This week in business: Big perks, big layoffs, and a few PR face-plants

This week’s business headlines reflected a market still finding its footing in a post-pandemic, tech-driven, politically charged economy. The themes were clear: Companies are refining strategies to capture new audiences, governments are making moves with high economic stakes, and consumer behavior is forcing industries to adapt.

In finance, the credit-card-rewards arms race saw a surprising twist—while premium travel cards have leaned on hefty fees and luxury perks, one player is going in the opposite direction, offering big benefits at no annual cost. Meanwhile, the housing market showed early signs of strain in certain U.S. hot spots, with negative equity creeping up in Florida and Texas.

The corporate world saw significant leadership changes and some unsettling labor trends. Layoff numbers for 2025 have already surpassed all of last year, driven by a mix of government spending cuts, tariffs, and AI-driven restructuring. Consumer industries faced their own disruptions—from tipping declines in restaurants to public backlash over a beauty brand’s ad campaign.

Here are the 10 biggest business stories of the week.

Capital One ups the ante with no-fee travel card perks

In a bold move against high-fee competitors like Amex Platinum and Chase Sapphire Reserve, Capital One is adding new perks like $100 travel credits, vacation rental access, and Hertz Five Star status to its no-annual-fee cards, allowing them to better compete with their for-fee rivals.

FDA recall: Contaminated soaps pose sepsis risk

DermaRite Industries recalled several soap and skincare products after finding they were contaminated with Burkholderia cepacia, a bacterium that can cause life-threatening infections in immunocompromised individuals. Consumers are advised to destroy affected products immediately.

Underwater mortgages rise in Florida and Texas

Housing data shows negative equity is increasing in pandemic boomtowns like Cape Coral and Austin, though still far from 2009 crisis levels. Many of the affected homeowners bought during the 2022–2024 market peak.

Whitmer confronts Trump over tariff impact on auto industry

Michigan Gov. Gretchen Whitmer met privately with President Trump to warn that new tariffs could damage the state’s auto sector. Automakers report billions in added costs that threaten factory investments and jobs.

U.S. layoffs hit 800,000 in 2025—already exceeding last year’s total

Job cuts have surged 75% over the last year, driven by government spending reductions, tariffs, and AI automation. The hardest-hit sectors include government, tech, and retail.

Tipping in America falls to a 7-year low

Restaurant management platform Toast reports the average tip at full-service restaurants has slipped to 19.1%, with California at the bottom (17.3%) and Delaware leading (21.4%). Analysts cite “tipflation” and shifting consumer habits.

LinkedIn names top AI-focused colleges

In its first-ever ranking, LinkedIn highlights schools producing the most AI-ready graduates. Caltech and MIT lead both in AI job placement and in graduates with AI skills.

Threads nears X’s mobile user numbers

Meta’s Threads hit 400 million monthly active users and 115 million daily mobile users, narrowing the gap with Elon Musk’s X to just 17 million in the U.S. daily mobile audience.

E.l.f. Beauty faces backlash over Matt Rife ad

The cosmetics brand is under fire for casting stand-up comic Matt Rife, criticized for past jokes about domestic violence and trans people. E.l.f.’s statement acknowledged “missing the mark” but stopped short of an apology.

Life360 appoints Lauren Antonoff as CEO

Location-tracking company Life360 promoted COO Lauren Antonoff to CEO, succeeding cofounder Chris Hulls. The company is eyeing international expansion and deeper integration with everyday family life.