HEALTH CARE
Fallon Health gets new digs in Worcester
There’s a new corporate name gracing Worcester’s skyline: local insurer Fallon Health. Fallon’s name went up atop the One Mercantile building in Worcester’s downtown last week following a decision by the insurer to lease 58,000 square feet there, more than one fourth of the building. Fallon anticipates between 200 and 250 employees will work out of the headquarters on a typical weekday once the move is complete by the end of October. Fallon is relocating from 10 Chestnut St., where it once leased 157,000 square feet but more recently has occupied 77,000 square feet since the health insurer adopted a hybrid approach to office work. The One Mercantile building used to be known by another insurer, Unum, whose name has been replaced near the rooftop by Fallon’s logo. A spokeswoman said the move will provide Fallon with “the space and resources it needs to accommodate its modern workforce and support future business expansions.” The Chestnut Street property, meanwhile, is being converted to apartments by its owner, Boston-based Synergy. — JON CHESTO
MEDIA
Axios to lay off 10 percent of staff
Axios announced on Tuesday that it would lay off about 50 employees, or roughly 10 percent of the company. In a note to employees, the media outlet’s chief executive, Jim VandeHei, attributed the cuts to “changes in the media business” and said that Axios needed to shift its investment to its core business areas to adapt. “This is the most difficult moment for media in our lifetime,” Mr. VandeHei wrote in the email, which was obtained by The New York Times. He said that the company would continue to hire in “key areas” but was facing a fragmenting of reader attention, new rivals going after its business and talent, and artificial intelligence models capable of summarizing news. The eliminated positions are across the 500-person company, including in the newsroom, according to a person familiar with the matter. It is the first time the company has instituted layoffs. Axios was started in 2017 by Mr. VandeHei and his business partners Mike Allen and Roy Schwartz, all of whom previously worked at Politico, the political news site. The publication quickly made a name for itself with its bullet-point format, distilling the news down into bite-size chunks. In 2022, Axios was sold to Cox Enterprises in a deal valuing the media outlet at $525 million. The three founders continue to run the company. — NEW YORK TIMES
RIDE HAILING
Uber bookings up in the second quarter
Uber reported better-than-expected orders in the second quarter, underscoring the continued strength in demand for rideshare and delivery services. Gross bookings, which includes ride hails, delivery orders, and driver and merchant earnings but not tips, grew 19 percent to $39.95 billion in the three months ended June 30, Uber said in a statement on Tuesday. Analysts forecast $39.7 billion, according to Bloomberg-compiled estimates. Gig-economy companies such as Uber and rival DoorDash have been bright spots during an otherwise grim week for the stock market after investors considered weak job numbers in the United States and misses in Big Tech earnings. — BLOOMBERG NEWS
ENERGY
Aramco maintains quarterly dividend to Saudi government
Aramco maintained its quarterly dividend at $31 billion despite lower profit as the payout becomes increasingly crucial for Saudi Arabia’s government in its multitrillion-dollar economic makeover plan. The distribution by the world’s largest oil-exporting company is key for the kingdom as crude prices remain far below levels needed to balance the budget, which officials say will be in deficit for several years. Crown Prince Mohammed Bin Salman is pushing ahead with expensive ventures such as the futuristic project of Neom, but some plans are being dialed back because of funding issues. — BLOOMBERG NEWS
HEAVY EQUIPMENT
Caterpillar raises profit forecast
Caterpillar said it expects its annual profit will be higher than previously expected, despite seeing slightly lower sales for the full year. The maker of the iconic yellow diggers said full-year adjusted profits will now be higher than previously forecast while its profit margins will top its target range. Caterpillar, one of the world’s biggest producers of heavy machinery, is seen as a bellwether for industrial activity as a key supplier to industries from construction and mining to energy and transportation. — BLOOMBERG NEWS
FAST FOOD
Lower sales at KFC and Pizza Hut drag down parent company
Yum! Brands Inc. posted weaker-than-anticipated sales in the second quarter, mirroring trends at major competitors as consumers worldwide cut back on fast food. Deeper-than-expected declines at KFC and Pizza Hut drove the slump, more than offsetting growth at Taco Bell. Yum is the latest fast-food operator to release lackluster results as consumers tighten their budgets. — BLOOMBERG NEWS
PERSONAL GROOMING
Schick cuts back on plastic in razor handles
With sales growth harder to come by, Edgewell Personal Care Co., the owner of Schick razors, is cutting costs by using less plastic in some razor blade handles. It’s part of a larger effort by the owner of Banana Boat sunscreen that’s allowing it to boost profitability despite lower demand. The company is also automating packaging at a plant that makes tampons and pads, reducing labor costs. Like a number of peers from Clorox to Procter & Gamble, Edgewell’s sales are under pressure as consumers trim spending at the grocery story. — BLOOMBERG NEWS
INTERNATIONAL
Bayer gets a boost from cancer drugs, kidney medicines
Bayer reported encouraging sales for the quarter aided by strong demand for new cancer and kidney medicines. Group revenue reached €11.1 billion ($12.2 billion) in the second quarter, the German company said in a statement Tuesday, ahead of the €10.9 billion average of analysts’ estimates. Bayer reiterated its 2024 earnings forecast. Chief executive Bill Anderson is trying to win back the confidence of investors following years of crisis at the German conglomerate. The Texas native joined Bayer last spring and has bet his tenure on the premise that the best way to revive the company’s fortunes is to improve its three divisions — which are focused on pharmaceuticals, consumer health, and agriculture — rather than split them apart. Anderson has also cut jobs and made other changes intended to improve competitiveness in each of Bayer’s businesses. The company has 3,200 fewer jobs now than when the year began, he said in prepared remarks. Bayer’s pharma division was the biggest surprise on the sales front, thanks to growing demand for its new drugs, Nubeqa for cancer and kidney medicine Kerendia. The company faces plenty of challenges ahead, including litigation in the United States for products like the herbicide Roundup, which it inherited with the $63 billion Monsanto takeover in 2018. Plaintiffs claim the product causes cancer, while Bayer insists it’s safe. — BLOOMBERG NEWS