National business briefs, Sept. 21

National business briefs, Sept. 21

 
| Published: September 21, 2012    Comment on this article Leave a comment

Business briefs

Nation

Major bank rushes cuts

A published report says Bank of America is accelerating a cost-cutting plan and aims to eliminate 16,000 jobs by the end of the year. The cuts are part of a previously announced plan by the bank to cut 30,000 jobs. The Wall Street Journal cites a document given to top management at the bank. The newspaper says the cuts will mean fewer Bank of America branches and a smaller mortgage operation. A bank spokesman declined comment on the Journal report Thursday.

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Chick-fil-A policy heats up

Chick-fil-A is once again in the public relations fryer. The controversy flared up this week when a Chicago politician said the company was no longer giving to groups that oppose same-sex marriage, angering Christian conservatives who supported Chick-fil-A this summer when its president reaffirmed his opposition to gay marriage. Civil rights groups hailed the turnabout, yet the company never confirmed it and instead released two public statements, neither of which made Chick-fil-A's position any clearer. The events suggest the Southern franchise may be trying to steer clear of hot-button social issues while it expands in other, less conservative regions of the country. In its statement Thursday, the Georgia-based company said its corporate giving practices had for many months been mischaracterized.

Starbucks to sell brewer

Starbucks Corp. is turning up the heat on the single-serve coffee market, and someone might get burned. The Seattle-based company says it will start selling its new single-serve brewer online this week for $199. The machine will be rolled out in its ubiquitous cafes next month. The arrival of the Verismo, which was announced earlier this year, comes amid intensifying competition in the piping hot market for single-serve brewers and the coffee pods they use. The sector is currently dominated by Green Mountain Coffee Roasters Inc., which pioneered the market after its acquisition of the Keurig brand machine in 2006. But this month, the company's patent on its K-cup technology expired, which spawned copycat versions of coffee pods for Keurig machines.

Walmart drops Kindles

Walmart Stores Inc. is phasing out the sale of Amazon.com's Kindle Fire tablet and Kindle e-readers, the second major retailer to stop offering the items in six months. Walmart, the world's largest retailer, said Thursday the decision was made as part of its overall merchandising strategy to offer a broad assortment of products at low prices. Amazon has been selling lower-priced tablets at thin — if any — profit margins to boost sales of digital media like books and music from its online store. That makes it less attractive for major retailers to carry Kindles in their stores, particularly as online retailers like Amazon.com become more of a threat for traditional brick-and-mortar stores.

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