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Sony Pictures Cuts Jobs as It Bets on Franchises, Gaming and Digital Growth

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Sony Pictures Entertainment is moving ahead with a reorganization that will eliminate hundreds of jobs across its film, television and corporate operations, as the studio reshapes itself around franchises, gaming-related content and digital-native content.

According to sources familiar with the matter, the layoffs are expected to affect a “few hundred” employees out of roughly 12,000 workers globally, with cuts already beginning and expected to continue in the months ahead. Those impacted are said to be largely in junior and middle management roles.

The restructuring was outlined Tuesday in a memo from Sony Pictures Entertainment CEO Ravi Ahuja, who told staff that the company has spent the last year refining its direction and identifying the areas it sees as the strongest growth opportunities.

“Over the past year, we have sharpened our strategy and clarified where we believe the greatest opportunities exist. As we lean into those priorities, we need to operate with greater focus, speed, and alignment to strengthen our differentiated capabilities.”

People close to the process told Variety the cuts are not being framed internally as a broad cost-cutting exercise, but instead as a “targeted and strategic” reallocation of resources.

Sony is prioritizing franchise strategy and brand extensions, including game shows, as well as animated content, experiences, next-generation content, platform-native programming and stronger use of YouTube. Another major focus is closer coordination with the larger Sony Group ecosystem, especially regarding adaptations tied to its gaming business.

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The company is also focusing on specific return-on-investment drivers, including Crunchyroll and expanded anime efforts beyond the platform, as well as PlayStation adaptations across film and television.

In the memo, Ahuja described the changes as part of a broader attempt to reposition the company for where the entertainment industry is headed. “That requires changes to how we are structured and where we invest,” he wrote.

That strategy comes as Sony leans harder into established intellectual property and cross-platform franchises. Under Ahuja, the company has put emphasis on its recent acquisition of the “Peanuts” IP, a new deal with Big Shot Pictures, and further development of PlayStation-based projects. Those include HBO’s “The Last of Us” and the forthcoming “God of War” series at Amazon, alongside expansion of existing Sony-backed worlds such as “The Boys,” “Spider-Man,” “Ghostbusters,” “Outlander” and “Jeopardy!”

The reorganization will also bring structural changes inside the company. Sony’s Game Show Group will be combined with GSN under the leadership of its game shows president, Suzanne Prete. Sony Pictures Television’s nonfiction division, which had previously been announced, will now sit under TV studios president Katherine Pope. Sony is also closing the visual effects company Pixomondo as part of the shake-up.

Ahuja acknowledged in his memo that the changes will mean job losses.

“With that, we are reducing roles in certain areas while increasing focus and investment in others that are most critical to our future. This means that some of our colleagues will be leaving the company. These are difficult decisions. They impact talented people who have contributed meaningfully to our work and culture. We are grateful for their contributions, and our P&O teams are committed to supporting them through this transition.”

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The CEO also sought to reassure staff that more information would follow, noting that the process will continue to unfold over time. “I know this kind of change can feel uncertain and raise questions,” Ahuja wrote.

Ahuja, who became CEO in January following the retirement of longtime Sony entertainment chief Tony Vinciquerra, argued in the memo that Sony’s position as an independent film and television studio gives it unusual flexibility as media companies navigate shifting audience habits and changing distribution models.

“While the industry around us continues to evolve, we are uniquely well-positioned for this moment,” he noted. He pointed specifically to “the demonstrated value of our independent television and film studios,” which he said allows Sony “the flexibility to move with the market — to partner broadly, match projects with the right platforms, and support our creative partners in bringing great stories to life.”

Sony continues to position itself as an “arms dealer” in the streaming era, supplying content across platforms rather than operating its own major streaming service. Its upcoming slate includes other projects such as “Spider-Noir,” additional seasons of “Twisted Metal,” and a feature adaptation of “Helldivers” planned for 2027.

“By aligning our structure and resources more closely with our strategic priorities, we will move forward with greater clarity and momentum and be better equipped for innovation and resilience.”

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Survey Shows U.S. Consumer Sentiment Near Historic Lows Despite Steady Spending

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Americans’ view of the economy has sunk to near record lows. And once again, the contradiction at the heart of the U.S. recovery is back in focus. The nation’s households say they are worried, yet many are still opening their wallets.

The University of Michigan’s long-running consumer sentiment survey placed its September reading at 55.1, one of the lowest points in records that stretch back to 1952. Since the end of World War II, Americans have reported bleaker readings only a handful of times, typically in moments of profound economic stress, such as the oil shocks of the 1970s, the Great Recession of 2008, or the early months of the 2020 pandemic.

This time, the culprit looks familiar. Inflation has cooled from its peak, but fears of prices climbing again have flared after President Donald Trump announced a new round of tariffs on trucks, pharmaceuticals, and household goods, including furniture. Tariffs ripple quickly through supply chains, raising concerns that another round of price hikes is on the way, just as families had begun to catch their breath.

Households aren’t only worried about grocery bills and rent. They’re watching the labor market, too. “Consumers continue to express frustration over the persistence of high prices, with 44% spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year,” said Joanne Hsu, the survey’s director.

“Interviews this month highlight the fact that consumers feel pressure both from the prospect of higher inflation as well as the risk of weaker labor markets.”

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Jobs remain plentiful by historical standards, but the momentum is slowing. Unemployment sits at 4.3%, which is low, but no longer at the rock-bottom levels of 2022. People who lose their jobs are taking longer to find new ones. Those warning signs pushed the Federal Reserve to cut interest rates last week, its first reduction since December, in an attempt to cushion the slowdown.

The gloom does not match the cash registers. Government data show consumer spending rose 0.6% in August, or 0.4% after adjusting for inflation. That jump came in the thick of the back-to-school rush, but it’s consistent with a broader pattern. In recent years, Americans have often told pollsters they feel pessimistic, only to proceed and splurge anyway.

In 2022, when inflation hit 40-year highs and sentiment collapsed to its lowest point ever recorded, spending on travel, concerts, and restaurants surged. In 2023, when political gridlock in Washington rattled confidence, the pattern repeated. Richmond Fed President Tom Barkin summed it up on Friday.

“Recent data show consumers resumed spending over the summer, especially those with higher incomes. And why wouldn’t they? Unemployment is still low, nominal wages are still increasing, and asset valuations are near all-time highs.”

That last point is crucial. The U.S. economy is increasingly being powered by the upper tier of earners. High-income households, buoyed by rising paychecks, booming stock portfolios, and strong home values, account for the lion’s share of discretionary spending. By contrast, low- and middle-income families are squeezed hardest by everyday prices and more likely to cut back.

In a statement to CNN, Stephanie Guild, chief investment officer at Robinhood, framed it bluntly.

“It’s the higher-income people in the country who do the majority of the spending, and those are the same people who are more likely to have investments.”

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The stock market is reinforcing that divide. Major U.S. indexes have touched record highs in recent months, lifted by optimism over artificial intelligence, expectations of easier Fed policy, and solid corporate earnings. Even Trump’s tariff announcement, which sparked fears of higher consumer costs, was greeted on Wall Street with a rally strong enough to end a three-day losing streak.

That resilience has a feedback loop. Families who own equities, or have retirement accounts linked to them, report steadier confidence, Hsu noted.

“Sentiment for consumers with larger stock holdings held steady in September, while for those with smaller or no holdings, sentiment decreased.”

Guild added that the psychological comfort shouldn’t be underestimated. “With the market at record highs, despite the last few days, I definitely think it makes people feel comfortable about their savings,” she said.

The U.S. economy finds itself in a peculiar position. On paper, the fundamentals still appear solid: unemployment remains at historically low levels, spending has not collapsed, and corporate earnings are strong. Yet the narrative inside American households is sour, shaped by grocery bills, rent checks, and the daily headlines about tariffs and inflation.

Economists caution against taking sentiment as a crystal ball, as recent history has shown that gloomy surveys don’t always translate to empty shopping carts. But they also warn that if labor market weakness deepens or price increases accelerate, households could shift from complaining about the economy to actually retreating.

For now, the disconnect holds. Americans say they are bracing for the worst, but many are still living like the economy is strong.

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Amazon Tests Humanoid Robots for Delivery as Part of Expanding Automation Strategy

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Amazon is reportedly taking its automation ambitions to the next level, developing humanoid robots designed to assist with and potentially replace human delivery workers.

According to tech outlet The Information, the $2 trillion tech giant is constructing a dedicated “humanoid park” in the U.S., where robots will be tested in indoor environments before being deployed in the field.

The space, described as roughly the size of a coffee shop, is housed within an Amazon office in San Francisco and serves as an obstacle course to gauge how well these machines can navigate real-world delivery scenarios.

The goal? To create robots that can ride inside Amazon’s Rivian delivery vans and “spring out” to make deliveries. While human drivers may still be present, these robots could allow for multi-drop efficiency — for instance, enabling the robot to handle one address while the driver tackles another. It’s part of Amazon’s broader vision for streamlining the notoriously labor-intensive “last mile” of delivery.

Although Amazon is spearheading the development of the software that will power the robots’ artificial intelligence, it is reportedly relying on external companies to build the physical hardware.

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One such company is Agility Robotics, whose “Digit” robot has already been tested in Amazon warehouses. Agility’s CEO Peggy Johnson said in an earlier interview with The Guardian that Digit has enabled workers to offload tasks and transition into other roles.

“Employees who were previously doing this physical work appreciate the fact that they can hand that off to Digit. Then it allows them to do a number of other things, one of which is to be a robot manager.”

Sarah Franklin, the CEO of Lattice, a technology company based in the United States that offers a platform for human resources departments, stated that the workforce landscape is set to undergo significant transformation due to the influence of artificial intelligence.

Entry-level positions serve as the foundation of a workforce, with opportunities becoming increasingly selective as individuals progress into management and executive roles.

“AI can make this more of a diamond shape, where the entry levels are harder to get. The pace of innovation is outpacing education. That is a dangerous future if we don’t rapidly invest in ensuring that everyone is proficient with AI, especially entry-level workers.”

Amazon’s humanoid testing zone reportedly includes one of its more than 20,000 Rivian electric vans currently in operation across the U.S. Once the robots pass initial tests in the controlled indoor course, Amazon plans to send them on supervised “field trips” to deliver packages in real residential environments.

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The company’s ambitions in autonomous delivery aren’t limited to humanoids. Amazon has also invested heavily in self-driving technology via its Zoox subsidiary and has received clearance to test drone deliveries beyond the line of sight of human operators in the UK, a significant step toward drone-based logistics.

Experts say the vision is ambitious but not entirely out of reach. Professor Subramanian Ramamoorthy, chair of robot learning and autonomy at the University of Edinburgh, said Amazon’s interest in robotic last-mile delivery aligns with its deep investment in automation. While the field of humanoid robotics has made significant strides in recent years, Ramamoorthy noted that reliable outdoor performance remains a major hurdle.

Achieving consistent success outside of tightly controlled test environments, such as the so-called ‘humanoid park,’ is still a real challenge, he explained.

“If Amazon restricts the scope, which means using relatively clear driveways and standard layouts of doors and surroundings, then the task would be quite a bit simpler. As the environments become more complex and variable, and others enter the picture – such as pets and small children – the problems become harder.”

Still, with a robust internal robotics team and a growing ecosystem of AI and delivery infrastructure, Amazon seems well-positioned to be a frontrunner in the future of humanoid logistics — one where robots could soon be walking packages up to your doorstep.

unemployment

Weekly US Jobless Claims Are Declining 

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According to new reports from the US Labor Department, the number of Americans who are filing new applications for unemployment benefits is declining, giving officials hope that the job market may not be deteriorating as drastically as previously believed. 

The recent data from the Labor Department “showed unemployment rolls shrinking to levels last seen in mid-June. It reduces the urgency for the Federal Reserve to deliver a 50 basis points interest rate cut this month,” according to Lucia Mutikani from Reuters. 

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“Economists shrugged off other data showing private employers hired the smallest number of workers in August. Most expect the U.S. central bank to kick off its easing cycle with a quarter-point rate reduction as domestic demand remains solid,” Mutikani wrote.

“A step-down in hiring, which pushed the unemployment rate to near a three-year high of 4.3% in July rattled investors and fanned concerns that a recession was stalking the economy.”

“There are signs of a slowdown in hiring with fewer job openings, but until payroll jobs actually decline there is no recession. At the moment, it does not look like the Fed is behind the curve,” said Christopher Rupkey, chief economist at FWDBONDS.

For the week ending in August 31st, state unemployment benefits dropped by a total of 5,000 to 227,000. This marks the lowest levels since early July. 

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“There was probably some residual seasonality boosting claims earlier in the summer, and that, like last year’s claims, could decline into September absent a more serious worsening in the labor market,” said Abiel Reinhart, an economist at J.P. Morgan.

In the federal government’s “Beige Book” report this week, employment levels are “generally flat to up slightly in recent weeks. A few (Fed) districts reported that firms reduced shifts and hours, left advertised positions unfilled, or reduced headcounts through attrition, though accounts of layoffs remained rare.”

“The number of people receiving benefits after an initial week of aid, a proxy for hiring, decreased 22,000 to a seasonally adjusted 1.838 million during the week ending Aug. 24, the lowest level since mid-June,” the claims report stated.

“Financial markets saw a roughly 41% probability of a half-point rate cut at the Fed’s Sept. 17-18 policy meeting,” according to CME Group’s FedWatch Tool.

“The chances of further rate reductions this year were boosted by another report from the Labor Department’s Bureau of Labor Statistics showing unit labor costs rose at a much slower pace than initially estimated in the second quarter amid strong worker productivity,” wrote Mutikani.

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Job Openings In The US Grew In December According To New Labor Data 

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The US job market currently remains stable with workers being in demand in multiple industries, according to new data from the Bureau of Labor Statistics. The Bureau reported that the number of available jobs in the US rose in December to an estimated 9.026 million. 

The data specifically came from the Bureau’s monthly Job Openings and Labor Turnover Survey report, according to CNN. The December data marks the first time job openings exceeded 9 million since September. 

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Economists were surprised by this as the additional jobs have outpaced November’s 8.925 million jobs, which initially led them to believe December would see around 8.7 million jobs added. 

“We’re back over the 9 million mark, which is a three-month high, and the bulk of the gains were in the private sector,” Jennifer Lee, senior economist with BMO Capital Markets, wrote.

“So the good news is that there are options out there — if one is still unemployed or is looking for extra work. The bad news is that it means that the consumer could spend more, and that’s not what the Fed wants right now,” she added. 

Federal Reserve Chairman Jerome Powell discussed that the labor market has “remained robust but in better balance” than it was during the initial years of the pandemic. In early 2022, job openings reached above 12 million. 

The Bureau noted that other aspects in the Survey report “changed little” from months previous, which could be an indication of the labor market slowing down. 

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“We’re all trying to figure out whether we’re going to manage a soft landing [of tamed inflation without significant job losses],” Fiona Greig, global head of investor research and policy at Vanguard, told CNN.

 “There’s no doubt that the level of openings is still exceeding pre-pandemic times [of 7 million]. The labor market isn’t as tight as, say, a year ago; but it is still strong,” she added. 

In December, layoffs increased to 1.616 million from 1.531 million the month before, which is still well below pre-pandemic averages. 

Tech, media, and transportation industries are seeing massive layoffs, leading to a lack of employee confidence for those in the field. According to research published by Glassdoor, their recorded employee confidence index dropped in January to 45.6%, a record-low. 

“This is a reflection of increasing fear around job security among employees,” Daniel Zhao, Glassdoor’s lead economist, told CNN.

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US Economy Adds 372,000 Jobs In June, Exceeding Expectations 

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According to the monthly jobs report from the Bureau of Labor Statistics (BLS), the US economy added 372,000 new jobs in June, exceeding expectations and providing citizens with a surge in hiring. 

The unemployment rate remained around 3.6% as well. In May, 384,000 new jobs were added, so while June’s numbers were slightly lower, it still exceeded economist’s expectations. Economists initially were expecting around 272,700 jobs to be added in June. 

BLS data shows that the US job market is just 524,000 jobs away from pre-pandemic levels where unemployment rates were reaching record lows. 

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Professional business services, leisure/hospitality sectors, and the healthcare industry saw the biggest gains in jobs, with additional increases in food services and warehouse/storage positions. 

The job market in general has been a major force in keeping the US economy strong. The latest Job Openings and Labor Turnover Survey data released “showed there were 11.3 million available jobs in May, or 1.9 positions for every job seeker, along with historically low levels of layoffs.”

America is currently experiencing the highest inflation rates in 40 years, however, wages continue to rise. Average hourly wages were up by 5.1% within the past year, and the labor participation rate is at a steady 62.2%, just 1.2% less than pre-pandemic levels. 

“The job market is still plowing forward even in the face of increasing headwinds and recession fears. Even if the economy is slowing, the labor market remains a point of strength for the recovery. Strong employer demand is supporting solid but slowing job gains,”  Daniel Zhao, Glassdoor senior economist, said in a statement.

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“The employment report does nothing to dissuade Federal Reserve officials from sticking to their interest rate raising plans, looking to send inflation down, and closer to their 2% target. The next key reading for the Fed is the Consumer Price Index due in the days ahead,” ” said Mark Hamrick, senior economic analyst for Bankrate, in a statement. “

An increase in Covid cases in May prevented a lot of Americans from re-entering the job market last month, making the increase even more unexpected. 

Due to the increase in Covid cases in May, around 610,000 people were unable to look for work in June, up from 455,000 in the previous month. This is the first increase in this sector of data since January when the Omicron variant first appeared in the US.

The most recent Household Pulse Survey from the Census Bureau also showed that “the pandemic took more of a toll on Americans’ ability to work in June. Nearly 3.7 million people said they were not working because they were sick with Covid symptoms or were caring for someone who was sick, according to the survey, taken in the first two weeks of June.”

U.S. Consumer Confidence Slips In May Among Inflation

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On Tuesday, The Conference Board reported that its consumer confidence index decreased slightly in May to 106.4, a score that — while still a strong number — is down from 108.6 in April (which saw a small increase itself from March).

Meanwhile, the group’s present situation index, which is based on consumers’ assessments of current business and labor market conditions, declined from 152.9 to 149.6. The expectations index, based on consumers short-term outlooks for income, business, and labor, decreased from 79.0 to 77.5.

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“The decline in the present situation index was driven solely by a perceived softening in labor market conditions,” Lynn Franco, The Conference Board’s senior director of economic indicators, said. “By contrast, views of current business conditions — which tend to move ahead of trends in jobs — improved. Overall, the present situation index remains at strong levels, suggesting growth did not contract further in Q2.”

“That said, with the expectations index weakening further, consumers also do not foresee the economy picking up steam in the months ahead. They do expect labor market conditions to remain relatively strong, which should continue to support confidence in the short run.”

The dip in confidence comes after April saw an 8.3% year-over-year rise, which was down from March’s 8.5% year-over-year hike. Also not helping is the producer price index, which saw a jump of 6.9% in April. That’s down from March’s 7.1%, but up from February’s 6.7%.

Even with the Federal Reserve’s attempts to fight inflation by raising interests rates by 0.5% to 1.00%, the soaring prices will likely continue to be a burden to Americans over the coming summer months. One area consumers are being tortured in are rising gas prices, which now sit at a national average of $4.6 per gallon.

The labor market continues to remain a question mark for consumers even after employers added 428,000 jobs in April, keeping the unemployment rate at a pandemic-low 3.6%. Those numbers helped the country keep a 12-month streak of 400,000 or more jobs added.

However, that steady improvement may be misleading. Politico noted that data released by the Ludwig Institute suggests the “true rate of unemployment” (or TRU) is higher than national or local figures show and accounted for 23.1% of the labor force in April.

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“We think it misleads the American people to say, ‘Oh, we’ve got 3.6 percent of America that is unemployed, ergo, a huge percent of the population is employed,’ when in fact they can’t make above a poverty wage,” Ludwig told Politico.

Additionally, Federal Reserve chair Jerome Powell has previously called the labor market “unsustainably hot,” and — in an interview with Marketplace — explained that the demand of labor is inconsistent with low inflation. “What we need to do is we need to get demand down, give supply a chance to recover and get those to align,” he said.

President Joe Biden met with Powell Tuesday, saying afterwards that inflation has become his top domestic priority. “My plan to address inflation starts with the simple proposition: Respect the Fed, respect the Fed’s independence, which I have done and will continue to do,” Biden said.

How Biden deals with inflation could significantly impact his odds of possessing a second term in two years. According to FiveThirtyEight, the President currently sits at a 54.0% disapproval rating (up from 52.4% May 1), with just 40.8% approving of his work. Biden has pointed to the Ukraine invasion and supply chain issues as culprits of inflation woes.

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Airbnb CEO, Brian Chesky, Pledges More Than $250 Million To Coronavirus Relief Efforts

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The major corporation was recently put under fire after refusing to help compensate Airbnb hosts who experienced a multitude of cancellations in order to prevent the spread of covid-19.

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