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Microsoft: Job cuts in tech sector spread, Microsoft lays off 10,000

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Microsoft is laying off 10,000 employees, or nearly 5% of its workforce, joining other tech companies in slowing their pandemic-era expansions.

In a filing with the government on Wednesday, the company said that the layoffs were caused by “macroeconomic conditions and changing customer priorities.”

The software company, which is based in Redmond, Washington, also said that it was making changes to its hardware portfolio and combining its leased office locations.

With so many people working and studying from home, Microsoft is cutting far fewer jobs than it added during the COVID-19 pandemic as it responds to a surge in demand for its workplace software and cloud computing services.

“A large part of this is simply overeager hiring,” said Joshua White, a finance professor at Vanderbilt University.

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Microsoft’s Staff Grew By 36%

In the two fiscal years after the outbreak, Microsoft’s staff grew by 36%, from 163,000 at the end of June 2020 to 221,000 in June 2022.

In an email to employees, CEO Satya Nadella said that the layoffs will affect “less than 5% of our total employee base,” and that some employees will find out today.

Nadella said, “We are cutting jobs in some areas, but we will keep hiring in key strategic areas.” He stressed how important it was to create a “new computer platform” based on advances in artificial intelligence.

Customers who increased their digital technology spending during the pandemic are now attempting to “optimize their digital spend to do more with less,” he said.

“We’re also seeing organizations in every industry and geography exercise caution as some parts of the world experience a recession and others anticipate one,” Nadella wrote.

Lots Of Cuts In The Tech Sector

Other tech firms have also cut jobs amid concerns about an economic slowdown.

Amazon and the company that makes business software, Salesforce, both cut a lot of jobs earlier this month. They did this to cut back on payrolls that grew quickly during the pandemic lockdown.

Amazon has announced the elimination of approximately 18,000 jobs. The layoffs are the largest in the Seattle company’s history, though they represent only a small portion of its 1.5 million global workforces.

Meta, Facebook’s parent company, is laying off 11,000 employees, or roughly 13% of its workforce. And Elon Musk, the new CEO of Twitter, has reduced the company’s workforce.

When Nadella spoke at the World Economic Forum’s annual meeting in Davos, Switzerland, on Wednesday, he did not directly mention the layoffs.

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Finding A Balance After Covid

When the forum’s founder, Klaus Schwab, asked what the tech layoffs meant for the industry’s business model, Nadella stated that companies that boomed during the COVID-19 pandemic are now seeing “normalization” of that demand.

“Quite frankly, we in the technology industry will have to become more efficient, right?” According to Nadella. “It’s not about doing more with less than everyone else. We’ll have to make do with less. So we’ll have to demonstrate our productivity gains using our technology.”

Microsoft refused to comment on where the layoffs and office closures would be concentrated. On Wednesday, the company told employment officials in Washington state that it was firing 878 people from its offices in Redmond and the nearby cities of Bellevue and Issaquah.

It employed 122,000 people in the United States and 99,000 elsewhere as of June.

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A Rapid Rise In Interest Rates

According to Vanderbilt professor White, all industries are looking to cut costs ahead of a possible recession, but tech companies may be especially sensitive to the rapid rise in interest rates, a tool that the Federal Reserve has used aggressively in recent months in its fight against inflation.

“This hits tech companies a little harder than industrials or consumer staples because a large portion of Microsoft’s value is on projects with cash flows that won’t pay off for several years,” he explained.

One of these projects is Microsoft’s recent investment in its startup partner in San Francisco, OpenAI, which makes the writing tool ChatGPT and other AI systems that can make readable text, images, and computer code.

Microsoft, which owns the Xbox game division, is also dealing with regulatory uncertainty in the United States and Europe, delaying its planned $68.7 billion takeover of video game company Activision Blizzard, which had approximately 9,800 employees a year ago.

SOURCE – (AP)

 

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

Electronics

FTC Sends $5.6 Million In Refunds To Ring Customers As Part Of Video Privacy Settlement

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The backslash character – escapes special characters in programming languages and other contexts. The following information is from a news article published by the Associated Press: Due to a settlement with Amazon-owned Ring, the Federal Trade Commission is giving consumers over $5.6 million in reimbursements. Ring was accused of neglecting to safeguard private video data against unauthorized access.

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FTC Sends $5.6 Million In Refunds To Ring Customers As Part Of Video Privacy Settlement

The FTC complained in 2023, alleging that the doorbell camera and home security provider permitted its employees and contractors to gain access to consumers’ confidential videos. Ring purportedly utilized this film for algorithmic training without obtaining authorization, among other objectives.

Ring was additionally accused of neglecting to install crucial security measures, thereby allowing hackers to get control over customers’ accounts, cameras, and footage. The FTC observed that this resulted in severe breaches of users’ privacy.

The final settlement necessitated Ring to remove unlawfully acquired content, implement enhanced security measures, and pay a substantial penalty. The FTC is currently utilizing a significant portion of the funds to provide refunds to qualifying Ring customers.

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FTC Sends $5.6 Million In Refunds To Ring Customers As Part Of Video Privacy Settlement

As per a notice issued on Tuesday, the FTC will be delivering 117,044 PayPal payments to consumers who were affected and owned specific types of Ring devices, such as interior cameras, during the periods when unlawful access is claimed to have occurred.

Customers who meet the requirements must claim these payouts within 30 days, as stated by the FTC. The FTC also mentioned that consumers can reach out to Rust Consulting, the refund administrator for this case, or refer to the FTC’s FAQ page on refunds for further details regarding the procedure.

Ring has stated that unauthorized individuals used stolen email addresses and passwords from other companies to gain unlawful access to certain customers’ Ring accounts in 2019. This occurred because these customers used the same login credentials on multiple websites. Upon discovering this breach, Ring promptly notified the affected customers and took measures to safeguard their accounts.

Ring did not promptly respond to the FTC’s accusations regarding employees and contractors inappropriately viewing footage.

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FTC Sends $5.6 Million In Refunds To Ring Customers As Part Of Video Privacy Settlement

In a recent announcement, the California-based company confirmed that it will no longer accept requests from police agencies to access doorbell camera footage from its users. This decision effectively terminates a controversial function that had faced scrutiny from privacy advocates.

SOURCE – (AP)

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The House Votes For Possible TikTok Ban In The US, But Don’t Expect The App To Go Away Anytime Soon

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Why Buying TikTok Views is the Best Way to Maximize Followers
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Washington — The House passed legislation Saturday that would prohibit TikTok from operating in the United States if the popular social media platform’s Chinese owner does not sell its stake within a year, but the app is unlikely to disappear anytime soon.

The decision by House Republicans to include TikTok as part of a bigger foreign aid package, a priority for President Joe Biden with broad congressional backing for Ukraine and Israel, accelerated the prohibition after an earlier version had been blocked by the Senate. A standalone bill with a shorter, six-month selling period cleared the House in March with an overwhelming bipartisan majority, as both Democrats and Republicans expressed national security worries about the app’s owner, Chinese technology firm ByteDance Ltd.

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The House Votes For Possible TikTok Ban In The US, But Don’t Expect The App To Go Away Anytime Soon

The updated bill, which passed by a vote of 360-58, now goes to the Senate following discussions that extended the company’s selling timeframe to nine months, with an extra three months conceivable if a sale is in the works.

Legal disputes may extend that period even further. If the law passes, the corporation has stated that it will likely file a lawsuit to block it, claiming that it will deprive the app’s millions of users of their First Amendment rights.

TikTok has fought aggressively against the proposal, encouraging the app’s 170 million U.S. users, many of whom are young, to contact Congress and express their objections. However, the intensity of the backlash enraged politicians on Capitol Hill, where there is widespread worry about Chinese threats to the US and few members use the platform themselves.

“We will not stop fighting and advocating for you,” TikTok CEO Shou Zi Chew said in a video released on the platform last month, addressing the app’s users. “We will continue to do all we can, including exercising our legal rights, to protect this amazing platform that we have built with you.”

The bill’s rapid passage through Congress is remarkable because it only affects one firm and Congress has adopted a hands-off approach to technology regulation for decades. Lawmakers had failed to act despite efforts to protect children online, preserve users’ privacy, and hold firms more accountable for content put on their platforms, among other things. However, the TikTok ban reflects broad fears among lawmakers about China.

Members of both parties, as well as intelligence officials, have expressed concern that Chinese authorities may force ByteDance to pass over American user data or direct the business to suppress or promote TikTok content that benefits its interests. TikTok has disputed claims that it is being utilized as a tool by the Chinese government and has stated that it has not shared user data from the United States with Chinese authorities.

The US government has not publicly shown evidence that TikTok exchanged US user data with the Chinese government or tampered with the company’s popular algorithm, which impacts what Americans see.

The corporation has good reason to believe that a legal challenge will be successful, as it has already won court battles over its operations in the United States. In November, a federal judge halted a Montana law that would have prohibited TikTok use throughout the state after the business and five TikTok content providers sued.

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The House Votes For Possible TikTok Ban In The US, But Don’t Expect The App To Go Away Anytime Soon

In 2020, federal courts blocked then-President Donald Trump’s executive order to ban TikTok after the firm sued, claiming that the order violated its free speech and due process rights. His administration arranged a deal in which US businesses Oracle and Walmart would have acquired a significant share in TikTok. The transaction fell through for a variety of reasons, including China’s tougher export curbs on technology companies.

Dozens of states and the federal government have imposed TikTok restrictions on official equipment. The Knight First Amendment Institute at Columbia University filed a lawsuit last year, claiming that Texas’ restriction violated academic freedom because it applied to public universities. In December, a federal judge decided in favor of the state.

The software has received support from organizations including the American Civil Liberties Union. “Congress cannot take away the rights of over 170 million Americans who use TikTok to express themselves, engage in political advocacy, and access information from around the world,” Jenna Leventoff, a lawyer for the group, stated

According to AdImpact, an advertising tracking service, TikTok has spent $5 million on television ads opposing the law since mid-March. The advertisements have featured a variety of content creators, including a nun, touting the platform’s benefits in their life and claiming that a prohibition would violate the First Amendment. The corporation has also urged its customers to contact Congress, with some lawmakers receiving profanity-laced calls.

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The House Votes For Possible TikTok Ban In The US, But Don’t Expect The App To Go Away Anytime Soon

“It is unfortunate that the House of Representatives is using the cover of important foreign and humanitarian assistance to once again jam through a ban bill that would trample the free speech rights of 170 million Americans, devastate 7 million businesses, and shutter a platform that contributes $24 billion to the U.S. economy, annually,” Alex Haurek, a spokesperson for the organization, said.

California Democratic Rep. Ro Khanna voted against the bill. He believes there could have been less restrictive ways to pursue the corporation that would not end in a blanket ban or jeopardize free speech.

“I don’t think it will be well received,” Khanna remarked. “It’s a sign of the Beltway being out of touch with where voters are.”

Nadya Okamoto, a TikTok content creator with approximately 4 million followers, stated that she has been speaking with other creators who are expressing “so much anger and anxiety” about the bill and how it will affect their life. The 26-year-old, whose company “August” offers menstrual goods and is recognized for her activism for de-stigmatizing monthly cycles, earns the majority of her money via TikTok.

“This is going to have real repercussions,” she told me.

SOURCE – (AP)

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Apple Pulls WhatsApp And Threads From App Store On Beijing’s Orders

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HONG KONG — Apple said it has deleted Meta’s WhatsApp messaging service and Threads social media program from the service Store in China in accordance with Chinese authorities’ requests.

Chinese officials withdrew the apps from the store on Friday, citing unspecified national security concerns.

Their departure coincides with heightened tensions between the United States and China over trade, technology, and national security.

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Apple Pulls WhatsApp And Threads From App Store On Beijing’s Orders

The United States has threatened to ban TikTok due to national security concerns. However, while TikTok, owned by Chinese technology giant ByteDance, is popular in the United States, apps such as WhatsApp and Threads are not widely utilized in China.

Instead, the texting program WeChat, owned by the Chinese giant Tencent, dominates.

Other Meta apps, like as Facebook, Instagram, and Messenger, remained available for download, however usage of such international apps is prohibited in China due to the country’s “Great Firewall” network of filters, which restricts access to foreign websites like Facebook and Google.

“The Cyberspace Administration of China ordered the removal of these apps from the China storefront based on their national security concerns,” the company stated in a statement.

“We are obligated to follow the laws in the countries where we operate, even when we disagree,” the company added.

Meta didn’t immediately respond.

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Apple Pulls WhatsApp And Threads From App Store On Beijing’s Orders

Apple, previously the world’s leading smartphone manufacturer, has lost that position to Korean rival Samsung Electronics. The US company has faced headwinds in China, one of its top three markets, with sales falling after Chinese government agencies and state-owned company employees were told not to bring Apple devices to work.

Apple has been expanding its production sites beyond China.

Its CEO, Tim Cook, has been visiting Southeast Asia this week, visiting Hanoi and Jakarta before concluding his trip in Singapore. On Friday, he met with Singapore’s deputy prime minister, Lawrence Wong, and “discussed the partnership between Singapore and Apple, as well as Apple’s continued commitment to doing business in Singapore.”

Apple has vowed to invest more than $250 million to develop its campus in the city-state.

Cook visited with Vietnamese Prime Minister Pham Minh Chinh earlier this week in Hanoi, promising to spend more money on Vietnamese suppliers.

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Apple Pulls WhatsApp And Threads From App Store On Beijing’s Orders

He also met with Indonesia’s President Joko Widodo. Cook later told reporters that they discussed Widodo’s intention to increase manufacturing in Indonesia, and that Apple will “look at” it.

SOURCE – (AP)

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