Issue #33

WeTransfer fires 75% of workers, PwC will track worker location, Greece cracks down on tourism, and more.

News from September 5 - September 12, 2024

CEO Says EU Relies on US

Francesco Simoneschi, CEO of Stripe-backed TrueLayer, emphasized the urgency for Europe to reduce its dependence on U.S. payment systems, particularly as geopolitical tensions rise ahead of the U.S. election. 

TrueLayer, valued at $1 billion, offers open banking solutions that bypass Visa and Mastercard, both under regulatory scrutiny for their influence on UK payments. Simoneschi pointed to a global IT outage caused by CrowdStrike as highlighting the risks of over-reliance on U.S. infrastructure. 

He advocates for European initiatives like the European Payments Initiative to strengthen regional payment independence.

Source 

Sarah Burton to Givenchy

Sarah Burton, formerly of Alexander McQueen, has been appointed creative director of Givenchy. Burton will lead both menswear and womenswear, debuting her first collection in March. 

Under her predecessor Matthew Williams, Givenchy focused on ready-to-wear collections at Paris Fashion Week but didn’t participate in haute couture week, unlike other LVMH brands like Dior and Chanel. Despite its rich history, Givenchy is no longer among LVMH's top 10 brands, per HSBC estimates. 

LVMH is positioning Burton and new CEO Alessandro Valenti to restore Givenchy's legacy.

Source

WeTransfer Fires 75% of Workers

Bending Spoons plans to lay off 75% of WeTransfer's workforce following its acquisition of the company in July. Known for cultural contributions like supporting artists and being a certified B Corp, WeTransfer faced challenges due to high interest rates, preventing it from going public in 2022. 

Bending Spoons’ profit-driven approach mirrors previous actions with other companies it acquired, such as Filmic, where it cut the entire workforce. Evernote and Meetup were also acquired by Bending Spoons, with the private equity firm raising an additional $155 million earlier this year to continue buying up tech companies.   

CEO Luca Ferrari: "While we don’t enjoy making painful or unpopular decisions, we’re prepared to do so when we believe it’s the right thing to do."

Source

Bulletin Board

• PwC Will Track Worker Location. PwC is tightening its hybrid working policy, requiring staff to spend at least three days a week in the office or with clients, up from a previous two to three days. The firm will track the locations of its 26,000 employees to ensure compliance. This shift reflects a broader trend among major firms like Amazon and EY, which are cracking down on "coffee badging" to enforce attendance. Coffee badging refers to employees showing up briefly in the office to be counted as present before leaving again, often with minimal engagement. PwC cites the importance of quality face-to-face interactions as a key reason for the change. Source 
• 800bn EU Investment Boost. Former Italian prime minister Mario Draghi has warned that the EU faces a "slow and agonizing decline" unless it boosts spending by €800 billion annually. Draghi’s report outlines 170 recommendations, stressing the need for coordinated investment to combat stagnation, dependency on foreign resources, and declining productivity. Draghi also highlighted how Europe's population decline, weakening industrial sectors, and lack of competitiveness compared to the US and China threaten its future. He urged EU leaders to unify efforts and hinted at borrowing from bond markets to fund new industries and infrastructure projects. Source
• Greece Cracks Down on Tourism. Greece is implementing measures to combat overtourism, including limiting daily cruise arrivals and increasing port fees on popular islands like Mykonos and Santorini. Some in the tourism industry argue that the restrictions may unfairly target certain groups, such as cruise passengers, and could shift the burden to less-prepared areas. Nikos Zorzos, Santorini’s mayor: “We live in a place of barely 25,000 souls and we don’t need any more hotels or any more rented rooms.” Source
• Furby Toys Could Be Spies. Furbys, the popular interactive toys of the late 1990s, sparked concerns over potential spying. Their ability to mimic words and respond to movement raised fears that they could record conversations. In fact, the U.S. National Security Agency banned Furbys from their premises in 1999, worried they might capture classified information. This anxiety about surveillance mirrored broader societal fears about advancing technology, particularly around the time of the millennium bug scare. Source 
• Madrid Bans Electric Scooters. Madrid authorities will revoke operating licenses for e-scooter rental companies Lime, Dott, and Tier due to non-compliance with city permit requirements, such as a lack of insurance, service coverage, and tech to prevent scooters from parking in prohibited areas. This move means rental e-scooters will be removed from the streets by October. The companies have 20 days to appeal, with some expressing disappointment and seeking dialogue. Madrid joins cities like Melbourne and Paris, which have also imposed bans on e-scooter rentals over safety and regulatory concerns. Source  

Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

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