It’s been a week filled with major corporate and regulatory developments, with Visa, Alphabet, Reddit, and geopolitical moves affecting global business. Here’s a roundup of the latest updates from around the business world.
Visa to Cut 1,400 Jobs in Restructuring
Visa, the global payments giant, is set to lay off nearly 1,400 employees and contractors to streamline operations and align with its core business strategy. This reduction primarily impacts technology roles, with cuts also in Visa’s merchant sales and global digital partnership divisions; approximately 1,000 of these positions relate to tech functions. Some employees in the digital partnerships group will stay until the year’s end. This restructuring reflects Visa’s shift toward resource optimization across its extensive network.
EU Imposes Higher Tariffs on Chinese Electric Vehicles
In a move that intensifies trade tensions with China, the European Union announced increased tariffs on electric vehicles imported from China. After a thorough trade investigation, tariffs for some Chinese car manufacturers could reach 45.3%. Companies like Tesla and SAIC face additional tariffs of 7.8% and 35.3%, respectively, to offset perceived subsidies for Chinese EVs. Beijing criticized the decision, emphasizing the potential for heightened economic tensions with Europe.
ByteDance Founder Tops China’s Rich List as Revenue Surges
ByteDance, TikTok’s parent company, continues to rise, with founder Zhang Yiming now topping China’s rich list. With a net worth of $49.3 billion, Zhang surpassed bottled water tycoon Zhong Shanshan. ByteDance achieved $110 billion in global revenue last year, up 30% year-over-year, despite regulatory scrutiny in the U.S. Zhang’s success underscores ByteDance’s robust growth across platforms like TikTok, even as China’s billionaire population declines.
Alphabet’s Strong Q3 Performance
Alphabet, Google’s parent company, posted impressive Q3 results, with revenues hitting $88.3 billion, up 15% year-over-year. Profits increased by 34% to $26.3 billion as Alphabet maintained its dominance in digital advertising, despite regulatory challenges. Google’s core services—its search engine and YouTube—remain influential advertising platforms, sustaining Alphabet’s growth despite competition and solidifying investor confidence in its resilience.
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Reddit Posts First Profitable Quarter
For the first time, Reddit achieved a quarterly profit, driven by strong ad sales and new content licensing deals with major AI firms. Licensing agreements with Google and Microsoft-backed OpenAI allowed Reddit to monetize its vast content repository for AI training. The company also increased its user base and implemented machine-learning tools for enhanced language translation. Reddit’s share price rose 22%, reflecting its progress toward becoming a profitable digital platform.
U.S. Tightens Investment Rules in Chinese Tech
Effective January 2, the Biden administration will implement stricter U.S. investment restrictions in certain Chinese tech sectors. The U.S. Treasury’s new Office of Global Transactions will oversee these limitations on investments in semiconductors, microelectronics, quantum computing, and AI. Proposed in June and stemming from an August executive order, the move reflects U.S. security concerns over Chinese tech advancements, aiming to reduce American involvement in industries critical to national security.
What’s Next on World Street?
Developments at companies like Visa, Alphabet, and ByteDance, along with new EU and U.S. regulations, underscore the growing intersection of business, technology, and geopolitics. These events reflect global economic trends—from increased protectionism to the rising influence of digital advertising and content. Stay tuned as these stories unfold, revealing how businesses navigate challenges and opportunities on the world stage.
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