Amid an economic downturn, executives often ramp up job-cutting efforts to boost profits. Cisco Systems (CSCO) and Stellantis (STLA) fall in that category.
Stellantis plans to cut up to 2,450 U.S. factory workers in late 2024. The European-owned firm will discontinue the production of an older version of the Ram 1500 pickup truck. The decision is regrettable. This is an entry-level, low-cost pickup truck whose price point resonates with consumers. The plant near Detroit also produces the Grand Wagoneer and Jeep Wagoneer. Both models face a steep drop in demand. Their price points are too high in today’s weak automotive market.
According to a Reuters report, Cisco will cut thousands of jobs later this year. This is the second round of cuts for the company. Neither growth companies nor healthy firms cut jobs. Just as Intel (INTC) leaked a job cut ahead of its poor quarterly report, Cisco is doing the same. The firm will post results on Wednesday after the market closes.
To prevent the prices of the Cybertruck from falling below $100,000, Tesla (TSLA) halted orders of its cheapest model. The $61,000 model is no longer available. After advertising it before its release, the firm reduced or eliminated an affordable variant of the Model 3 upon its introduction.
Tesla’s move will help its rival, Rivian (RIVN).
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