Business

Walmart on Wednesday announced new training programs for store and warehouse employees.
As the nation’s largest private employer, the company needs to fill hard-to-find roles, including pharmacy and HVAC technicians.
The big-box retailer is piloting a new program in the Dallas area for employees who want to get into a skilled trade.

An employee adjusts a price label for Barbie dolls displayed for sale ahead of Black Friday at a Walmart Supercenter in Burbank, California, Nov. 14, 2023.
Mario Tama | Getty Images

Walmart on Wednesday said it will offer new training programs and certifications to fill high-demand roles across its business, such as HVAC technicians, opticians and software engineers.
The big-box retailer said it will also offer another reason for hourly store workers to stick around: a bonus of up to $1,000 per year.

Walmart, the nation’s largest private employer, has been investing in its stores and its workforce as it tries to hang on to the title of the nation’s top retailer, with Amazon hot on its heels. The retail giant aims to retain market share gains, particularly in the grocery department, during a period of high inflation.
Early this year, the company announced that store managers could earn more than $400,000 a year, including bonuses, as it began offering $20,000 of stock grants in April. Walmart also kicked off a $9 billion project to upgrade and modernize more than 1,400 of its stores, representing more than a quarter of the total Walmart stores across the country.
The company said its average hourly wage is nearly $18, up by about 30% over the past five years. The starting pay in stores ranges from $14 to $19, depending on the location. Walmart raised its minimum wage in January 2023.
Yet Walmart, which reported about $648 billion in total revenue last year and has a market value of nearly $537 billion, still faces criticism for its wages. The company’s total annual compensation for the median employee was $27,642 in the most recent fiscal year, according to the company’s 2024 proxy report. For a family of four people, that falls below the poverty line of $31,200, according to the U.S. Department of Health and Human Services.
That compares with the median compensation of $26,696 at Target and $36,274 at Amazon, according to those companies’ most recent proxy reports. Those calculations include part- and full-time workers.

Walmart’s new programs give employees more ways to move into higher-paying jobs. The company is piloting a six-month training program in the Dallas-Fort Worth area with 100 store and warehouse associates who want to work in skilled trades, such as technician roles for facilities maintenance, refrigeration and HVAC. Those skilled trade jobs pay between $19 and $45 per hour, said Lo Stomski, the company’s chief talent officer.
The initiative was inspired by a similar program for another high-demand role: truck drivers. The associate-to-driver program has produced more than 500 new drivers since launching in spring 2022, according to the company.
Workers who participate in the programs are not required to keep working for Walmart, but Stomski said they will be needed as Walmart adds automation and robotics across its warehouses and online fulfillment centers.
Walmart said Wednesday that it’s also increased the number of skills certificates it offers to more than 50, up from five in 2020. The certifications can help employees move into salaried or leadership positions in stores, clubs and supply chain facilities. On average, employees receive the certificates in four months, Stomski said.
This week’s announcement coincides with two of Walmart’s major events. Its shareholder meeting will be held virtually on Wednesday. On Friday in its hometown of Bentonville, Arkansas, Walmart will throw its annual associates celebration, a combination of a pep rally and an employee awards program that draws thousands of workers from across the globe and features surprise celebrity appearances and musical performances.

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Archer Aviation said it received a key FAA certification that gets it closer to flying passengers.
United Airlines agreed to buy dozens of Archer’s eVTOL aircraft.
The company said it now working on getting its aircraft “Midnight” certified by the FAA.

Midnight, an all-electric aircraft from company Archer Aviation, is seen at the Salinas Municipal Airport in Salinas, California, on Aug. 2, 2023.
Carlos Barria | Reuters

The Federal Aviation Administration has granted Archer Aviation a key certification that gets the electric air taxi maker closer to eventually flying travelers, the company said Wednesday.
Archer is making electric vertical takeoff and landing aircraft, or eVTOLs, and won orders and backing in 2021 from United Airlines, which says the new technology could reduce carbon emissions.

Carriers have been investing in or ordering eVTOL aircraft, which take off and land vertically like helicopters and whose developers say they can cut down on emissions in congested areas. United, for example, says passengers could take them to and from the airport in big cities, such as between Manhattan and United’s hub in Newark, New Jersey.
“Today we have received the Part 135 certification, which allows us to effectively become an airline so we can carry passengers,” Archer CEO Adam Goldstein told CNBC.
The process has taken Archer about two years: It submitted more than 2,000 pages of documents and 14 manuals outlining operational procedures, training and maintenance.
Now Archer has to get its four-passenger aircraft, called “Midnight,” certified by the FAA, which the company is currently working on, Goldstein said. That could put the air taxis into service as early as next year, the company estimates. Goldstein said he couldn’t give an exact time frame but when asked about certification delays on variants of older aircraft, he noted that Archer’s aircraft are much simpler with far fewer components than commercial jets.
Archer’s aircraft can fly up to 60 miles at top speeds of 150 mph.

United is working with Archer on what it would look like to enter the electric aircraft into service.
“This is not something that is a push of a button,” said Andrew Chang, managing director of United Airlines’ venture arm. “It’s matching how quickly [Archer] can progress the operational side and how to fit that within our airport hubs.”
Archer has partnered with automaker Stellantis to produce hundreds of the electric air taxis.
Archer’s rivals have also made strides. Joby Aviation received its Part 135 certificate two years ago, has a partnership with the U.S. Air Force, and has won orders and backing from Delta Air Lines. On Tuesday, Joby said it plans to acquire the autonomy division of autonomous aviation company Xwing.

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The NBA and NHL voiced concerns on the viability of Diamond Sports’ business during a status conference in bankruptcy court on Tuesday.
Diamond Sports, which owns the largest portfolio of regional sports networks, has been under bankruptcy protection since last year.
The leagues have been hoping for a resolution on Diamond Sports’ future ahead of the coming NBA and NHL seasons.

A Bally Sports display is shown in the eighth inning of the game between the MLB’s Houston Astros and Minnesota Twins at Target Field in Minneapolis, Minnesota, on April 9, 2023.
David Berding | Getty Images Sport | Getty Images

The National Basketball Association and National Hockey League are concerned over Diamond Sports’ future, and whether the regional sports network owner can put together a viable business plan ahead of the upcoming seasons this fall.
Diamond Sports — which operates its networks under the Bally Sports brand — has been under bankruptcy protection since March of last year. The leagues are worried the owner of the largest portfolio of regional sports networks won’t have a viable business plan sorted out ahead of the 2024-25 season.

Lawyers for each league raised their concerns during a status conference in bankruptcy court on Tuesday, after Diamond said it was delaying its hearing to confirm its reorganization plan from mid-June until late July.
“I want to reiterate why timing is so critical for the NBA. The start of the 2024-2025 season is fast approaching,” said NBA attorney Vincent Indelicato in court on Tuesday. “A lot needs to get done well ahead of the season to properly produce and distribute games.”
The NHL attorney voiced similar fears, indicating if Diamond Sports is unable to craft a viable business plan in the coming months, the leagues may be left scrambling to find options to produce and air games in local markets. Some Major League Baseball teams have already forged ahead without their Bally Sports network.
Meanwhile, numerous NBA and NHL teams have reached deals with local broadcast station groups to carry local games.
Diamond Sports must put together a reorganization plan, outlining its future outside of bankruptcy protection, and receive court approval to move forward with it. The approval paves the way for a company to exit bankruptcy protection.

The NBA has pushed for Diamond Sports to have “a very clear business plan no later than July,” Indelicato said Tuesday.
For Diamond, it has been a long road to formulate a reorganization plan filled with various negotiations — with lenders to restructure its hefty debt load, with the leagues and teams for streaming TV rights and with pay-TV distributors that carry the games.
The recent breakdown of negotiations between Diamond Sports and Comcast Corp. threw a wrench in the sports network operator’s progress, its attorneys said Tuesday.
Last month, Comcast customers lost access to Bally Sports networks, which affected fans of 11 MLB teams. The carriage blackout has not caused an issue yet for NBA and NHL fans, however, since the leagues are each in the postseason. Regional sports networks air regular season local games.
The Diamond Sports attorney said Tuesday the company is still in negotiations with various stakeholders, but it reached an impasse with Comcast, giving it little choice but “to explore alternatives.”
Distributors such as Comcast have been losing pay-TV customers at a fast clip in recent years as people opt for streaming alternatives, and the regional sports networks are among the most-affected channels. On top of this, Diamond Sports had a more than $8 billion debt load stemming from Sinclair’s acquisition of the networks in 2019.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

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Max will raise the prices of its ad-free options by $1 a month, and $10 to $20 a year for its annual offerings.
The move comes only days before the debut of season two of its record-breaking show, “House of the Dragon.”
Warner Bros. Discovery recently announced it is planning to offer Max in a bundle with Disney’s Hulu and Disney+ at a discounted price.

In this photo illustration, the Warner Bros. Discovery logo is displayed on a smartphone screen.
Rafael Henrique | Sopa Images | Lightrocket | Getty Images

Warner Bros. Discovery’s Max announced price increases for its ad-free options on Tuesday, as a range of streamers make their memberships more expensive. 
The move comes only 12 days before the debut of season two of HBO’s “Game of Thrones” prequel “House of the Dragon,” whose series premiere garnered nearly 10 million viewers, making it the biggest in HBO’s history.  

Max currently has three pricing options: with ads; ad-free; and ultimate ad-free, which allows for more devices and downloads than the cheaper plans.
The price of the ad-free option of the streaming service will increase by $1 per month to $16.99, while the yearly ad-free plan will rise by $20 a year to $169.99. The cost of the ultimate ad-free plan will also increase by $1 per month to $20.99, while the yearly ultimate plan will jump $10 per year to $209.99. The ad-supported option will remain unchanged at $9.99 a month or $99.99 a year.
While the prices will take effect immediately for new subscribers, existing subscribers will see the price hike starting from their next billing cycle on or after July 4.
The price hike follows Warner Bros. Discovery and Disney’s decision to bundle their streaming services, Disney+, Max and Hulu. The bundle will be available in both ad-supported and ad-free tiers. While the pricing has not been disclosed, CNBC reported that it will be offered at a discount in an effort to make it a more desirable option.
Warner Bros. Discovery last month missed both top- and bottom-line estimates for its first-quarter earnings report, despite adding two million direct-to-consumer streaming subscribers during the quarter. 

In the company’s earnings call, CEO David Zaslav said Warner Bros. Discovery is hoping the subscribers will stick with the bundle offering to take advantage of cheaper prices, decreasing the loss of customers, which he said has been “the killer” in the streaming business.
This is only the second time Max has raised prices for its ad-free service since its launch. In early 2023, Max raised the ad-free tier price from $14.99 to $15.99 a month, an increase the company said would allow it to invest in its content and user experience. 
Prices are rising across the streaming world. Last month, Comcast’s NBCUniversal hiked both the ad-supported and ad-free offerings of its Peacock platform by $2 per month ahead of its Olympics coverage later this summer. Last summer, Netflix got rid of its cheapest basic ad-free option in the U.S. and U.K. markets, offering a cheaper yet ad-supported option and more expensive ad-free options instead.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

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Ford’s U.S. new vehicle sales rose 11.2% last month compared to May of last year, boosted by strong sales growth for all-electric and hybrid models.
Ford on Tuesday reported roughly 65% increases in sales of both hybrid and all-electric vehicles.

The Mustang Mach-E on display at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC

DETROIT – Ford Motor’s U.S. new vehicle sales rose 11.2% last month compared with May of last year, boosted by strong sales growth for all-electric and hybrid models.
The Detroit automaker on Tuesday reported roughly 65% increases in sales of both hybrid and all-electric vehicles. That’s compared with a 5.6% rise in sales of Ford’s traditional vehicles with internal combustion engines.

Despite the notable increases in hybrids and EVs, the sales in those segments totaled about 26,600 vehicles combined. That’s only 14% of the automaker’s more than 190,000 total sales last month.
The boost to EV sales is a conundrum for investors. Ford wants to grow EV sales to build scale and assist in offsetting tightening fuel economy standards and emissions, but the company’s Model E electric vehicle unit has reported massive losses.
Ford reported in April the division lost $1.32 billion on 10,000 vehicles wholesaled from January through March. While the unit also includes EV-related business such as software, those losses equate to a loss of $132,000 for each vehicle the unit sells.
In May, Ford nearly doubled sales of its all-electric F-150 Lightning pickups, compared with May 2023. Sales of the Mustang Mach-E EV also jumped, up 46% year over year.
The spike in hybrid sales is part of Ford’s plan to double down on the technology. The automaker earlier this year said it would delay production of new all-electric vehicles to instead focus on offering hybrid options across its entire North American lineup by 2030.
Ford reported total year-to-date U.S. sales through May of 877,685 units, up 5.6% compared with the same time period in 2023. The sales have been led by a roughly 10% increase in SUV sales and 2.5% uptick in truck and van sales.

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Paramount’s leadership will present a plan on Tuesday at the company’s annual shareholder meeting that lays out a future for the company if a sale doesn’t happen.
Paramount and Skydance have agreed to terms of a merger, but the deal is awaiting signoff from controlling shareholder Shari Redstone, CNBC reported this week.
The leadership — comprised of three executives since Bob Bakish stepped down — will map out a plan that includes job cuts and a potential streaming partnership.

A view of Paramount Studios’s water tank as SAG-AFTRA members walk the picket line outside during their ongoing strike, in Los Angeles, California, U.S., September 26, 2023. 
Mario Anzuoni | Reuters

The current leadership of Paramount Global is gearing up to present a plan at the company’s annual shareholder meeting Tuesday in the event a sale of the company doesn’t happen, according to a person familiar with the matter.
CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins — collectively the company’s “Office of the CEO” — will present Paramount’s go-forward plan. The trio will lay out strategic priorities, including exploring streaming joint venture opportunities with other media companies, eliminating $500 million in costs, and divesting non-core assets, the person said, who asked not to be named because the details are private.

The presentation comes at an awkward time. Earlier this week Paramount agreed to the framework of merger terms with a consortium comprised of David Ellison’s Skydance Media and private equity firms RedBird Capital and KKR, CNBC reported Monday. The deal is still awaiting approval of Paramount’s controlling shareholder, Shari Redstone, who owns National Amusements, which owns 77% of class A Paramount shares.
Redstone has been supportive of the “Office of the CEO” leadership team that has run the company since former CEO Bob Bakish stepped down in late April.
The plan that Paramount Global shareholders will hear on Tuesday will essentially serve as Redstone’s alternate option if she chooses not to sell.
Paramount plans to tell investors they’ve received inbound interest to establish a streaming joint venture that would include the company’s flagship service, Paramount+, which has more than 70 million subscribers but continues to lose money.
The strategies are being mapped out with an eye toward lowering Paramount’s debt and getting the company back to an investment grade rating. Earlier this year the company’s credit rating with S&P Global Ratings was cut to junk status.
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Paramount and Skydance have agreed to terms of a merger, CNBC’s David Faber reported Monday.
A deal could be announced in the coming days.
The agreement terms come after weeks of discussion and a recent competing offer from Apollo Global Management and Sony Pictures.

The Paramount logo is displayed at Columbia Square along Sunset Blvd in Hollywood, California, on March 9, 2023.
Getty Images

Paramount and Skydance have agreed to terms of a merger, CNBC’s David Faber reported Monday. A deal could be announced in the coming days, he said.
A Paramount special committee and the buying consortium — David Ellison’s Skydance, backed by private equity firms RedBird Capital and KKR — agreed to the terms. The deal is awaiting signoff from Paramount’s controlling shareholder, Shari Redstone, who owns National Amusements, which owns 77% of class A Paramount shares, Faber said Monday.

The agreement terms come after weeks of discussion and a recent competing offer from Apollo Global Management and Sony Pictures.
“We received the financial terms of the proposed Paramount/Skydance transaction over the weekend and we are reviewing them,” said a National Amusements spokesperson.
The deal currently calls for Redstone to receive $2 billion for National Amusements, Faber reported Monday. Skydance would buy out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion, leaving the holders with equity in the new company.
Skydance and RedBird would also contribute $1.5 billion in cash to Paramount’s balance sheet to help reduce debt.
Following the deal’s close, Skydance and RedBird would own two-thirds of Paramount, and the class B shareholders would own the remaining third of the company, Faber reported. The negotiated terms were reported earlier by The Wall Street Journal.

The deal will not require a vote from the shareholders, which was part of the negotiations, Faber reported. Paramount’s annual shareholder meeting will take place on Tuesday.
The deal is valued at $8 billion, an increase from the $5 billion offer on the table earlier. Under those earlier terms, Redstone would have received less than $2 billion for her stake, and the class B shareholders would have been bought out at a nearly 30% premium at $11 a share, CNBC previously reported.
No deal announcement is expected before the meeting, according to people familiar with the matter, who asked not to be named because the discussions are private. In addition to the twists and turns of the negotiations with buyers, Paramount’s C-suite has also undergone a shakeup in recent months.
Bob Bakish stepped down as CEO in late April and was replaced by what the company calls the “Office of the CEO.” Paramount is now led by three executives: George Cheeks, CBS president and CEO; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, the head of Paramount Pictures and Nickelodeon.
They plan to present strategic priorities at Tuesday’s annual meeting. Later in the day Tuesday, there will be a previously scheduled board meeting, where the temporary leaders will again present, said the people. Redstone has approved of the ideas and the leadership of the triumvirate during its short tenure, said one of the people.
In early May, Apollo and Sony formally expressed interest in acquiring Paramount for about $26 billion, CNBC previously reported. However, Redstone has favored a deal that would keep Paramount together, and Apollo and Sony planned to break up the company, CNBC previously reported.

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Jeep expects to sell 160,000 to 170,000 plug-in hybrid electric vehicles, or PHEVs, in the U.S. this year, an increase of 40% to 50% from last year, Jeep CEO Antonio Filosa told CNBC.
The target comes as Jeep launches its first all-electric SUVs in the U.S., beginning with the Wagoneer S EV.
Jeep has leaned into PHEVs more than others to offset sales of the brand’s gas-guzzling SUVs amid tightening emissions and fuel economy standards.

A Jeep Wrangler plug-in hybrid electric vehicle (PHEV) during the 2023 New York International Auto Show (NYIAS) in New York, on Wednesday, April 5, 2023.
Stephanie Keith | Bloomberg | Getty Images

NEW YORK – Jeep plans to grow U.S. sales of its plug-in hybrid electric vehicles by as much as 50% this year as it leans into the technology as a bridge between its traditional gas-guzzling SUVs and all-electric vehicles amid a slower-than-expected sales pace of EVs.
The Stellantis brand expects to sell 160,000 to 170,000 plug-in hybrid electric vehicles, or PHEVs, in the U.S. this year, an increase of 40% to 50% from last year, Jeep CEO Antonio Filosa told CNBC.

The target comes as Jeep launches its first all-electric SUVs in the U.S., beginning with the Wagoneer S.
“It’s the best time to be flexible, as we are,” Filosa said during an interview Thursday after unveiling the brand’s new EV in New York. “One of the pillars of growth for the market is going to be freedom of choice.”
PHEVs, which combine an internal combustion engine with EV technologies, could help accelerate consumer adoption of electrified vehicles, as a sort of stutter step to all-electric models.
PHEV sales at the level Jeep is expecting this year would top Stellantis’ total 2023 U.S. sales of the vehicles, at roughly 143,000 units. They also would outperform an industry forecast for 27.5% segment growth this year, according to AutoPacific. That compares with the consulting and data firm’s 17% growth for EVs.

Jeep’s PHEV sales last year totaled 113,113 units, including 67,429 Jeep Wranglers and 45,684 Jeep Grand Cherokees. Through the first quarter of this year, sales totaled 31,750, up 47% from the same period a year earlier. The brand is first in the U.S. in PHEV sales.

Jeep has leaned into PHEVs more than others to offset sales of the brand’s gas-guzzling SUVs amid tightening emissions and fuel economy standards.
The next Jeep vehicles are expected to be the Wagoneer S EV this fall, followed by a Wrangler-like EV called the Recon and a replacement for the discontinued Cherokee midsize SUV during the first half of next year. The automaker also will add new plug-in “range-extender” models to its gas-powered Wagoneer and Grand Wagoneer large SUVs in 2025.
“We have a game plan. We have a business plan, and we believe that price position and product wise, we are perfect to meet the volume we want to make,” Filosa said.
Both hybrids and plug-in hybrids have a traditional engine combined with EV technologies. A traditional hybrid, such as the Toyota Prius, has electrified parts, including a small battery, to provide better fuel economy to supplement the engine.

The New York Stock Exchange welcomes The Jeep Brand (NYSE: STLA) to the podium, on May 31, 2024. To honor the occasion, Antonio Filosa, Chief Executive Officer, joined by Lynn Martin, President, NYSE Group rings The Opening Bell®.

Plug-in hybrids typically have a larger battery to provide for all-electric driving for a certain number of miles until an engine is needed to power the vehicle or electric motors.
Both Filosa and Stellantis Chief Technology Officer Ned Curic said the company is evaluating whether to launch traditional hybrid vehicles in the U.S. in addition to its plug-in models.
“We’re deciding at the moment how will the market respond to our hybrids,” Curic said during a separate interview. “We have a good mix on our roadmap between EV, PHEV, [and internal combustion engine].”
The “range-extender electric vehicle” models, or REEVs, operate slightly differently than typical hybrids. The vehicles can operate as a zero-emissions EV until the vehicle’s battery dies and an electric onboard generator — powered by a 3.6-liter V6 engine — kicks on to power the vehicle after its initial charge.
Stellantis’ first REEV vehicle is expected to be the Ram Ramcharger full-size pickup truck later this year.
“This is quite a good option,” Curic said. “I’m confident that vehicle is going to do exceptionally well.”
The REEVs are expected to be priced higher than PHEVs (which already carry a premium compared to traditional gas-powered vehicles) but below all-electric models, according to Curic.

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