All articles tagged with #labor cost
A growing share of IT budgets is going to AI compute, tokens, and subscriptions—sometimes exceeding what companies pay in salaries—driving a reevaluation of ROI and the long-term value of human versus digital labor.
The owner of four Fatburger franchises in Los Angeles plans to raise menu prices by up to 10% and reduce workers' hours in response to California's minimum wage increase for fast food workers to $20 per hour, which is expected to spike payroll by 30%. Other cost-cutting measures include eliminating paid time off and not hiring new employees. This move comes as fast-food chains like McDonald's also raise prices in response to the minimum wage hike, and Pizza Hut franchises in California plan to lay off delivery drivers.
Ford Motor has withdrawn its full-year results forecast due to uncertainty over the pending ratification of its deal with the United Auto Workers (UAW) union and warned of continued pressure on electric vehicles (EVs). The company expects the new contract with the UAW to add $850 to $900 in labor costs per vehicle. Ford's concern about cooling EV demand follows General Motors' decision to postpone a $4 billion electric truck plant. Ford lost an estimated $36,000 on each of the 36,000 EVs it delivered in the quarter. The automaker will delay some of its planned investments in new EV and battery production capacity due to downward pressure on prices.