WeWork: Neumann gives up CEO spot
Adam Neumann, WeWork’s co-founder and public face, resigned as CEO and agreed to cede majority control in an effort to save WeWork’s floundering public offering, said Eliot Brown in The Wall Street Journal. The charismatic chieftain had charmed private investors enough to make WeWork the most valuable startup in the U.S., and “as recently as last week it seemed unlikely that he would ever loosen his iron grip.” But a Journal article detailing his “eccentric” behavior, including “marijuana use in an airplane and unpredictable management decisions,” undercut his position.
Privacy: No ‘right to be forgotten’ outside EU
In a victory for Google, Europe’s highest court ruled “right to be forgotten” laws don’t apply outside the European Union, said Adam Satariano in The New York Times. The European Court of Justice’s ruling this week limits the reach of a key EU internet privacy law, which requires publishers and search engines to “delete links to websites, news articles, and databases that include personal information considered old, no longer relevant, or not in the public interest.” Since 2014, Google has “received requests to take down more than 3.3 million links and has granted about 45 percent.”
Apparel: Nike runs ahead of projections
Nike’s stock price soared to an all-time high this week as the company beat expectations across its business, said Lauren Thomas in CNBC.com. “Designing new high-tech sneakers and fashion-forward apparel, adding stores, and selling fewer products in discount outlets are clearly paying off for Nike.” Online sales were up 42 percent for the quarter, and a new, one-of-a-kind Nike store in Shanghai helped sales in China surge 27 percent despite trade headwinds.
Travel: Thousands stranded as Thomas Cook fails
The world’s oldest travel company, Thomas Cook, collapsed this week, stranding 150,000 British travelers, said Alice Hancock in the Financial Times. The 178-year-old tour operator has struggled to compete with online alternatives. After negotiations with lenders for a billion-dollar rescue plan fell through and a last-ditch request for a government bailout was denied, Thomas Cook’s board said that “it had no choice but to take steps to enter into compulsory liquidation,” and canceled all its bookings. The British government is putting together “the biggest emergency repatriation in peacetime” to retrieve stranded passengers.