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CSX railroad announced Monday that it had replaced its CEO less than two months after an investment fund urged it to either find another railroad to merge with to better compete with the proposed transcontinental Union Pacific railroad or fire outgoing CEO Joe Hinrichs. The outgoing CEO, who came to the railroad in 2022 after a long career with Ford, focused on repairing CSX’s relationship with its workers and labor unions and unifying the team after a bitter contract fight. But Ancora Holdings, which helped spur major changes at Norfolk Southern, said CSX’s operating performance deteriorated significantly under Hinrichs’ leadership. Hinrichs resigned to clear the way for Steve Angel to become CEO effective Sunday. Angel, 70, also comes from outside the rail industry although earlier in his career he oversaw GE’s locomotive building unit, so he does have that experience. CSX said he has 45 years experience leading large public companies, including most recently as CEO of Linde and Praxair. We are excited to welcome Steve as our new CEO. He is a visionary in creating long-term value and an expert in guiding companies through significant transformation,” the railroad’s board Chairman John Zillmer said. CSX has been under pressure from Ancora and other investors since Union Pacific announced its $85 billion deal to acquire Norfolk Southern, which is CSX’s rival in the eastern United States. But both BNSF and CPKC railroads said they aren’t interested in a merger right now. Ancora said CSX has delivered disappointing shareholder returns and poor financial performance during Hinrichs’ tenure. But over the past year, CSX was working on two major construction projects repairs from Hurricane Helene and a major tunnel renovation in Baltimore that disrupted the railroad. Both those projects were just completed this month, so CSX’s performance was expected to improve in the fourth quarter. Angel promised to make improvements at the Jacksonville, Florida-based company, which is one of the six largest railroads in North America. My top priorities will be to ensure the safety of the railroad and our employees, deliver reliable service to our customers, and increase value for our shareholders, Angel said in a statement. Josh Funk, AP transportation writer
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Lufthansa announced on Monday it plans to cut thousands of workers as it aims to increase profitability and efficiency, in part by relying more heavily on artificial intelligence. The airline group said it will eliminate a total of 4,000 jobs worldwide by 2030, the majority of which will be in Germanywith a focus on administration roles, not operational ones. “The Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example due to duplication of work,” the company said in a statement. “In particular, the profound changes brought about by digitalization and the increased use of AI will lead to greater efficiency in many areas and processes.” (The Lufthansa Group includes Germany’s Lufthansa, in addition to Austrian Airlines, Swiss, Brussels Airlines, and ITA Airways, the successor to Alitalia.) That restructuring will include the largest fleet modernization in the company’s history. To that end, the Lufthansa Group expects to add more than 230 new aircraft by 2030, including 100 long-haul aircraft. The Cologne-based German carrier said it plans to invest in the growth of its core business, expanding locations and its international presence, including in Canada and Portugal. It also plans to extend its digital business models, as part of its Ambition 2030 program. The changes are expected to significantly increase revenue and profit by 2030. The airline also set new financial targets for 2028 to 2030, saying it expects its adjusted operating margin to reach 8-10% and over 2.5 billion euros in adjusted free cash flow per year. Lufthansa, like a number of companies including Klarna, Duolingo, and Salesforce, has recently turned to AI. Some of those companies even instituted AI-first workplaces as a way of slashing workforces toward greater profitabilitybut not without some missteps. According to a recent Nexford University survey, in the past year, around 65% of companies conducted layoffs, with 68% of companies identifying cost-cutting as the culprit, and 27% citing AI adoption. Lufthansa financials Lufthansa reported strong Q2 2025 results with considerable year-on-year growth, including a 27% increase in its operating profit compared to 2024, and a 3% increase in revenue (from 10 billion to 10.3 billion). Last year, Lufthansa increased its revenue by six percent year-on-year to EUR 37.6 billion as it offered more flights, making it the highest revenue in its history. However, the operating profit (adjusted EBIT) was EUR 1.6 billion, compared with EUR 2.7 billion the previous year, as the airline faced strikes and higher global costs. Lufthansa (Deutsche Lufthansa AG), which is traded under the stock ticker LHA on the Xetra and Frankfurt Stock Exchanges, closed up slightly on Monday.
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Electronic Arts has announced plans to go private in what will be the largest leveraged buyout in history. The $55 billion purchase of the entertainment giant behind franchises that include Madden NFL and Battlefield is set to close in the first quarter of fiscal year 2027. Saudi Arabia’s Public Investment Fund (PIF) will be, by far, the majority investor in EA, one of the largest third-party publishers of video games. Silver Lake and Affinity Partners (whose CEO is Donald Trumps son-in-law, Jared Kushner) will own minority interests. CEO Andrew Wilson will continue to head EA. The all-cash deal calls for a buyout of EA stock at a price of $210 per share. The company was trading at $202 per share Monday afternoon. On Thursday, before The Wall Street Journal reported a buyout was imminent, shares were trading at roughly $171. EA is a longtime stalwart in the video game industry, but like many publishers of late, it has been somewhat stalled financially as the gaming boom of the pandemic has slowed considerably. In 2022, EA reported $7.2 billion in revenues. The following year, it saw an increase to $7.6 billion, and in 2024 the figure was $7.4 billion. The stock has also lagged far behind the S&P 500’s gains. Was EA sold for too little? While the industry has been in the midst of a consolidation trend, both in terms of buyouts and revenues, some analysts think EA might have been undervalued in this deal. “While the $210 per share take-out price represents a substantial premium to EAs unaffected trading levels, we continue to believe the transaction undervalues EAs long-term earnings power,” wrote the Benchmark Co.’s Mike Hickey in a note to investors. “We value EA at $250 per share, with a best-case path to $300 if Battlefield evolves into the market share leader.” The leveraged buyout, Hickey argues, transfers what he expects will be a “franchise-defining growth cycle” to new owners before current shareholders can realize those gains. “In our view, this transaction is a self-serving, opportunistic move by management and the investor group,” he wrote. Wedbush Securities’ Alicia Reese didn’t go quite so far as Hickey, but she did point out that the purchase price (about 20 times the earnings before interest, taxes, depreciation, and amortization, or EBITDA) was a lower multiplier than the Activision deal (which worked out to 21.5 times) and roughly on par with the industry average over the last five years of 19.8 times. EA, with its rich catalog of intellectual property (IP), would presumably be able to command a higher multiple. Boon for Riyadh Assuming the deal closes, the buyout will be a victory for the Saudi Arabia PIF, which has been expanding its interests in the video game world in recent years. The group holds stakes in several well-known publishers. Prior to Monday’s deal, the PIF owned roughly 10% of EA’s shares. It also holds 6.2% of Grand Theft Auto publisher Take-Two Interactive Software and 4.2% of Nintendo. This spring, the PIF purchased Niantic, maker of Pokémon Go, for $3.5 billion and also paid $4.9 billion for Scopely, the maker of mobile gaming hit Monopoly Go. The deal comes as criticism continues about the Saudi Royal family’s record of human rights abuses. While the $55 deal is expected to set a record as far as leveraged buyouts (CNBC reports EA has 45 days to solicit a better offer, though the deal was unanimously approved by the company’s board), it still falls short of an overall industry record. Microsoft’s $69 billion buyout of Activision-Blizzard remains the industry’s most expensive acquisition to date. Microsoft faced several hurdles from regulators in the U.S. and U.K. as it attempted to close that purchase. The Microsoft/Activision deal closed in 2023. In July of this year, Microsoft announced plans to lay off 9,100 workers, with many of those cuts coming in the gaming division. That followed an additional 6,000 jobs lost in May of this year.
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