Lithia Layoffs, Virginia Ditches Cali EV Standards, IKEA Pays Roblox Workers

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Thursday is upon us and we’re breaking down Lithia Motors' strategic layoffs aimed at saving $150 million annually, Virginia's decision to reverse its adoption of California’s strict EV standards, as well as IKEA hiring Roblox workers (you read that right).

Show Notes with links:

• Lithia Motors is targeting $150 million in annual savings through strategic layoffs and other employee cost reductions, primarily focusing on U.S. positions.
  • Senior Director of Finance Jardon Jaramillo described the cuts as "very targeted" rather than a broad reduction as he said "We're not announcing a mass layoff.” "These are changes at the store level," and gave examples including taking action on "underperforming general managers."
  • The layoffs are part of a plan to eliminate $250 million in annual selling, general, and administrative expenses.
  • Additional savings will come from reducing inventory and third-party service provider costs.
  • Changes will include leadership adjustments at the store level, targeting underperforming general managers.
  • They will also be laying off 6 of their 13 communications employees
  • Efforts are also being made to improve storewide adoption of Lithia's online vehicle shopping platform, Driveway.
  • The 60-day plan, launched in May, aims to impact Lithia’s financial results significantly in Q3.
• Virginia’s Governor Glenn Youngkin announced the state’s withdrawal from California's stringent EV standards, citing a lack of legal obligation and insufficient consumer demand.
  • Virginia initially adopted California’s EV standards in 2021 under former Gov. Ralph Northam.
  • Governor Youngkin argues that the government shouldn’t dictate vehicle choices, advocating for less strict federal emissions rules.
  • Only 9% of vehicles sold in Virginia in 2023 were electric, reflecting weak consumer demand.
  • The Alliance for Automotive Innovation supports the move, stating that California’s EV standards may not suit other states due to varying consumer demand.
  • Environmental groups and Virginia Democrats criticized the move as undemocratic and potentially illegal.
  • The Biden administration has granted automakers more time to comply with federal emissions rules, aiming for over half of new-vehicle sales to be electric by the early 2030s.
  • "Virginians deserve the freedom to choose which vehicles best fit the needs of their families and businesses," said Youngkin.
    
    
• IKEA is launching a virtual store in Roblox and will pay players £13.15 or €14.80 per hour to work there. The store, dubbed “The Co-Worker,” will offer immersive career experiences.
• Players can create virtual homes using IKEA furniture and items.
• A limited number of players can apply for paid virtual career roles, with applications open from June 3 to June 16, 2024.
• Applicants must be 18 or ol

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