Connect with us

Tech

Big Tech Layoffs Tied to Record Inflation in 2022

Published

on

Layoffs at Big Tech behemoths such as Twitter, Amazon.com, and Meta Platforms (Facebook) are the first on a large scale since early 2020.

Layoffs at Big Tech behemoths such as Twitter, Amazon.com, and Meta Platforms (Facebook) are the first on a large scale since early 2020.

After years of falling unemployment in the United States, it may appear that Silicon Valley is heralding the start of a dystopian future for workers. However, there is a good chance that what happens in Silicon Valley will not affect the rest of the economy.

A few years ago, big tech firms were quick to hire. After the pandemic struck in 2020, it took four months for employment in the “other information” sector to return to pre-pandemic levels. In comparison, total employment did not recover for another 29 months.

Advertisement

Regarding firing, Big tech in Silicon Valley is also ahead of the curve. Rising interest rates make capital more expensive, forcing businesses to cut spending on future projects.

This is especially difficult for tech companies that rely heavily on innovation to drive growth. Elon Musk cut Twitter’s headcount in half in November to cut costs. Employment has since fallen further as dissatisfied employees resign.

Companies are still hiring elsewhere. In September, there were roughly two job openings for every available worker.

Advertisement

According to Indeed, job postings for restaurant workers were up 38% from pre-pandemic levels as of Nov. 10. Listings for hospitality and tourism are 15% higher than they were previously.

big tech layoffs

Big Tech layoffs and slower hiring

Could Silicon Valley’s aches and pains spread? That depends on the Federal Reserve, which is mandated to reduce inflation from 6.3% to 2%, excluding food and energy prices.

In September, officials warned that the fight would almost certainly result in layoffs and slower hiring. According to the Fed’s projections, unemployment will reach 4.4% in 2024, implying that 1.2 million more people will be out of work.

Advertisement

Nonetheless, inflation appears to have peaked in June. On Wednesday, Fed Governor Christopher Waller suggested that such a trade-off might be avoidable.

This raises the prospect of a tech-specific adjustment rather than a white-collar recession. That’s not much consolation for employees returning their door badges. However, it suggests that Silicon Valley’s modest purge may be the worst it gets.

Amazon.com, Twitter, Meta Platforms, and other technology companies have recently laid off tens of thousands of workers as executives look to cut costs and prepare for slower growth.

Advertisement

According to the Federal Reserve, rising interest rates could lead to higher unemployment. Fed Chair Jerome Powell has repeatedly emphasized high job openings as a sign of an imbalanced labour market.

big tech

Inflation killing jobs

Inflation data released on November 10 showed that prices rose 7.7% yearly through October. This is a decrease from the previous month’s rate of 8.2%.

According to a KPMG study, at least 91 percent of top job creators are bracing for a Biden Recession, with more than half considering layoffs in the next six months.

Advertisement

“America’s CEOs are becoming an increasingly pessimistic group as inflation rages, and the Federal Reserve keeps hiking interest rates,” according to Fox Business.

Another recent survey found that more than a third of chief financial officers (CFOs) believe the United States is either in a recession or will be by the end of the year.

Layoffs at Big tech companies in the United States and Europe have recently increased due to record inflation, higher energy costs, and central banks aggressively raising interest rates, which has fueled recession fears.

Advertisement

During the coronavirus pandemic, technology companies increased hiring to meet increased consumer demand, but the tables have turned in 2022.

Global inflation has reached its highest level in nearly 40 years, forcing central banks to raise interest rates in late 2021, significantly reducing the amount of capital and liquidity available in markets for investment.

Major technology companies have been laying off employees or putting new hires on hold at an unprecedented rate to cut costs.

Advertisement

According to the data tracker website Layoffs.FYI, 788 tech companies have laid off 120,699 employees worldwide since the beginning of 2022.

According to a report by business information provider Crunchbase, over 67,000 workers in the US technology industry have been laid off this year.

Source: Reuters

Advertisement

Tech

Elon Musk Chastises Apple for 30% App Store Fees

Published

on

By

Elon Musk Chastises Apple for 30% App Store Fees

Elon Musk slammed Apple in a series of tweets o Twitter on Monday over its 30% App Store fees, providing Spotify and Epic Games with a powerful ally in their battle against the tech giant.

Elon Musk chastised Apple for charging software developers a fee for in-app purchases and posted a meme implying he was willing to “go to war” rather than pay the levy.

Musk also claimed that Apple had threatened to remove Twitter from its app store, though he did not elaborate.

Advertisement

Spotify has filed antitrust complaints against Apple in Europe, and Epic Games planned to sue Apple in the United States in 2020.

Musk, who purchased Twitter last month, has announced plans to charge users $8 per month to become verified on the social media platform to increase profitability and avoid bankruptcy. A 30% reduction would be a significant blow to those plans.

After Spotify filed an antitrust case against Apple in 2019, the European Commission has been investigating whether Apple’s rules for app developers violate its rules.

Advertisement

If found guilty of violating EU antitrust rules, Apple faces a fine of up to 10% of its global revenue.

Apple is “playing a dangerous game,” according to Luke Suddards, an analyst at investment insights firm Finimize, by threatening to remove Twitter from its App Store.

“If Twitter is suspended, another lawsuit could be filed. Elon Musk used the courts effectively during his Twitter acquisition, and it would not be surprising if he used the same strategy now.”

Advertisement

apple twitterapple twitter

Apple vs. Epic Games

Epic Games asked a three-judge U.S. federal appeals panel earlier this month to overturn portions of a lower court antitrust ruling that favored Apple and its App Store payment business.

Apple previously stated that the commissions it receives help it fund app reviews to ensure consumers are not exposed to fraudulent, pornographic, or privacy-invading apps.

“Apple continues to disadvantage competitors, with significant consequences for consumers, app developers, and, most recently, authors and publishers. Nothing will change unless policymakers take action. “Last month, Spotify CEO Daniel Ek posted on Twitter.

Advertisement

Musk, who was in the process of purchasing Twitter at the time, responded to Ek’s post with “concerning.”

However, some analysts are concerned that going to war with Apple will drive more users away from Twitter.

“While Musk seeks to rekindle the ongoing feud between Apple and developers, all of this negativity will drive Twitter users away,” said Paolo Pescatore, an analyst with PP Foresight.

Advertisement

“People are not going to abandon their iPhones… They are used to signing up for various social services but only use one phone at a time, “He stated.

apple twitter

Apple threat to yank Twitter from App Store

In a series of tweets on Monday, Elon Musk accused Apple of threatening to block Twitter Inc from its app store without explaining why. He also claimed that the iPhone maker had stopped advertising on social media.

The billionaire CEO of Twitter and Tesla claimed that Apple was putting pressure on Twitter over content moderation requirements.

Apple has not confirmed the action, but it would not be unusual given that the company has routinely enforced its rules and previously removed apps such as Gab and Parler.

Advertisement

Apple restored Parler, popular among US conservatives, in 2021 after the app updated its content and moderation practices, the companies said at the time.

“Apple has largely discontinued advertising on Twitter. Do Americans despise free speech? “Musk, who purchased Twitter for $44 billion last month, stated in a tweet.

In a subsequent tweet, he tagged Apple CEO Tim Cook’s Twitter account, asking, “what’s going on here?”

Advertisement

Apple did not respond immediately to requests for comment.

“It wasn’t clear to me how far up the Apple food chain that idea went internally,” Randal Picker, a law professor at the University of Chicago, said.

Apple twitter

Apple was the top advertiser on Twitter.

According to ad measurement firm Pathmatics, the world’s most valuable company spent an estimated $131,600 on Twitter ads between Nov. 10 and Nov. 16, down from $220,800 between Oct. 16 and Oct. 22, the week before Musk closed the Twitter deal.

According to an internal Twitter document, Apple was the top advertiser on Twitter in the first quarter of 2022, spending $48 million and accounting for more than 4% of total revenue for the period.

Advertisement

Twitter did not immediately respond to a request for comment on the report from Reuters.

The up to 30% fee Apple charges software developers for in-app purchases was among Musk’s list of grievances, with Musk posting a meme suggesting he was willing to “go to war” with Apple rather than pay the commission.

The fee has drawn criticism and lawsuits from companies such as Epic Games, the creators of ‘Fortnite,’ as well as the attention of regulators worldwide.

Advertisement

The commission may consider Musk’s efforts to increase subscription revenue at Twitter, partly to compensate for the exodus of advertisers due to content moderation concerns.

Since the acquisition, companies ranging from General Mills Inc (GIS.N) to luxury automaker Audi of America have stopped or paused advertising on Twitter, and Musk stated earlier this month that the company had seen a “massive” drop in revenue.

Ad sales generate roughly 90% of Twitter’s revenue.

The self-described free speech absolutist, whose company has reinstated several Twitter accounts, including that of former US President Donald Trump, in recent days, has blamed activist groups for putting pressure on advertisers.

Advertisement

According to Ben Bajarin, the head of consumer technologies at research firm Creative Strategies, Musk may be reading too much into a routine process Apple uses for app review.

“App review from Apple is not perfect by any means, and it is a consistently frustrating process for developers,” he said. “However, from what I hear, it is a two-way conversation.”

Elon Musk to Grants Amnesty to Suspended Accounts

Twitter to Grant “Amnesty” to Suspended Accounts

Advertisement
Continue Reading

Tech

Twitter to Grant “Amnesty” to Suspended Accounts

Published

on

By

Twitter to Grant "Amnesty" to Suspended Accounts

Twitter CEO Elon Musk announced Thursday that he is granting “amnesty” to suspended accounts, which alleged experts predict will increase harassment, hate speech, and misinformation.

The billionaire announced after asking for votes on the reinstatement of accounts that have not “broken the law or engaged in egregious spam” in a poll posted to his timeline. The yes vote received 72% of the vote.

“The populace has spoken. The amnesty period begins next week. “Vox Populi, Vox Dei,” Musk wrote on Twitter, referring to the Latin phrase that means “the voice of the people, the voice of God.”

Advertisement

Musk used the same Latin phrase after posting a similar poll last weekend before reinstating former President Donald Trump’s account, which Twitter had banned for encouraging the Capitol insurgency on January 6, 2021. Trump has stated that he will no longer use Twitter but has not deleted his account.

Such online polls are far from scientific and are easily manipulated by bots.

Racist, anti-Semitic, and other toxic speech has been on the rise on the world’s de facto public square in the month since Musk took over Twitter, according to groups that monitor the platform. This has included increased racist abuse directed at World Cup soccer players, which Twitter allegedly fails to address.

Advertisement

The increase in harmful content is largely due to the chaos after Musk decided to lay off half of the company’s 7,500-person workforce, fire top executives, and then issue a series of ultimatums that prompted hundreds more to resign.

A slew of contractors in charge of content moderation was also let go. Yoel Roth, Twitter’s head of trust and safety, was among those who resigned due to a lack of trust in Musk’s willingness to keep Twitter from devolving into chaos of uncontrolled speech.

Some advertisers have also withdrawn from Twitter.

Musk tweeted on Oct. 28, the day after assuming control, that no suspended accounts would be reinstated until Twitter formed a “content moderation council” with diverse viewpoints to consider the cases.

Advertisement

On Tuesday, he said he was breaking that promise because he agreed to it at the request of “a large coalition of political-social activist groups,” who later “broke the deal” by urging advertisers to at least temporarily stop doing business with Twitter.

A day earlier, Twitter reinstated far-right Rep. Marjorie Taylor Greene’s account, which was suspended in January for violating the platform’s COVID misinformation policies.

Meanwhile, Musk has become increasingly friendly with right-wing figures on Twitter. He urged “independent-minded” Americans to vote Republican ahead of this month’s midterm elections in the United States.

Advertisement

According to a European Union report released Thursday, Twitter took longer to review hateful content this year and removed less of it than in 2021.

The report was based on data collected in the spring — prior to Musk’s acquisition of Twitter — as part of an annual assessment of online platforms’ adherence to the EU’s code of conduct on disinformation. It discovered that Twitter assessed just over half of the illegal hate speech notifications it received within 24 hours, down from 82% in 2021.

Source: AP, VOR News

Advertisement

Stop Toxic Twitter Attacks Advertisers Over Trump

Stop Toxic Twitter Attacks Advertisers Over Trump

Continue Reading

News

Stop Toxic Twitter Attacks Advertisers Over Trump

Published

on

By

Stop Toxic Twitter Attacks Advertisers Over Trump Reinstated

On Monday, a coalition of woke activists urged Twitter’s advertisers to issue statements about pulling their ads after Elon Musk lifted the Twitter ban on former US President Donald Trump.

Trump’s account was reinstated over the weekend after Twitter’s woke CEO suspended it following the riot at the United States Capitol on January 6, 2021. He allegedly cited that the ban was for the risk of further incitement of violence.

Twitter generates 90% of its revenue from the sale of digital advertisements.

Advertisement

The Stop Toxic Twitter coalition, founded by disgruntled Twitter employees and woke activists, complained that Musk had promised advertisers that Twitter would take a cautious approach to reinstate banned accounts and convene a new content moderation council.

As of Monday, no such council had been formed.

“This was a real breach, according to Angelo Carusone, president of Media Matters, a coalition member with a far left-leaning woke media watchdog, said on Monday.

Advertisement

Musk, he claimed, “lied from the start.”

“In less than three weeks, Musk had broken a promise he made to advertisers,” said Jessica Gonzalez, co-chief executive of Free Press, a woke democracy group also part of the Twitter coalition.

Twitter did not immediately respond to Reuters‘ request for comment.

Advertisement

Musk sted earlier this month that pressure from woke activists had already resulted in a “massive drop in revenue.”

Late last week, Twitter began reinstating banned or suspended accounts, including comedian Kathy Griffin and Trump.

Twitter

On Monday, Twitter reactivated U.S. House Representative Marjorie Taylor Greene’s account.

According to Carusone, the Anti-Musk coalition is demanding brands that have not publicized their Twitter pause to make public statements to pressure the other 49 advertisers who have not taken action.

Advertisement

“You must take a stand and draw a line,” Carusone advised. “It’s critical for big spenders to state that they’ve stopped.”

He added that if the companies have not issued a public statement about pausing ads, the coalition will consider naming them later this week.

Musk announced on Saturday that Twitter would restoreTrumps account after a Twitter poll on the subject.

Advertisement

The names at the top of Twitter’s top advertisers had shifted since the week before Musk completed his company acquisition.

Carusone

Media Matters Founders Hypocrisy

Angelo Carusone, the president of Media Matters, faced scrutiny over a series of derogatory comments on his blog that resurfaced.

According to The Daily Caller, Angelo Carusone appeared to make derogatory comments about Jews, “transvestites” and Japanese people.

Advertisement

Carusone has a track record of inflammatory statements. Carusone’s now-defunct blog included degrading references to “trannies,” “Jewry,” and Bangladeshis. Carusone posted a lengthy diatribe in November 2005 about a Bangladeshi man robbed by “a gang of transvestites,” as Carusone described it.

Carusone was offended that the gang was described as “attractive” in an article. “Did you notice the word attractive? What the f**k is that doing in there? Is the write[r] a tranny lover too? Or, perhaps he’s trying to justify how these trannies tricked this Bangladeshi in the first place?

Look, man, we don’t need to know whether or not they were attractive. The f**king guy was Bangladeshi,” Carusone wrote. “And while we’re out, what the hell was he doing with $7,300 worth of stuff?

Advertisement

The guy’s Bangladeshi! [sic]” Carusone also chided police for not advising the public to “stay away from tranny bars, stay away from places [sic] where Eddie Murphy and Robert Downey Jr. have/are visiting, don’t f**king kiss a transvestite, don’t bring a group of transvestites back to your room, etc..”

That same year, Carusone also commented on a male basketball coach accused of sexually and physically abusing his female players.

Carusone dismissed the allegations against the coach in Japan using an ethnic slur.

Advertisement

Carusone also appeared to praise former Sen. Robert Byrd (D-W.Va.), a former member of the Ku Klux Klan, in one post. He separately wrote that his boyfriend was adorable “despite his Jewry.”

Of course, Media Matters did not respond to a request for comment.

The resurfaced posts came days after Media Matters published offensive comments previously made by Fox News host and Daily Caller founder Tucker Carlson.

Advertisement

Carlson said that he wouldn’t apologize for his derogatory comments on the “Bubba the Love Sponge” radio program between 2006 and 2011.

Elon Musk Announces Twitter Will Ban Impersonators

Elon Musk Announces Twitter Will Ban Impersonators

Advertisement
Continue Reading

Trending