Companies announce heavy job cuts

Companies announced the most job cuts for any October in more than two decades as artificial intelligence reshapes industries and cost-cutting accelerates, according to data from outplacement firm Challenger, Gray Christmas.

Companies announced 153,074 job cuts last month, almost triple the number during the same month last year and driven by the technology and warehousing sectors. It’s the most for any October since 2003, when the advent of cellphones was similarly disruptive, said Andy Challenger, the company’s chief revenue officer.

“Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes,” Challenger said in the report. “Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market.”

The numbers are weak no matter how they’re spliced. Year-to-date job cuts have exceeded 1 million, the most since the pandemic. In the same period, US-based employers have announced the fewest hiring plans since 2011. Seasonal hiring plans through October are the lowest since Challenger started tracking them in 2012.

Boeing won’t face charges over crashes

Boeing will not face a criminal conspiracy charge over two 737 Max jetliner crashes that killed 346 people after a federal judge in Texas on Thursday granted the government’s request to dismiss the case.

As part of a deal to drop the charge, the American aerospace company has agreed to pay or invest an additional $1.1 billion in fines, compensation for the crash victims’ families, and internal safety and quality measures.

Boeing said after the ruling that it was committed to honoring their agreement as well as “continuing the significant efforts we have made as a company to strengthen our safety, quality, and compliance programs.”

Peloton Bike+ units recalled on fall risk

Peloton Interactive Inc. issued a voluntary recall on about 877,800 units of its high-end Bike+ model in the U.S. and Canada following reports that some seat posts broke, causing riders to fall off.

The US Consumer Product Safety Commission, or CPSC, said in a statement Thursday that it initiated a recall on about 833,000 units after Peloton received three reports of the seat post detaching from the bike during use, resulting in two injuries from a fall. The CPSC warned Peloton users to immediately stop using the affected bikes.

All three incidents in the US involved riders who weighed more than 250 pounds, according to the recall notice. The company’s website lists the maximum user weight as 297 pounds. A Peloton spokesperson declined to comment on how many Bike+ units are in use.

Mortgage rate rises after recent declines

The average rate on a 30-year U.S. mortgage ticked up for the first time in five weeks after falling to its lowest level in more than a year last week.

The average long-term mortgage rate moved up to 6.22% from 6.17% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.79%. Last week’s average rate the lowest since Oct. 3, 2024, when it was 6.12%.

Compiled from Bloomberg and AP reports.