Business
Facebook Owner Meta Axes Another 10,000 Jobs
On Tuesday, Facebook owner Meta announced a new round of layoffs as part of the company’s “year of efficiency,” as the US tech sector continues to contract due to Biden inflation.
In an email to employees, Mark Zuckerberg stated that Meta would cut 10,000 jobs over the next few months, focusing on middle management, with 5,000 other positions remaining unfilled. The layoffs follow an 11,000-job cut announced by the company in November.
“This will be difficult, and there is no way around it. It will imply saying farewell to talented and passionate colleagues who have contributed to our success, “According to Zuckerberg.
Meta’s recruitment department will be the first to suffer as the company officially ends the hiring spree that occurred when big tech ramped up operations to meet high demand during the coronavirus pandemic.
The tech and business departments will be affected, and “in a small number of cases, it may take until the end of the year to complete these changes,” according to Zuckerberg.
Zuckerberg warned analysts in January that the company’s “management theme for 2023 is the ‘Year of Efficiency,'” and that he would focus on making the company “a stronger and more nimble organization.”
Meta had a difficult 2022 due to a deteriorating economic climate, which forced advertisers to cut back on marketing, and Apple’s data privacy changes limited ad personalization.
The company is also under fire for betting on the metaverse, a virtual reality world that Meta believes will be the next online frontier.
The company’s share price dropped by an astounding two-thirds in a year due to the problems last year, but the stock recovered in 2023, with investors satisfied by Zuckerberg’s pledge to run a leaner company.
Following the announcement of the latest job cuts, Meta’s stock price increased by 5%.
Meta’s CEO and founder stated that he “will flatten our organization by removing multiple layers of management,” implying that many managers will be ordered to become “individual contributors.”
Zuckerberg said he was pleasantly surprised by the advantages of running a more tightly organized operation where “many things have gone faster” due to eliminating lower priority projects.
“A leaner organization (sic) will complete its highest priorities more quickly. People will be more productive, and their jobs will be more enjoyable and rewarding, “He stated.
Few jobs in corporate America are more thankless — or more mocked — than middle management. They’ve long been derided as petty, powerless, thumb-twiddling bureaucrats who enforce the rules, crack the whip, and stamp out any vestige of creativity or self-initiative. Middle management, so the thinking goes, is for mediocre people.
However, as businesses prepare for tougher times, the assault on middle managers has gained momentum. Mark Zuckerberg is removing layers of management at Meta, demoting many supervisors to the ranks of the supervised. Shopify is also restructuring its corporate hierarchy, resulting in fewer managers. In addition to their supervisory duties, Elon Musk has directed Twitter’s engineering managers to begin writing “a meaningful amount” of code themselves.
CEOs claim they are laying off employees in the name of efficiency. Mark Zuckerberg explained his decision: “I don’t want managers managing managers, managing managers, managing managers, managing managers, managing the people who are doing the work.” His rhetoric is part of a decades-long effort to reduce the number of middlemen in corporate America’s sprawling bureaucracy. Reduce your overhead. Dismantle silos. Remove the red tape. Create a “more fun place to work,” in Zuckerberg’s words. Isn’t it all wonderful?
Except for one thing: Middle managers are the ones who make large organizations function. According to studies, they have a far greater impact on a company’s overall performance than senior executives and a greater impact on the bottom line than the teams they supervise. Businesses are cutting the people they need to weather the economic uncertainty by eliminating middle managers amid an unprecedented shift to hybrid work. They make it more difficult for the remaining managers to succeed. And they’re sending a strong message to talented would-be bosses: Don’t be one.
“You can have a great vision and a great strategy, but if you don’t have managers who create the culture you want to be, none of that stuff will get done,” says Jim Harter, Gallup’s chief scientist for workplace management. “It’ll be all uphill the whole way. Leaders’ jobs are made much easier by effective managers.”
The Big Flattening
There are two archetypes of management structures: hierarchical and flat. Tall organizational trees cascade down ever-descending layers of management in hierarchical organizations. Flat organizations have shorter organizational trees with fewer intermediaries.
Because they must establish a clear chain of command, large corporations tend to be more hierarchical. However, over the last few decades, large corporations have attempted to become flatter — and some, like Zappos, have attempted to do away with hierarchies entirely. According to a study of 300 large corporations, the number of managers layered between CEOs and division heads decreased by more than 25% between 1986 and 1998. Meanwhile, the average number of people reporting directly to the CEO has nearly doubled. The Great Flattening had begun.
The war on middle managers appears to have yielded some of the desired results: According to one study, companies with fewer organizational layers delivered products to customers faster. However, the trend resulted in a culture that dismissed middle managers as useless, despite extensive research showing that the good ones make significant contributions to their organizations.
Consider a series of Gallup studies on employee engagement—a measure of how involved and enthusiastic employees are about their jobs, linked to higher profitability, lower turnover, and lower absenteeism. Across more than 50,000 teams, Gallup’s researchers honed in on a perplexing finding: Even within the same company, some teams performed significantly better in engagement than others. The findings suggested that team-specific dynamics, rather than organizational-wide ones, were key to how employees felt about their jobs.
So the researchers dug even deeper. They were surprised to discover that direct supervisors accounted for 76% of the variation in team engagement, while executives accounted for only 11%. “Your immediate manager has far more influence on your engagement than senior leadership,” Harter says. “It was astonishing how much variation there was across these manager-led teams and how much managers influenced organizational engagement.”
Top executives may be surprised to learn they are worth less than middle managers. However, if you consider your own experience as an employee, it probably makes sense. The person with the greatest impact on your day-to-day work life is not the CEO, who is unlikely to know your existence. Your immediate boss knows to be gentle with you right now because your marriage is crumbling, who tailors their feedback to you in a way that makes you open to change and reshapes assignments from higher-ups to match your strengths and ambitions.
Middle managers, however, underappreciated, frequently make or break how we see and do our jobs. That’s why, according to a recent survey conducted by UKG, a workforce-software provider, employees said their supervisor had just as much of an impact on their mental health as their spouse — and even more than their therapist.
Consider another study that examined middle managers’ impact on business performance. Wharton management professor Ethan Mollick examined two jobs in the gaming industry: designers and producers. Designers are the innovators who create, invent, and build games. Producers are the suits who ensure that projects are completed on time and within budget.
Mollick expected to discover that the innovators’ creative output was more important than the managers’ bureaucratic work. However, the opposite was true: producers accounted for 22% of revenue differences across games, while designers accounted for only 7%. (According to another study, top executives were even less important, accounting for less than 5% of the total.) “High-performing innovators alone are insufficient to generate performance variation,” Mollick concluded. “Rather, individual managers must integrate and coordinate the innovative work of others.”
Managers overseeing managers
It’s a message worth remembering, especially in Silicon Valley, where brilliant coders are worshipped as gods. According to studies, a top programmer can produce as much work as 20 average ones — a statistic that is frequently used to justify paying exorbitant salaries to attract the best engineers. That’s why the tech industry established a separate advancement path for programmers: to provide a way for superstars to earn raises and promotions without becoming managers.
However, by idolizing top performers so much, Silicon Valley devalued the less glamorous role of managers — the people who get the genius coders’ work out into the world. When Elon Musk was asked to name the most “messed up” aspect of Twitter last October, he replied, “There appear to be ten people managing for every one person coding.” Similar disdain can be heard in Zuckerberg’s words. When he mentioned not wanting “managers managing managers,” he left out the most common middle-manager trope: that, unlike employees who are “doing the work,” middle managers aren’t doing anything.
It’s an assumption that an experienced management consultant I spoke with immediately recognized when she accepted a supervisory position at a tech firm. Even though she was in charge of a team, she was told almost immediately that she should spend most of her time working on her projects. Her performance reviews focused on her work rather than her accomplishments as a manager. When she was laid off a few months ago, she wondered if it was because she prioritized developing her team over grinding out her work.
“I believe that spending your time coaching, leading, and developing people is a worthwhile pursuit in and of itself,” she said. “If you want to do those things well, make time for them. People management is a job. But I don’t believe the company’s leadership recognized or valued that. That is not well received in the tech industry.”
People management takes far more time than corporate leaders realize. According to Gallup, the maximum number of direct reports most managers can effectively supervise is ten. Any more than that, according to Harter, it becomes difficult to have meaningful weekly conversations with employees. (At Tesla alone, Musk reportedly has 28 people reporting to him.) Companies like Meta risk burdening their remaining supervisors with teams too large to manage effectively as they shed middle managers. For the time being, the companies may save money on overhead. However, they will struggle with retention and lose revenue in the long run.
Burnout is beginning to show up in the ranks of middle managers. According to the UKG survey, 42% of middle managers are frequently or always stressed, a higher percentage than either frontline workers or C-suite executives. More than half of those polled said they wished they had been warned not to take their current job. That’s because they’re under increasing pressure from their bosses above, who want them to increase productivity while laying off employees, and from their employees below, who are irritated by having to return to work.
Companies would do better by giving middle managers the recognition they deserve and assisting them in becoming more effective in the emerging post-pandemic workplace rather than eliminating them or burdening them with additional work. According to Harter, businesses that unlock the hidden value of middle managers are more likely to weather the current economic turmoil. “It’s something businesses can use, especially in these more difficult times,” he says. “A lot of it will depend on how they upskill managers.”
Entertainment
TikTok Will Start Labeling AI-Generated Material When Technology Becomes More Mainstream.
When submitted from outside its platform, TikTok will start categorizing content using artificial intelligence.
TikTok claims its initiatives are intended to counteract misinformation on its social media platforms.
“AI enables incredible creative opportunities, but it can confuse or mislead viewers if they don’t know the content was AI-generated,” the business said in a prepared statement Thursday. “Labeling helps make that context clear—which is why we label AIGC made with TikTok AI effects, and have required creators to label realistic AIGC for over a year.”
The move is part of a larger effort by individuals in the technology industry to strengthen protections for AI use. Meta stated in February that it was working with industry partners to develop technical standards to make it easier to identify photos and, eventually, video and audio generated by artificial intelligence algorithms. Facebook and Instagram users could read labels on AI-generated photographs in their feeds.
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TikTok Will Start Labeling AI-Generated Material When Technology Becomes More Mainstream.
Last year, Google said AI labels would be coming to YouTube and its other services.
In October, US President Joe Biden signed an executive order promoting digital watermarking and labeling AI-generated content.
TikTok announced collaborating with the Coalition for Content Provenance and Authenticity to leverage its Content Credentials platform.
The company claims that the technology can attach metadata to information, instantly recognizing and categorizing AI-generated content. TikTok announced Thursday that it began using the feature on photos and videos and will soon expand to audio-only content.
In the future months, material Credentials will be tied to TikTok material and will remain on it when downloaded. This will let people recognize AI-generated material on TikTok and determine when, where, and how it was created or altered. Other platforms using Content Credentials will be able to automatically label it.
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TikTok Will Start Labeling AI-Generated Material When Technology Becomes More Mainstream.
TikTok claims to be the first video-sharing platform to use the credentials and will join the Adobe-led Content Authenticity Initiative to assist in boosting their adoption throughout the industry.
“TikTok is the first social media platform to support Content Credentials, and with over 140 million users in the United States alone, their platform and their vast community of creators and users are an essential piece of that chain of trust needed to increase transparency online,” Dana Rao, Adobe’s executive vice president, general counsel, and chief trust officer, wrote in a blog post.
TikTok’s previous policy encouraged users to flag AI-generated or drastically modified videos. Now, the company requires users to label any AI-generated content, including realistic visuals, audio, or video.
“Our users and creators are so excited about AI and what it can do for their creativity and their ability to connect with audiences,” Adam Presser, TikTok’s Head of Operations, Trust, and Safety, told ABC News. “At the same time, we want to make sure that people have that ability to understand what fact is and what is fiction.”
The announcement first appeared on ABC’s “Good Morning America” on Thursday.
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TikTok Will Start Labeling AI-Generated Material When Technology Becomes More Mainstream.
TikTok’s AI actions come just two days after the company announced that it and its Chinese parent company, ByteDance, had filed a lawsuit challenging a new American law that would prohibit the video-sharing app from operating in the United States unless sold to an approved buyer, claiming that it unfairly singles out the platform and is an unprecedented attack on free speech.
The complaint is the latest development in what appears to be a protracted legal battle for TikTok’s future in the United States — one that could end up before the Supreme Court. If TikTok loses, it says it will be forced to close next year.
SOURCE – (AP)
Business
2024: Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options
OAKLAND, California – A federal judge on Wednesday questioned whether Apple had set up a maze of frustrating barriers to discourage other payment alternatives in iPhone apps, despite a court order to expand the number of ways consumers may pay for digital services.
The verbal sparring between Judge Yvonne Gonzalez Rogers and the head of Apple’s app store kicked off a hearing to determine whether Apple is still steering U.S. consumers to its once-exclusive app payment system in violation of an injunction to encourage more choices that could help lower prices.
Gonzalez Rogers’ order mandates Apple to allow app developers to offer links to other payment systems in the United States. Apple earns billions of dollars yearly from this structure, which charges 15% to 30% on digital transactions within the most popular iPhone apps.
Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options
Apple’s app store and commission structure are also being challenged in a recent antitrust complaint brought by the United States Justice Department. The complaint alleges that the iPhone stifles competition and innovation.
Gonzalez Rogers frequently weighed in during Matthew Fischer’s four-hour testimony, sounding agitated and dubious.
The judge’s inquiries suggested that she is concerned that Apple’s efforts to comply with her order primarily protect the company’s profits rather than make it easier for iPhone customers to switch to other in-app payment choices, as she intended.
Gonzalez Rogers was particularly sharp as she questioned Fischer about whether Apple has purposefully made it more complicated for consumers to make digital transactions through alternative platforms.
“Other than to stifle competition, I can see no other answer,” the judge remarked as she attempted to decipher the reasoning behind Apple’s design of an alternative payment option system for iPhone apps.
Fischer claimed that Apple is complying with the judge’s decision while also attempting to protect iPhone users from criminal actors on the internet and allowing the Cupertino, California-based corporation, to profit from its investments in the app store and other mobile applications.
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Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options
To that purpose, Apple has implemented a new compensation structure that ranges from 12% to 27% on digital transactions initiated within an app and finished using an alternative payment method. Following Gonzalez Rogers’ comment that Apple was still getting a “windfall,” Fischer stated that the business believed its effective fee rate on digital transactions processed via alternative payment alternatives to be around 18%.
“We are running a business,” Fischer stated.
Apple spent over two years attempting to reverse Gonzalez Rogers’ order as part of a larger antitrust case, which the corporation ultimately won. The injunction mandating Apple to allow links to alternative app payments went into force in January after the United States Supreme Court declined to hear the case.
However, Fischer announced on Wednesday that Apple has only received and authorized applications to display links to other payment systems from 38 apps, a small proportion of the approximately 2 million iPhone apps accessible in the United States. When asked by Gonzalez Rogers, who ordered Apple to reveal the number as the case progressed this month, Fischer could not explain how many of those apps engage in digital transactions.
The video game developer Epic Games cites Apple’s lack of interest in applying for in-app links to alternative payment alternatives as evidence that the system was still rigged in its favor.
Epic, the creator of the popular video game Fortnite, is attempting to force Apple to make more significant adjustments to accept alternative payment alternatives after failing to persuade Gonzalez Rogers that the iPhone app store had become a price-gouging monopoly during a 2021 trial.
Meta Platforms, which owns Facebook and Instagram, Elon Musk’s X short-messaging service, Spotify, and long-time Apple foe Microsoft all support the initiative.
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Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options
Epic claimed in documents filed before Wednesday’s hearing that Apple’s current alternative payment formula “is guaranteed to continue extracting excessive commissions from developers” while preventing them from directing customers to other places where they could purchase the same digital services for less money.
In its pre-hearing filings, Apple accused Epic of attempting to persuade Gonzalez Rogers to micromanage its operations to increase the video game company’s revenues.
“Epic has repeatedly made clear that what it wants is access to and use of Apple’s tools and technologies without having to pay for them,” Apple countered.
The court proceedings will resume on Friday, when another top Apple official, Phil Schiller, will likely testify. Gonzalez Rogers intends to complete the hearings by May 17 but cautioned lawyers Wednesday that it might take longer.
SOURCE – (AP)
Disney cleared a major hurdle to start developing a colossal expansion of its Disneyland theme parks on Tuesday night when the Anaheim city council unanimously gave final approval to rezoning much of the property.
Disney’s original resort in California, which comprises a shopping district, parking areas and two theme parks, is about 550 acres, which is less than 2% of the size of Walt Disney World in Florida.
However, with newly approved “multi-use” zoning, Disney can now expand its theme parks in Anaheim without acquiring any new land by building attractions where the company could previously only build hotels or parking lots. This paves the way for a multi-decade project to expand both of its theme parks there: Disneyland and Disney California Adventure.
“For nearly seven decades, Disneyland Resort has made a unique, irreplaceable impact on hundreds of millions of guests from around the world. How exciting to know our best days are still ahead – I can’t wait to show you what’s to come,” Disneyland Resort President Ken Potrock said in a statement Tuesday night.
The project, dubbed “DisneylandForward,” does not require any public funding. While no specific designs have been shared yet, Disney has released concept art for what the expansion could look like on the west side of the resort, in areas surrounding Disneyland Hotel and Pixar Place Hotel.
On Tuesday night, Disney passed a significant hurdle to begin creating a massive expansion of its Disneyland theme parks when the Anaheim city council overwhelmingly approved rezoning much of the property.
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Disneyland Receives Final Approval For ‘Greatest Thing’ Since Its Opening.
Disney’s first resort in California, which includes a commercial district, parking lots, and two theme parks, covers approximately 550 acres, less than 2% of the size of Walt Disney World in Florida.
However, with newly authorized “multi-use” zoning, Disney may now expand its theme parks in Anaheim without acquiring new land by creating attractions where the company could previously only build hotels or parking lots. This sets the door for a multi-decade project to develop both of its theme parks, Disneyland and Disney California Adventure.
“For nearly seven decades, Disneyland Resort has had an unforgettable influence on hundreds of millions of visitors worldwide. “How exciting to know that our best days are still ahead – I can’t wait to show you what’s to come,” Disneyland Resort President Ken Potrock said in a statement Tuesday night.
The project, known as “DisneylandForward,” does not require any public support. While no concrete designs have been revealed, Disney has produced concept images for the expansion on the west side of the resort, near the Disneyland Hotel and Pixar Place Hotel.
“This is decades overdue. This, in my opinion, is the most significant thing Disney has done since opening the gates in 1955,” said Dennis Speigel, owner and founder of International Theme Park Services, a global consultant for theme park developments.
Speigel, who is not involved in Disney’s plans, stated that this project could potentially increase Disneyland Resort’s annual visitor count from 25 million to 40 million over the next 20 years.
“You’re going from a two-room house to a five-room house,” Speigel said, adding that the extra space will make visitors more comfortable and increase per capita spending by allowing them to stay longer and experience more attractions.
At a shareholders’ meeting in April, Disney CEO Bob Iger stated that DisneylandForward’s potential new projects might include “the opportunity to embark on all-new Avatar adventures with a visit to the world of Pandora.”
The published concept art for a hypothetical Avatar land depicts a location similar to Pandora at Disney’s Animal Kingdom in Florida, but with tourists on boats in the center of an open lake, reminiscent of the franchise’s second feature, “The Way of Water.”
In a January video, Rachel Alde, Disney Experiences’ senior VP of global development, stated that a 1990s agreement with the city of Anaheim allowed Disney to build 6.8 million square feet of theme park space, but the company has only built 46% of that due to space and zoning restrictions.
“Imagine what we could do with this space.” Currently, there are only surface parking lots. What if we could become the first land-based on Wakanda from the Black Panther franchise? A Zootopia-themed land that builds on the work you saw before at Shanghai Disney Resort. The creation of Arendelle from Frozen is comparable to what you witnessed in our three worldwide parks. Or even the ability to celebrate Dia de los Muertos in a Coco-themed area that reflects the diverse community in Southern California.”
Don Ballard, an author and historian who wrote a book about the ancient Disneyland Hotel, believes the company’s original resort is “ever-evolving.” I mean, technology changes and people’s tastes shift.”
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Disneyland Receives Final Approval For ‘Greatest Thing’ Since Its Opening.
Ballard cited Walt Disney’s famous quote: “Disneyland will never be completed.” It will continue to expand for as long as imagination exists in the world.
Todd James Pierce, a Cal Poly San Luis Obispo professor who published the book “Three Years in Wonderland” about the creation of Disneyland, stated that “When Walt was alive, almost every year there was a new attraction, if not multiple new attractions.” He took one hiatus around the World’s Fair since he was busy doing other things. This allows the Disneyland Resort to expand significantly. So if people are fans, there will be something fresh only a short time from now, every year, or every couple of years.
Pierce stated that their chosen concept art is noteworthy because “none of these things are standalone attractions. They’re all 8—to 12-acre themed areas centered on one or more [stories], such as a whole Frozen region.
Ballard, who proposed to his wife at Disneyland, quipped, “It was just me and 80,000 of my closest friends.” And I proposed to her in front of the castle, and four girls behind her said ‘yes.‘”
Pierce stated that opening new lands allows Disney to close existing attractions more easily for redevelopment because passengers can spread out and are not pressed into tight crowds.
Disney theme parks worldwide are known for creating an immersive environment in which visitors leave the “real” world for something fanciful. To do so, one must enter a “Disney bubble,” as fans refer to it, which shields one from the outer world.
However, this proposal will face challenges because some of the properties that could be renovated are separate from the main Disneyland Resort campus. Disney has revealed in concept art that a section of land on the east side, currently used as the Toy Story surface parking lot, may be converted into a mixed-use hotel, restaurant, and shopping complex akin to Disney Springs in Florida.
Pierce explained that getting from the big theme parks to this retail area entails crossing city streets lined with 7-Elevens and CVS drugstores.
The difficulty lies “not in doing what they do really well, which is build themed environments, but figuring out how to connect up this patchwork of property that they’ll now control,” Pierce stated. “Elevated walkways, a people mover system or a Skyliner system (the elevated gondolas), something like that…is probably going to be necessary, otherwise the vacation experience becomes fragmented.”
According to Anaheim’s chief communications officer, Mike Lyster, the DisneylandForward project includes authority for pedestrian bridges over city streets, but anything else would require separate city approval.
Another challenge is ensuring there is ample parking. Disney would be forced to create additional parking facilities elsewhere on the resort grounds by potentially developing theme park lands on top of existing parking lots. Disney has stated that it plans to create a new parking facility on the resort’s east side, including one to three pedestrian bridges and improved entrance accessibility for hotels and businesses along Harbor Boulevard.
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Disneyland Receives Final Approval For ‘Greatest Thing’ Since Its Opening.
Tuesday’s rezoning approval will take effect in 30 days. Next, Disney and the city of Anaheim will attempt to finalize a development agreement that will last until 2064.
“This is a significant milestone for the city. “We’re looking at a unique opportunity not only for Anaheim but for the entire state of California,” said Anaheim Mayor Ashleigh Aitken.
Proposed agreements include Disney committing $1.9 billion to the project over the first ten years, $40 million to take over two city-owned streets, $45 million for transportation improvements, $8 million for city parks, and $30 million for affordable housing.
Speigel predicts the corporation would spend over $3 billion, exceeding its initial investment promise.
This expansion initiative follows the company’s previously stated $60 billion investment in its parks and cruises across the world over the next ten years.
According to Aitken, more than half of Anaheim’s general fund comes from tourism revenue. So, the initiative would improve the guest experience and result in significant investment in the city.
She also stated she has been one of the “fiercest critics” of resort area growth, fighting city subsidies and securing construction and hospitality union backing for the initiative.
“And I’m comfortable that the Disneyland team has answered a lot of those concerns.”
Aitken stated that the resulting idea is carefully thought out and a “win-win” for everyone.
SOURCE – (AP)
Toronto Maple Leafs Sack Head Coach Sheldon Keefe
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Hailey and Justin Bieber Announce on Instagram Their Expecting a Baby
TikTok Will Start Labeling AI-Generated Material When Technology Becomes More Mainstream.
Tiger Woods To Be The Only Player On The Negotiation Committee With Saudis.
2024: Judge Grills Apple Exec About Whether Company Is Defying Order To Enable More IPhone Payment Options
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