AI investments may breed bubble and inflation risks (such as being regarded in 2026 as the "most overlooked risk"). If productivity returns fall short of expectations, the fading of the hype will amplify vulnerabilities.
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Starbucks plans to lay off 1,100 of its company employees, mainly at the corporate level, and these layoffs will not affect the positions in the stores. The company's sales have dropped significantly for four consecutive quarters. The purpose of the layoffs is to enhance efficiency and reduce the complexity of company affairs. Starbucks will also cut about 30% of its menu items. The beverages that will be cut include several Frappuccinos and some hot drinks.
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