Business Week in Review: Shutdown Fallout, Labor Strikes, and AI's Growing Pains

3 hours ago7 min read

The business world this week was defined by the chaotic resolution of the U. S.federal government shutdown, a deal laden with long-term consequences for key industries. The human cost of corporate fragility was starkly illustrated as Sonder, a short-term rental operator, filed for Chapter 7 bankruptcy after Marriott severed their licensing agreement.The collapse left approximately 1,400 employees jobless and created travel chaos, with some guests forcibly evicted mid-stay and others struggling for refunds. In a significant legal action, Google filed a landmark lawsuit against 25 unnamed individuals behind the 'Lighthouse' phishing-as-a-service operation.The suit alleges the global network used fake websites mimicking agencies like USPS to steal up to a billion dollars, employing RICO and computer fraud statutes to target criminal infrastructure. Labor tensions escalated at Starbucks as unionized baristas from over 65 stores turned the popular Red Cup Day into a massive walkout, accusing the company of stalling on contract negotiations for better pay and hours.The union is threatening the largest strike in company history if its demands are not met, while Starbucks publicly downplayed the walkout's impact. The shutdown deal itself contained major, hidden implications.A provision could effectively outlaw many hemp-based products by banning unregulated sales of items with trace THC, threatening a $28 billion industry and thousands of jobs, despite a failed attempt by Senator Rand Paul to strip the language. Further, the legislative fix sets up a potential health insurance premium shock in 2026 by letting enhanced Affordable Care Act tax credits expire, which could raise individual costs by nearly $2,000 annually.In retail, Target is launching a back-to-basics charm offensive with its '10-4' policy—requiring employees to smile at customers within 10 feet and greet those within 4—amid traffic declines and boycotts. The tech sector saw AI infrastructure firm CoreWeave report staggering 134% revenue growth, yet its stock fell nearly 10% due to a delayed data center, revealing investor jitters over execution in hyper-growth companies.IBM countered rising quantum computing competition by announcing new processors and shifting production to a new plant to double manufacturing speed. In a clever marketing move, regional grocer Market 32 and Price Chopper launched a 'Double Exchange Day,' offering double-value gift cards for pennies, capitalizing on the U.S. Mint's final penny production to attract customers and stock coins ahead of a potential shortage.

#featured

#government shutdown

#hemp industry

#health insurance

#Starbucks strike

#AI infrastructure

#quantum computing

#penny discontinuation

#smishing lawsuit

#retail policy

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