Southern Business Review

Category: Company News

  • Olympian Lyndsey Vonn to retire from skiing — what success has taught her so far

    Downhill skier Lindsey Vonn has been setting lofty goals since age seven. For a grade school assignment, she wrote that she wanted “to make it to the Olympics and win more ski races than any woman ever has,” she told The New York Times. “But I later changed that to say that I wanted to make it to a bunch of Olympics.”

    The 34-year-old athlete, who announced today she’d retire from ski racing after the World Championships in Sweden this month, has exceeded her childhood dreams: She has three Olympic medals, including one gold, and 82 World Cup victories, which is more than any other woman in history.

    She is retiring earlier than planned due to a series of painful injuries and surgeries, she explained in an Instagram post today. “My body is screaming at me to stop and it’s time for me to listen.”

    Her successful career has taught her many important lessons both on and off the slopes. When it comes to realizing your dreams, “there’s a lot people don’t tell you,” Vonn told CNBC Make It last October.

    Especially regarding money: “When you become successful, managing your money and finding ways to keep that money safe, but also using it to generate more money, is always very difficult.” That approach can prevent a well-paid professional athlete from ending up broke.

    Vonn’s advice to athletes coming into a lot of money at a young age is simple: Play it safe.

    “The best way to not lose your money is to not spend it. Put it away and be modest,” she told CNBC Make It. “Eventually, when you get to a financially secure point, you can spend more, but the best thing you can do now is just keep the money safe.”

    Be prepared, financially and mentally, for your career to end, said Vonn, since “one thing that is prevalent in any sport is that your careers are always going to be shorter than you expect.” As a pro, “you’re confident in your ability and you think that this kind of money is going to come in for a long period of time. But you just never know what’s going to happen.”

    “It’s important to always be thinking about the next steps,” added Vonn at the time.

    Vonn has not revealed her next career phase, but did express an interest in entrepreneurship last fall. At the time, she also joined forces with Chase Ink on a small business collaboration.

    “I’m in the works with some things right now that I can’t disclose yet,” she said last October, “but things are moving along and I’m really looking forward to when I retire at the end of this season and can really put all of my efforts into this new business.”

    As she explained today on Instagram, “I’m just starting a new chapter.”

    This article was originally published October 26, 2018 and has been updated.

    Don’t miss: Olympian Lindsey Vonn: The wage gap in professional skiing is ‘severe’

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  • GM's involuntary layoffs start Monday, at least 4,000 workers expected to lose jobs

    General Motors is planning to layoff at least 4,000 salaried workers in North America starting Monday ahead of the company’s fourth-quarter earnings report, according to two people briefed on the matter.

    The reductions come as the largest U.S. automaker undergoes a massive restructuring announced by CEO Mary Barra in November. GM is halting production at five plants in North America and cutting 14,000 jobs as it realigns its workforce and plants to produce more electric vehicles.

    Company executives want to complete as many of the layoffs as possible before the company reports its earnings Wednesday, the people said, asking not to be named because the information isn’t public yet.

    “We are not confirming timing. Our employees are our priorities and we will communicate with them first,” GM spokesman Pat Morrissey told CNBC Friday.

    The involuntary cuts aren’t as steep as previously thought.

    GM offered buyouts to 17,700 employees in North America with at least 12 years of service in November, according to a document obtained by CNBC at the time. The company was aiming for 8,000 voluntary buyouts, the company previously confirmed. About 2,250 workers accepted severance agreements by Nov. 19, the company previously confirmed. Roughly 1,500 contract jobs have since been eliminated, according to one of the people briefed on the layoffs.

    That leaves roughly 4,250 salaried workers and 6,000 hourly employees targeted for layoffs. The company said in November that half of the hourly workers were in Canada with the other half in the U.S.

    Many of the cuts are planned at factories in the United States and Canada that make sedans and compact cars — vehicles that have not been selling well in North America, as customers turn toward trucks, sport utility vehicles and crossovers. These vehicles tend to be more profitable for automakers.

    As it has been trimming back its sedan lineup and exiting its least lucrative businesses, GM has been pumping cash into new mobility technologies, especially autonomous driving.

    GM’s reorganization is expected to save the company about $6 billion by 2020, with half of those savings realized by the end of 2019, the company has said.

    Executives told investors in mid-January that the company’s full-year results for 2018 exceeded the company’s expectations, and gave a positive outlook for 2019 as well.

    “Mary is bold man. She doesn’t mind making a tough decision, which is probably nice to see compared to what GM has been historically. Shes not afraid of a tough decision,” said Sam Huszczo, owner of SGH Wealth Management outside of Detroit. He said he manages money for several clients who work at GM.

    This story is developing. Check back for updates.

    CNBC contributor Paul Eisenstein assisted with this article.

  • Snopes quits fact-checking partnership with Facebook

    Snopes, a fact-checking organization, announced on Friday its decision to end its partnership with Facebook, which has been ramping its efforts to curb misinformation on its services since the 2016 U.S. election.

    Facebook and Snopes had been working together since December 2016 to fact check content on the social network. The company in 2017 paid Snopes as much as $100,000 for the work, according to Snopes.

    “At this time we are evaluating the ramifications and costs of providing third-party fact-checking services, and we want to determine with certainty that our efforts to aid any particular platform are a net positive for our online community, publication, and staff,” Snopes said in a statement.

    Snopes said it has not closed the door on working with the company again, but it encouraged Facebook CEO Mark Zuckerberg to meet “with fact-checkers as part of his recently announced series of public discussions” in 2019.

    The partnership is ending weeks after a report by The Guardian, in which multiple former Snopes employees criticized Facebook’s efforts to stop fake content on its services.

    “They’ve essentially used us for crisis PR,” one former employee told The Guardian.

    “Misinformation is an ever-evolving problem that we’re committed to fighting globally, and the work that third-party fact-checkers do to help review content on Facebook is a valued and important piece of this effort,” Facebook said in a blog post in December. At the time, the company said it had 35 fact-checking partners around the world.

    Facebook did not respond to a request for comment.

    WATCH: Facebook, Snapchat and TikTok have a massive underage user problem — here’s why it matters

  • America's love affair with trucks and SUVs is forcing big changes at big car companies

    Americans are buying a lot more trucks and SUVs. Truck and SUV sales have steadily increased since the end of the Great Recession, while passenger sedan sales have been declining since 2014, according to data from the U.S. Bureau of Economic Analysis. In fact, 2018 saw the highest U.S. truck sales since 2005. This big spike in sales is forcing automakers to make big changes.

  • Why NFL star Richard Sherman drove his $30,000 Dodge Challenger until last year

    Pro Bowl cornerback Richard Sherman has won a Super Bowl and made tens of millions of dollars playing in the NFL. But the San Francisco 49ers star has tried to be careful about his spending since first being drafted in 2011. That’s why his first big splurge with his NFL earnings was surprisingly frugal.

    “I bought a Dodge Challenger, which I thought was the best thing ever and still do,” Sherman tells CNBC Make It. “Other than at, I really spent wisely.”

    Sherman, 30, bought the 2012 Dodge Challenger as a rookie playing for the Seattle Seahawks. He believes it cost between $30,000 and $35,000. Sherman says he bought the Challenger, which was royal blue with black stripes on the hood, because he thought it was “cool.”

    He loved it so much he kept driving it until 2018, when he finally sold the car.

    Sherman, who has earned $56.8 million from his professional contracts so far, according to Spotrac, has now upgraded and owns both a both a Tesla and a Maybach, which can have a starting price as high as almost $200,000.

    But Sherman still remembers how cautious he was when he first started receiving his NFL paychecks.

    “Growing up in Compton, [California], [a] dollar earned was always a dollar spent. There really was no concept of saving,” Sherman tells CNBC Make It.

    Sherman says he was “blown away” when he started receiving his NFL paychecks — he earned over $557,000 as a rookie in 2011. His experience growing up in a low-income community made him all the more determined to spend his new income wisely while learning to save and invest.

    “Because of my background, I was cautious about spending [money] and quickly started budgeting,” Sherman says.

    Sherman is famous for taking a hands-on approach to his finances, even going as far as negotiating his own four-year contract with the Seahawks in 2014 (as opposed to relying on an agent), which made him the NFL’s highest-paid cornerback at the time. Sherman is also an active investor who has said in interviews that he’s invested in municipal bonds and mutual funds, and who also has a keen interest in cryptocurrency.

    Sherman has invested in cryptocurrencies such as bitcoin, litecoin and ethereum, and he’s also a spokesperson for the exchange platform Cobinhood, and an investor in the company’s coin, COB.

    Though he once had to stop his grandma from buying bitcoin when it was up around $19,000, Sherman says he’s been “very active in the past year,” even as the price of a popular cryptocurrency like Bitcoin has dipped from highs near $20,000 per unit in December 2017 to its current price around $3,400.

    “Fortunately I was able to remove some of my money prior to the market falling as a whole,” says Sherman, who adds that he expects the price of Bitcoin and other cryptocurrencies to rise again in the future. “This is definitely a long term play for me,” he says.

    Still, when it comes to players just beginning their careers, Sherman says NFL rookies should try to live within their means, because you never know how long a career might last, or how much money they will eventually make.

    “My one piece of advice … is to understand that not much is guaranteed financially in this league,” Sherman tells CNBC Make It. “It is crucial that you budget and save so that you can provide wealth for you and your family for the future.”

    Don’t Miss:

    Here’s what NFL star Chris Long spent his first big paycheck on

    Bitcoin is the new locker room talk for some NFL players—here’s what they’re saying

    Like this story? Subscribe to CNBC Make It on YouTube!

  • Arthur Blank talks Super Bowl, economy and politics with CNBC

    Ahead of the Super Bowl in Atlanta, CNBC sat down with Arthur Blank, owner of the hosting Atlanta Falcons. He is also a co-founder of Home Depot.

    Blank talked with CNBC about everything, including his experience hosting the Super Bowl, his effort to make concession prices fan-friendly at Mercedes-Benz Stadium in Atlanta and for whom he’ll be rooting this Sunday.

    He also talked about his views on the economy, the political climate and the biggest national issues. He said that “our country is going through a difficult time,” referencing both economics and “the issue of diversity and inclusion.” The Falcons’ owner said he “hates to see the extremes on both sides.”

    Blank mentioned his focus on the country opening its doors and coming up with respectful immigration laws. “One of the great things about our great cities like Atlanta is the diversity that exists here.”

    See below for the full interview.

  • Here's how many people Tesla laid off at its California facilities

    Tesla‘s January layoffs impacted at least 1,017 California employees, according to the company’s filings with the state’s Employment Development office that were obtained by CNBC. Bloomberg first reported on the number of California employees effected.

    Specifically, the filings revealed that Tesla laid off 78 employees from its headquarters in Palo Alto, 137 from its Lathrop facility and 802 from various facilities, including its car plant in Fremont.

    In Fremont, where the company laid off the highest number of California employees, Tesla dismissed more than 30 equipment maintenance technicians, more than 50 auto service technicians, more than 60 supervisors in various departments including 37 manufacturing supervisors and more than 70 production associates.

    Overall, the company reduced its work force by 7 percent, Tesla said in earlier disclosures about the restructuring.

    On a fourth-quarter earnings call this week, Elon Musk discussed Tesla’s current focus on controlling costs several times.

    Addressing analyst’s questions about the global economy and a possible recession in 2019, Musk said:

    “Getting those costs down, variable costs and fixed costs, is what allows us to lower the price and be financially sustainable and achieve our mission of environmental sustainability. So, we have to be absolute zealots about this. There’s no question.”

    He also said:

    “I do think that the economy moves in cycles, and there’s clearly a significant risk of a recession over the next 12 to 18 months. But I’m confident that Tesla will remain slightly profitable even if there is a significant recession, and then be all the stronger for it when the recession ends. But we have to be relentless about costs in order to make affordable cars and not go bankrupt. That’s what our head count reduction is about. Yeah. We have to be super hardcore about it. It’s the only way to make affordable cars.”

    Tesla generated $7.23 billion in total revenue in the fourth quarter of 2018, more than double its $3.29 billion in revenue during the same period a year earlier, following a 9 percent round of layoffs in June. Its profits declined from the third quarter, however, and the company will need to pay off $920 million in debt due March 1.

  • This meat-lover's Super Bowl spread costs $53,000 — here's what you get

    American adults say they’ll spend an average of $81.30 on grub for Super Bowl Sunday, CNBC reports. But for some football fans, buffalo wings and nachos just won’t cut it. And one New York City eatery is taking the game day feast to a whole new level, offering a decadent meal with a $53,000 price tag.

    The Old Homestead Steakhouse, located in Manhattan’s Meatpacking District, is offering the Super Bowl LIII “Beef and Bling” package, a wildly expensive meal to be delivered on Super Bowl Sunday. The steakhouse claims it is the “most expensive-ever single big game bite on record.”

    “[T]his is the biggest sporting event of the year, so I created something to match the big game hype,” says Marc Sherry, the co-owner and chef of Old Homestead Steakhouse.

    The package includes a massive 53-pound imported Japanese prized Wagyu roast so high-end that it is only available at exclusive auctions in Japan and typically goes for an average of $475 per pound, according to Old Homestead. The beef is sourced from cows that are hand-massaged and fed organic grains and beer to stimulate their appetite, because the meat’s rich flavor comes from intense fat marbleization, Old Homestead says.

    Also included in the package are 12 $750 bottles of Cristal champagne and munchies such as chili, pizza, chicken, franks in a blanket and filet mignon “wings,” which are a creation of Old Homestead and are made from the part of the filet that is on the bone.

    Overall, the beef is worth $25,000 and the champagne is worth $9,000, says Old Homestead.

    So what do you get for the other $20,000? A pear-shaped, 10.28-carat, teardrop diamond necklace with princess cut diamonds, of course.

    As of Friday, Old Homestead reports it has sold two of the $53,000 packages — one is being delivered to a home in New Jersey, and another to a condo in Manhattan.

    This isn’t the first time Old Homestead has created an over-the-top meal. In November, the steakhouse featured a$150,000 Thanksgiving dinner spread. The feast included a turkey priced at $135 per pound (topped with edible gold flakes) and $2,500-a pound white truffles, along with the keys to a $75,000 2018 Maserati Levante.

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    Like this story? Subscribe to CNBC Make It on YouTube!

  • Amazon sellers get caught in U.S.-China trade spat as money transfer service abruptly closes

    Many big Amazon sellers received a notice this week from a company they rely on for international money transfers. The message from WorldFirst, which is based in London, was alarming: its U.S. business was closing immediately.

    “We are writing to share some news that affects you as a US-based customer of WorldFirst,” the email said. “The WorldFirst shareholders have taken the decision to discontinue with the US operations. As such, we will no longer be able to offer our products and services to you.”

    WorldFirst didn’t offer an explanation for the abrupt decision, and one Amazon seller, who asked not to be named, told CNBC “that was quite a shock.” The company said its U.S. business was being rebranded as Omega, which would operate independently from WorldFirst, and that no new transactions could be made after Wednesday, Jan. 30.

    Sellers and competitors who spoke with CNBC speculated that the shutdown was directly related to a pending acquisition of the parent company by Chinese fin-tech giant Ant Financial.

    Ant, the Alibaba affiliate and parent of Alipay, has reportedly been in advanced talks since late December to buy WorldFirst for about $700 million. Ant has been unable to crack the U.S. market because of opposition from the Trump administration. Last year, the Committee on Foreign Investment in the United States (CFIUS) quashed Ant’s attempt to buy MoneyGram for $1.2 billion because of national security concerns.

    On Friday, the Financial Times reported that WorldFirst “abruptly closed” its U.S. business to avoid having the acquisition “derailed by American regulators.” The paper cited two people briefed on the decision. WorldFirst’s U.S. operation was based in Austin, Texas, and the company also had employees in San Francisco. One person told the FT that the move would result in “heavy job losses” among the U.S. staff.

    WorldFirst didn’t respond to requests for comment.

    It’s the latest example of the collateral damage that’s resulting from the escalating U.S.-China spat, which centers on a trade imbalance as well as alleged intellectual property theft by Chinese firms. The two governments have set a deadline of early March to come to an agreement on a trade deal. In the meantime, the Trump administration has been blocking big deals, such as Chinese companies taking significant stakes in U.S. businesses and from buying certain U.S. technology components, claiming such transactions would pose a national security threat.

    WorldFirst is one of the main services used by Amazon sellers to handle transactions across the world so merchants can get paid in many different currencies on a single platform. An Amazon sellers group sent an email to members on Friday suggesting that WorldFirst customers switch to rival service Payoneer, which “can help if you are selling in the US, UK, Europe, Canada, Japan, China, Australia, and Mexico,” the message said.

    WorldFirst said service for customers outside the U.S. and Canada will be unaffected by the change. Clients in those two countries were told that between Jan. 31 and Feb. 7, they could only make outbound transfers to existing beneficiaries. After Feb. 7, any balances would be returned to the sender, and after Feb. 20, the company would have no live phone or email service.

    For Ant, the expected acquisition of WorldFirst supports the company’s global push and expansion beyond mobile and online payments service Alipay. Ant CEO Eric Jing told CNBC in November that his company was investing in technology services for banks so that it’s not limited to payments.

    Ant is viewed as an IPO candidate, but Jing said the company doesn’t have a “timetable for that.” Alibaba agreed exactly a year ago to acquire 33 percent of Ant, and has said it won’t have any control over the company. Alipay was spun out of Alibaba in 2011.

    WATCH: Ant Financial says it doesn’t have a “timetable” for an IPO

  • Amazon sellers get caught in US-China trade spat as money transfer service abruptly closes

    Many big Amazon sellers received a notice this week from a company they rely on for international money transfers. The message from WorldFirst, which is based in London, was alarming: its U.S. business was closing immediately.

    “We are writing to share some news that affects you as a US-based customer of WorldFirst,” the email said. “The WorldFirst shareholders have taken the decision to discontinue with the US operations. As such, we will no longer be able to offer our products and services to you.”

    WorldFirst didn’t offer an explanation for the abrupt decision, and one Amazon seller, who asked not to be named, told CNBC “that was quite a shock.” The company said its U.S. business was being rebranded as Omega, which would operate independently from WorldFirst, and that no new transactions could be made after Wednesday, Jan. 30.

    Sellers and competitors who spoke with CNBC speculated that the shutdown was directly related to a pending acquisition of the parent company by Chinese fin-tech giant Ant Financial.

    Ant, the Alibaba affiliate and parent of Alipay, has reportedly been in advanced talks since late December to buy WorldFirst for about $700 million. Ant has been unable to crack the U.S. market because of opposition from the Trump administration. Last year, the Committee on Foreign Investment in the United States (CFIUS) quashed Ant’s attempt to buy MoneyGram for $1.2 billion because of national security concerns.

    On Friday, the Financial Times reported that WorldFirst “abruptly closed” its U.S. business to avoid having the acquisition “derailed by American regulators.” The paper cited two people briefed on the decision. WorldFirst’s U.S. operation was based in Austin, Texas, and the company also had employees in San Francisco. One person told the FT that the move would result in “heavy job losses” among the U.S. staff.

    WorldFirst didn’t respond to requests for comment.

    It’s the latest example of the collateral damage that’s resulting from the escalating U.S.-China spat, which centers on a trade imbalance as well as alleged intellectual property theft by Chinese firms. The two governments have set a deadline of early March to come to an agreement on a trade deal. In the meantime, the Trump administration has been blocking big deals, such as Chinese companies taking significant stakes in U.S. businesses and from buying certain U.S. technology components, claiming such transactions would pose a national security threat.

    WorldFirst is one of the main services used by Amazon sellers to handle transactions across the world so merchants can get paid in many different currencies on a single platform. An Amazon sellers group sent an email to members on Friday suggesting that WorldFirst customers switch to rival service Payoneer, which “can help if you are selling in the US, UK, Europe, Canada, Japan, China, Australia, and Mexico,” the message said.

    WorldFirst said service for customers outside the U.S. and Canada will be unaffected by the change. Clients in those two countries were told that between Jan. 31 and Feb. 7, they could only make outbound transfers to existing beneficiaries. After Feb. 7, any balances would be returned to the sender, and after Feb. 20, the company would have no live phone or email service.

    For Ant, the expected acquisition of WorldFirst supports the company’s global push and expansion beyond mobile and online payments service Alipay. Ant CEO Eric Jing told CNBC in November that his company was investing in technology services for banks so that it’s not limited to payments.

    Ant is viewed as an IPO candidate, but Jing said the company doesn’t have a “timetable for that.” Alibaba agreed exactly a year ago to acquire 33 percent of Ant, and has said it won’t have any control over the company. Alipay was spun out of Alibaba in 2011.

    WATCH: Ant Financial says it doesn’t have a “timetable” for an IPO