The daily business briefing: January 11, 2024

1. Amazon, Google lay off hundreds in post-pandemic cost cuts

Amazon and Google on Wednesday announced hundreds of layoffs in the latest sign that tech giants are trying to reverse their over-expansion during the coronavirus pandemic. Amazon, which has cut 27,000 employees since late 2022, is laying off hundreds of workers at its studio division and its live-stream subsidiary Twitch. Google said it was cutting hundreds of employees in divisions including Google's Assistant program and hardware and internal software tools. Tech companies laid off tens of thousands of employees last year as consumers continued their return to normal life after the end of the coronavirus crisis, which had forced them to work, play, shop and study online, sparking a boom for the tech industry. The New York Times, The Wall Street Journal

2. SEC approves bitcoin ETFs

The Securities and Exchange Commission on Wednesday approved 11 applications to offer exchange-traded funds (ETFs) tied to bitcoin. The decision came a day after someone hacked the regulator's account on X and claimed the decision had already been made. The authorization of bitcoin ETFs marked an important moment for the cryptocurrency industry. The new financial products will give people an easier way to invest in digital assets. Major financial firms, including asset managers BlackRock and Fidelity, were among the firms approved to offer the products, which could start trading as soon as Thursday. SEC Chair Gary Gensler, a critic of crypto-market fraud and volatility, stressed that the regulator didn't "endorse" bitcoin. "Investors should remain cautious," he said. The New York Times

3. Cummins to recall 600,000 Ram trucks in diesel emissions scandal

The Justice Department and California officials announced Wednesday that engine manufacturer Cummins Inc. had agreed to recall and repair 600,000 Ram trucks as part of a settlement in a diesel emissions–cheating scandal. Cummins is accused of installing emissions control software in thousands of vehicles, allowing them to skirt emissions testing. The company agreed in December to pay a record $1.675 billion civil penalty to settle claims. Details of the settlement released Wednesday showed it would also pay $325 million in remedies, bringing the total penalty to more than $2 billion. "Let this settlement be a lesson: We won't let greedy corporations cheat their way to success," California Attorney General Rob Bonta said in a joint announcement with federal officials. NPR

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4. Stock futures rise slightly ahead of inflation data

U.S. stock futures edged higher early Thursday as investors awaited a December inflation report. Futures tied to the Dow Jones Industrial Average were little changed at 7 a.m. ET, but those of the S&P 500 and the Nasdaq were up 0.1% and 0.4%, respectively. Futures trading doesn't necessarily predict where stocks head at the opening bell, although the major indexes gained Wednesday as investors prepared to scour Thursday's inflation data for clues on when the Federal Reserve will start lowering interest rates. The Dow and the S&P 500 rose 0.5% and 0.6% on Wednesday. The tech-heavy Nasdaq rose 0.8%. Economists surveyed by Dow Jones expect the December consumer price index to show a 3.2% year-over-year increase. CNBC, Morningstar

5. Alaska Airlines cancels more Boeing 737 Max 9 flights for inspections

Alaska Airlines said Wednesday it was canceling all flights on Boeing 737 Max 9 jets through Saturday for mandatory inspections ordered after a panel on one of the planes blew out during a flight last week, forcing an emergency landing. The airline said it would cancel 110 to 150 flights a day while its fleet of Max 9 jets are grounded, with the middle of that range representing about one-fifth of its daily schedule. "We hope this action provides guests with a little more certainty, and we are working around the clock to reaccommodate impacted guests on other flights," the airline said. Business Insider, The Associated Press