UK services sector job cuts continue as companies automate, PMI survey shows

Companies in the UK’s services sector cut jobs last month, as they turned to “automation” rather than hiring new staff, a closely watched survey showed.The monthly purchasing managers’ index showed employment numbers fell more sharply in January compared with December, continuing a trend that started in October 2024.The PMI survey, which is considered to be one of the most reliable indicators of how a sector is performing, said this was the “longest period of job shedding” in the UK services sector in 16 years, with firms also choosing not to replace voluntary leavers.The survey compiled by S&P Global said anecdotal evidence suggested some companies were turning to automation to make up for the staffing shortfall and increase productivity, alongside squeezed margins and fragile market conditions also affecting hiring decisions.Tim Moore, the economics indices director at S&P Global Market Intelligence, said: “There were again gloomy signals for the UK labour market outlook as staff hiring decreased at a steeper pace in January as firms looked to offset rising payroll costs

Striking Starbucks workers urge customers to delete coffee chain’s app

Striking Starbucks baristas are calling on customers of the world’s largest coffee chain to delete its popular mobile app in solidarity with their demands for a first union contract.Starbucks Workers United, which has been coordinating a strike for almost three months, is vowing to press ahead.“We baristas are still fighting for a fair contract, and this fight is active and ongoing,” said KC Ihekwaba, a barista at Starbucks in Lafayette, Colorado, on a solidarity union call earlier this week. “Our fire for change is still burning. Our spirits still strong

Wegovy and Ozempic maker forecasts sharp drop in revenue for 2026

The maker of Wegovy and Ozempic, Novo Nordisk, has predicted a sharp drop in revenues this year owing to what its boss described as a “painful” push by Donald Trump to lower US weight-loss drug prices, rising competition, and the loss of important patent protections.Denmark’s Novo, once the poster-child for the growth in weight-loss treatments, said sales this year were likely to fall between 5% and 13%, ending years of double-digit gains, despite the promising launch of its new Wegovy pill in the US. Its share price plummeted 17% on Wednesday, erasing all gains so far this year. In the past year the stock has lost nearly 50% of its value.Last year, Novo’s total sales grew by 10% to 309bn Danish kroner (£36

Santander takes fresh swipe at City watchdog as its car loan scandal bill tops £460m

Santander has accused the City watchdog of overreach after its bill for the UK motor finance scandal reached £461m, as the Spanish lender signed a $12bn takeover of an American bank.The bank – which announced the surprise takeover of US-based Webster Bank on Tuesday night – took a fresh swipe at the Financial Conduct Authority (FCA) on Wednesday over a compensation scheme for the scandal.Santander UK had been concerned over what it claimed was a lack of clarity around the regulator’s plans for an £11bn redress scheme, which was meant to draw a line under the ballooning motor finance scandal.Santander said on Wednesday it had put aside a further £183m to compensate drivers who were overcharged via unfair commission arrangements between lenders and car dealers.However, the bank said this was based on the FCA’s proposals for payouts, which it criticised for going too far

Zero net migration would shrink UK economy by 3.6%, says thinktank

The UK economy would be 3.6% smaller by 2040 if net migration fell to zero, forcing the government to raise taxes to combat a much bigger budget deficit, a thinktank has predicted.The National Institute of Economic and Social Research (NIESR) said falling birthrates in the UK and a sharp decrease in net migration last year had led it to consider what would happen if this trend continued to the end of the decade.In this scenario the UK population would stop growing at about 70 million in 2030. The latest official figures showed the UK population was 69

Women in tech and finance at higher risk from AI job losses, report says

Women working in tech and financial services are at greater risk of losing their jobs to increased use of AI and automation than their male peers, according to a report that found experienced females were also being sidelined as a result of “rigid hiring processes”.“Mid-career” women – with at least five years’ experience – are being overlooked for digital roles in the tech and financial and professional services sectors, where they are traditionally underrepresented, according to the report by the City of London Corporation.The governing body that runs the capital’s Square Mile found female applicants were discriminated against by rigid, and sometimes automated, screening of their CVs, which did not take into account career gaps related to caring for children or relatives, or only narrowly considered their professional experience.To reverse the trend, the corporation is calling on employers to focus on re-skilling female workers not currently in technical roles, particularly those in clerical positions most at risk of being displaced by automation.It is estimated that about 119,000 clerical roles in tech and the financial and professional service sectors, predominantly carried out by women, will be displaced by automation over the next decade