Science & Technology
Meta to cut 10,000 jobs in second round of layoffs
Facebook-parent Meta Platforms (META.O) said on Tuesday it would cut 10,000 jobs this year, making it the first Big Tech company to announce a second round of mass layoffs as the industry braces for a deep economic downturn, Reuters reported.
Meta shares jumped 6% on the news. The widely-anticipated job cuts are part of a restructuring that will see the company scrap hiring plans for 5,000 openings, kill off lower-priority projects and “flatten” layers of middle management.
They followed the company’s first mass layoff in the fall, which eliminated more than 11,000 jobs, or 13% of its workforce at the time, after a hiring spree that doubled the employee count it had as of 2020.
Worries of an economic downturn due to rising interest rates have sparked a series of mass job cuts across corporate America in recent months. Tech companies have led the way, shedding more than 290,000 workers since the start of 2022, according to tracking site Layoffs.fyi.
Meta’s purge of employees has been one of the sector’s most pronounced. On top of inflation woes, the company is also facing down unique threats to its core digital ads business while spending handsomely on Chief Executive Mark Zuckerberg’s plans to build a futuristic metaverse.
In a message to staff on Tuesday, Zuckerberg said most of the new cuts would be announced in the next two months, though in some cases they would continue through the end of the year, read the report.
“For most of our history, we saw rapid revenue growth year after year and had the resources to invest in many new products. But last year was a humbling wake-up call,” Zuckerberg wrote.
“I think we should prepare ourselves for the possibility that this new economic reality will continue for many years.”
Zuckerberg said he planned to further reduce the size of the recruiting team, which was already hard-hit in the fall layoffs. Restructurings in the tech group would be announced in late April and cuts to business groups would come in May.
Meta also will remove multiple layers of management and ask many managers to become individual contributors, while eliminating non-engineering roles, automating more functions and at least partially reversing a commitment to “remote-first” work that Zuckerberg made amid COVID-19 pandemic lockdowns, Reuters reported.
The first of the latest wave of cuts appeared to have started even before Zuckerberg’s announcement. On Friday, Meta said it was exploring “strategic alternatives” for Kustomer, a customer service company it acquired last year.
It also disbanded its skunkworks New Product Experimentation team and reassigned leader Ime Archibong to work on product for Messenger, according to an internal memo seen by Reuters. Both changes were initially reported by the Wall Street Journal.
Investors have grown wary of Zuckerberg’s prolific spending as revenue growth from Meta’s main businesses petered out amid high inflation and a digital ads pullback from the pandemic e-commerce boom.
The company also has struggled with Apple-led (AAPL.O) privacy changes and competition for young users from short video app TikTok.
At the same time, Meta has been pouring billions of dollars into its metaverse-oriented Reality Labs unit, which lost $13.7 billion in 2022, and investing in infrastructure to support its artificial intelligence usage.
Wall Street has been rewarding Meta steadily since its November restructuring, after its share price fell more than 70% earlier in 2022. The stock received another boost in February when Zuckerberg dubbed 2023 the “Year of Efficiency,” with new cost controls and a $40-billion share buyback.
The latest downsizing indicates “how desperate the company is to get costs under control as its revenues have fallen amid declining marketing budgets,” said Hargreaves Lansdown analyst Susannah Streeter, Reuters reported.
“Virtual reality is an expensive business to be in, so while (Meta) maps out a path through an uncertain landscape, it needs to find efficiencies elsewhere,” she added.
In his memo, Zuckerberg made scant mention of virtual reality and instead emphasized the company’s focus on AI, saying Meta’s single largest investment was in “advancing AI and building it into every one of our products.”
Meta has teased AI-powered “creative aids” that can generate images, videos and text but has yet to offer any such products on its apps, even as peers have launched dueling generative AI chatbots and productivity tools in recent months.
With the latest cuts, Meta expects expenses in 2023 to come in between $86 billion and $92 billion, lower than the $89 billion to $95 billion forecast previously, read the report.
Science & Technology
Australia social media ban set to take effect, sparking a global crackdown
For the social media businesses, the implementation marks a new era of structural stagnation as user numbers flatline and time spent on platforms shrinks, studies show.
Australia is set to become the first country to implement a minimum age for social media use on Wednesday, with platforms like Instagram, TikTok and YouTube forced to block more than a million accounts, marking the beginning of an expected global wave of regulation.
From midnight, 10 of the biggest platforms will be required to block Australians aged under 16 or be fined up to A$49.5 million ($33 million), Reuters reported.
The law received harsh criticism from major technology companies and free speech advocates, but was praised by parents and child advocates.
The rollout closes out a year of speculation about whether a country can block children from using technology that is built into modern life. And it begins a live experiment that will be studied globally by lawmakers who want to intervene directly because they are frustrated by what they say is a tech industry that has been too slow to implement effective harm-minimisation efforts.
Governments from Denmark to Malaysia – and even some states in the U.S., where platforms are rolling back trust and safety features – say they plan similar steps, four years after a leak of internal Meta (META.O) documents showed the company knew its products contributed to body image problems and suicidal thoughts among teenagers while publicly denying the link existed.
“While Australia is the first to adopt such restrictions, it is unlikely to be the last,” said Tama Leaver, a professor of internet studies at Curtin University.
“Governments around the world are watching how the power of Big Tech was successfully taken on. The social media ban in Australia … is very much the canary in the coal mine.”
A spokesperson for the British government, which in July began forcing websites hosting pornographic content to block under-18 users, said it was “closely monitoring Australia’s approach to age restrictions.”
“When it comes to children’s safety, nothing is off the table,” they added.
Few will scrutinise the impact as closely as the Australians. The eSafety Commissioner, an Australian regulator tasked with enforcing the ban, hired Stanford University and 11 academics to analyse data on thousands of young Australians covered by the ban for at least two years.
Though the ban covers 10 platforms initially, including Alphabet’s (GOOGL.O), YouTube, Meta’s Instagram and TikTok, the government has said the list will change as new products appear and young users switch to alternatives.
Of the initial 10, all but Elon Musk’s X have said they will comply using age inference – guessing a person’s age from their online activity – or age estimation, which is usually based on a selfie. They might also check with uploaded identification documents or linked bank account details.
Musk has said the ban “seems like a backdoor way to control access to the internet by all Australians” and most platforms have complained that it violates people’s right to free speech.
For the social media businesses, the implementation marks a new era of structural stagnation as user numbers flatline and time spent on platforms shrinks, studies show.
Platforms say they don’t make much money showing advertisements to under-16s, but they add that the ban interrupts a pipeline of future users. Just before the ban took effect, 86% of Australians aged 8 to 15 used social media, the government said.
“The days of social media being seen as a platform for unbridled self-expression, I think, are coming to an end,” said Terry Flew, the co-director of University of Sydney’s Centre for AI, Trust and Governance.
Platforms responded to negative headlines and regulatory threats with measures like a minimum age of 13 and extra privacy features for teenagers, but “if that had been the structure of social media in the boom period, I don’t think we’d be having this debate,” he added.
Science & Technology
Ethiopian volcano erupts for first time in nearly 12,000 years
Ash from the eruption drifted across the region, spreading over Yemen, Oman, India, and parts of Pakistan.
The Hayli Gubbi volcano in Ethiopia’s Afar region has erupted for the first time in almost 12,000 years, sending massive ash plumes soaring up to 14 kilometres into the atmosphere, according to the Toulouse Volcanic Ash Advisory Centre.
The eruption began on Sunday and lasted several hours. Hayli Gubbi, located around 800 kilometres northeast of Addis Ababa near the Eritrean border, sits within the geologically active Rift Valley, where two major tectonic plates meet. The volcano rises roughly 500 metres above the surrounding landscape.
Ash from the eruption drifted across the region, spreading over Yemen, Oman, India, and parts of Pakistan. Satellite imagery and social-media videos captured a towering column of white smoke billowing into the sky.
The Smithsonian Institution’s Global Volcanism Program notes that Hayli Gubbi has no recorded eruptions during the Holocene, the period dating back about 12,000 years to the end of the last Ice Age.
Volcanologist Simon Carn of Michigan Technological University also confirmed on Bluesky that the volcano had “no record of Holocene eruptions.”
Science & Technology
Cloudflare outage easing after millions of internet users affected
A global outage at web-infrastructure firm Cloudflare began to ease on Tuesday afternoon after preventing people from accessing major internet platforms, including X and ChatGPT.
Cloudflare, whose network handles around a fifth of web traffic, said it started to investigate the internal service degradation around 6:40 a.m. ET. It has deployed a fix but some customers might still be impacted as it recovers service.
The incident marked the latest hit to major online services. An outage of Amazon’s cloud service last month caused global turmoil as thousands of popular websites and apps, including Snapchat, were inaccessible due to the disruption.
Cloudflare – whose shares were down about 5% in premarket trading – runs one of the world’s largest networks that helps websites and apps load faster and stay online by protecting them from traffic surges and cyberattacks.
The latest outage prevented users from accessing platforms such as Canva, X, and ChatGPT, prompting users to log outage reports with Downdetector.
Downdetector tracks outages by collating status reports from a number of sources. “We saw a spike in unusual traffic to one of Cloudflare’s services beginning at 11:20 UTC. That caused some traffic passing through Cloudflare’s network to experience errors,” the company said in an emailed statement.
“We are all hands on deck to make sure all traffic is served without errors.”
X and ChatGPT-creator OpenAI did not immediately respond to requests for comment. – REUTERS
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