- Market Loop
- Posts
- Business and finance update 24th March 2025
Business and finance update 24th March 2025
Civil service cuts
Good morning. Today we're talking about Civil Service cutbacks, Google’s biggest ever acquisition and Nike’s woes.
Big Stories

Civil service cuts
Chancellor Rachel Reeves has announced plans to slash Civil Service running costs by 15%, aiming to save £2.2bn annually by 2029-30. This initiative, driven by a commitment to reshape the "flabby" state and reduce bureaucratic expenses, will see departments receive detailed instructions from Chancellor of the Duchy of Lancaster Pat McFadden this week. The move, impacting back-office roles like communications, HR, and procurement, is expected to result in a 10,000 reduction in Civil Service jobs, though frontline services will likely be exempt. Reeves defends her economic management, citing necessary "difficult choices" made since the election. While overall government spending is set to increase, particularly in defence and the NHS, other departments face potential cuts of up to 11%. Reeves maintains that these measures are crucial to balance the books following disappointing growth figures and higher-than-expected borrowing. The announcement precedes the Chancellor's spring statement, where further spending cuts are anticipated. Reeves asserts that these actions will ultimately improve the UK's economy and living standards, despite the potential job losses and departmental budget adjustments.
Google’s record deal
Google's parent company, Alphabet, has announced its largest acquisition to date, securing Israeli cybersecurity startup Wiz for $32bn in an all-cash transaction. This move aims to bolster Google's cloud business, which currently trails behind competitors Amazon Web Services and Microsoft Azure. Wiz, founded in 2020, has rapidly emerged as a leading provider of security tools for data stored in cloud environments, serving major players including Google's rivals. While Wiz's products will remain accessible to competitors, Google anticipates this acquisition will enhance its market share in the global cloud sector. However, the deal has raised eyebrows due to its hefty price tag. Alphabet is paying a significant premium, approximately 30 times Wiz's projected annual revenue, far exceeding the typical software company valuation ratio. This figure also represents a 40% increase from Alphabet's initial offer last year, which Wiz declined. Moreover, the deal's regulatory landscape remains uncertain, particularly given the current US government’s stance on tech monopolies. Recent Department of Justice proposals suggest potential challenges, and Alphabet has agreed to pay a $3.2bn termination fee if the acquisition is blocked.
Nike woes continues
Nike shares fell to a five year low after the company reported a 9% quarterly revenue drop to $11.3bn, driven by a 17% decline in Chinese sales. The world’s largest sports apparel maker also revealed that sales could plunge by double digits as new CEO Elliott Hill implements a turnaround strategy. Hill, who came out of retirement to lead Nike, is steering the company back to its sports-centric roots, away from a recent fashion-driven focus. This strategic shift involves C-suite restructuring and renewed emphasis on professional sports partnerships. Nevertheless, Nike faces significant headwinds. Consumer spending is shifting towards value-oriented athletic wear, and competition from rapidly growing running brands like On and Hoka is intensifying. Furthermore, the company's attempts to manage excess inventory and correct past distribution missteps, involving both supply adjustments and retail partnerships, are ongoing. Adding to these challenges is the 20% tariff on goods imported from China, where Nike manufactures nearly a quarter of its products.
Elsewhere...
Stock market debut: Swedish fintech company Klarna reported a 24% jump in revenue, as the buy now, pay later pioneer made public its paperwork for a long-awaited stock market debut in the US.
Closing up: Santander has announced it is set to close a quarter of its branches across the UK, putting 750 jobs at risk.
Shutting down: Popular DNA testing firm 23andMe has filed for bankruptcy protection, and announced that its co-founder and CEO, Anne Wojcicki, has resigned with immediate effect.
Loop Likes
21 most beautiful places in the world
4 types of bosses and how to work with each one
The best 4 ways to save battery life when your phone’s close to dying
Number of the Day
300,000
The number of passengers affected by cancellations at Heathrow on Friday after Europe’s busiest airport was shut down following a fire at a nearby high-voltage substation.
Not a subscriber? Sign up for free
Want to reach an audience of UK business leaders, young professionals and 2,200+ other smart, ambitious people? Reply to this email and we'll be in touch.