The Economic and Tech Fallout of Big Business Moves

What if a single corporate decision could ripple through an entire economy? This week on the Chain Reaction Podcast, we unravel the massive implications of Boeing's announcement to lay off 10% of its workforce, with a special focus on the 700 employees at its Missouri office. The layoffs, driven by financial losses from strikes and production issues, are more than just numbers—they're a reflection of wider economic challenges and shifting industry landscapes. Join us as we explore how this move affects not only the employees on the ground but also Boeing's financial health, and hear why the company's share price has tumbled by nearly a third over the past year.

But that's not all—brace yourself for a looming tech crisis as Microsoft plans to end Windows 10 support by October 2025. What does this mean for the 240 million computers that risk becoming obsolete? We're diving into the challenges of upgrading to Windows 11, from cybersecurity risks and compliance headaches to the financial strain of hardware upgrades. Discover how these technological shifts might disrupt global supply chains, increase e-waste, and alter the second-hand computer market. Tune in to hear how companies and consumers are navigating these potential disruptions and what it means for the future of technology and the environment.

Volatility impacting automobile supply chains in Germany. COP 29 settlement after much debate.

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Chapters

• 1:02 Boeing Lay Offs
• 2:19 Microsoft Support for Windows 10 Ends in 2025
• 6:17 What lies beneath the sea?
• 8:25 All not well in the German Car Industry
• 11:27 Economic News from around the globe
• 13:03 COP 29 Agreement Reached
• 14:58 Listen and Subscribe

Transcript

Tony Hines: 0:00

Hello, tony H. Here you're listening to the Chain Reaction Podcast. All about supply chain advantage. Great episode coming along in just a moment. Thanks for dropping by today. Hope you're going to enjoy the episode. Stick around, stay tuned. Find out more In the news this week.

Tony Hines: 0:22

Boeing's laying off workers. That was announced back in October. Of course they're going to offload 10% of the total workforce in the coming months. Well, not sure whether this is part of the 10% or whether this is a new announcement, but you can hear that story. It's coming up in just a moment. And of course, there's a sleeper waiting for everybody around the world with the demise of Windows 10. And that's coming up too, so have a listen to that. And then there's all the roundup of all things impacting global supply chains.

Tony Hines: 0:54

This week Boeing is about to lay off 700 workers at its missouri office. At the start of next year. The federal warn act warn requires employers to provide a 60-day calendar notice for mass layoffs or closure. It's the work adjustment and restraining notification in the us. Affected locations in the US. Affected locations are in Berkeley, hazelwood, kansas City, kingville, maryland Heights, o'fallon, st Charles, st Louis and St Anne. They're trying to make adjustments to the workforce because of the massive losses that they've made due to strikes and, of course, all the faults they've had over the past couple of years. Some of those employees, of course, will be eligible for severance pay and career transition services and health care benefits. Back in October, boeing said it would lay off about 10% of its workforce worldwide because of lost revenues. The share price as of today is trading at 146.08 US dollars and it's down 32.9% from the same day a year ago.

Tony Hines: 2:16

Well, in October 2025, microsoft could be unwittingly or wittingly, depending on where you sit be responsible for about 240 million computers worldwide. Turning to e-waste, and that's because Windows 10 support ends in October 2025. And many of the computers that are used by people every day around the world will not have sufficient hardware capability to drive Windows 11. And that's going to be a problem. The end of Windows 10 support is scheduled for the 14th of October 2025, and this will have a significant impact on businesses and individuals worldwide. For businesses, there'll be security risks. Without security updates, businesses will be more vulnerable to cyber threats like malware, ransomware and data breaches, and that could lead to significant financial and reputational damage.

Tony Hines: 3:17

Compliance issues another big problem. Many industries have regulatory requirements for using up-to-date software and if they continue to use Windows 10, it could result in non-compliance leading to fines and legal complications. There could be operational disruptions as a result of the switch. Lack of updates could lead to software incompatibilities and system crashes, and that could disrupt daily operations and reduce productivity and, of course, increasing cost. It will cost to upgrade. Companies will need to invest to upgrade to Windows 11 in new hardware and that could be expensive. If you've got to replace many machines, that's going to be quite an expensive outlay. I'm sure the bigger businesses will have planned for this, but the smaller businesses could be caught short. There are similar concerns about personal security, software compatibility and performance issues for individuals too.

Tony Hines: 4:14

If we take a specific look at the supply chain, it could have several significant impacts on global supply chains. There will be an increase in e-waste global supply chains. There will be an increase in e-waste as all the machines are scrapped. About 240 million PCs could become e-waste overnight and that could lead to environmental issues as the devices end up in landfill. There could be supply chain disruptions as businesses relying on older hardware that doesn't meet Windows 11 requirements face disruption as they transition to new systems. Many PCs that could have been refurbished and reselled will be rendered obsolete, and that will affect the second-hand market and, of course, supply chain dynamics and the cost implications.

Tony Hines: 4:57

Upgrading to new hardware and software is costly. And then, of course, cyber security risks from the switchover. Microsoft has said it acknowledges the potential disruptions, but they said that security and protection. Microsoft highlights that Windows 11 offers advanced security features, such as TPM 2.0, virtualization-based security and smart app control designed to protect against evolving threats. Better security, but you'll be paying for it. Upgrading to windows 11 is said to be more productive and efficient and it will allow for features like co-pilot, integrating ai powered capabilities, and there'll be extended security updates if you need more time to make the switch, but that's only for limited time and it costs money to do that. Microsoft is making its extended security updates available to consumers and not just businesses and organisations, and the fee is $30 for one year of extension and after that, well, you're on your own. So not really a great deal of help from Microsoft in their statements.

Tony Hines: 6:15

In the past week, two undersea internet cables in the Baltic were cut, one connecting Finland to Germany and another between Lithuania and Sweden. European officials suspect sabotage, as the cuts occurred within 24 hours of each other and were too close to be accidental. The potential impact on supply chains is to disrupt communications for businesses that rely on the cables for internet connectivity, and delayed transactions. Financial transactions and data transfers could be delayed, impacting supply chain operations and causing potential financial losses. Companies may need to reroute data through alternative cables or satellite connections, which can be more expensive and less reliable, and in manufacturing and logistics operations that depend on real-time data and communication, they could face delays affecting the overall efficiency. There were also concerns about potential threats between the Republic of Ireland and the overall efficiency. There were also concerns about potential threats between the Republic of Ireland and the United Kingdom.

Tony Hines: 7:14

Recently, a Russian reconnaissance vessel, the Yantar, was identified near the Irish Sea, close to critical undersea cables that link Britain and Ireland. The Yantar is officially described as an oceanographic research vessel. It's equipped with many submarines capable of deep-sea tracking and connecting to top-secret communication cables. The presence of this Yantar ship raised significant concerns in both the UK and Irish security forces. The Royal Navy dispatched HMS Catistock to shadow the vessel, while the Irish Defence Force sent the LE James Joyce to escort the Russian ship out of the Irish Exclusive Economic Zone, and the Irish Air Corps monitored the ship's movements. The Antar's presence was believed to be an attempt to assess the vulnerability of the undersea cables and identify potential vulnerabilities. These undersea cables, of course, carry the majority of global internet and communication traffic, so a lot of activity beneath the water.

Tony Hines: 8:24

Car industry is in some crisis at the moment Jobs going in various places. Bosch is the biggest car parts manufacturer in the moment. Jobs going in various places. Bosch is the biggest car parts manufacturer in the world. It committed to not making layoffs in Germany until 2027 for many employees. Five and a half thousand jobs are likely to be lost in the shorter term. 3,800 will go in the next months, and it's all because of the slower transition to electric vehicles.

Tony Hines: 8:54

Competition from Chinese imports is to blame, despite the increased tariffs from the EU. It's one of the latest blows for the European car industry, after both Volkswagen and Ford have announced thousands of job cuts in the last month. Volkswagen and Ford have announced thousands of job cuts in the last month. Chinese cars are much cheaper, which has made it trickier for many European manufacturers to remain competitive. There's also been reduced demand for driver assistance and automated driving solutions, which are made by Bosch. The number of job cuts is yet to be finalised, but that's what it's looking like presently.

Tony Hines: 9:30

The Gerlingen site, near Stuttgart, will lose about 3,500 jobs by the end of 2027, reducing the workforce developing software and automated driving technology. Other losses will be at Hildesheim, near Hanover, where 750 jobs will go by the end of 2032, and Swabisch Gmünd will lose about 1,300 roles 2027 and 2030. The plants are also likely to downsize. Ford had already announced 4,000 job cuts across Europe, including 800 in the UK. The German automotive supplier Bosch plans to lay off 5,000 employees in total, a spokeswoman said on Friday. The planned job cuts come as these auto companies are seeking to lower their cost base to compete. Bosch has also said it plans to cut up to 1,300 jobs between 2027 and 2030 at its steering division, which is based in Swabisch Gmünd in southwestern Germany, in the state of Baden-Württemberg. The firm had already announced back in December 23 that it was going to lay off 1,500 workers. The head of the council, the workers' council that is in Germany, called the planned layoffs a slap in the face.

Tony Hines: 10:49

Other German manufacturers are also facing the crisis in the industry. Volkswagen has said it plans wide-reaching plant closures and layoffs in order to reduce the labour cost. It was only last month, when the European Union increased tariffs on Chinese imported EVs to as much as 45.3%, this in an attempt to keep European carmakers competitive from imported vehicles coming from China. Output in the United States has reached a 31-month high, and that's pushed up the dollar exchange rate against other currencies. In the past few weeks since the election of Donald Trump, the pound against the dollar has fallen by about 5 cents, and European currencies have fallen against the dollar too, but the pound more so.

Tony Hines: 11:45

The composite purchasing manager index by the world's largest economy climbed from 54.1 to 55.3 this month. Driven by the service sector, 60% of British shoppers said they would stop shopping with a retailer if it charged a fee to return online purchases. That's according to research from Virgin Media Road 2. Retail sales have contracted more than expected since the start of the fourth quarter, as shoppers have been hit by uncertainty of the incoming government's policies. There's been a 0.7% fall in monthly retail sales, that's in volume terms, over the past month. It was 0.1% in September. The Bank of England's reduction of interest rates has also encouraged many banks to hit savers by lowering interest rates, while they're still putting mortgage rates up, and that can't be right, can it? British brewers are now complaining that the budget measures have put their costs up too and wiped out any profits that they expected to make this year. The economy is expected to be quite flat in the UK for some time, despite the UK government stating it had a budget for growth.

Tony Hines: 13:02

Well, the final agreement a COP29, was reached in Azerbaijan, and it was agreed that they'd inject at least 300 billion US dollars annually into the fight against climate change. That's aimed at helping the poorer nations cope with the ravages of global warming where they can't afford to pay for it themselves. The argument, of course, is that they're impacted by other nations going through industrial processes that have inflicted harm on their countries through climate change. The interesting thing, of course, is that many commentators have said it's been a difficult COP and it hasn't always been focused on the subject it needed to be focused on, because there was lots of fossil fuel talk around and that's been problematic. And some are worried in many respects that this is a phantom COP, because it doesn't really matter what happens here, because it matters what the President of the United States will say when he takes office at the end of January, and many feel that the United States will pull out of that agreement in any case. Others have commented that the money given by the richer nations to the poorer nations may not be used in the right way, so there are already expectations arising out of what will happen beyond COP29. But one thing is certain that climate change is real. It's played a big part in the changes we've seen in climates around the world and, of course, it does impact supply chains. It disrupts them through heat, through rain and, of course, through other changes that we can't see going on in the planet.

Tony Hines: 14:53

Now we've got some great episodes on the Chain Reaction Podcast and we've had a few in the past few weeks. Very interesting conversation I had with Madhu Hosodharga. He's head of AI at Snyder Electric and that's well worth listening to. Lots of good advice, and if you wondered what AI is all about, well, it's about efficiency, optimization and effectiveness. But listen to what Madhu says. It's quite enlightening, I think.

Tony Hines: 15:19

Now don't forget to subscribe to the Chain Reaction Podcast. It's free, it doesn't cost anything to subscribe and you'll be first to know when new episodes drop and you'll receive a notification and you'll be able to listen. So you'll be one of the first to listen to the episode. Just go along to the Chain Reaction site and you'll see on the website a follow button by the episodes and just press that. It will take you through to your favorite podcast platform and you can subscribe there. And that's it. Simple as that. Well, that's it for this week. Hope you've enjoyed the news roundup and I hope you've learned something by listening. I'll be back with the midweek episode and I'll be back again next weekend with another News Roundup. So for now, I'm Tony Hines. I'm signing off. Bye for now, take care, see you next time. Thank you, you've been listening to the chain reaction podcast, written, presented and produced by tony hines.