such as those that help investors purchase and manage homes from afar, tools for residential brokers and leasing agents, and digital closing companies that digitize paper-heavy real estate transactions.Individual real-estate investors now have a way to compete with the big guys. Here's the 12-page deck one startup used to raise $39 million to make that happen.See the pitch deck a real-estate startup used to raise $27 million from SoftBank to build the world's largest housing company — without owning any homesHere's the investor deck that helped the real-estate startup Divvy raise a $30 million series A led by Andreessen HorowitzThe online mortgage broker Morty used this pitch deck to raise a $25 million Series B and enable more homebuyers to skip the traditional mortgage processHere's the presentation digital closing startup Endpoint used to nab $40 million from its parent company, title giant First AmericanA real-estate listings startup trying to rival Zillow used this pitch deck to raise $25 million for its super-powered home search websiteFlyhomes turns home buyers into cash buyers in a wild housing market. Check out the pitch deck it used to raise $150 million in fresh funding.Real-estate startup Immo scoops up single-family homes from sellers then turns them into rental investments. Check out the 26-slide pitch deck it used to raise $75 million.Here's an exclusive look at the pitch deck that property-tech startup Ownwell used to raise a $5.75 million seed round from investors like First Round CapitalHere's the pitch deck that Playhouse used to raise $2.8 million to become a 'TikTok for real estate'This property startup buys homes directly from sellers in as little as a week. Check out the 19-page pitch deck it used to raise $65 million.Commercial real estate Nick Gayeski, cofounder and CEO of Clockwork Analytics, which raised $8 million for its platform that monitors building ventilation.Clockwork AnalyticsThe pandemic laid bare the necessity of a technological transformation of commercial real estate. Remote work has changed professional workers' relationship to the office forever. E-commerce adoption has skyrocketed, but consumers also were starved for in-person interactions and increased their time at restaurants. Data of all sorts became increasingly more important in order to keep a competitive advantage over other struggling commercial landlords, and processes that used to take place on email or even in pen and paper are now taking place on dedicated pieces of software.As building costs rise, this startup says real-estate developers can save millions by ditching spreadsheets. Here's the 12-slide pitch deck it used to raise $25 million.See the pitch deck the air-purification startup Wynd used to raise $10 million to help Marriott guests breathe easierVergeSense, an office-sensor startup that tracks employees' movements, just nabbed $9 million. From social distancing scores to real-time occupancy alerts, here's its pitch deck.See the pitch deck a startup that monitors building ventilation used to raise $8 million during the pandemicAn exclusive look at the 19-slide pitch deck a real-estate-investing startup aimed at millennials and Gen Zers used to raise a total of $9 millionHere's the 10-page Series A pitch deck used by Honeycomb, a startup that wants to revolutionize the $26 billion market for multifamily property insuranceCheck out the 9-slide pitch deck this ex-Googler used to raise $15 million for SME property tech startup KeywayThis entrepreneur is giving landlords and homeowners a chance to buy their own personal power plants. See the pitch deck he used to raise millions.Construction techMosaic cofounder and CEO Salman Ahmad works on ways to build homes faster and cheaper. He raised $14 million last year.MosaicThe pandemic boosted traditional construction companies' interest in the high-tech corner of the sector. Startups that make digital tools to manage worksites from afar suddenly became indispensable, while the current housing shortage brought even more attention to companies that are developing ways to build homes faster and more cheaply.A construction-tech startup that's developed a faster way to model a building's energy efficiency used this 13-page pitch deck to nab $5.7 millionOpenSpace, a startup that wants to be the telemedicine of construction, used this 24-page pitch deck to nab $15 million from investors including Menlo VenturesRead the 19-page pitch deck an online construction-parts marketplace trying to compete with Amazon used to raise millionsSee the pitch deck that lured investing powerhouse Tiger Global to lead a $30 million round for a startup trying to revolutionize construction spendingHere's the 21-slide pitch deck construction-tech startup Mosaic used to lay out its vision for the future of homebuilding and nab $14 million from backers including Andreessen HorowitzAs building costs rise, this startup says real-estate developers can save millions by ditching spreadsheets. Here's the 12-slide pitch deck it used to raise $25 million.Plentific helps big landlords source contractors for repairs. We got an exclusive look at the pitch deck it used to raise $100 million for expansion and acquisitions.Here's an exclusive look at the pitch deck the proptech platform Wreno used to raise a $5 million seed roundShort-term rentals and hospitalityFounder and CEO Roman Pedan raised $30 million for his short-term rental startup Kasa.KasaThe short-term rental market saw an explosion in the early days of the pandemic, as those looking for a place to wait out quarantine in comfort competed with those looking for a safer family vacation, driving up occupancy. Suddenly, investing in vacation-rental properties that could be listed on Airbnb or Vrbo became extremely attractive, and regular people could take advantage of the cheap capital to do so.Things have since swung in the other direction, with supply outpacing demand, making some say the gold rush is over. However, short-term rental is here to stay, with companies that help people buy, manage, and invest properties finding plenty of customers — and investors. A Latin American short-term rental startup just raised $48 million in a Series A led by a16z. Here's the deck it uses to pitch institutional landlords it looks to partner with.See the 26-page pitch deck Kasa Living used to raise $30 million while other short-term rental startups were foldingHere's the pitch deck that Koala, a startup bringing an Airbnb-style marketplace to the wonky timeshare industry, used to raise $3.4 millionSee the pitch deck a startup used to raise $5 million to help people invest in shares of vacation homes for as little as $100Regular people can pay for a day pass to swim in pools at Ritz-Carlton hotels. Here's the pitch deck ResortPass used to raise $26 million from investors like The Points Guy, Gwyneth Paltrow, and Jessica Alba.See the pitch deck a startup used to raise $4 million to buy, sell, and manage short-term-rental propertiesRead the original article on Business Insider.....»»

Category: personnelSource: nytJan 17th, 2023

Coinbase Fires 20% Of Workforce; CEO Warns Of "Dark Times" In Crypto

Coinbase Fires 20% Of Workforce; CEO Warns Of "Dark Times" In Crypto Coinbase is reducing its workforce again amid a collapse in its stock price, turmoil in crypto land, and broader macroeconomic headwinds.  The cryptocurrency exchange will cut approximately 20% of its workforce, or about 950 jobs, in a second round of layoffs in less than one year. Coinbase had 4,700 employees at the end of September and had already slashed its headcount by 18% in June last year.  "Therefore, I've made the difficult decision to reduce our operating expense(1) by about 25% Q/Q, which includes letting go of about 950 people(2). All impacted team members will be informed by today," CEO Brian Armstrong wrote in a letter to employees.  Armstrong explained the company will be "shutting down several projects where we have a lower probability of success." He said those teams have already had their access to internal systems stripped and will be contacted by the company today. Affected team members will receive an email to their personal account in the next hour with more information, and an invitation to meet with an HRBP and senior leader. Coinbase system access has already been removed. I realize this last step feels sudden and harsh, but I believe it's the only prudent choice given our responsibility to protect customer information. He added that the firings weren't due to job performance but based on economic turmoil in the broader economy and the crypto space.  To those of you who will be leaving, please know that this is not a reflection of your work or contributions to Coinbase. I believe we have an incredible team, and all of you have been important members of that. Instead, it's a reflection of the current economic climate and crypto market.  He continued: Progress doesn't always happen in a straight line, and sometimes it can feel like we're taking two steps forward and one step back. But just like we saw with the internet, the most important companies not only survive but thrive during down markets by being rigorous with cost management, and continuing to build innovative products. Armstrong considers the current environment "dark times." He warned last June: We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period. Coinbase shares in premarket trading are down nearly 3%. Since the IPO in the spring of 2021, shares have plunged 89%. As for Bitcoin, it's down nearly 75% since peaking at around $67.7k in late 2021.  *  *  * Here's Armstrong's full letter to employees: Team, In 2022, the crypto market trended downwards along with the broader macroeconomy. We also saw the fallout from unscrupulous actors in the industry, and there could still be further contagion. Coinbase is well capitalized, and crypto isn't going anywhere. In fact, I believe recent events will ultimately end up benefiting Coinbase greatly (a large competitor failing, emerging regulatory clarity, etc.), and they validate our long term strategy. But it will take time for these changes to come to fruition and we need to make sure we have the appropriate operational efficiency to weather downturns in the crypto market, and capture opportunities that may emerge. Therefore, I've made the difficult decision to reduce our operating expense(1) by about 25% Q/Q, which includes letting go of about 950 people(2). All impacted team members will be informed by today. I'd like to explain how we got here, what it will mean for those impacted, and how we'll move forward. I also want to be clear that, while some of the factors that have brought us to this point are beyond our control, accountability rests with me as the CEO. We also reduced headcount last year as the market started to correct, and in hindsight, we could have cut further at that time. How we got here Every year we do our annual planning process where we run different scenarios for revenue: bull, base, and bear. The crypto industry is difficult to predict, but it's important to have planning in place that ensures we can succeed as a business in multiple potential outcomes. Over the last decade, Coinbase has made it through multiple bear markets using this process. This is the first time we've seen a crypto cycle coincide with a broader economic downturn, but otherwise it is similar. As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario. While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount. As part of a headcount reduction like this, we will be shutting down several projects where we have a lower probability of success. Affected teams will receive communication on this today. Our other projects will continue to operate as normal, just with fewer people on the team. We will share more detail publicly on our expense outlook in a public 8-K filing today and on our Q4 earnings call in February.  Affected team members and transition support Affected team members will receive an email to their personal account in the next hour with more information, and an invitation to meet with an HRBP and senior leader. Coinbase system access has already been removed. I realize this last step feels sudden and harsh, but I believe it's the only prudent choice given our responsibility to protect customer information. To those of you who will be leaving, please know that this is not a reflection of your work or contributions to Coinbase. I believe we have an incredible team, and all of you have been important members of that. Instead, it's a reflection of the current economic climate and crypto market.  We will be providing a comprehensive package to support you through this transition. For those of you in the US, this includes a minimum of 14 weeks base pay (2 additional weeks per year worked), health insurance, and other benefits. We are also providing extra transition support for impacted employees on a work visa. Those of you outside the US will receive similar support in line with the employment laws of your country.  We're also giving everyone access to our Talent Hub to help connect you with your next career opportunity. Coinbase employees are among the most talented in the world, and I'm certain that your skills and experience will stand out, even in a challenging job market. Moving forward To everyone we're losing, I want to sincerely thank you for everything you've done here. You've played a huge role in making crypto more trusted and easy to use, and our customers and the world are better for it. To everyone who is staying, I know this is a challenging day. This latest downturn has caused plenty of fear and anxiety. Thank you for your resilience. Our mission is more important than ever, and these changes will ensure we build an enduring company during this period. This is also a moment where I'd like us to focus on our startup culture, and remember what it feels like to have small, nimble teams that are able to get more done. As Coinbase grew so quickly in 2021, we all felt the coordination headwind that caused us to move more slowly. Over the past ten years, we, along with most tech companies, became too focused on growing headcount as a metric for success. Especially in this economic environment, it's important to shift our focus to operational efficiency. Despite everything we've been through as a company and an industry, I'm still optimistic about our future and the future of crypto. Progress doesn't always happen in a straight line, and sometimes it can feel like we're taking two steps forward and one step back. But just like we saw with the internet, the most important companies not only survive but thrive during down markets by being rigorous with cost management, and continuing to build innovative products. Dark times also weed out bad companies, as we're seeing right now. But those of us who believe in crypto will keep building great products and increasing economic freedom in the world. Better days are ahead, and when they arrive, we'll be ready. Thank you for everything you've done to get us this far, and everything you will do to carry us forward. Brian Tyler Durden Tue, 01/10/2023 - 09:22.....»»

Category: worldSource: nytJan 10th, 2023

See inside 2 3D-printed tiny home ADUs in LA made from recycled plastic

Los Angeles-based startup Azure will begin delivering its 3D printed backyard studios and ADUs this year. Brittany Chang/Insider Los Angeles-based startup Azure is using recycled plastic to 3D print backyard studios and ADUs. The startup will begin delivering its units this year. See inside Azure's first two units at its manufacturing site in Los Angeles. Your recycled plastic water bottle and take-out container could become a 3D-printed tiny home in California.Brittany Chang/InsiderLos Angeles-based startup Azure is using 3D printers to build backyard studios and accessory dwelling units (ADUs).Brittany Chang/InsiderBut instead of constructing with a concrete mix like fellow startups Icon and Alquist …AlquistSource: Insider… Azure Printed Homes is reducing, reusing, and recycling by using a printing material composed primarily of post-consumer plastic.Brittany Chang/InsiderSource: Insider"Our supply chain should never be short in our lifetime," Ross Maguire, the cofounder of Azure, told Insider in August.Plastic waste fills a dumpsite in Nairobi, Kenya, where countries in March agreed to start negotiating a global treaty on plastic pollution.James Wakibia/SOPA ImagesSource: InsiderIn April 2022, Azure unveiled what it calls the world's first 3D-printed "backyard studio" made with this recycled material.Azure Printed HomesSource: InsiderAnd this year, the startup will begin delivering its preordered studios and ADUs to consumers …Brittany Chang/Insider… which will include 10 rental homes throughout Los Angeles and the neighboring Orange County, California.Azure Printed HomesLike other 3D printing construction-tech startups, Azure says it can construct its homes more efficiently than traditional construction, specifically 70% faster and 30% cheaper.Brittany Chang/InsiderSource: InsiderBut unlike other companies that only print the walls of their homes …Icon's over 2,000-square-foot House Zero in Austin.Brittany Chang/Insider… Azure prints the floor, ceiling, and walls. An example of the white printed floor is shown below.Brittany Chang/InsiderThis streamlines the final on-site installation process, Maguire told Insider during a tour of the company's manufacturing site in Los Angeles in November 2022.Brittany Chang/InsiderSo when the team finishes printing and assembling its units in-house, all that's left to do is deliver the home to its customer, forklift or crane it onto its foundation …Azure Printed Homes… bolt it down, and plug it into the utilities.Brittany Chang/InsiderDespite the unique plastic printing material, Azure's units still have design elements reminiscent of "traditional" — as far as this new tech goes —printed homes ...Brittany Chang/Insider… like the layered printing pattern and curved walls shown below. Both are visual signatures of the construction-tech.Brittany Chang/InsiderThe two units shown below are Azure's first builds.Brittany Chang/InsiderThis one is its backyard studio, a 120-square-foot room starting at $26,900.Brittany Chang/InsiderThis smaller unit take around 16 hours to print.Brittany Chang/InsiderBut inside, there's almost no indication of its unique construction method.Brittany Chang/InsiderThe interior wood-lined floor, wall, and ceiling seamlessly blend together.Brittany Chang/InsiderAnd the smooth white walls don't have the same layered appearance as the exterior walls.Brittany Chang/InsiderThis unit may be small. But its uses are as endless as its owner's imagination, from a detached gym to a recording studio with some additional soundproofing …Brittany Chang/Insider… to a home office like the one shown below in Azure’s headquarters.Brittany Chang/InsiderMeanwhile, the backyard studio's larger counterpart, Azure's ADU series, operates more like a true tiny home.Brittany Chang/InsiderThese units start at 180 square feet with a price tag of $43,900.Brittany Chang/InsiderLarger models can be built by connecting multiples of this module.Brittany Chang/InsiderDespite its small square footage, the unit below has space for a bathroom, kitchen, and couch or sleeper sofa for those who want a true studio apartment feel.Brittany Chang/InsiderThis size makes it ideal for use as a backyard ADU guest home or rental property, a growing trend in the real estate market.Brittany Chang/InsiderSo unsurprisingly, this tiny home is one of Azure's most popular sizes, Maguire told Insider.Brittany Chang/InsiderIt takes over 20 hours to print an ADU of this size.Brittany Chang/InsiderThe one in these photos isn't complete yet.Brittany Chang/InsiderBut you can already see features like the kitchen beginning to take shape.Brittany Chang/InsiderIt takes about two days to install this ADU, Eidelman said, noting that the installation process will be longer for larger modules.Brittany Chang/InsiderAnd within the next few months, you could see one of these printed homes around California.Brittany Chang/InsiderAzure’s 2023 deliveries will be some of the many 3D-printed homes that are projected to go up around the US this year.Brittany Chang/InsiderAlquist is working with Muscatine, Iowa, and the city's local organizations to print 10 homes in the new year.AlquistSource InsiderAnd down south, Alquist will work with Florida startup CPH-3D (Click, Print, Home) to begin construction on a Tampa, Florida home that's been listed at almost $600,000.CPH-3DRead the original article on Business Insider.....»»

Category: worldSource: nytJan 5th, 2023

Vowing to invest more in 2023? These apps make it easier for investors to enjoy the perks of real-estate investing for as little as $5

Buying properties right now is tough for reasons from higher rates to steeper asking prices. Companies offering "fractional ownership" allow almost anyone to become a real-estate investor. The three founders of Ember, from left to right Jeff Lyman, Kurt Avarell, and James Sukhan.Ember A trend of "fractional ownership" allows almost anyone to purchase or invest in real estate. Via these 11 startups, buyers can invest in shares of an income-producing property or a second home. Don't call it a timeshare. Owners keep the gains in the property's value when they sell. A trend in real estate is making second-home and investment-property ownership more affordable: fractional or co-ownership.In short, homebuyers can purchase a share of a property instead of the entire thing.The main audience for fractional ownership is anyone interested in a property that's not their primary residence — whether it's a vacation home or an investment property. Buyers have the ability to purchase a share of a vacation home and enjoy the property as much as their respective percentage allows or buy a portion of a property and earn passive income when it's rented out to tenants."For a lot of people in this country, it's kind of tied into the American dream of owning property and owning a piece of the city you're in," said Ryan Frazier, the CEO of the real-estate-investing platform Arrived Homes.Arrived is one of several companies working to lower the barrier to entry for second-home purchasing and investing.Real estate is frequently seen by finance experts as a safe and profitable investment, but as it has become increasingly difficult to buy a home, co-ownership lets buyers reap the benefits at a fraction of the cost.Two types of ownership — vacation and single-family rentals — have doubters. Vacation rentals, especially those listed on Airbnb, have received pushback for reasons from noise to an increase in home prices. And some locals have butted heads with co-ownership companies, like Pacaso, citing displeasure with what they believe are timeshares with a fancy new name.Fractional ownership for second homes differs from a timeshare because while both allow buyers to use a property for a given amount of time each year, buyers of shares under fractional-ownership companies are able to keep the gains in the property's value.Here is a list of 11 fractional-ownership companies that offer the ability to own small portions of properties, presented in alphabetical order.AncanaThis Mexico City-based company sells shares of luxury homes and apartments throughout the country, with destinations including Los Cabos, San Miguel De Allende, Acapulco, and more."What we are doing is giving people access to a much more affordable vacation home," Andres Barrios, a cofounder of Ancana, told Forbes Mexico in February.Shares of the 22 residences listed on Ancana's site begin at $83,998 for one-twelfth ownership and four weeks of use annually of a five-bedroom, five-and-a-half-bathroom house overlooking Lake Chapala in Chapala.The offerings top out at $470,246 for a one-eighth ownership stake and six weeks of annual use of a six-bedroom, six-bathroom house with a thatched roof and infinity pool overlooking the ocean in Puerto Escondido, also on Mexico's Pacific coast.Residences come fully furnished, and Ancana handles the maintenance and cleaning between owners' stays. Ancana's booking app allows users to book from two days to two years in advance. When owners sell their fractions, they keep the gains in the property's value.Arrived HomesRyan Frazier is the CEO and a cofounder of Arrived Homes.Arrived HomesThis Seattle real-estate investment company offers shares of rental homes with a very low barrier to entry. A trend in the American housing market that's surfaced since the 2008 financial crisis is that corporations have taken to buying up single-family homes to rent them out. Arrived gives investors the ability to become a landlord — or, perhaps more accurately, a colandlord — without having to buy an entire house.Arrived offers the ability to buy shares with as little as $100, according to the company's website. The average investment is closer to $2,300, Frazier told Insider in November. Founded in 2019, Arrived sets itself apart from its co-ownership foes by working with the Securities and Exchange Commission to become qualified, meaning nonaccredited customers can invest in individual shares.The company has over 200 homes set up in more than 17 cities all over the US, including Nashville, Tennessee; Denver; and Charlotte, North Carolina, but it has plans to expand to 40 cities over the next year, Frazier said.According to Arrived's website, its investors have funded 203 properties with more than $75 million and it has raised $162 million in total as a company, according to Crunchbase.Investors can invest as little as $100 into a property all the way up to the cost of 9.8% of the shares available that particular property. Returns vary depending on the property, but Frazier said it's structured to mimic returns of a more traditional real-estate investment. Investors receive their returns via quarterly dividends.But getting into a fractional piece of a property on the platform may be difficult because homes are sold out."As soon as we got qualified, we pretty quickly sold out our initial homes," Frazier said. "They were selling out in less than 24 hours."In September, Arrived ventured into the vacation rental market and now offers vacation rentals on its platform.EmberThe three founders of Ember, from left to right Jeff Lyman, Kurt Avarell, and James SukhanEmberFounded last year in Salt Lake City, Ember gives buyers the ability to purchase a share of a vacation home and split time there with other shareholders. One-eighth of a share guarantees you 45 nights and one holiday weekend, while one-half of a share will grant you 180 nights.Floor prices to buy a share of an available home start at $103,782 and go as high as $679,045, but the website also shows "potential buys." Homes in that category range from under $300,000 to over $1.3 million a share.Ember is West Coast-focused, with vacation homes in Washington, Oregon, California, Utah, New Mexico, and Texas.As of February, Ember operated 12 homes in 10 vacation destinations, from Palm Springs, California, to Galveston, Texas. Ember declined to disclose how many properties it had control over for this list.Earlier this year, the company announced a $17.4 million Series A funding round led by the billionaire tech investor Peter Thiel.FintorFarshad Yousefi and Masoud Jalali, Fintor's cofounders.Courtesy of FintorLos Angeles-based Fintor's mission is to democratize access to real estate by providing buyers, particularly millennials and Gen Zers, with property-investment opportunities in up-and-coming American cities.The app is the brainchild of Farshad Yousefi and Masoud Jalali, who wanted to confront the challenge of investing in real estate when saddled with other financial obligations, like student debt."Fintor can give the same return as the stock market, but at half the risk," Yousefi told TechCrunch in April 2021. "As two [Iranian] immigrants, we've seen how much this country has to offer and how real estate sits at the top of everything, yet is so inaccessible."Investors in Fintor properties get a monthly dividend from properties, whose rents generally range from $1,500 to $3,000, and receive payouts through share-price appreciation and net proceeds when a property is sold.The buy-in with Fintor can be small — as low as $5 — because the company splits homes into 10,000 shares or more. The idea is to allow users to invest across markets, some which may perform better than others, rather than forcing them to invest a large sum in a single asset (à la traditional real-estate investments).The brand focuses on homes in places like Atlanta, Georgia; Charlotte and Greensboro, North Carolina; and Huntsville, Alabama, priced between $100,000 and $380,000. The company is projecting $400 million in revenue in the next five years, according to a pitch deck provided by the company.FractionalStella Han and Carlos Treviño, Fractional's cofounders.Courtesy of FractionalFractional lowers the financial threshold for real-estate investing by facilitating the purchase of investment properties throughout the country.The minimum buy-in is $5,000.The San Francisco company and Y Combinator alumni (Fractional was part of the startup accelerator's winter 2021 class) hope to open up real estate as an asset class to a broader swath of the public.It raised $5.5 million for a total valuation of $30 million in November 2021, according to TechCrunch, wooing investors including Will Smith and Kevin Durant.TechCrunch also reported that over 400 users had tried Fractional's beta version with investments spread across 95 properties. That number has since ballooned to 305 properties totaling over $48 million in assets managed by the brand.Here's how it works: Users create investment-property proposals that are either private, allowing friends or family members to go in on a property, or public, allowing the broader Fractional customer base to buy in. Once proposals get enough investment from users, Fractional handles offering, purchasing, and closing on the home via an LLC. The platform empowers users to purchase properties of their own choosing, which means return on investment varies.After closing, Fractional offers the service of finding tenants for the property through its property-management partners.HereCorey Ashton Walters, founder and CEO of Here.HereWhile Here is a relative newcomer to the world of fractional vacation ownership, it's been in development for years, according to the founder and CEO Corey Ashton Walters.The Miami-based company that launched in February 2022 offers shares of vacation homes starting at $1 a share — with a minimum stake of 100 shares per home. The average investment is $584, according to the company.Users can buy shares up to 19.9% of a property, which is held under an LLC, and generate passive income while Here handles responsibilities related to the upkeep of a vacation home.The company has so far stuck to just a few locations — like Big Bear, California; Clearwater, Florida; and Gatlinburg, Tennessee — where smaller investors would have a hard time accessing properties on their own, according to Walters."The average person really struggles to get access to the top-performing properties in this asset class," Walters told Insider. "Here democratizes access to the coolest places and the coolest locations on planet Earth."Walters is banking on a booming travel market and a $5 million of fresh funding to boost Here's fortunes.KocomoFeaturing destinations both stateside and abroad, Kocomo bills itself as a hassle-free way to own a slice of your own vacation home. Available properties start at $98,701 for a share of a two-bedroom, two-bathroom apartment in Mexico City's La Condesa neighborhood and go up to $732,191 for a share of a four-bedroom bayfront home on Miami's Davis Harbor.All shares grant purchasers six weeks of use, and owning more shares grants more use. Kocomo has shares available in destinations including Southern California; Vail, Colorado; South Florida; and Mexico. Kocomo courts a more luxury-focused clientele. The platform expanded into South Florida in March and features homes in Miami and Fort Lauderdale."More and more tech founders and executives are visiting the state for both work and pleasure — and we cater perfectly to this demographic," Kocomo CEO Martin Schrimpff said in a March statement.Kocomo emphasizes user choice at its properties, noting that share owners are free to do as they wish with their weeks, including allowing friends and family to take the stay, swapping weeks for time at a different Kocomo property, or renting the property out.Lifestyle Asset GroupKarla Jones, a senior partner and cofounder at Lifestyle Asset Group.Karla JonesBased in Fort Collins, Colorado, Lifestyle Asset Group has coordinated co-ownership of luxury vacation properties since 2013. Destinations it covers range from downtown Manhattan to the Florida Keys, as well as international locations like the Caribbean and Mexico.Not surprisingly, shares in these homes often come with a hefty price tag, along with annual fees. For example, a fifth of a share of a five-bedroom home on Seabrook Island in South Carolina will cost you $342,000 with an annual fee of $17,000.The annual fees cover costs like property taxes, insurance, and utilities, but also include reciprocity access to sister LLCs managed by Lifestyle Asset Group — meaning you can exchange the allotted weeks at your home for another home.Lifestyle Asset Group requires an exit strategy for co-owners — usually around eight years after their initial purchase. The LLC the company established to purchase the property sells it and returns your initial investment along with any appreciation gained."We created a whole new approach that involves an exclusive group of owners who collectively acquire a vacation residence of immense quality and originality, all with a credible way to get a positive return on your investment," co-founder Karla Jones told Forbes in March 2019.LoftyLofty cofounders Jerry Chu, left, and Max Ball, right.LoftyLofty, a blockchain-based fractional ownership company with a minimum buy-in of $50, is targeted to tech-savvy Gen Zers and millennials. The platform, which launched in 2021, has raised $5 million from investors including Y Combinator, Y Combinator alumni group Rebel Fund, and venture capital firm TRAC.Founded by Jerry Chu and Max Ball, the company divides every rental property into tokens on the Algorand blockchain that investors can then purchase. The company's website lays out the data underlying each deal, such as how many tokens a property was broken into and how many tokens are unpurchased, the projected rate of return each year, and the lease terms and rates of tenants in the property.The company's 131 tokenized properties are predominantly in the Midwest, with a heavy presence in locales like Akron, Ohio, and Chicago, Illinois. They're modest, with the median purchase price of homes on the site at $150,000 and the median purchase amount for first-time users hovering around $500. Current users have a median value of about $6,000 in their Lofty portfolios, the company said.Lofty has lured over 5,000 investors spread across nearly 100 countries and has cleared $27 million in transactions, according to the company. Purchasing the tokens is easier than it sounds: Investors don't need to have an Algo crypto wallet (which is tied to the Algorand blockchain). Lofty launched a "custodial" wallet that allows users unfamiliar with cryptocurrencies to invest on their platform. Lofty properties are maintained by property managers brought on by the brand.PacasoSpencer Rascoff and Austin Allison, Pacaso's cofounders.PacasoPacaso, a vacation-home-co-ownership startup founded by two Zillow alumni, says it's the fastest ever to achieve unicorn status.After launching in October 2020, it reached unicorn status, or a $1 billion valuation, in March 2021. The San Francisco company said it had raised $125 million and was worth $1.5 billion.It works like this: The company purchases a home through an LLC in one of many cities, like Charleston, South Carolina; Cape Cod, Massachusetts; and Miami. It then lets customers buy one-eighth to half of a share of the property.Last year, Pacaso sold nearly 400 "units," or shares, according to a February press release.After closing, Pacaso acts as a management company that furnishes the homes, handles repairs and utilities, and facilitates scheduling for owner stays.Prices range from the mid-$200,000s to over $3 million a share for properties in over 35 destinations spanning the US, as well as Mexico, Spain, and the UK.Pacaso also made Insider's list of hottest proptech startups in 2022.Pacaso differs from a traditional timeshare because instead of purchasing the right to use a home, you own it."Pacaso is institutionalizing, or commercializing, that process to eliminate the stress, hassle, and problems," its CEO and founder, Austin Allison, told Insider in 2021, when the company hit its $1 billion valuation. "We believe we will surpass the old category of second-home ownership."RhoveRhove founder Calvin Cooper.RhoveThis app-based platform opens up real-estate investing opportunities from $1.Rhove currently only has two properties that users can invest in: a four-unit rental building in Columbus, Ohio, and a 27-residence senior living community in Silvis, Illinois. But it is in the midst of expanding its offerings nationally and internationally with what it claims is about $1 billion in properties in the pipeline.Investors in Rhove properties can earn a return on their investment that is paid directly into their Rhove accounts. If the value of the building grows, so does the value of the shares. Rhove users can buy or sell shares at any time.Rhove was founded in 2020 by Calvin Cooper, a former venture capital investor in fintech and proptech. In a seed round, Rhove has raised an undisclosed sum from Drive Capital, real estate developers Brett Kaufman of Kaufman Development and Dave Marcinowski of Madera Residential, among others.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 29th, 2022

Vowing to invest more in 2023? These apps make it easier for investors to enjoy the perks of real-estate investing without as much capital.

Buying properties right now is tough for reasons from higher rates to steeper asking prices. Companies offering "fractional ownership" allow almost anyone to become a real-estate investor. The three founders of Ember, from left to right Jeff Lyman, Kurt Avarell, and James Sukhan.Ember A trend of "fractional ownership" allows almost anyone to purchase or invest in real estate. Via these 11 startups, buyers can invest in shares of an income-producing property or a second home. Don't call it a timeshare. Owners keep the gains in the property's value when they sell. A trend in real estate is making second-home and investment-property ownership more affordable: fractional or co-ownership.In short, homebuyers can purchase a share of a property instead of the entire thing.The main audience for fractional ownership is anyone interested in a property that's not their primary residence — whether it's a vacation home or an investment property. Buyers have the ability to purchase a share of a vacation home and enjoy the property as much as their respective percentage allows or buy a portion of a property and earn passive income when it's rented out to tenants."For a lot of people in this country, it's kind of tied into the American dream of owning property and owning a piece of the city you're in," said Ryan Frazier, the CEO of the real-estate-investing platform Arrived Homes.Arrived is one of several companies working to lower the barrier to entry for second-home purchasing and investing.Real estate is frequently seen by finance experts as a safe and profitable investment, but as it has become increasingly difficult to buy a home, co-ownership lets buyers reap the benefits at a fraction of the cost.Two types of ownership — vacation and single-family rentals — have doubters. Vacation rentals, especially those listed on Airbnb, have received pushback for reasons from noise to an increase in home prices. And some locals have butted heads with co-ownership companies, like Pacaso, citing displeasure with what they believe are timeshares with a fancy new name.Fractional ownership for second homes differs from a timeshare because while both allow buyers to use a property for a given amount of time each year, buyers of shares under fractional-ownership companies are able to keep the gains in the property's value.Here is a list of 11 fractional-ownership companies that offer the ability to own small portions of properties, presented in alphabetical order.AncanaThis Mexico City-based company sells shares of luxury homes and apartments throughout the country, with destinations including Los Cabos, San Miguel De Allende, Acapulco, and more."What we are doing is giving people access to a much more affordable vacation home," Andres Barrios, a cofounder of Ancana, told Forbes Mexico in February.Shares of the 22 residences listed on Ancana's site begin at $83,998 for one-twelfth ownership and four weeks of use annually of a five-bedroom, five-and-a-half-bathroom house overlooking Lake Chapala in Chapala.The offerings top out at $470,246 for a one-eighth ownership stake and six weeks of annual use of a six-bedroom, six-bathroom house with a thatched roof and infinity pool overlooking the ocean in Puerto Escondido, also on Mexico's Pacific coast.Residences come fully furnished, and Ancana handles the maintenance and cleaning between owners' stays. Ancana's booking app allows users to book from two days to two years in advance. When owners sell their fractions, they keep the gains in the property's value.Arrived HomesRyan Frazier is the CEO and a cofounder of Arrived Homes.Arrived HomesThis Seattle real-estate investment company offers shares of rental homes with a very low barrier to entry. A trend in the American housing market that's surfaced since the 2008 financial crisis is that corporations have taken to buying up single-family homes to rent them out. Arrived gives investors the ability to become a landlord — or, perhaps more accurately, a colandlord — without having to buy an entire house.Arrived offers the ability to buy shares with as little as $100, according to the company's website. The average investment is closer to $2,300, Frazier told Insider in November. Founded in 2019, Arrived sets itself apart from its co-ownership foes by working with the Securities and Exchange Commission to become qualified, meaning nonaccredited customers can invest in individual shares.The company has over 200 homes set up in more than 17 cities all over the US, including Nashville, Tennessee; Denver; and Charlotte, North Carolina, but it has plans to expand to 40 cities over the next year, Frazier said.According to Arrived's website, its investors have funded 203 properties with more than $75 million and it has raised $162 million in total as a company, according to Crunchbase.Investors can invest as little as $100 into a property all the way up to the cost of 9.8% of the shares available that particular property. Returns vary depending on the property, but Frazier said it's structured to mimic returns of a more traditional real-estate investment. Investors receive their returns via quarterly dividends.But getting into a fractional piece of a property on the platform may be difficult because homes are sold out."As soon as we got qualified, we pretty quickly sold out our initial homes," Frazier said. "They were selling out in less than 24 hours."In September, Arrived ventured into the vacation rental market and now offers vacation rentals on its platform.EmberThe three founders of Ember, from left to right Jeff Lyman, Kurt Avarell, and James SukhanEmberFounded last year in Salt Lake City, Ember gives buyers the ability to purchase a share of a vacation home and split time there with other shareholders. One-eighth of a share guarantees you 45 nights and one holiday weekend, while one-half of a share will grant you 180 nights.Floor prices to buy a share of an available home start at $103,782 and go as high as $679,045, but the website also shows "potential buys." Homes in that category range from under $300,000 to over $1.3 million a share.Ember is West Coast-focused, with vacation homes in Washington, Oregon, California, Utah, New Mexico, and Texas.As of February, Ember operated 12 homes in 10 vacation destinations, from Palm Springs, California, to Galveston, Texas. Ember declined to disclose how many properties it had control over for this list.Earlier this year, the company announced a $17.4 million Series A funding round led by the billionaire tech investor Peter Thiel.FintorFarshad Yousefi and Masoud Jalali, Fintor's cofounders.Courtesy of FintorLos Angeles-based Fintor's mission is to democratize access to real estate by providing buyers, particularly millennials and Gen Zers, with property-investment opportunities in up-and-coming American cities.The app is the brainchild of Farshad Yousefi and Masoud Jalali, who wanted to confront the challenge of investing in real estate when saddled with other financial obligations, like student debt."Fintor can give the same return as the stock market, but at half the risk," Yousefi told TechCrunch in April 2021. "As two [Iranian] immigrants, we've seen how much this country has to offer and how real estate sits at the top of everything, yet is so inaccessible."Investors in Fintor properties get a monthly dividend from properties, whose rents generally range from $1,500 to $3,000, and receive payouts through share-price appreciation and net proceeds when a property is sold.The buy-in with Fintor can be small — as low as $5 — because the company splits homes into 10,000 shares or more. The idea is to allow users to invest across markets, some which may perform better than others, rather than forcing them to invest a large sum in a single asset (à la traditional real-estate investments).The brand focuses on homes in places like Atlanta, Georgia; Charlotte and Greensboro, North Carolina; and Huntsville, Alabama, priced between $100,000 and $380,000. The company is projecting $400 million in revenue in the next five years, according to a pitch deck provided by the company.FractionalStella Han and Carlos Treviño, Fractional's cofounders.Courtesy of FractionalFractional lowers the financial threshold for real-estate investing by facilitating the purchase of investment properties throughout the country.The minimum buy-in is $5,000.The San Francisco company and Y Combinator alumni (Fractional was part of the startup accelerator's winter 2021 class) hope to open up real estate as an asset class to a broader swath of the public.It raised $5.5 million for a total valuation of $30 million in November 2021, according to TechCrunch, wooing investors including Will Smith and Kevin Durant.TechCrunch also reported that over 400 users had tried Fractional's beta version with investments spread across 95 properties. That number has since ballooned to 305 properties totaling over $48 million in assets managed by the brand.Here's how it works: Users create investment-property proposals that are either private, allowing friends or family members to go in on a property, or public, allowing the broader Fractional customer base to buy in. Once proposals get enough investment from users, Fractional handles offering, purchasing, and closing on the home via an LLC. The platform empowers users to purchase properties of their own choosing, which means return on investment varies.After closing, Fractional offers the service of finding tenants for the property through its property-management partners.HereCorey Ashton Walters, founder and CEO of Here.HereWhile Here is a relative newcomer to the world of fractional vacation ownership, it's been in development for years, according to the founder and CEO Corey Ashton Walters.The Miami-based company that launched in February 2022 offers shares of vacation homes starting at $1 a share — with a minimum stake of 100 shares per home. The average investment is $584, according to the company.Users can buy shares up to 19.9% of a property, which is held under an LLC, and generate passive income while Here handles responsibilities related to the upkeep of a vacation home.The company has so far stuck to just a few locations — like Big Bear, California; Clearwater, Florida; and Gatlinburg, Tennessee — where smaller investors would have a hard time accessing properties on their own, according to Walters."The average person really struggles to get access to the top-performing properties in this asset class," Walters told Insider. "Here democratizes access to the coolest places and the coolest locations on planet Earth."Walters is banking on a booming travel market and a $5 million of fresh funding to boost Here's fortunes.KocomoFeaturing destinations both stateside and abroad, Kocomo bills itself as a hassle-free way to own a slice of your own vacation home. Available properties start at $98,701 for a share of a two-bedroom, two-bathroom apartment in Mexico City's La Condesa neighborhood and go up to $732,191 for a share of a four-bedroom bayfront home on Miami's Davis Harbor.All shares grant purchasers six weeks of use, and owning more shares grants more use. Kocomo has shares available in destinations including Southern California; Vail, Colorado; South Florida; and Mexico. Kocomo courts a more luxury-focused clientele. The platform expanded into South Florida in March and features homes in Miami and Fort Lauderdale."More and more tech founders and executives are visiting the state for both work and pleasure — and we cater perfectly to this demographic," Kocomo CEO Martin Schrimpff said in a March statement.Kocomo emphasizes user choice at its properties, noting that share owners are free to do as they wish with their weeks, including allowing friends and family to take the stay, swapping weeks for time at a different Kocomo property, or renting the property out.Lifestyle Asset GroupKarla Jones, a senior partner and cofounder at Lifestyle Asset Group.Karla JonesBased in Fort Collins, Colorado, Lifestyle Asset Group has coordinated co-ownership of luxury vacation properties since 2013. Destinations it covers range from downtown Manhattan to the Florida Keys, as well as international locations like the Caribbean and Mexico.Not surprisingly, shares in these homes often come with a hefty price tag, along with annual fees. For example, a fifth of a share of a five-bedroom home on Seabrook Island in South Carolina will cost you $342,000 with an annual fee of $17,000.The annual fees cover costs like property taxes, insurance, and utilities, but also include reciprocity access to sister LLCs managed by Lifestyle Asset Group — meaning you can exchange the allotted weeks at your home for another home.Lifestyle Asset Group requires an exit strategy for co-owners — usually around eight years after their initial purchase. The LLC the company established to purchase the property sells it and returns your initial investment along with any appreciation gained."We created a whole new approach that involves an exclusive group of owners who collectively acquire a vacation residence of immense quality and originality, all with a credible way to get a positive return on your investment," co-founder Karla Jones told Forbes in March 2019.LoftyLofty cofounders Jerry Chu, left, and Max Ball, right.LoftyLofty, a blockchain-based fractional ownership company with a minimum buy-in of $50, is targeted to tech-savvy Gen Zers and millennials. The platform, which launched in 2021, has raised $5 million from investors including Y Combinator, Y Combinator alumni group Rebel Fund, and venture capital firm TRAC.Founded by Jerry Chu and Max Ball, the company divides every rental property into tokens on the Algorand blockchain that investors can then purchase. The company's website lays out the data underlying each deal, such as how many tokens a property was broken into and how many tokens are unpurchased, the projected rate of return each year, and the lease terms and rates of tenants in the property.The company's 131 tokenized properties are predominantly in the Midwest, with a heavy presence in locales like Akron, Ohio, and Chicago, Illinois. They're modest, with the median purchase price of homes on the site at $150,000 and the median purchase amount for first-time users hovering around $500. Current users have a median value of about $6,000 in their Lofty portfolios, the company said.Lofty has lured over 5,000 investors spread across nearly 100 countries and has cleared $27 million in transactions, according to the company. Purchasing the tokens is easier than it sounds: Investors don't need to have an Algo crypto wallet (which is tied to the Algorand blockchain). Lofty launched a "custodial" wallet that allows users unfamiliar with cryptocurrencies to invest on their platform. Lofty properties are maintained by property managers brought on by the brand.PacasoSpencer Rascoff and Austin Allison, Pacaso's cofounders.PacasoPacaso, a vacation-home-co-ownership startup founded by two Zillow alumni, says it's the fastest ever to achieve unicorn status.After launching in October 2020, it reached unicorn status, or a $1 billion valuation, in March 2021. The San Francisco company said it had raised $125 million and was worth $1.5 billion.It works like this: The company purchases a home through an LLC in one of many cities, like Charleston, South Carolina; Cape Cod, Massachusetts; and Miami. It then lets customers buy one-eighth to half of a share of the property.Last year, Pacaso sold nearly 400 "units," or shares, according to a February press release.After closing, Pacaso acts as a management company that furnishes the homes, handles repairs and utilities, and facilitates scheduling for owner stays.Prices range from the mid-$200,000s to over $3 million a share for properties in over 35 destinations spanning the US, as well as Mexico, Spain, and the UK.Pacaso also made Insider's list of hottest proptech startups in 2022.Pacaso differs from a traditional timeshare because instead of purchasing the right to use a home, you own it."Pacaso is institutionalizing, or commercializing, that process to eliminate the stress, hassle, and problems," its CEO and founder, Austin Allison, told Insider in 2021, when the company hit its $1 billion valuation. "We believe we will surpass the old category of second-home ownership."RhoveRhove founder Calvin Cooper.RhoveThis app-based platform opens up real-estate investing opportunities from $1.Rhove currently only has two properties that users can invest in: a four-unit rental building in Columbus, Ohio, and a 27-residence senior living community in Silvis, Illinois. But it is in the midst of expanding its offerings nationally and internationally with what it claims is about $1 billion in properties in the pipeline.Investors in Rhove properties can earn a return on their investment that is paid directly into their Rhove accounts. If the value of the building grows, so does the value of the shares. Rhove users can buy or sell shares at any time.Rhove was founded in 2020 by Calvin Cooper, a former venture capital investor in fintech and proptech. In a seed round, Rhove has raised an undisclosed sum from Drive Capital, real estate developers Brett Kaufman of Kaufman Development and Dave Marcinowski of Madera Residential, among others.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 29th, 2022

Goldman Sachs plans to cut thousands of workers. Here are the other major US companies that have made cuts in 2022, from Amazon to Twitter.

Goldman Sachs has become the latest major company with plans to slash its headcount as business growth slows and costs increase. Goldman Sachs CEO David Solomon has made no bones of his desire to get staffers back to the office.Michael Kovac / Getty Images A wave of layoffs has swept across American businesses in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. Goldman Sachs is the latest company to plan a major round of layoffs. The investment banking giant is set to lay off up to 8% of its staff as soon as January, according to a person familiar with the cuts. Goldman's planned headcount reduction follows similar cuts from Citi and Morgan Stanley.The banks join a growing number of American businesses that have picked up the pace of firing in 2022. Last month, Amazon announced plans to lay off as many as 10,000 workers across divisions, including devices, retail, and human resources. Peloton has laid off thousands of employees this year. Twitter slashed 50% of its workforce.Even traditionally layoff-resistant companies like Netflix have made cuts, and now companies that saw a pandemic-era boom, like Shopify, are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Stellantis: approximately 1,350 factory workersWorker at the Stellantis plant in Belvidere, Illinois in 2012.Scott Olson/Getty ImagesStellantis, which makes Jeep, Chrysler, and Dodge cars, confirmed that it plans to idle an assembly plant in Belvidere, Illinois, starting in February 2023, resulting in permanent layoffs for roughly 1,350 workers. The company attributed the layoffs to the "increasing cost related to the electrification of the automotive market." Headspace Health: 4% of workersHeadspaceHeadspace Health, which makes a popular meditation app, is the latest internet startup to cut workers amid a stalling economy, laying off 50 workers earlier this month. Calm, a competitor to Headspace, had layoffs earlier this year, as well. Goldman Sachs: reportedly 4,000 employeesDanny Moloshok/ReutersGoldman Sachs has laid plans to fire up to 8% of its staff after the new year, according to a person familiar with the cuts. The layoffs were initially reported by Semafor, which said that 4,000 workers' jobs might be on the line. Goldman's headcount was 49,100 as of September, according to a report by Insider. Morgan Stanley: about 1,600 workersMorgan Stanley CEO James GormanSAUL LOEB / Getty ImagesMorgan Stanley cut 2% of its more than 81,000 employees, according to a report by CNBC. It follows similar cuts from other banks like Goldman Sachs and Citigroup. The practice of big banks' trimming headcounts after performance reviews was put on hold during the Covid-19 pandemic, but many companies have recently reinstated the practice. According to CNBC, banks typically trim 1% to 5% of the weakest performers before bonuses are paid out.CNN: hundreds of staffersCNN CEO Chris LichtMatt Winkelmeyer/GA/The Hollywood Reporter via Getty ImagesCNN's new CEO Chris Licht announced a huge layoff plan that would affect "hundreds" of the company's 3,000 employees, according to a report by Insider. Licht described the layoffs as a "gut punch" to the company. Paid on-air contributors were notified first, and full-time employees were told the next day. Licht had initially pledged that there would be no layoffs when taking the role of CNN's CEO in April 2022, but later changed course.Buzzfeed: 12% of employeesBuzzfeed CEO Jonah PerettiLucy Nicholson/ReutersThe digital media company cut about 180 workers, citing "challenging macroeconomic conditions," according to an SEC filing. "In order for BuzzFeed to weather an economic downturn that I believe will extend well into 2023, we must adapt, invest in our strategy to serve our audience best, and readjust our cost structure," CEO Jonah Peretti wrote in a memo to staffers seen by Variety.PepsiCo: "hundreds" of workersPepsi CEO Ramon LaguartaFabrice Coffrini/AFP via Getty ImagesPepsi is paying off workers in its US snacks and beverage division, according to a report by the Wall Street Journal.  The report didn't provide an exact headcount reduction at Pepsi, but the cuts reportedly affect workers in Purchase, NY, Chicago, and Plano, TX. According to a memo seen by the Journal, the cuts are meant "to simplify the organization so we can operate more efficiently."Carvana: another 1,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersCarvana plans to lay off 1,500 people, or about 8% of its workforce. The cuts will mainly impact Carvana's corporate and tech departments, CNBC reported."Today is a difficult day. The world around us has continued to get tougher and to do what is best for the business, we have to make some painful choices to adapt," CEO Ernest Garcia III wrote in an email to employees obtained by CNBC.It's the second round of layoffs for Cavana this year. In May, the online car dealer cut 12% of its staff, or about 2,500 employees, according to a regulatory filing. Amazon: as many as 10,000 employeesAmazon CEO Andy Jassy.Jerod Harris/Getty Images for Vox MediaAmazon is planning to cut roughly 10,000 tech and corporate roles, The New York Times first reported. The cuts, which would be equivalent to about 3% of Amazon's corporate workforce, would be the largest in company history. This comes after Amazon abandoned multiple projects this year in an effort to cut costs, which led to at least 560 layoffs. The employees worked on some of Amazon's physical store concepts and its shuttered telehealth unit, as well as other divisions like robotics and online education. The company also laid off workers in two of its warehouses in Maryland in October. DoorDash: about 1,250 employeesA booze delivery from DoorDash.DoorDashDoorDash is laying off an estimated 1,250 employees, or 6% of its global workforce, to reduce operating costs after a period of mounting losses. The food delivery company grew rapidly during the pandemic, but has struggled against rising competition in the sector and the looming economic recession. "While our business continues to grow fast, given how quickly we hired, our operating expenses — if left unabated — would continue to outgrow our revenue," DoorDash CEO Tony Xu wrote in a letter to staff on Nov. 30, per Bloomberg.H&M GroupAnn Matica/InsiderThe H&M Group announced on Nov. 30 it will cut 1,500 positions as part of a global effort "to reduce costs and further improve efficiency in the business."An H&M spokesperson told Insider the impacted roles are largely within the company's tech organization in Sweden, noting stores are not part of the terminations. The spokesperson said the layoffs also include some staffers in "central functions, both employees and consultants."In a press release, the company said the reductions will help reduce "administrative and overhead costs" by 2 billion Swedish Krona, the equivalent of nearly $200 million."The cost and efficiency program that we have initiated involves reviewing our organization and we are very mindful of the fact that colleagues will be affected by this," H&M Group CEO Helena Helmersson said in a statement. "We will support our colleagues in finding the best possible solution for their next step."EdelmanRichard Edelman, President and CEO of the public relations company Edelman.Eric Gaillard/ReutersEdelman, the global public relations firm, is slashing 130 jobs as it conducts a "strategic review" of the company, as first reported by Politico.In an email sent to employees on Nov. 30, CEO Richard Edelman wrote that the cuts where "necessary amid current headwinds" and part of a larger effort that also involves a hiring freeze and reduced spending on travel and events. "Employees impacted by this reduction have been contacted and will be provided with information and resources to support their transition," Edeman wrote in the email reviewed by Politico. Juul: about 400 peopleAssociated PressE-cigarette company Juul plans to lay off about a third of its workforce, or roughly 400 people. The cuts come amid broader cost-saving measures for Juul, including a fresh infusion of cash to help it avoid filing for bankruptcy. The company also plans to reduce its operating budget by as much as 40%, the Wall Street Journal reported. Coinbase: about 1,000 employees, plus another 60 peopleCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase will cut another 60 jobs, The Information reported. The cuts come after Coinbase previously reduced its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing at the time that its workforce would be reduced to about 5,000 employees by the end of the second quarter of 2022.Redfin: 13% of its staffRedfin CEO Glenn KelmanRedfinReal-estate firm Redfin plans to lay off 862 employees, or about 13% of its workforce. The company plans to shut down its home-flipping business, RedfinNow, which will result in 264 staffers getting cut, the company said in a financial filing.Another 218 employees' roles will be eliminated, but the workers are being offered a new job within the company, Redfin said. This is the second round of layoffs for Redfin this year. The company cut 6% of its workforce in June, or about 470 employees. Meta: more than 11,000 employeesMark Zuckerberg.Stephen Lam/ReutersMeta plans to cut more than 11,000 employees, or about 13% of its workforce. "I want to take accountability for these decisions and for how we got here," CEO Mark Zuckerberg wrote in a blog post. "I know this is tough for everyone, and I'm especially sorry to those impacted."The company plans to reduce headcount across divisions — including its metaverse division, Reality Labs — but said that some teams, like recruiting, would be more impacted than others. Salesforce: as many as 2,500 employeesSalesforce founder Marc Benioff.NICHOLAS KAMM/AFP via Getty ImagesSalesforce plans to cut thousands of jobs ahead of Thanksgiving, Protocol reported.It's unclear when the layoffs will begin or which divisions will be impacted, though as many as 2,500 workers could be impacted, according to Protocol. Twitter: about 50% of its workforceTwitter Losing Its Most Active Users(Photo by STR/NurPhoto via Getty Images)An estimated 3,700 Twitter employees, or about 50% of the company's workforce, woke up to emails saying that they had been laid off on Nov. 4, shortly after new owner Elon Musk took over the social platform. Terminated employees were notified in blunt emails that Twitter was "conducting a workforce reduction to help improve the health of the company" and offered severance.Though staffers had been previously warned about a pending "workforce reduction," several employees were immediately locked out of their laptops and company systems before they were notified they were terminated, Insider reported. Musk tweeted after the mass layoffs that he had "no choice when the company is losing over $4M/day." Gap: about 500 jobsPeople pass by the Gap clothing retail store in Manhattan.Reuters/Eduardo MunozGap will cut 5% of its corporate workforce, or about 500 employees, The Wall Street Journal reported. "We've let our operating costs increase at a faster rate than our sales, and in turn our profitability," Gap's interim CEO, Bob Martin, wrote in a memo to employees obtained by The Journal. The layoffs will reportedly impact employees in a wide range of departments and will mainly take place at Gap's offices in San Francisco, New York, and Asia.Snap: 20% of employeesRichard Drew/APSnap planned to lay off about 20% of its employees beginning in late August, The Verge reported.The cuts to Snap's 6,400-person workforce will be concentrated in divisions like Zenly, a social mapping app Snap acquired in 2017, as well as a team working on ways for developers to build apps inside Snapchat. Snap's hardware division will also see cuts, weeks after the company announced it was canceling its Pixy drone camera, The Verge reports. A spokesperson for Snap declined to comment.Wayfair: about 870 employeesPavlo Gonchar/SOPA Images/LightRocket via Getty ImagesFurniture and home goods company, Wayfair, said it would layoff about 870 employees — 5% of its global workforce — the Wall Street Journal reported. The layoffs represent about 10% of Wayfair's corporate team, the company said, and will cost between $30 million and $40 million for severance and benefits for laid-off employees.The layoffs are part of Wayfair's efforts to manage expenses and investments, it said. The company said it's also making cuts to third-party labor costs.After the company announced the layoffs, Wayfair shares fell almost 10% in premarket trading, the WSJ reported.Robinhood: more than 1,000 people in 2022Robinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether — in April. Then, in August, the company announced it would cut another 800 jobs, or about 23% of its staff.In the message to employees, CEO Vlad Tenev said that the earlier round of layoffs "did not go far enough" to bring down costs amid record inflation and the crypto market crash, which has reduced trading activity on the platform, he said. Peloton: over 4,600 peopleScott Heins/Getty ImagesIn early October, Peloton announced its fourth set of layoffs, bringing the total loss in headcount at the company to more than 4,600 this year. CEO Barry McCarthy called it "the final phase of the company's transformation journey." In February, Peloton fired over 2,800 people and announced its former CEO, John Foley, would depart amid an ongoing downturn in the company's business.Its second round of layoffs hit Taiwan-based employees in July, and a third wave of employees got cut in August.Peloton was once a pandemic darling, but the fading popularity of at-home fitness and mishandling of its logistics operation has put a strain on the business. The company's current chief exec Barry McCarthy has taken several measures in an attempt to revive the business. Shopify: about 1,000 workersShopify CEO Tobi Lutke.Reuters/Lucas JacksonShopify laid off roughly 1,000 employees, equivalent to 10% of its workforce worldwide.In a memo to employees, CEO Tobi Lutke said that the company — which makes the tech that powers businesses' online stores — had bet big on the pandemic-era e-commerce boom. "It's now clear that bet didn't pay off. Ultimately, placing this bet was my call to make and I got this wrong," Lutke wrote in the letter, which was posted on the company's website. 7-Eleven: 880 jobsPaul Sakuma/APConvenience store chain 7-Eleven cut 880 corporate jobs in Ohio and Texas in 2022 in the wake of the company's 2020 purchase of rival Speedway.A 7-Eleven spokesperson told Insider that the company has been assessing its new corporate structure and undergoing an "integration process" that led to the cuts, which took place at its support centers and field-support operations in Irving, Texas, and Enon, Ohio. Vimeo: 6% of its workforceAnjali Sud, CEO of Vimeo.AP Photo/Mark LennihanVideo-hosting platform Vimeo cut 6% of its staff in July."We are making this decision in order to ensure we come out of this economic downturn a stronger company," Vimeo CEO Anijali Sud wrote in a blog post. "Our people are what makes Vimeo great, and losing any of them is a personal failure that I feel deeply. But after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take."Tesla: more than 200 employeesTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesTesla laid off 229 people in late June, according to WARN filings. The layoffs primarily impacted employees in its Autopilot division. Tesla also closed an entire office in San Mateo, California, and moved some of the office's workers to another location, Bloomberg reported.In an interview in June, Elon Musk said he planned to cut between 3% and 3.5% of Tesla's workforce, including 10% of salaried staff. Insider reported that some ex-employees confirmed they had been laid off, though the total number is not known.  Rivian: around 6% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian confirmed in July that it would cut around 800 employees, or about 6% of its 14,000-person workforce, as it worked to cut costs. The layoffs came less than a year after Rivian went public in the largest IPO of 2021.Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff laid off 10% of its staff, Insider reported in July."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Netflix: about 500 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix has seen 4 rounds of layoffs this year, totaling around 500 workers. The company laid off around 450 people this summer - with one round of layoffs affecting 150 workers in May, and another round affecting 300 in June. Before that, in April, the company laid off 25 marketing employees from its new fan site, Tudum. Most recently, Netflix downsized its animation department, announcing it would lay off 30 employees.  The company may be seeing a turnaround in its financials, though. The streaming company reported losing 200,000 subscribers in the first quarter and nearly 1 million in the second. However, in mid-October, Netflix added 2.4 million subscribers, reversing its decline. Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass cut about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts were part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Reef: about 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology laid off 5% of its global workforce in May.The SoftBank-backed startup cut about 750 employees as it worked toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: about 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and began accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesIn April, the weight-loss app maker Noom laid off hundreds of coaches, Insider reported — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom said it would focus on offering users scheduled video calls with coaches.Thrasio: up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, laid off an unknown number of people in May. Additionally, the company's CEO and founder, Carlos Cashman, stepped down from leadership. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies."At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider at the time that the layoffs would impact up to 20% of Thrasio's staff.Wells Fargo: an unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to Insider at the time.Canopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smiths Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs were among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement at the time.Food52: about 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoVideo app Cameo laid off 87 people in early May."Today has been a brutal day at the office," CEO Steven Galanis wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts followed a staffing boom during the pandemic, when the company grew from around 100 employees before 2020 to about 400 in 2022. PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesIn April, PayPal quietly laid off 83 people, according to a regulatory filing. The company employed more than 30,000 people worldwide, over a third of whom are based in the US. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May. The layoffs, the company said, were part of a larger "shift to long-term profitability," which meant trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK, and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Hello Fresh: about 600 peopleA HelloFresh meal kit in a box.HelloFreshThe Germany-based meal kit company announced it planned to close a Richmond, California, warehouse and eliminate 611 workers' roles by December 11. HelloFresh saw a spike in sales early in the pandemic as more people were forced to cook at home, but sales have faded lately. The company's stock is down more than 70% so far this year — and meal kit rival Blue Apron has seen a similar plunge in its share price. "The lease for HelloFresh's production facility in Richmond is expiring at the beginning of 2023 and after an extensive analysis of our production network, HelloFresh has decided not to extend the lease," a spokesperson said in a statement to Insider.Blue Apron: 10% of workforceA sample meal from Blue ApronBlue ApronShortly after HelloFresh announced layoffs, Blue Apron followed suit, with plans to cut 10% of its workforce in an effort "to both reduce expenses and streamline decision-making and organizational structure," the company said in a press release. "As such, to create a more nimble, focused organization and to better align internal resources with strategic priorities, Blue Apron is streamlining its personnel this week," Blue Apron said in its Dec. 8 statement, noting the reductions will cost the company $1.2 million, namely in severance payments. The meal-kit company has struggled against growing competition in the sector, as well as decreased demand for its products after a pandemic boom petered out as Americans resumed dining at restaurants. Walmart: at least 1,700Walmart CEO Doug McMillonDrew Angerer/Getty ImagesWalmart announced layoffs in its corporate division, as well as at one of its fulfillment centers. In mid-October, the retail giant filed a Worker Adjustment and Retraining Notification, or WARN notice in Georgia, announcing its plans to let go of nearly 1,500 workers. The company said it plans to turn a fulfillment center in the Atlanta area to support third-party sellers for Walmart. Earlier this year, the Wall Street Journal reported that Walmart planned to cut around 200 corporate jobs amid a company restructuring effort. Walmart's sales growth — which exploded during the height of the pandemic — has leveled off recently. In the second quarter of 2022, Walmart's e-commerce sales grew by 12% year-over-year, compared to 97% growth in the second quarter of 2020. Oracle: at least 60, but potentially much moreLarry Ellison, the founder of Oracle.Robert Galbraith/ReutersThe scope of Oracle's layoffs this year remains murky.In July, Insider reported that Oracle's advertising division quietly had two rounds of layoffs, totaling a loss of 60 workers. In August and October, Insider reported that Oracle held two rounds of layoffs that included the company's marketing, customer experience, and cloud divisions.Insider estimates the August round of layoffs potentially affected thousands of jobs across the world. What is clear is that the number of employees laid off is higher than the company has publicly let on. In an SEC filing, Oracle said it expects to incur $519 million in restructuring costs "primarily related to employee severance" through August 2023. Nordstrom: 222 workersJeff Greenberg/Contributor/Universal Images Group Editorial via GettyIn September, Nordstrom filed a WARN notice in Iowa announcing that it planned to cut 222 employees at a distribution center in Cedar Rapids. The layoffs were set to be completed by October 18, according to the filing. Despite rising inflation, Nordstrom is still growing its bottom line. The company reported that its revenue grew by 12% year-over-year in the second quarter, and the company said it's focused on boosting e-commerce sales. Credit Suisse: 2,700 peopleUlrich Körner, chief executive of Credit Suissevia ReutersThe embattled investment bank announced in late October that it plans to "radically restructure" and cut 5% of its headcount, or 2,700 workers. The company said it plans to reduce its headcount by 9,000 workers in the next 3 years. Credit Suisse has been hit with several catastrophes in recent years, including a $5 billion blow from the collapse of Archegos Capital Management last year. VF Corp: 300 workersStreet style brand Supreme is owned by VF Corp.Edward Berthelot/Getty ImagesVF Corp, which owns various retail brands like The North Face, Vans, and Supreme, confirmed to Insider it told employees about plans to lay off 300 employees and eliminate 300 open positions in early September. VF Corp reported a 4% decline in revenue for its second quarter, attributing the slowdown to a covid-related disruption in China and broader macroeconomic headwinds. Gannett: 3% of its US workforceGannett announced widespread layoffs this year.Associated PRessGannett, the largest newspaper chain in the US, reportedly laid off 3% of its US-based workforce or about 400 employees.Poynter reported that CEO Mike Reed informed staff of the layoffs — as well as Gannett's plan to eliminate 400 open positions — at a companywide Q&A in August. Poynter reports that the layoffs started one week after the company reported weak quarterly results. The company, which owns USA Today, along with local newspapers in 46 states, reported a net loss of nearly $54 million in the second quarter. Ford: about 3,000 workersFord CEO Jim FarleyJEFF KOWALSKY / Contributor / GettyFord plans to lay off roughly 3,000 salaried and contract workers as part of a restructuring and shifting focus toward producing electric vehicles. The automaker has estimated that electric cars require 30% less labor than conventional vehicles. Ben Gilbert contributed to an earlier version of this article.United Furniture IndustriesUnited Furniture Industries/FacebookUnited Furniture Industries, one of the largest furniture companies in the country, laid off 2,700 employees on Nov. 21.The company cited "unforeseen business circumstances" in emails and texts sent to staffers overnight just a few days before Thanksgiving, according to local reports. In a follow-up email, fired staffers were told "all benefits will be terminated immediately without provision of COBRA," leaving them without health insurance. The terminations impacted "all employees" at the company's facilities in Verona, Mississippi; Victorville, California; and Winston-Salem, North Carolina. Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 26th, 2022

86 creative gift ideas under $100 — including last-minute options if you"re pressed for time

From a personalized photo book to a sunrise alarm clock, here are 86 gift ideas under $100 for every type of person on your gift list. When you buy through our links, Insider may earn an affiliate commission. Learn more.MoMA Store/Artifact UprisingGift-giving should be fun, but more often than not, it becomes stressful — doubly so if you're working with a budget. The good news is, a gift doesn't have to be super expensive to be meaningful to someone or last a long time.To take the guesswork out of holiday shopping, we've curated the best gifts under $100 that you can buy on your own (or split to cost with someone else). From luxury skincare products to affordable kitchen appliances, there are plenty of thoughtful, special gifts you can give within a reasonable price range.*This list includes a Sponsored Product that has been suggested by AncestryDNA. It also meets our editorial criteria in terms of quality and value.A fun board game spin on an internet sensationWordle: The Party GameThe Toy InsiderWordle: The Pary Game, available at Amazon and Target from $19.82Best for: The committed gamerIf they love Wordle, this new board game version is sure to please. 2-4 players can play against each other or in teams as they try to guess the five-letter mystery word.A DNA kit to learn more about your family historyAmazonAncestryDNA kit, available at Ancestry, $59 (originally $99)Best for: Anyone interested in family heritageCurious about family history? This AncestryDNA test tells you more about genetic ethnicity — and opens up rich conversations about family heritage and personal stories. We like Ancestry because it surveys an extensive population and links you with relatives.*Sponsored by Ancestry.A travel photo albumArtifacts UprisingHardcover Travel Photo Book, available at Artifact Uprising, from $61.20Best for: The vacation photographerThis customizable photo book takes them back to every travel adventure so they'll never forget it. Whether it's a week trip or an extended stay, the travel photo album captures every excursion with charming designs on up to 210 pages.A memorable date night optionEatwith/InstagramGift card, available at Eatwith, from $30Best for: The adventurous dinerEatwith offers cool dining experiences that bring together delicious menus, professional chefs, and interesting guests. Typically held in person, in major cities like New York, Paris, and London, Eatwith is now offering online classes you can take from anywhere that bring unique cooking experiences right into your kitchen. In addition to experiences led by professional chefs from around the world, Eatwith has recently added classes taught by MasterChef contestants.A bag made for hosting mini picnicsAmazonPicnic at Ascot Insulated Wine and Cheese Cooler Bag, available at Amazon, $49.95Best for: The picnicker Our pick for the best picnic basket for carrying bottles, this insulated bag is a great gift for those who want to have a small picnic complete with their favorite drinks and small snacks.An art-inspired chess setMoMa Design StoreKeith Haring Colorful Chess Set, available at MoMA Design Store, $55Best for: The artsy gamerThe Keith Haring Colorful Chess Set doubles as a fun leisure activity and stunning display piece. The chess pieces are inspired by Haring's favorite artworks, from the barking dog to his trademark figures.A fun and educational online cooking classCozymeal/InstagramGift card, available at Cozymeal, from $50Best for: The aspirational chefGifting experiences is on the rise. With a Cozymeal class, they'll learn how to make anything from fresh pasta to beautiful charcuterie boards. In addition to cooking classes, Cozymeal offers online mixology classes and virtual wine tastings.A game that tests their penchant for punsAmazonPun Intended Game, available at Amazon, $19.99Best for: The game night hostIt's a battle of who can devise the most clever puns in this family-friendly card game that requires a quick mind and even quicker writing skills. Game on. The outdoor game you see everyone playing at the parkAmazonSpikeball Game Set, available at Dick's Sporting Goods, $69.99Best for: The bored beach-goerIt's a gorgeous day out and you can't help but notice a few groups having fun while playing some kind of new ball game. Chances are it's Spikeball, the volleyball-esque game that your recipient can set up in any large outdoor space. It takes just 10 minutes to learn the rules. A sunrise alarm clockAmazonPhilips SmartSleep Sunrise Alarm Clock, available at Amazon, $79.95Best for: The aspirational early birdSunrise alarm clocks can help turn typically groggy wake-ups into a softer, more calm way to get out of bed, and the SmartSleep from Philips is one of our favorites. Aside from its calming alarms and beautiful sunrise effect, it also doesn't require the use of an app. An e-book reader that stores thousands of booksAmazonAmazon Kindle, available at Amazon, $99.99Best for: The traveling bookwormA Kindle brings them an easier reading experience, especially when traveling. The Kindle has 8 GB of storage, weeks of battery life, and a vast selection of books to enjoy leisurely wherever, whenever. A TV streaming stickAmazonRoku Streaming Stick +, available at Amazon, $48.88Best for: The TV fanaticRoku's Streaming Stick+ is exceptional for its 4K, HDR, and HD streaming, and long-range wireless receiver. Installing it is an easy process and starts by plugging the stick into the TV. A convenient wireless charging padAmazonAnker PowerWave Wireless Charging Pad, available on Amazon, $15.99Best for: The one who's always low on phone batteryA wireless charger is a great gift for anyone with a glass-backed smartphone that supports the feature. Our reviewer called this one "the perfect wireless charging pad." It charges quickly, looks nice, and can even accommodate thick phone cases.A waterproof outdoor speakerAmazonUltimate Ears Wonderboom 2 Portable Bluetooth Speaker, available at Amazon, Best Buy, and Walmart, from $79.99Best for: The outdoor entertainerThe surprisingly powerful speaker fits in the palm of their hand and can go swimming with them in the pool or ocean. It's also dustproof and therefore suitable for hikes and other outdoor adventures. A stylish accessory with a hidden chargerMark & GrahamPower Up Lightning to USB Tassel Keychain, available at Mark & Graham, from $34.99Best for: The sleek utilitarian The leather keychain is as functional as it is attractive: it has an iPhone lightning input and USB stick so they can charge their phone in their bag. Some colors include free monogramming while others have a $10 monogram fee. A set of trackers for lost itemsCrystal Cox/InsiderTile Pro, available at Amazon, Target, and Walmart, $24.99Best for: The person always losing their keysWhen they can't find their phone, all they have to do is click their Tile button to make their phone ring, even if it's on silent. A case that sanitizes dirty phonesPhone SoapPhoneSoap 3 Smartphone Sanitizer, available at PhoneSoap, $49.95Best for: The neat freakMost of us carry our phones with us everywhere — and we mean, everywhere. PhoneSoap kills 99.9% of common household germs, including bacteria that lead to E.Coli, Salmonella, Staph, the flu, and the common cold. Especially with the pandemic, your recipient will love knowing that their phone is squeaky clean. Their favorite specialty meals from across the countryGoldbellyMeal Kits, available at Goldbelly, from $39.95Best for: The foodieGoldbelly makes it possible to satisfy their most specific and nostalgic cravings no matter where they live in the US — a cheesecake from Junior's, deep dish pizza from Lou Malnati, and more. Browse the iconic gifts section for inspiration.A savory seasoning starter packMomofukuPantry Starter Pack, available at Momofuku, $60Best for: The spice rack re-stockerSpice up their pantry with this flavorful seasoning set. The starter pack includes spicy seasoned salts, restaurant-grade soy and tamari sauces, and chili crunch. Momofuku's site also includes several recipes to make using the ingredients from the set.A set of cocktail mixersWilliams SonomaCasamigos Cocktail Gift Set, available at Williams Sonoma, $56.95Best for: The cocktail connoisseurCo-founded by actor George Clooney, Casamigos is a favorite brand of many tequila lovers. The company's newest addition is a cocktail gift set of uniquely flavored mixers and rimmers. The mixers are exclusively available at Williams Sonoma and include blackberry basil and citrus flavors.The internet's favorite olive oilBrightland/InstagramAwake Olive Oil, available at Brightland, $37Best for: The quality EVOO enthusiastBrightland's olive oils make great gifts for cooks and anyone who loves to entertain. The white bottles protect the EVOO from light damage and look nice displayed on a countertop. International coffee delivered every monthAtlas Coffee Club/Instagram3-Month Gift Subscription, available at Atlas Coffee Club, $50Best for: The coffee loverIt's a worldwide coffee tour without the expense of airplane tickets. Atlas Coffee Club delivers single-origin coffee and always includes a postcard from the country, brewing tips, and flavor notes with each month's shipment. A delicious and unique hot sauceTruff/InstagramTruff White Truffle Hot Sauce, available at Amazon, $25.59Best for: The hot sauce collectorThis hot sauce is infused with white truffle, packing a sweet heat you'll want to add to burritos, pizza, wings, or any other dish you want to make a little more interesting. A gift card from Hello FreshHello FreshGift card, available at Hello Fresh, from $75Best for: The exhausted home cookThe best gifts are for items or services your recipient wouldn't think to purchase for themselves. A gift card from Hello Fresh checks all of these boxes, as it offers a welcome reprieve from grocery shopping and meal planning. Choose from four amounts based on your recipient's household size and needs. We also wrote a full guide to Hello Fresh that includes a breakdown of its special features, how to get started with an account, and more.Sweet treats they won't be able to stop eatingMilk BarThe Chocolatey Classic, available at Milk Bar, $89Best for: The chocolate loverInstead of the usual box of chocolates, gift some of the best-known and most delicious treats from Milk Bar. The set contains 12 soft and chewy cake truffles and an adorable mini birthday cake. Premium distilled whiskeyUncle Nearest WhiskeyUncle Nearest Whiskey, available at ReserveBar, from $60.99Best for: The old-fashioned fanFounded in Tennessee, Uncle Nearest is an award-winning, Black-owned whiskey brand that was inspired by the first known African-American master distiller, Nathan "Nearest" Green. If you're shopping for someone who enjoys a quality glass of whiskey or a whiskey-based cocktail every now and then, a bottle of Uncle Nearest won't disappoint.A flavorful seasoning collectionArtifact UprisingThe Grill & Roast Collection, available at Spicewalla, $19.99Best for: The backyard grillerA set of tasty seasonings is key to making delicious foods, especially during BBQ season. They can use the spices in this collection to add flavor to meats, seafood, vegetables, and even rice.A device that turns plain water into a sparkling beverageAmazonSodaStream Sparkling Water Maker, available at Amazon, $89.99Best for: The fizzy water fanA SodaStream is an amazing gift for anyone who's a fan of fizzy beverages. With this gadget, they can make sparkling water in seconds and add flavors if they want to spice things up.Ready-to-prepare meals that save them timeDaily HarvestCustom Gift Box, available at Daily Harvest, $85Best for: The healthy eaterYour recipient will be able to fill a box with smoothies (including protein smoothies for gym rats), harvest bowls, soup, and more meals that are ready to take on the go. Daily Harvest's healthy offerings are perfect for the busy, wellness-minded people in your life. A chai samplerAmazonVadham Chai Tea Reserve Set, available at Amazon, $23.99Best for: The tea drinkerThis set of loose-leaf teas made it into Oprah's Favorite Things back in 2018. It's filled with three variations of chai that any tea lover will appreciate. A box that lets them explore the exciting world of sakeTippsySake Gift Box, available at Tippsy, $59Best for: The sake drinkerWhile online wine clubs abound, Tippsy is quietly cultivating a community of sake lovers. It offers an abundance of knowledge and premium sake options to anyone who's interested in exploring this underrated alcohol further.  A chic lamp that warms candles without lighting themCrystal Cox/InsiderCandle Warming Lamp, available at Amazon, $54.99Best for: The candle preserver Aside from looking cute, this TikTok-famous lamp warms candles up without lighting them. It helps your giftee enjoy their candles' scents whenever she wants without worrying about smoke or accidentally forgetting to put them out.A custom pet portraitWest & WillowCustom Pet Portrait, available at West & Willow, from $67Best for: The pet parent If their fur baby is their best friend, they'll go crazy for this custom pet portrait from West & Willow. Upload a photo of their pet, then choose the portrait style, size, frame, add their pet's name, and get ready to make their day with this A+ gift.A mini fireplaceFood52Personal Concrete Fireplace, available at Food52 and Amazon, from $78.40Best for: The fireplace fanKeep them warm and entertained this summer with this small personal fireplace, which is safe for use indoors and for cooking fun treats like s'mores. A whimsical candle from a new brandOtherland/Instagram3-Candle Set, available at Otherland, $89Best for: The fancy candle fanAs our candle-loving editor points out, "Does the world really need another fancy candle brand?" Otherland's candles are so creative and interesting that you won't be able to resist gifting at least a few. A set of monogrammed hand towelsWeeziePiped Edge Washcloths (Set of 2), available at Weezie, $36Best for: The monogram loverThe extra time and thought put into a personalized gift are worth it. You can add custom embroidery (+$10 per towel) to Weezie's fluffy and absorbent towels. A succulent to spruce up their spaceLula's GardenBliss Garden, available at Lula's Garden, $30Best for: The plant parentA small succulent is a perfect way to brighten up their desk, bookshelf, or windowsill. We love this one from Lula's Garden because it's wrapped in a ready-to-gift box. Plus, when you buy one, you support water.org, an organization that helps people all over the world get access to safe, clean water. A wine gift setAmazonIvation Wine Lovers Set with Opener and Preserver, available at Amazon, $49.98Best for: The wine appreciator Help elevate your recipient's wine experience by gifting this wine lover's set. The included wine preserver is a great gift for those that live alone or like to take their time with their wines. The sleek charging base and modern design make this a gift your recipient will be proud to display on their kitchen counter.A sleek knife blockMaterial KitchenThe Stand, available at Material Kitchen, $90Best for: The practical chefWe're big fans of Material Kitchen's minimalist approach to kitchen essentials — like this magnetic, angled knife block made from heavy-duty wood. A fresh flower bouquetUrbanStemsFlower bouquets, available at UrbanStems, from $35Best for: Any fan of flowersIf you don't know what to gift, flowers are always appreciated. A beautiful bouquet delivered right to them is the kindest way to say congrats and show you're thinking of them.A set of sustainable coastersJoanna BuchananRuffle Edge Straw Coasters, available at Joanna Buchanan, $48Best for: The meticulous table setterAdd a pop of color to their indoor and outdoor eating spaces with these colorful straw coasters. The coasters come in a set of four, are handwoven in the Philippines, and are made of sustainable materials.A compact and lightweight hand mixerAmazonKitchenaid 5-Speed Ultra Power Hand Mixer, available at Target, $44.99Best for: The bakerNot all baking tasks require a full stand mixer. KitchenAid's hand mixer doesn't take up a lot of space but gets a variety of jobs done by offering five-speed options. You'll also have fun picking out a unique color for your recipient. The perfect pillow for side sleepersCasperOriginal Casper Pillow, available at Casper, Amazon, and Target, $65Best for: The restless side sleeperThe Original Casper Pillow will help your favorite side sleeper align their neck with their spine while sleeping. We named this pillow the best for side sleepers in our guide to the best pillows. You can customize the pillow even more by choosing its size and height.A cool drink accessory worth celebratingBrumate12oz Insulated Champagne Flute, available at BrüMate, $24.99Best for: The beachside celebratorBrumate's insulated flute prevents the disappointment of bubbly that has gone warm and flat. It holds almost half a bottle of champagne and comes in 30 pretty colors.  A digital photo frameAmazonNIX 8-Inch USB Digital Photo Frame, available at Amazon, $69.99Best for: The modern nostalgistPro-tip: Include a USB stick of your favorite photo memories together with this gift. The high-tech photo frame will shuffle through and display crisp photos and videos, and it can also be mounted on a wall. If you can stretch your budget, the more popular WiFi version is the same idea but more convenient to use because it works right from your phone's gallery. A custom map of a special locationGrafomapCustom Map Poster, available at Grafomap, from $19Best for: The one who always mentions their favorite city Grafomap is the site where you can commemorate important places, be it their hometown, college town, or the city where you two met. The custom design function is easy to use and you can choose to get the final map poster framed or printed on canvas. An everyday stainless steel frying panMade InStainless Clad Frying Pan, available at Made In, $76Best for: The one who is constantly cookingPros like Tom Colicchio trust Made In's cookware to perform in some of the country's top kitchens, so rest assured it's good enough for your recipient. The quickly growing startup is behind a couple of our favorite pieces of cookware. A beautiful piece of handmade drinkwareJFR GlassAntique Silver Glass, available at JFR Glass, $45Best for: The fan of truly unique giftsEach hand-blown glass from JFR Glass is unique. The glasses aren't just pretty — they're also functional and sturdy. They're also dishwasher-safe and UV-resistant, so your recipient can enjoy the pieces forever. A cold brew coffee makerAmazonTakeya Cold Brew Coffee Maker, available at Amazon and Target, $27.99Best for: The daily cold brew consumerHelp your favorite coffee-lover stay caffeinated with this easy-to-use cold brew coffee maker. All they need to do is fill the filter with coffee, add water to the carafe, give it all a shake, and pop it in the fridge. In 12 hours, they will have a delicious cold brew that will have them reconsidering their daily trips to their favorite coffee shop.An affordable cashmere sweaterNaadamMen's and Women's The Essential Cashmere Sweater, available at Naadam, $75Best for: The one with impeccable style No wardrobe is complete without a great cashmere sweater. This one from Naadam is made of heavenly-soft 100% Mongolian cashmere and comes in over 25 colors, so there's truly a shade for everyone.A box of the best socksBombasWomen's Holiday Snowflake Ankle Sock 4-Pack Gift Box, available at Bombas, $66Best for: The appreciator of practical giftsBombas socks are some of our favorites for their arch support and durability. This box set (also available in men's and kid's sizes) features a set of subtly holiday-themed socks they'll wear all year round.A funky pair of shadesCrap EyewearThe Lucid Blur, available at Crap Eyewear, $89Best for: The trendsetterA great pair of sunglasses is a seasonless gift. Even on cold winter days, a pair of sunglasses is needed to block out the sun's glare and keep them looking stylish. If you're looking to snag them a unique pair of sunglasses, check out Crap Eyewear. The styles are fun, affordable, and totally on trend. An artistic watchMoMA Design StoreSwatch x MoMa watch, available at Moma Design Store, from $80Best for: The art enthusiastWhat better way to show off their love of art than a watch inspired by famous paintings? Swatch collaborated with New York's Museum of Modern Art to create these unique watches that resemble artworks from MoMa's collection.A pair of cozy slippersZapposUGG Scuffette II Slippers, available at Zappos, Amazon, and Nordstrom, from $94.95Best for: The comfort appreciator Help them keep their feet warm while working from home with these fuzzy slippers. These high-quality slippers are made of suede and have a sheepskin collar, making them a very useful gift that your recipient may not think to purchase for themselves.A gold bracelet that displays their zodiac signAurateZodiac Bracelet, available at Aurate, $90Best for: The chic astrology enthusiastThe delicate gold vermeil bracelet is a piece they'll want to wear every day. Aurate's beautiful gold jewelry is not only more affordable than traditional fine jewelry, but it's also ethically sourced, representing a new wave of jewelry brands to know about. A sturdy walletAmazonBellroy Slim Sleeve Leather Wallet, available at Bellroy, Amazon, and Nordstrom, $79Best for: The fan of practical giftsReplace their tired and tattered wallet with this slim leather billfold from Insider Reviews' favorite wallet brand Bellroy. It's made with ethically sourced leather that will age wonderfully and last many years.A pair of comfortable wool shoesAllbirdsWool Runners, available at Allbirds, $110Best for: The constant walkerWhile Allbirds has hinted that it's on track to become more than just a shoe brand, we'll always be partial to its original sneakers made from merino wool. We've been wearing and loving the comfortable style for more than two years, and you can't go wrong gifting a pair of these shoes. A reusable bag featuring a fun printBagguStandard Baggu, available at Baggu, $14Best for: The sustainable shopperThere are plenty of reusable nylon shopping bag options out there, but where Baggu really stands out from the crowd is its variety of quirky and colorful prints. These useful bags are the perfect gift for everyone in your life.A pretty leather travel wrap for chargersMark & GrahamLeather Charger Roll Up, available on Mark & Graham, $49Best for: The efficient packerMark & Graham's Leather Charger Roll Up is made from soft, supple leather and has three separate pockets to stash cables and chargers on the go. Get it monogrammed for free.A pair of sparkly hoopsMejuriSapphire Hoops, available at Mejuri, $58Best for: The lover of subtle jewelryTraditional hoops get an embellishment of white sapphire in this affordable piece from Mejuri. Extremely comfortable, flattering lounge pantsMeUndiesLounge Pants, available at MeUndies, $68Best for: The serious loungerThese are some of the best lounge pants we've ever tried. If they're spending more time in casual wear, they'll spend an inordinate amount of time in these. We also appreciate that the silky MicroModal and sleek cut make them perfectly acceptable for wearing in public to grab the mail.A high-quality leather band for an Apple WatchAmazonBullstrap Full-Grain Italian Leather Watch Band, available at Amazon, $95Best for: The stylish watch wearerBullstrap's Italian Leather Watch Bands are the perfect way to add some elegance to an Apple Watch. They come in several colors of leather and are compatible with all generations of the Apple Watch.A mini duffel crossbody with a distinctive lookDagne DoverExtra Small Landon Carryall, available at Dagne Dover, $93.75Best for: The one who's always on the goDagne Dover excels at making functional and versatile bags like work totes and this extra small version of its popular neoprene duffel. Inside, they'll find a compartment just large enough for the day's essentials, pockets to keep them organized, and a detachable key leash. Premium underwear that's worth every pennyTommy JohnMen's Second Skin Boxer Brief (3-Pack), available at Tommy John, $86Best for: The person who'd appreciate good underwearIt's not an exaggeration to say Tommy John could be the most comfortable boxers your recipient has ever worn. The Second Skin, in particular, is a standout — smooth, soft, stretchy, and breathable. The coziest moccasins we've ever wornL.L.BeanWomen's Wicked Good Moccasins, available at L.L.Bean, $89Best for: The winter cabin weekenderCan you practically feel the soft fluffiness of these slippers through your screen? L.L.Bean supposedly sells a pair of these cushioned sheepskin shoes every seven seconds during December, proving that they are worth the purchase.A pair of blue light-blocking glasses that look good enough to wear outside of the houseMVMTIngram Crystal Everscroll Glasses, available at MVMT, $78Best for: The one who works in front of a screen all dayHelp them protect their eyes from harsh screens with a pair of blue-light-blocking glasses. Their eyes won't feel as strained, and they might be able to drift off to sleep more quickly. A simple but luxurious body washNecessaireNecessaire The Body Wash, available at Sephora, $25Best for: The person who appreciates a good showerNew startup Necessaire formulates its body care products with vitamins A, B3, C, E, and omega-6 and omega-9. The subtly scented Body Wash will leave their skin feeling clean, soft, and nourished. A glamorous nail kitOlive and JuneThe Mani System Box, available at Olive and June, $85Best for: The DIY nail artistFrom shimmery to matte polish options, gift them this game-changing nail kit. It includes six different shades you can pick yourself, a topcoat, nail polish remover, nail tools, and even a latte mug.A hair towel that cuts drying time in halfAmazonAquis Rapid Dry Lisse Hair Towel, available at Anthropologie and Bergdorf Goodman, $30Best for: The one who takes hair care seriouslyAquis' cult-favorite hair towels have inspired a slew of rave reviews online, including one from our own team of product reviewers. The towels are made from a proprietary fabric called Aquitex that's composed of ultra-fine fibers (finer than silk) that work to reduce the amount of friction the hair experiences while in its weakest state. A silky hand creamLa Mer/InstagramLa Mer Hand Treatment, available at Nordstrom, $90Best for: The fan of smooth handsOf all La Mer's premium skincare products, the Hand Treatment is a brand favorite. This creamy formula is the perfect texture to help heal dry hands.A small skincare tool that removes 99.5% of dirt, oil, and makeup residueAmazonForeo Luna Facial Cleansing Brush, available at Amazon and Ulta, from $83.40Best for: The skincare enthusiastOur team swears by these gentle yet effective cleaning brushes. They have hygienic silicone bristles and come in five different models for different skin types. The Luna is small enough to bring on the go, so your recipient can maintain their skincare routine no matter where they are.An easy-to-use trimmerPhilips NorelcoPhilips Norelco OneBlade Face + Body Trimmer, available at Amazon, Target, and Walmart, from $39.96Best for: The person who prefers a close shaveWhat separates the Philips Norelco OneBlade from other trimmers and shavers is the unique blade. It uses a fast-moving OneBlade cutter with a protection system on both sides of the blade to prevent knicks. The base of the blade will contour to his face, allowing for a comfortable shave or trim without irritation — and it works for wet or dry shaving.A solution to their back painBest BuyUpright Go 2 Posture Trainer, available at Best Buy, $79.99Best for: The person working on their postureThis gift is for anyone who is always complaining about their back pain or poor posture. Upright Go is an innovative and discreet device that sticks to the top of their back and helps them improve their posture, day by day. A sleep mask made with high-quality mulberry silkNordstromSlip Pure Silk Sleep Mask, available at Nordstrom, $50Best for: The person who takes sleep seriouslyFew things are more luxurious than sleeping with a silk mask. Thanks to its all silk construction, your recipient's face will feel cool all night long. An electric toothbrush they won't want to hide awayGobyMoonstone Electric Toothbrush, available at Goby, $95Best for: The dental-care obsessedIn addition to its sleek design, the Goby Toothbrush stands out for its soft brush head, normal and sensitive brushing speeds, and convenient USB charging shell. A cult-favorite fragranceLe Labo/InstagramLe Labo AnOther 13 Eau de Parfum, available at Nordstrom, from $90Best for: The daily perfume userLe Labo is famous for its distinctive packaging and subtle yet inviting scents. The AnOther is musky and woodsy, but it's balanced out with ingredients like jasmine petals. A planner designed for setting goalsCrystal Cox/InsiderBestSelf Co. Self Journal, available at Amazon, Barnes & Noble, and BestSelf, from $31.99 Best for: The goal-setterThe Self Journal is an undated, 13-week planner that's designed for daily use and quarterly planning. We love it because it helps break projects and goals into manageable chunks. If your giftee is working towards a big goal, this could be a really thoughtful resource — especially if it involves forming new habits in a short period of time.A high-quality yoga matMandukaManduka PROlite Yoga Mat, available at Amazon, Manduka, and REI, $99Best for: The yogi Make their sweat sessions better with the addition of a great yoga mat. The Manduka PROlite boasts supportive, dense cushioning and a no-slip grip, but it's still super lightweight for easy carrying.An instant cameraFujifilmFujifilm Instax Mini 11 Instant Camera, available at Amazon, Walmart, and Urban Outfitters, from $73.25Best for: The memory makerSure, they can snap photos on their iPhone all night long, but these days there's something particularly special about having tangible photographs. An instant camera is the perfect gift for the one who loves documenting life in photos.A gift card from BookshopCrystal Cox/InsiderGift Card, available at Bookshop, from $10Best for: The bookstore browserBookshop allows readers to support small bookstores online. The retailer sells gift cards that your recipient will be able to use to shop online from their favorite indie bookstore. The gift cards never expire and can be bought in increments from $10 to $1000.An at-home pottery kitSculpdPottery Kit, available at Sculpd, $65Best for: The crafterThis pottery kit offers a unique activity to do with your loved ones. Each kit comes with enough supplies for two people, with add-on supplies also available for purchase so that more can participate. It also includes a step-by-step instructional booklet.A sleek fitness trackerFitbitFitbit Inspire 2, available at Best Buy, Target, and Fitbit, $79.95Best for: The avid athleteFitbit's affordable Inspire 2 tracker has no shortage of useful features to keep them informed about their physical activity. The heart rate monitor lets them be more strategic about their workouts by tracking calorie burn, resting heart rate, and heart rate zones.Membership to a popular nationwide book clubBook of the Month6-Month Subscription, available at Book of the Month, $99.99Best for: The avid readerIf they prefer the incomparable feel of a hardcover book, set them up with a Book of the Month membership. It offers five curated titles, mainly from up-and-coming authors, to choose from every month. A bike horn that can honk as loud as a carPriority BicyclesPriority High Power Horn, available at Priority Bicycles, $29.99Best for: The bike commuterBorn out of a research project between Priority Bicycles and Toyota, this bike horn can get as loud as the one in a car. This is an excellent safety accessory for bikers.A gorgeous coffee table book that helps cure their travel bugAmazon"1,000 Places to See Before You Die (Deluxe Edition): The World as You've Never Seen It Before" by Patricia Schultz, available at Barnes & Noble, $50.99Best for: The aspirational travelerPatricia Schultz's original "1,000 Places" captured imaginations with its compelling curation of experiences all over the world. The newly released deluxe edition features a beautiful gold-embellished cover and more than 1,000 new photographs. An interactive state park mapUncommonGoodsState Parks Explorer Map, available at UncommonGoods, $28Best for: The hikerThis state park map is sure to come in handy whenever they venture into the outdoors. Choose from 10 maps that each list over 30 parks in states such as New York, California, and Connecticut. The map includes a sheet of gold stickers so they can mark their progress after each park visit.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderDec 15th, 2022

84 creative gift ideas for absolutely every person in your life — all under $100

From a personalized photo book to a sunrise alarm clock, here are 84 gift ideas under $100 for every type of person on your gift list. When you buy through our links, Insider may earn an affiliate commission. Learn more.MoMA Store/Artifact UprisingGift-giving should be fun. But more often than not, it becomes stressful, especially if you're working with a budget. The good news is, a gift doesn't have to be super expensive to be meaningful or last a long time.To take the guesswork out of holiday gifting, we've curated the best gifts under $100 that you can buy on your own (or split with someone else). From luxury skincare to affordable kitchen appliances, there are plenty of thoughtful, special gifts you can give within a reasonable price range.*This list includes a Sponsored Product that has been suggested by AncestryDNA. It also meets our editorial criteria in terms of quality and value.Gifts for couples, families, or groupsTech giftsFood giftsHome giftsStyle giftsBeauty and self-care giftsFitness, outdoor, and hobby giftsGifts for couples, families, or groupsA fun board game spin on an internet sensationWordle: The Party GameThe Toy InsiderWordle: The Pary Game, available at Amazon and Target from $19.82Best for: The committed gamerIf they love Wordle, this new board game version is sure to please. 2-4 players can play against each other or in teams as they try to guess the five-letter mystery word.A DNA kit to learn more about your family historyAmazonAncestryDNA kit, available at Ancestry, $59 (originally $99)Best for: Anyone interested in family heritageCurious about family history? This AncestryDNA test tells you more about genetic ethnicity — and opens up rich conversations about family heritage and personal stories. We like Ancestry because it surveys an extensive population and links you with relatives.*Sponsored by Ancestry.A travel photo albumArtifacts UprisingHardcover Travel Photo Book, available at Artifact Uprising, from $61.20Best for: The vacation photographerThis customizable photo book takes them back to every travel adventure so they'll never forget it. Whether it's a week trip or an extended stay, the travel photo album captures every excursion with charming designs on up to 210 pages.A memorable date night optionEatwith/InstagramGift card, available at Eatwith, from $30Best for: The adventurous dinerEatwith offers cool dining experiences that bring together delicious menus, professional chefs, and interesting guests. Typically held in person, in major cities like New York, Paris, and London, Eatwith is now offering online classes you can take from anywhere that bring unique cooking experiences right into your kitchen. In addition to experiences led by professional chefs from around the world, Eatwith has recently added classes taught by MasterChef contestants.A bag made for hosting mini picnicsAmazonPicnic at Ascot Insulated Wine and Cheese Cooler Bag, available at Amazon, $49.95Best for: The picnicker Our pick for the best picnic basket for carrying bottles, this insulated bag is a great gift for those who want to have a small picnic complete with their favorite drinks and small snacks.An art-inspired chess setMoMa Design StoreKeith Haring Colorful Chess Set, available at MoMA Design Store, $55Best for: The artsy gamerThe Keith Haring Colorful Chess Set doubles as a fun leisure activity and stunning display piece. The chess pieces are inspired by Haring's favorite artworks, from the barking dog to his trademark figures.A fun and educational online cooking classCozymeal/InstagramGift card, available at Cozymeal, from $50Best for: The aspirational chefGifting experiences is on the rise. With a Cozymeal class, they'll learn how to make anything from fresh pasta to beautiful charcuterie boards. In addition to cooking classes, Cozymeal offers online mixology classes and virtual wine tastings.A game that tests their penchant for punsAmazonPun Intended Game, available at Amazon, $19.99Best for: The game night hostIt's a battle of who can devise the most clever puns in this family-friendly card game that requires a quick mind and even quicker writing skills. Game on. The outdoor game you see everyone playing at the parkAmazonSpikeball Game Set, available at Dick's Sporting Goods, $69.99Best for: The bored beach-goerIt's a gorgeous day out and you can't help but notice a few groups having fun while playing some kind of new ball game. Chances are it's Spikeball, the volleyball-esque game that your recipient can set up in any large outdoor space. It takes just 10 minutes to learn the rules. Tech giftsA sunrise alarm clockAmazonPhilips SmartSleep Sunrise Alarm Clock, available at Amazon, $79.95Best for: The aspirational early birdSunrise alarm clocks can help turn typically groggy wake-ups into a softer, more calm way to get out of bed, and the SmartSleep from Philips is one of our favorites. Aside from its calming alarms and beautiful sunrise effect, it also doesn't require the use of an app. An e-book reader that stores thousands of booksAmazonAmazon Kindle, available at Amazon, $99.99Best for: The traveling bookwormA Kindle brings them an easier reading experience, especially when traveling. The Kindle has 8 GB of storage, weeks of battery life, and a vast selection of books to enjoy leisurely wherever, whenever. A TV streaming stickAmazonRoku Streaming Stick +, available at Amazon, $48.88Best for: The TV fanaticRoku's Streaming Stick+ is exceptional for its 4K, HDR, and HD streaming, and long-range wireless receiver. Installing it is an easy process and starts by plugging the stick into the TV. A convenient wireless charging padAmazonAnker PowerWave Wireless Charging Pad, available on Amazon, $15.99Best for: The one who's always low on phone batteryA wireless charger is a great gift for anyone with a glass-backed smartphone that supports the feature. Our reviewer called this one "the perfect wireless charging pad." It charges quickly, looks nice, and can even accommodate thick phone cases.A waterproof outdoor speakerAmazonUltimate Ears Wonderboom 2 Portable Bluetooth Speaker, available at Amazon, Best Buy, and Walmart, from $79.99Best for: The outdoor entertainerThe surprisingly powerful speaker fits in the palm of their hand and can go swimming with them in the pool or ocean. It's also dustproof and therefore suitable for hikes and other outdoor adventures. A stylish accessory with a hidden chargerMark & GrahamPower Up Lightning to USB Tassel Keychain, available at Mark & Graham, from $34.99Best for: The sleek utilitarian The leather keychain is as functional as it is attractive: it has an iPhone lightning input and USB stick so they can charge their phone in their bag. Some colors include free monogramming while others have a $10 monogram fee. A set of trackers for lost itemsCrystal Cox/InsiderTile Pro, available at Amazon, Target, and Walmart, $24.99Best for: The person always losing their keysWhen they can't find their phone, all they have to do is click their Tile button to make their phone ring, even if it's on silent. A case that sanitizes dirty phonesPhone SoapPhoneSoap 3 Smartphone Sanitizer, available at PhoneSoap, $49.95Best for: The neat freakMost of us carry our phones with us everywhere — and we mean, everywhere. PhoneSoap kills 99.9% of common household germs, including bacteria that lead to E.Coli, Salmonella, Staph, the flu, and the common cold. Especially with the pandemic, your recipient will love knowing that their phone is squeaky clean. Food giftsTheir favorite specialty meals from across the countryGoldbellyMeal Kits, available at Goldbelly, from $39.95Best for: The foodieGoldbelly makes it possible to satisfy their most specific and nostalgic cravings no matter where they live in the US — a cheesecake from Junior's, deep dish pizza from Lou Malnati, and more. Browse the iconic gifts section for inspiration.A savory seasoning starter packMomofukuPantry Starter Pack, available at Momofuku, $60Best for: The spice rack re-stockerSpice up their pantry with this flavorful seasoning set. The starter pack includes spicy seasoned salts, restaurant-grade soy and tamari sauces, and chili crunch. Momofuku's site also includes several recipes to make using the ingredients from the set.A set of cocktail mixersWilliams SonomaCasamigos Cocktail Gift Set, available at Williams Sonoma, $56.95Best for: The cocktail connoisseurCo-founded by actor George Clooney, Casamigos is a favorite brand of many tequila lovers. The company's newest addition is a cocktail gift set of uniquely flavored mixers and rimmers. The mixers are exclusively available at Williams Sonoma and include blackberry basil and citrus flavors.The internet's favorite olive oilBrightland/InstagramAwake Olive Oil, available at Brightland, $37Best for: The quality EVOO enthusiastBrightland's olive oils make great gifts for cooks and anyone who loves to entertain. The white bottles protect the EVOO from light damage and look nice displayed on a countertop. International coffee delivered every monthAtlas Coffee Club/Instagram3-Month Gift Subscription, available at Atlas Coffee Club, $50Best for: The coffee loverIt's a worldwide coffee tour without the expense of airplane tickets. Atlas Coffee Club delivers single-origin coffee and always includes a postcard from the country, brewing tips, and flavor notes with each month's shipment. A delicious and unique hot sauceTruff/InstagramTruff White Truffle Hot Sauce, available at Amazon, $25.59Best for: The hot sauce collectorThis hot sauce is infused with white truffle, packing a sweet heat you'll want to add to burritos, pizza, wings, or any other dish you want to make a little more interesting. A gift card from Hello FreshHello FreshGift card, available at Hello Fresh, from $75Best for: The exhausted home cookThe best gifts are for items or services your recipient wouldn't think to purchase for themselves. A gift card from Hello Fresh checks all of these boxes, as it offers a welcome reprieve from grocery shopping and meal planning. Choose from four amounts based on your recipient's household size and needs. We also wrote a full guide to Hello Fresh that includes a breakdown of its special features, how to get started with an account, and more.Sweet treats they won't be able to stop eatingMilk BarThe Chocolatey Classic, available at Milk Bar, $89Best for: The chocolate loverInstead of the usual box of chocolates, gift some of the best-known and most delicious treats from Milk Bar. The set contains 12 soft and chewy cake truffles and an adorable mini birthday cake. Premium distilled whiskeyUncle Nearest WhiskeyUncle Nearest Whiskey, available at ReserveBar, from $60.99Best for: The old-fashioned fanFounded in Tennessee, Uncle Nearest is an award-winning, Black-owned whiskey brand that was inspired by the first known African-American master distiller, Nathan "Nearest" Green. If you're shopping for someone who enjoys a quality glass of whiskey or a whiskey-based cocktail every now and then, a bottle of Uncle Nearest won't disappoint.A flavorful seasoning collectionArtifact UprisingThe Grill & Roast Collection, available at Spicewalla, $19.99Best for: The backyard grillerA set of tasty seasonings is key to making delicious foods, especially during BBQ season. They can use the spices in this collection to add flavor to meats, seafood, vegetables, and even rice.A device that turns plain water into a sparkling beverageAmazonSodaStream Sparkling Water Maker, available at Amazon, $89.99Best for: The fizzy water fanA SodaStream is an amazing gift for anyone who's a fan of fizzy beverages. With this gadget, they can make sparkling water in seconds and add flavors if they want to spice things up.Ready-to-prepare meals that save them timeDaily HarvestCustom Gift Box, available at Daily Harvest, $85Best for: The healthy eaterYour recipient will be able to fill a box with smoothies (including protein smoothies for gym rats), harvest bowls, soup, and more meals that are ready to take on the go. Daily Harvest's healthy offerings are perfect for the busy, wellness-minded people in your life. A chai samplerAmazonVadham Chai Tea Reserve Set, available at Amazon, $23.99Best for: The tea drinkerThis set of loose-leaf teas made it into Oprah's Favorite Things back in 2018. It's filled with three variations of chai that any tea lover will appreciate. A box that lets them explore the exciting world of sakeTippsySake Gift Box, available at Tippsy, $59Best for: The sake drinkerWhile online wine clubs abound, Tippsy is quietly cultivating a community of sake lovers. It offers an abundance of knowledge and premium sake options to anyone who's interested in exploring this underrated alcohol further.  Home giftsA mini fireplaceFood52Personal Concrete Fireplace, available at Food52 and Amazon, from $78.40Best for: The fireplace fanKeep them warm and entertained this summer with this small personal fireplace, which is safe for use indoors and for cooking fun treats like s'mores. A custom pet portraitWest & WillowCustom Pet Portrait, available at West & Willow, from $67Best for: The pet parent If their fur baby is their best friend, they'll go crazy for this custom pet portrait from West & Willow. Upload a photo of their pet, then choose the portrait style, size, frame, add their pet's name, and get ready to make their day with this A+ gift.A whimsical candle from a new brandOtherland/Instagram3-Candle Set, available at Otherland, $89Best for: The fancy candle fanAs our candle-loving editor points out, "Does the world really need another fancy candle brand?" Otherland's candles are so creative and interesting that you won't be able to resist gifting at least a few. A succulent to spruce up their spaceLula's GardenBliss Garden, available at Lula's Garden, $30Best for: The plant parentA small succulent is a perfect way to brighten up their desk, bookshelf, or windowsill. We love this one from Lula's Garden because it's wrapped in a ready-to-gift box. Plus, when you buy one, you support water.org, an organization that helps people all over the world get access to safe, clean water. A wine gift setAmazonIvation Wine Lovers Set with Opener and Preserver, available at Amazon, $49.98Best for: The wine appreciator Help elevate your recipient's wine experience by gifting this wine lover's set. The included wine preserver is a great gift for those that live alone or like to take their time with their wines. The sleek charging base and modern design make this a gift your recipient will be proud to display on their kitchen counter.A sleek knife blockMaterial KitchenThe Stand, available at Material Kitchen, $90Best for: The practical chefWe're big fans of Material Kitchen's minimalist approach to kitchen essentials — like this magnetic, angled knife block made from heavy-duty wood. A fresh flower bouquetUrbanStemsFlower bouquets, available at UrbanStems, from $35Best for: Any fan of flowersIf you don't know what to gift, flowers are always appreciated. A beautiful bouquet delivered right to them is the kindest way to say congrats and show you're thinking of them.A set of sustainable coastersJoanna BuchananRuffle Edge Straw Coasters, available at Joanna Buchanan, $48Best for: The meticulous table setterAdd a pop of color to their indoor and outdoor eating spaces with these colorful straw coasters. The coasters come in a set of four, are handwoven in the Philippines, and are made of sustainable materials.A set of monogrammed hand towelsWeeziePiped Edge Washcloths (Set of 2), available at Weezie, $36Best for: The monogram loverThe extra time and thought put into a personalized gift are worth it. You can add custom embroidery (+$15 per towel) to Weezie's fluffy and absorbent towels. A compact and lightweight hand mixerAmazonKitchenaid 5-Speed Ultra Power Hand Mixer, available at Target, $44.99Best for: The bakerNot all baking tasks require a full stand mixer. KitchenAid's hand mixer doesn't take up a lot of space but gets a variety of jobs done by offering five-speed options. You'll also have fun picking out a unique color for your recipient. The perfect pillow for side sleepersCasperOriginal Casper Pillow, available at Casper, Amazon, and Target, $65Best for: The restless side sleeperThe Original Casper Pillow will help your favorite side sleeper align their neck with their spine while sleeping. We named this pillow the best for side sleepers in our guide to the best pillows. You can customize the pillow even more by choosing its size and height.A cool drink accessory worth celebratingBrumate12oz Insulated Champagne Flute, available at BrüMate, $24.99Best for: The beachside celebratorBrumate's insulated flute prevents the disappointment of bubbly that has gone warm and flat. It holds almost half a bottle of champagne and comes in 30 pretty colors.  A digital photo frameAmazonNIX 8-Inch USB Digital Photo Frame, available at Amazon, $69.99Best for: The modern nostalgistPro-tip: Include a USB stick of your favorite photo memories together with this gift. The high-tech photo frame will shuffle through and display crisp photos and videos, and it can also be mounted on a wall. If you can stretch your budget, the more popular WiFi version is the same idea but more convenient to use because it works right from your phone's gallery. A custom map of a special locationGrafomapCustom Map Poster, available at Grafomap, from $19Best for: The one who always mentions their favorite city Grafomap is the site where you can commemorate important places, be it their hometown, college town, or the city where you two met. The custom design function is easy to use and you can choose to get the final map poster framed or printed on canvas. An everyday stainless steel frying panMade InStainless Clad Frying Pan, available at Made In, $76Best for: The one who is constantly cookingPros like Tom Colicchio trust Made In's cookware to perform in some of the country's top kitchens, so rest assured it's good enough for your recipient. The quickly growing startup is behind a couple of our favorite pieces of cookware. A beautiful piece of handmade drinkwareJFR GlassAntique Silver Glass, available at JFR Glass, $45Best for: The fan of truly unique giftsEach hand-blown glass from JFR Glass is unique. The glasses aren't just pretty — they're also functional and sturdy. They're also dishwasher-safe and UV-resistant, so your recipient can enjoy the pieces forever. A cold brew coffee makerAmazonTakeya Cold Brew Coffee Maker, available at Amazon and Target, $27.99Best for: The daily cold brew consumerHelp your favorite coffee-lover stay caffeinated with this easy-to-use cold brew coffee maker. All they need to do is fill the filter with coffee, add water to the carafe, give it all a shake, and pop it in the fridge. In 12 hours, they will have a delicious cold brew that will have them reconsidering their daily trips to their favorite coffee shop.Style giftsAn affordable cashmere sweaterNaadamMen's and Women's The Essential Cashmere Sweater, available at Naadam, $75Best for: The one with impeccable style No wardrobe is complete without a great cashmere sweater. This one from Naadam is made of heavenly-soft 100% Mongolian cashmere and comes in over 25 colors, so there's truly a shade for everyone.A box of the best socksBombasWomen's Holiday Snowflake Ankle Sock 4-Pack Gift Box, available at Bombas, $66Best for: The appreciator of practical giftsBombas socks are some of our favorites for their arch support and durability. This box set (also available in men's and kid's sizes) features a set of subtly holiday-themed socks they'll wear all year round.A funky pair of shadesCrap EyewearThe Lucid Blur, available at Crap Eyewear, $89Best for: The trendsetterA great pair of sunglasses is a seasonless gift. Even on cold winter days, a pair of sunglasses is needed to block out the sun's glare and keep them looking stylish. If you're looking to snag them a unique pair of sunglasses, check out Crap Eyewear. The styles are fun, affordable, and totally on trend. An artistic watchMoMA Design StoreSwatch x MoMa watch, available at Moma Design Store, from $80Best for: The art enthusiastWhat better way to show off their love of art than a watch inspired by famous paintings? Swatch collaborated with New York's Museum of Modern Art to create these unique watches that resemble artworks from MoMa's collection.A pair of cozy slippersZapposUGG Scuffette II Slippers, available at Zappos, Amazon, and Nordstrom, from $94.95Best for: The comfort appreciator Help them keep their feet warm while working from home with these fuzzy slippers. These high-quality slippers are made of suede and have a sheepskin collar, making them a very useful gift that your recipient may not think to purchase for themselves.A gold bracelet that displays their zodiac signAurateZodiac Bracelet, available at Aurate, $90Best for: The chic astrology enthusiastThe delicate gold vermeil bracelet is a piece they'll want to wear every day. Aurate's beautiful gold jewelry is not only more affordable than traditional fine jewelry, but it's also ethically sourced, representing a new wave of jewelry brands to know about. A sturdy walletAmazonBellroy Slim Sleeve Leather Wallet, available at Bellroy, Amazon, and Nordstrom, $79Best for: The fan of practical giftsReplace their tired and tattered wallet with this slim leather billfold from Insider Reviews' favorite wallet brand Bellroy. It's made with ethically sourced leather that will age wonderfully and last many years.A pair of comfortable wool shoesAllbirdsWool Runners, available at Allbirds, $110Best for: The constant walkerWhile Allbirds has hinted that it's on track to become more than just a shoe brand, we'll always be partial to its original sneakers made from merino wool. We've been wearing and loving the comfortable style for more than two years, and you can't go wrong gifting a pair of these shoes. A reusable bag featuring a fun printBagguStandard Baggu, available at Baggu, $14Best for: The sustainable shopperThere are plenty of reusable nylon shopping bag options out there, but where Baggu really stands out from the crowd is its variety of quirky and colorful prints. These useful bags are the perfect gift for everyone in your life.A pretty leather travel wrap for chargersMark & GrahamLeather Charger Roll Up, available on Mark & Graham, $49Best for: The efficient packerMark & Graham's Leather Charger Roll Up is made from soft, supple leather and has three separate pockets to stash cables and chargers on the go. Get it monogrammed for free.A pair of sparkly hoopsMejuriSapphire Hoops, available at Mejuri, $58Best for: The lover of subtle jewelryTraditional hoops get an embellishment of white sapphire in this affordable piece from Mejuri. Extremely comfortable, flattering lounge pantsMeUndiesLounge Pants, available at MeUndies, $68Best for: The serious loungerThese are some of the best lounge pants we've ever tried. If they're spending more time in casual wear, they'll spend an inordinate amount of time in these. We also appreciate that the silky MicroModal and sleek cut make them perfectly acceptable for wearing in public to grab the mail.A high-quality leather band for an Apple WatchAmazonBullstrap Full-Grain Italian Leather Watch Band, available at Amazon, $95Best for: The stylish watch wearerBullstrap's Italian Leather Watch Bands are the perfect way to add some elegance to an Apple Watch. They come in several colors of leather and are compatible with all generations of the Apple Watch.A mini duffel crossbody with a distinctive lookDagne DoverExtra Small Landon Carryall, available at Dagne Dover, $93.75Best for: The one who's always on the goDagne Dover excels at making functional and versatile bags like work totes and this extra small version of its popular neoprene duffel. Inside, they'll find a compartment just large enough for the day's essentials, pockets to keep them organized, and a detachable key leash. Premium underwear that's worth every pennyTommy JohnMen's Second Skin Boxer Brief (3-Pack), available at Tommy John, $86Best for: The person who'd appreciate good underwearIt's not an exaggeration to say Tommy John could be the most comfortable boxers your recipient has ever worn. The Second Skin, in particular, is a standout — smooth, soft, stretchy, and breathable. The coziest moccasins we've ever wornL.L.BeanWomen's Wicked Good Moccasins, available at L.L.Bean, $89Best for: The winter cabin weekenderCan you practically feel the soft fluffiness of these slippers through your screen? L.L.Bean supposedly sells a pair of these cushioned sheepskin shoes every seven seconds during December, proving that they are worth the purchase.A pair of blue light-blocking glasses that look good enough to wear outside of the houseMVMTIngram Crystal Everscroll Glasses, available at MVMT, $78Best for: The one who works in front of a screen all dayHelp them protect their eyes from harsh screens with a pair of blue-light-blocking glasses. Their eyes won't feel as strained, and they might be able to drift off to sleep more quickly. Beauty and self-care giftsA simple but luxurious body washNecessaireNecessaire The Body Wash, available at Sephora, $25Best for: The person who appreciates a good showerNew startup Necessaire formulates its body care products with vitamins A, B3, C, E, and omega-6 and omega-9. The subtly scented Body Wash will leave their skin feeling clean, soft, and nourished. A glamorous nail kitOlive and JuneThe Mani System Box, available at Olive and June, $85Best for: The DIY nail artistFrom shimmery to matte polish options, gift them this game-changing nail kit. It includes six different shades you can pick yourself, a topcoat, nail polish remover, nail tools, and even a latte mug.A hair towel that cuts drying time in halfAmazonAquis Rapid Dry Lisse Hair Towel, available at Anthropologie and Bergdorf Goodman, $30Best for: The one who takes hair care seriouslyAquis' cult-favorite hair towels have inspired a slew of rave reviews online, including one from our own team of product reviewers. The towels are made from a proprietary fabric called Aquitex that's composed of ultra-fine fibers (finer than silk) that work to reduce the amount of friction the hair experiences while in its weakest state. A silky hand creamLa Mer/InstagramLa Mer Hand Treatment, available at Nordstrom, $90Best for: The fan of smooth handsOf all La Mer's premium skincare products, the Hand Treatment is a brand favorite. This creamy formula is the perfect texture to help heal dry hands.A small skincare tool that removes 99.5% of dirt, oil, and makeup residueAmazonForeo Luna Facial Cleansing Brush, available at Amazon and Ulta, from $83.40Best for: The skincare enthusiastOur team swears by these gentle yet effective cleaning brushes. They have hygienic silicone bristles and come in five different models for different skin types. The Luna is small enough to bring on the go, so your recipient can maintain their skincare routine no matter where they are.An easy-to-use trimmerPhilips NorelcoPhilips Norelco OneBlade Face + Body Trimmer, available at Amazon, Target, and Walmart, from $39.96Best for: The person who prefers a close shaveWhat separates the Philips Norelco OneBlade from other trimmers and shavers is the unique blade. It uses a fast-moving OneBlade cutter with a protection system on both sides of the blade to prevent knicks. The base of the blade will contour to his face, allowing for a comfortable shave or trim without irritation — and it works for wet or dry shaving.A solution to their back painBest BuyUpright Go 2 Posture Trainer, available at Best Buy, $79.99Best for: The person working on their postureThis gift is for anyone who is always complaining about their back pain or poor posture. Upright Go is an innovative and discreet device that sticks to the top of their back and helps them improve their posture, day by day. A sleep mask made with high-quality mulberry silkNordstromSlip Pure Silk Sleep Mask, available at Nordstrom, $50Best for: The person who takes sleep seriouslyFew things are more luxurious than sleeping with a silk mask. Thanks to its all silk construction, your recipient's face will feel cool all night long. An electric toothbrush they won't want to hide awayGobyMoonstone Electric Toothbrush, available at Goby, $95Best for: The dental-care obsessedIn addition to its sleek design, the Goby Toothbrush stands out for its soft brush head, normal and sensitive brushing speeds, and convenient USB charging shell. A cult-favorite fragranceLe Labo/InstagramLe Labo AnOther 13 Eau de Parfum, available at Nordstrom, from $90Best for: The daily perfume userLe Labo is famous for its distinctive packaging and subtle yet inviting scents. The AnOther is musky and woodsy, but it's balanced out with ingredients like jasmine petals. Fitness, outdoor, and hobby giftsA high-quality yoga matMandukaManduka PROlite Yoga Mat, available at Amazon, Manduka, and REI, $99Best for: The yogi Make their sweat sessions better with the addition of a great yoga mat. The Manduka PROlite boasts supportive, dense cushioning and a no-slip grip, but it's still super lightweight for easy carrying.An instant cameraFujifilmFujifilm Instax Mini 11 Instant Camera, available at Amazon, Walmart, and Urban Outfitters, from $73.25Best for: The memory makerSure, they can snap photos on their iPhone all night long, but these days there's something particularly special about having tangible photographs. An instant camera is the perfect gift for the one who loves documenting life in photos.A gift card from BookshopCrystal Cox/InsiderGift Card, available at Bookshop, from $10Best for: The bookstore browserBookshop allows readers to support small bookstores online. The retailer sells gift cards that your recipient will be able to use to shop online from their favorite indie bookstore. The gift cards never expire and can be bought in increments from $10 to $1000.An at-home pottery kitSculpdPottery Kit, available at Sculpd, $65Best for: The crafterThis pottery kit offers a unique activity to do with your loved ones. Each kit comes with enough supplies for two people, with add-on supplies also available for purchase so that more can participate. It also includes a step-by-step instructional booklet.A sleek fitness trackerFitbitFitbit Inspire 2, available at Best Buy, Target, and Fitbit, $79.95Best for: The avid athleteFitbit's affordable Inspire 2 tracker has no shortage of useful features to keep them informed about their physical activity. The heart rate monitor lets them be more strategic about their workouts by tracking calorie burn, resting heart rate, and heart rate zones.Membership to a popular nationwide book clubBook of the Month6-Month Subscription, available at Book of the Month, $99.99Best for: The avid readerIf they prefer the incomparable feel of a hardcover book, set them up with a Book of the Month membership. It offers five curated titles, mainly from up-and-coming authors, to choose from every month. A bike horn that can honk as loud as a carPriority BicyclesPriority High Power Horn, available at Priority Bicycles, $29.99Best for: The bike commuterBorn out of a research project between Priority Bicycles and Toyota, this bike horn can get as loud as the one in a car. This is an excellent safety accessory for bikers.A gorgeous coffee table book that helps cure their travel bugAmazon"1,000 Places to See Before You Die (Deluxe Edition): The World as You've Never Seen It Before" by Patricia Schultz, available at Barnes & Noble, $50.99Best for: The aspirational travelerPatricia Schultz's original "1,000 Places" captured imaginations with its compelling curation of experiences all over the world. The newly released deluxe edition features a beautiful gold-embellished cover and more than 1,000 new photographs. An interactive state park mapUncommonGoodsState Parks Explorer Map, available at UncommonGoods, $28Best for: The hikerThis state park map is sure to come in handy whenever they venture into the outdoors. Choose from 10 maps that each list over 30 parks in states such as New York, California, and Connecticut. The map includes a sheet of gold stickers so they can mark their progress after each park visit.Read the original article on Business Insider.....»»

Category: smallbizSource: nytDec 5th, 2022

DoorDash is reportedly cutting 6% of its global workforce. Here are the other major US companies that have made cuts so far, from Amazon to Twitter.

DoorDash has become the latest major company to start slashing its headcount as business growth slows and costs increase. A booze delivery from DoorDash.DoorDash A wave of layoffs has swept across American business in 2022. The cuts stem from slower business growth, paired with rising labor costs. The layoffs span across industries, from mortgage lending to digital-payment processing. DoorDash is the latest major company to slash its headcount in 2022. The company is gutting 6% of its global workforce to slash operating costs and offset mounting losses, Bloomberg reported. While DoorDash experienced a significant boom during the pandemic as Americans flocked to takeout meals, it has struggled to keep up against growing competition and slowed economic growth. It's one of countless major American businesses that have picked up the pace of firing in 2022: Earlier this month, Amazon announced plans to lay off as many as 10,000 workers across divisions, including devices, retail, and human resources. Peloton has laid off thousands of employees this year. Twitter slashed 50% of its workforce.Even traditionally layoff-resistant companies like Netflix have made cuts, and now companies that saw a pandemic-era boom, like Shopify, are cutting hundreds of jobs.The reason, broadly, is twofold: business growth is slowing, while labor costs are increasing. The combination is causing American companies across a variety of industries to slash headcount.Here are some of the most notable examples so far: Carvana: another 1,500 peopleErnest Garcia III, CEO of online car dealer Carvana.Brendan McDermid/ReutersCarvana plans to lay off 1,500 people, or about 8% of its workforce. The cuts will mainly impact Carvana's corporate and tech departments, CNBC reported."Today is a difficult day. The world around us has continued to get tougher and to do what is best for the business, we have to make some painful choices to adapt," CEO Ernest Garcia III wrote in an email to employees obtained by CNBC.It's the second round of layoffs for Cavana this year. In May, the online car dealer cut 12% of its staff, or about 2,500 employees, according to a regulatory filing. Amazon: as many as 10,000 employeesAmazon CEO Andy Jassy.Jerod Harris/Getty Images for Vox MediaAmazon is planning to cut roughly 10,000 tech and corporate roles, The New York Times first reported. The cuts, which would be equivalent to about 3% of Amazon's corporate workforce, would be the largest in company history. This comes after Amazon abandoned multiple projects this year in an effort to cut costs, which led to at least 560 layoffs. The employees worked on some of Amazon's physical store concepts and its shuttered telehealth unit, as well as other divisions like robotics and online education. The company also laid off workers in two of its warehouses in Maryland in October. DoorDash: about 1,250 employeesA booze delivery from DoorDash.DoorDashDoorDash is laying off an estimated 1,250 employees, or 6% of its global workforce, to reduce operating costs after a period of mounting losses. The food delivery company grew rapidly during the pandemic, but has struggled against rising competition in the sector and the looming economic recession. "While our business continues to grow fast, given how quickly we hired, our operating expenses — if left unabated — would continue to outgrow our revenue," DoorDash CEO Tony Xu wrote in a letter to staff on Nov. 30, per Bloomberg.Juul: about 400 peopleAssociated PressE-cigarette company Juul plans to lay off about a third of its workforce, or roughly 400 people. The cuts come amid broader cost-saving measures for Juul, including a fresh infusion of cash to help it avoid filing for bankruptcy. The company also plans to reduce its operating budget by as much as 40%, the Wall Street Journal reported. Coinbase: about 1,000 employees, plus another 60 peopleCoinbase CEO Brian Armstrong.Patrick T. Fallon / Getty ImagesCrypto exchange platform Coinbase will cut another 60 jobs, The Information reported. The cuts come after Coinbase previously reduced its staff by 18% "to ensure we stay healthy during this economic downturn." That same day, over 1,000 employees were notified they'd been laid off when they were unable to log into their work email accounts — the company said in a regulatory filing at the time that its workforce would be reduced to about 5,000 employees by the end of the second quarter of 2022.Redfin: 13% of its staffRedfin CEO Glenn KelmanRedfinReal-estate firm Redfin plans to lay off 862 employees, or about 13% of its workforce. The company plans to shut down its home-flipping business, RedfinNow, which will result in 264 staffers getting cut, the company said in a financial filing.Another 218 employees' roles will be eliminated, but the workers are being offered a new job within the company, Redfin said. This is the second round of layoffs for Redfin this year. The company cut 6% of its workforce in June, or about 470 employees. Meta: more than 11,000 employeesMark Zuckerberg.Stephen Lam/ReutersMeta plans to cut more than 11,000 employees, or about 13% of its workforce. "I want to take accountability for these decisions and for how we got here," CEO Mark Zuckerberg wrote in a blog post. "I know this is tough for everyone, and I'm especially sorry to those impacted."The company plans to reduce headcount across divisions — including its metaverse division, Reality Labs — but said that some teams, like recruiting, would be more impacted than others. Salesforce: as many as 2,500 employeesSalesforce founder Marc Benioff.NICHOLAS KAMM/AFP via Getty ImagesSalesforce plans to cut thousands of jobs ahead of Thanksgiving, Protocol reported.It's unclear when the layoffs will begin or which divisions will be impacted, though as many as 2,500 workers could be impacted, according to Protocol. Twitter: about 50% of its workforceTwitter Losing Its Most Active Users(Photo by STR/NurPhoto via Getty Images)An estimated 3,700 Twitter employees, or about 50% of the company's workforce, woke up to emails saying that they had been laid off on Nov. 4, shortly after new owner Elon Musk took over the social platform. Terminated employees were notified in blunt emails that Twitter was "conducting a workforce reduction to help improve the health of the company" and offered severance.Though staffers had been previously warned about a pending "workforce reduction," several employees were immediately locked out of their laptops and company systems before they were notified they were terminated, Insider reported. Musk tweeted after the mass layoffs that he had "no choice when the company is losing over $4M/day." Gap: about 500 jobsPeople pass by the Gap clothing retail store in Manhattan.Reuters/Eduardo MunozGap will cut 5% of its corporate workforce, or about 500 employees, The Wall Street Journal reported. "We've let our operating costs increase at a faster rate than our sales, and in turn our profitability," Gap's interim CEO, Bob Martin, wrote in a memo to employees obtained by The Journal. The layoffs will reportedly impact employees in a wide range of departments and will mainly take place at Gap's offices in San Francisco, New York, and Asia.Snap: 20% of employeesRichard Drew/APSnap planned to lay off about 20% of its employees beginning in late August, The Verge reported.The cuts to Snap's 6,400-person workforce will be concentrated in divisions like Zenly, a social mapping app Snap acquired in 2017, as well as a team working on ways for developers to build apps inside Snapchat. Snap's hardware division will also see cuts, weeks after the company announced it was canceling its Pixy drone camera, The Verge reports. A spokesperson for Snap declined to comment.Wayfair: about 870 employeesPavlo Gonchar/SOPA Images/LightRocket via Getty ImagesFurniture and home goods company, Wayfair, said it would layoff about 870 employees — 5% of its global workforce — the Wall Street Journal reported. The layoffs represent about 10% of Wayfair's corporate team, the company said, and will cost between $30 million and $40 million for severance and benefits for laid-off employees.The layoffs are part of Wayfair's efforts to manage expenses and investments, it said. The company said it's also making cuts to third-party labor costs.After the company announced the layoffs, Wayfair shares fell almost 10% in premarket trading, the WSJ reported.Robinhood: more than 1,000 people in 2022Robinhood CEO Vlad Tenev.AP/David MartinDuring the pandemic, so-called "meme stocks" from GameStop and AMC exploded. Much of that explosion in stock value was driven by accessible trading platforms like Robinhood.And while new users piled in during the pandemic, Robinhood hired rapidly. Between 2020 and 2021, Robinhood staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth was apparently too much and too fast, and Robinhood was forced to slash headcount by 9% — more than 300 people altogether — in April. Then, in August, the company announced it would cut another 800 jobs, or about 23% of its staff.In the message to employees, CEO Vlad Tenev said that the earlier round of layoffs "did not go far enough" to bring down costs amid record inflation and the crypto market crash, which has reduced trading activity on the platform, he said. Peloton: over 4,600 peopleScott Heins/Getty ImagesIn early October, Peloton announced its fourth set of layoffs, bringing the total loss in headcount at the company to more than 4,600 this year. CEO Barry McCarthy called it "the final phase of the company's transformation journey." In February, Peloton fired over 2,800 people and announced its former CEO, John Foley, would depart amid an ongoing downturn in the company's business.Its second round of layoffs hit Taiwan-based employees in July, and a third wave of employees got cut in August.Peloton was once a pandemic darling, but the fading popularity of at-home fitness and mishandling of its logistics operation has put a strain on the business. The company's current chief exec Barry McCarthy has taken several measures in an attempt to revive the business. Shopify: about 1,000 workersShopify CEO Tobi Lutke.Reuters/Lucas JacksonShopify laid off roughly 1,000 employees, equivalent to 10% of its workforce worldwide.In a memo to employees, CEO Tobi Lutke said that the company — which makes the tech that powers businesses' online stores — had bet big on the pandemic-era e-commerce boom. "It's now clear that bet didn't pay off. Ultimately, placing this bet was my call to make and I got this wrong," Lutke wrote in the letter, which was posted on the company's website. 7-Eleven: 880 jobsPaul Sakuma/APConvenience store chain 7-Eleven cut 880 corporate jobs in Ohio and Texas in 2022 in the wake of the company's 2020 purchase of rival Speedway.A 7-Eleven spokesperson told Insider that the company has been assessing its new corporate structure and undergoing an "integration process" that led to the cuts, which took place at its support centers and field-support operations in Irving, Texas, and Enon, Ohio. Vimeo: 6% of its workforceAnjali Sud, CEO of Vimeo.AP Photo/Mark LennihanVideo-hosting platform Vimeo cut 6% of its staff in July."We are making this decision in order to ensure we come out of this economic downturn a stronger company," Vimeo CEO Anijali Sud wrote in a blog post. "Our people are what makes Vimeo great, and losing any of them is a personal failure that I feel deeply. But after assessing the challenging market conditions and uncertainty ahead, I believe this is the responsible action to take."Tesla: more than 200 employeesTesla CEO Elon Musk.Yasin Ozturk/Getty ImagesTesla laid off 229 people in late June, according to WARN filings. The layoffs primarily impacted employees in its Autopilot division. Tesla also closed an entire office in San Mateo, California, and moved some of the office's workers to another location, Bloomberg reported.In an interview in June, Elon Musk said he planned to cut between 3% and 3.5% of Tesla's workforce, including 10% of salaried staff. Insider reported that some ex-employees confirmed they had been laid off, though the total number is not known.  Rivian: around 6% of its workforceRivian CEO RJ Scaringe and a Rivian truck.Kevin Dietsch/Getty ImagesElectric car-maker Rivian confirmed in July that it would cut around 800 employees, or about 6% of its 14,000-person workforce, as it worked to cut costs. The layoffs came less than a year after Rivian went public in the largest IPO of 2021.Gopuff: 10% of its staffA delivery driver is shown picking up a Gopuff bagHannah YoonDelivery startup Gopuff laid off 10% of its staff, Insider reported in July."As a business, during these uncertain times, we owe it to our investors and customers to accelerate our timeline to profitability. As such, we have decided to confront the current moment by making difficult decisions about our core business," cofounders Rafael Ilishayev and Yakir Gola wrote in an email to employees. The latest round of layoffs come after Gopuff cut 3% of its workforce, or more than 400 workers, in March. Re/Max: 17% of its workforceAn "Open House" sign is seen outside of a house for sale.Tim Boyle/Getty ImagesReal estate firm Re/Max will lay off 17% of its workforce by the end of the year, the company announced.The cuts will primarily affect employees in the technology division, the result of a "shift in strategy" as it partners with a third-party technology vendor, Re/Max said.  Microsoft: less than 1% of employeesMicrosoft CEO Satya Nadella.Stephen Brashear/Getty ImagesMicrosoft announced in July that it was cutting a "small number" of employees across several groups, including consulting and customer and partner solutions, a company spokesperson told Bloomberg.JPMorgan: over 1,000 workersAmr Alfiky/ReutersIn June, JPMorgan confirmed that it would lay off over 1,000 employees in its home-lending department. The cuts came amid slowing demand for mortgages and refinances. "Our staffing decision this week was a result of cyclical changes in the mortgage market," a JPMorgan spokesperson said in a statement to Insider at the time. "We were able to proactively move many impacted employees to new roles within the firm and are working to help the remaining affected employees find new employment within Chase and externally."Netflix: about 500 peopleNetflix Co-CEO Reed Hastings.Getty Images LatamNetflix has seen 4 rounds of layoffs this year, totaling around 500 workers. The company laid off around 450 people this summer - with one round of layoffs affecting 150 workers in May, and another round affecting 300 in June. Before that, in April, the company laid off 25 marketing employees from its new fan site, Tudum. Most recently, Netflix downsized its animation department, announcing it would lay off 30 employees.  The company may be seeing a turnaround in its financials, though. The streaming company reported losing 200,000 subscribers in the first quarter and nearly 1 million in the second. However, in mid-October, Netflix added 2.4 million subscribers, reversing its decline. Compass: 450 employeesA house for sale marketed by the real-estate brokerage Compass.Smith Collection/Gado/Getty ImagesReal estate brokerage Compass cut about 10% of its workforce, or 450 employees, the company announced in a regulatory filing. The cuts were part of a series of new cost-cutting measures that include pausing expansion, consolidating offices, and halting mergers and acquisitions, Bloomberg reported.Reef: about 750 peopleEmployees unload at a Reef location.Pat Greenhouse/The Boston Globe via Getty ImagesGhost-kitchens company Reef Technology laid off 5% of its global workforce in May.The SoftBank-backed startup cut about 750 employees as it worked toward profitability amid a challenging economic environment, CEO Ari Ojalvo wrote in a memo to staff obtained by Insider.The layoffs come months after Reef said it would pause operations on some of its "underperforming" locations. Current and former employees told Insider that Reef had closed one-third of its kitchens and focused on its partnerships with major chains like Wendy's and Buffalo Wild Wings.Better: about 4,000 peopleVishal Garg is the founder and CEO of Better.com. He was responsible for laying off hundreds of people right before the holidays in 2021.Better.comStarting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people.Garg told employees during a Zoom call that the company "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago." Better followed up with another 3,000 layoffs in March, and began accepting voluntary layoffs in some departments.Noom: 495 peopleSaeju Jeong, cofounder & CEO of Noom.Sam Barnes/Sportsfile for Web Summit via Getty ImagesIn April, the weight-loss app maker Noom laid off hundreds of coaches, Insider reported — part of a bigger-picture pivot for the company toward more video-based coaching.The company, through its app of the same name, pairs dieting with personal coaches to achieve weight loss for users. Interactions with those coaches were often through text, which users critiqued as "canned advice." Some coaches told Insider they were responsible for giving advice to hundreds of users at any given time.Going forward, Noom said it would focus on offering users scheduled video calls with coaches.Thrasio: up to 20% of staff, sources sayThrasio founder and CEO Carlos Cashman.ThrasioThrasio, the company known for creating the Amazon aggregator market, laid off an unknown number of people in May. Additionally, the company's CEO and founder, Carlos Cashman, stepped down from leadership. In a memo sent to employees, Thrasio leadership said the layoffs were due to the company's "hypergrowth" in acquiring companies."At times we have been acquiring a new company almost every week," the memo said, "and running hard to build the infrastructure to support this growth."Two sources told Insider at the time that the layoffs would impact up to 20% of Thrasio's staff.Wells Fargo: an unknown number of people in mortgage lendingREUTERS/ Shannon StapletonAs mortgage revenues fell at Wells Fargo in the first quarter of 2022, the company began laying off employees in mortgage-related positions, Insider reported in late April.Loan processors and underwriters, among other positions, were reportedly affected by the layoffs. Wells Fargo representatives declined to say how many people were impacted by the cuts, but did confirm the layoffs in an emailed statement."We are carrying out displacements in a transparent and thoughtful manner and providing assistance, such as severance and career counseling. Additionally, we are committed to retaining as many employees as possible and will do everything we can to help them identify other opportunities within Wells Fargo," a Wells Fargo spokesperson said in a statement provided to Insider at the time.Canopy Growth: 250 peopleMaster Grower Ryan Douglas smells a marijuana plant in Smiths Falls, Ontario, on February 20, 2014.Blair Gable/ReutersOne of the world's largest publicly traded cannabis companies, Canopy Growth, slashed 250 jobs in Canada earlier this year as it faces increasing competition in the burgeoning cannabis market.Layoffs were among several cost-cutting measures that Canopy Growth is taking "to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," Canopy Growth CEO David Klein said in a statement at the time.Food52: about 20 peopleCofounder and CEO of Food52, Amanda Hesser.Food52After raising $80 million from investing firm The Chernin Group last December, the content-creation team at food publication and retailer Food52 was suddenly laid off in early April.About 20 of the company's 200 employees were let go in the layoffs, which came as a major surprise to those affected."Everyone on the team and my immediate boss were gut-punched," one of these employees told Insider. "We all had gotten raises and bonuses just a month prior."Two of the employees who were laid off said Food52 executives told them the company was "pivoting to commerce," and away from the type of content that was created by the affected employees: recipes and other instructional cooking content.Cameo: 87 peopleCameo operates a service where users can pay celebrities to record personalized audio or video clips.CameoVideo app Cameo laid off 87 people in early May."Today has been a brutal day at the office," CEO Steven Galanis wrote on Twitter. "I made the painful decision to let go of 87 beloved members of the Cameo Fameo."Galanis described the layoffs as a "course correction" in a statement to Variety. The cuts followed a staffing boom during the pandemic, when the company grew from around 100 employees before 2020 to about 400 in 2022. PayPal: 83 peoplePayPal headquarters in San Jose, California, on February 2, 2022.Justin Sullivan/Getty ImagesIn April, PayPal quietly laid off 83 people, according to a regulatory filing. The company employed more than 30,000 people worldwide, over a third of whom are based in the US. The cuts appear to be tied to the company downsizing its presence in the San Francisco Bay Area, according to TechCrunch.Gorillas: 'nearly 300' peopleGorillas CEO Kagan Sumer.GorillasGerman grocery-delivery company Gorillas announced layoffs of "nearly 300" people around the world in May. The layoffs, the company said, were part of a larger "shift to long-term profitability," which meant trimming staff as Gorillas focuses on its five "core" markets: Germany, France, the Netherlands, the UK, and the US.Impacted employees, who were mostly corporate staff, were shocked by the sudden layoffs."It's not a secret that the company hasn't been doing well, but I didn't expect to wake up and lose my job," a Berlin-based employee who was laid off by Gorillas told Insider. "My managers weren't even aware or consulted. It's not the laying off that hurts, it's the way it's been done."Hello Fresh: about 600 peopleA HelloFresh meal kit in a box.HelloFreshThe Germany-based meal kit company announced it planned to close a Richmond, California, warehouse and eliminate 611 workers' roles by December 11. HelloFresh saw a spike in sales early in the pandemic as more people were forced to cook at home, but sales have faded lately. The company's stock is down more than 70% so far this year — and meal kit rival Blue Apron has seen a similar plunge in its share price. "The lease for HelloFresh's production facility in Richmond is expiring at the beginning of 2023 and after an extensive analysis of our production network, HelloFresh has decided not to extend the lease," a spokesperson said in a statement to Insider.Walmart: at least 1,700Walmart CEO Doug McMillonDrew Angerer/Getty ImagesWalmart announced layoffs in its corporate division, as well as at one of its fulfillment centers. In mid-October, the retail giant filed a Worker Adjustment and Retraining Notification, or WARN notice in Georgia, announcing its plans to let go of nearly 1,500 workers. The company said it plans to turn a fulfillment center in the Atlanta area to support third-party sellers for Walmart. Earlier this year, the Wall Street Journal reported that Walmart planned to cut around 200 corporate jobs amid a company restructuring effort. Walmart's sales growth — which exploded during the height of the pandemic — has leveled off recently. In the second quarter of 2022, Walmart's e-commerce sales grew by 12% year-over-year, compared to 97% growth in the second quarter of 2020. Oracle: at least 60, but potentially much moreLarry Ellison, the founder of Oracle.Robert Galbraith/ReutersThe scope of Oracle's layoffs this year remains murky.In July, Insider reported that Oracle's advertising division quietly had two rounds of layoffs, totaling a loss of 60 workers. In August and October, Insider reported that Oracle held two rounds of layoffs that included the company's marketing, customer experience, and cloud divisions.Insider estimates the August round of layoffs potentially affected thousands of jobs across the world. What is clear is that the number of employees laid off is higher than the company has publicly let on. In an SEC filing, Oracle said it expects to incur $519 million in restructuring costs "primarily related to employee severance" through August 2023. Nordstrom: 222 workersJeff Greenberg/Contributor/Universal Images Group Editorial via GettyIn September, Nordstrom filed a WARN notice in Iowa announcing that it planned to cut 222 employees at a distribution center in Cedar Rapids. The layoffs were set to be completed by October 18, according to the filing. Despite rising inflation, Nordstrom is still growing its bottom line. The company reported that its revenue grew by 12% year-over-year in the second quarter, and the company said it's focused on boosting e-commerce sales. Credit Suisse: 2,700 peopleUlrich Körner, chief executive of Credit Suissevia ReutersThe embattled investment bank announced in late October that it plans to "radically restructure" and cut 5% of its headcount, or 2,700 workers. The company said it plans to reduce its headcount by 9,000 workers in the next 3 years. Credit Suisse has been hit with several catastrophes in recent years, including a $5 billion blow from the collapse of Archegos Capital Management last year. VF Corp: 300 workersStreet style brand Supreme is owned by VF Corp.Edward Berthelot/Getty ImagesVF Corp, which owns various retail brands like The North Face, Vans, and Supreme, confirmed to Insider it told employees about plans to lay off 300 employees and eliminate 300 open positions in early September. VF Corp reported a 4% decline in revenue for its second quarter, attributing the slowdown to a covid-related disruption in China and broader macroeconomic headwinds. Gannett: 3% of its US workforceGannett announced widespread layoffs this year.Associated PRessGannett, the largest newspaper chain in the US, reportedly laid off 3% of its US-based workforce or about 400 employees.Poynter reported that CEO Mike Reed informed staff of the layoffs — as well as Gannett's plan to eliminate 400 open positions — at a companywide Q&A in August. Poynter reports that the layoffs started one week after the company reported weak quarterly results. The company, which owns USA Today, along with local newspapers in 46 states, reported a net loss of nearly $54 million in the second quarter. Ford: about 3,000 workersFord CEO Jim FarleyJEFF KOWALSKY / Contributor / GettyFord plans to lay off roughly 3,000 salaried and contract workers as part of a restructuring and shifting focus toward producing electric vehicles. The automaker has estimated that electric cars require 30% less labor than conventional vehicles. Ben Gilbert contributed to an earlier version of this article.United Furniture IndustriesUnited Furniture Industries/FacebookUnited Furniture Industries, one of the largest furniture companies in the country, laid off 2,700 employees on Nov. 21.The company cited "unforeseen business circumstances" in emails and texts sent to staffers overnight just a few days before Thanksgiving, according to local reports. In a follow-up email, fired staffers were told "all benefits will be terminated immediately without provision of COBRA," leaving them without health insurance. The terminations impacted "all employees" at the company's facilities in Verona, Mississippi; Victorville, California; and Winston-Salem, North Carolina. Read the original article on Business Insider.....»»

Category: dealsSource: nytNov 30th, 2022

Bengaluru, home to 1.5 million IT workers and called "the world"s back-office," has dodged the tech winter ripping through Silicon Valley — but experts warn it may not last

"The glory days of last year are over, where everybody and anybody could get a job if they were half-decent," Anup Menon, the vice president of CIEL HR Services told Insider. Infosys building.Getty Images Indian techies were tripling salaries during the pandemic due to bloated demand for talent.  But the tech sector — especially edutainment —  has already begun feeling the pinch amid a global downsizing.   The worst may come next year, a recruitment expert told Insider, who predicts a surge in layoffs in the Spring. As the world strapped in for the pandemic, closing schools and sending workers home last year, India's techies were having a field day. Firms in Bengaluru, a tech hub in Southern India with 1.5 million IT employees and once dubbed the "world's back-office," hired willy-nilly, as they struggled to cope with a surge in global demand for digital products."Salaries hit the roof," Yeshab Giri, the chief commercial officer at Randstad India, told Insider. He recalled one applicant who left his job with an annual salary of 1.2 million rupees, or $14,700. The tech worker received five offers from five different companies, and over several months negotiated his yearly pay up to 3.3 million rupees, or $40,400, Giri said. That's almost triple his last paycheck. To put that into perspective, rent for a one-bedroom apartment in the heart of Indian tech hub Bengaluru costs $1,840 a year, according to data from real estate company NoBroker."These weren't one-off cases," said Uddhav Kumar, the co-founder and CEO of Lynkit, a firm that offers inventory and supply chain tracking services to logistics companies. "Everyone who was working would almost be guaranteed to have an offer that was double or triple what he earned."The skyrocketing demand though, didn't outlive the pandemic. Like with the US, as COVID-19 measures receded in India, so did the tech boom. Silicon Valley has seen round after round of layoffs in recent months, and India's been feeling the pinch too.Salary offers are declining, and at least 3,800 employees in Bengaluru were laid off in the last three months, according to data aggregated by Layoffs.fyi.But India's tech winter has been muted so far, four Bengaluru-based hiring experts told Insider. They see the decline more as the market returning to the brink of normalcy, and said there's still hope for laid-off tech workers — as long as they've been active in their jobs.'The glory days of last year are over'Recruiters believe the industry reached its turning point near the end of the third quarter."The glory days of last year are over, where everybody and anybody could get a job if they were half-decent," said Anup Menon, the vice president of CIEL HR Services. "In that sense, the average to below-average talent will have things to worry about. It won't be so easy to get a job.""Companies are now very clear about the budget they have, and will only hire within that range," he added.By CIEL's estimates, India's IT sector saw a 41% decline in hiring in September, compared to monthly averages in 2022, Menon said. However, he added that companies traditionally also slow down their hiring toward the end of the year."If you look at 2018, 2019, these are numbers comparable to those years," he said. Tech workers, especially those just laid off from well-known companies like Twitter or Stripe, are still looking at a "fairly decent quality pool" of employers, said Menon.But they'll have to expect fewer perks and lower salaries, he added.CIEL found that 77% of all tech companies are ending remote work or switching to hybrid work arrangements, compared to 25% of companies who enforced similar policies last year, he said. Subhashree Ghoshal, a senior consultant at JAC Recruitment India, told Insider that most tech companies engaging in layoffs are mostly looking to trim off excess workers as fewer projects come in — not necessarily their core workforce."The major backlash has been faced by employees who have been bench employees," said Ghoshal, referring to employees who aren't actively working on IT projects but are still on the company payroll.Firms are also looking to hire fresh graduates who are cheaper, while laying off employees who lead small teams like program managers and supervisors, said Ghoshal. Most in the latter category typically have five to 15 years of experience, he said.'The worst, however, may come next spring'The worst may come next spring, said Ghoshal, who predicts a surge in layoffs at the start of the first fiscal quarter and at the end of the second as Western demand for outsourced tech workers dwindles.At Randstad, Giri estimates a 25% drop in hiring in 2023. "We read a lot about the West, experts talking about financial slowdown in the US. We'll have to wait and watch," he said.For now, most of India's tech firms have shown resilience to market headwinds, faring better than their Silicon Valley peers.Tata Consultancy Services, an India-based mega firm with 600,000 employees, announced a net income of $1.3 billion in the second quarter of 2022, per Bloomberg. In the same quarter, Infosys, which hires a 345,000-strong workforce, reported a $65.6 million net profit.  In contrast, Twitter reported a net loss of $270 million in the second quarter of this year, while Amazon reported a net loss of $2 billion in the same time frame. Meta reported a 36% net income drop to $6.69 billion in Q2 2022, compared to the same quarter in the previous year.Menon of CIEL believes demand for tech workers will pick up again in the second quarter of next year, after a "much-needed correction" in the industry. "It was a little too unpredictable with the job hops and the kinds of salaries that were floating around," he said.Lynkit CEO Kumar concurred. "There was a lot of false hype around things that didn't add value but kept expanding," he said. "I think we are going to see that slowly being weeded out of the ecosystem."Sectors like edutainment for kids are badly hitOne example of the post-pandemic decline involved digital services for kids, said Lynkit CEO Kumar. With schools shut during the pandemic, parents began buying educational and entertainment, or edutainment, subscriptions to keep their children busy."When schools started again, suddenly these kids had no reason to have these subscriptions," he told Insider.Education startup Byju's, touted as the largest education tech startup in India, spent $2 billion during the pandemic buying up other education firms to boost growth. It suffered a $575 million net loss in the year ending March 2021, per Bloomberg. The company blamed poor macroeconomic conditions, and said it adopted a new revenue recognition model that led it to defer 40% of its revenue to the next few years, Reuters reported. In October, Byju's laid off 2,500 employees, or around 5% of its total workforce. Byju's did not immediately respond to Insider's request for comment for this story.Lynkit has been feeling the ripple effects of the third quarter fallout, said Kumar. Its HR department recently received around 1,200 resumes for an open product manager position, a role that normally sees 500 to 600 applications, the CEO said.Yet compared to the high-profile dismissals in San Francisco, the furloughs in Bengaluru represent smaller proportions of staff let go.And 2,500 jobs are a mere drop in the total pool of tech workers in India; Giri estimated that a total 350,000 people will join the local IT industry by the end of 2022."The layoffs that we're seeing are not really mass layoffs. Large companies laid off about 2,500 people, but we have to understand that they have a base of 50,000 people," Giri said.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderNov 29th, 2022