AT&T (T) Stock Down After Job Cuts, Alibaba (BABA) Stock Dropped Despite Record Singles Day Revenues

AT&T Inc (T) was down -0.42 percent on Wednesday as a big new wave of layoffs has been initiated by WarnerMedia as the company faces substantial financial losses related to the Covid-19 pandemic. More than 1,000 individuals could lose their jobs, according to the U.S. press, as the AT&T subsidiary aims to remove redundant roles and refocus on its flagship online video service, HBO Max. WarnerMedia, which hires about 25,000 employees, laid off about 600 people, mainly in its Warner Bros. studio, last August.

WarnerMedia is attempting to respond to the drastic changes exacerbated by the Covid-19 pandemic in the media and entertainment industry. These developments, which have influenced the industry as a whole, include less reliance on large-scale films and conventional cable networks and increased consumer-direct dependency on services. On Tuesday morning, Jason Kilar, WarnerMedia’s chief executive, sent an email to his staff calling the cuts “painful” but “important” for the future of the division. In 2018, telecoms provider AT&T invested $85 billion to acquire the media heavyweight, owner of the HBO service, but also the ‘CNN’ news channel and film studios.

Faced with the worsening situation, New York Governor Andrew Cuomo declared Wednesday that a curfew would be placed in place for bars, restaurants and gyms in the state as early as Friday, and has restricted meetings to up to 10 people in private locations.

Alibaba Group Holding Limited (BABA) lost just -0.3 percent. During “Singles Day” in China, the e-commerce giant made more than $56 billion in revenue. This event, launched in 2009, is the largest online shopping event in the world, ahead of the United States’ “Black Friday” and “Cyber Monday.” Spread over four days this year, Alibaba and its rivals have already received 16 times more orders in volume than on the two days of Amazon.com’s Prime Day in October. Gross merchandise volume (GMV) reached 372,3 billion yuan ($56.16 billion) on Wednesday morning, with a record number of orders per second of 583,000, Alibaba said.

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