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Tag: employment and income status

  • LinkedIn to cut 716 jobs and shut its China app amid ‘challenging’ economic climate | CNN Business

    LinkedIn to cut 716 jobs and shut its China app amid ‘challenging’ economic climate | CNN Business

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    Hong Kong
    CNN
     — 

    LinkedIn, the world’s largest social media platform for professionals, is cutting 716 positions and shutting down its jobs app in mainland China, the California-based company announced.

    The decision was made amid shifts in customer behavior and slower revenue growth, CEO Ryan Roslansky said Monday in a letter to employees.

    “As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization and our China strategy that will result in a reduction of roles for 716 employees,” he said.

    LinkedIn, owned by Microsoft

    (MSFT)
    , has joined a slew of US tech companies that have made significant job cuts this year. Meta announced in March an additional 10,000 layoffs on top of mass layoffs announced in 2022. Amazon also said during the same month it would eliminate 9,000 positions, on the heels of the 18,000 roles the company announced it was cutting in January.

    “As we plan for [the fiscal year of 2024], we’re expecting the macro environment to remain challenging,” Roslansky said. “We will continue to manage our expenses as we invest in strategic growth areas.”

    As part of the move, LinkedIn will phase out InCareer, its app for mainland China, by August 9.

    Roslansky cited “fierce competition” and “a challenging macroeconomic climate” as the reason for the shutdown.

    LinkedIn will retain some presence in China, including providing services for companies operating there to hire and train employees outside the country, according to a company spokesperson.

    LinkedIn is the last major Western social media app still operating in mainland China. Twitter, Facebook and Youtube have been banned in the country for more than a decade. Google left in early 2010.

    LinkedIn first entered China in 2014 by launching a localized version of its main app. But its moves to censor posts in the country, in accordance with Chinese laws, came under criticism.

    In March 2021, LinkedIn had to suspend signups in China to ensure it was “in compliance with local law.” A few months later, it replaced that app with InCareer, which was focused solely on job postings, with no social networking features such as sharing or commenting.

    The US social media site has faced tough competition in China. By 2021, it had more than 50 million members in the country, making it the company’s third biggest market after the United States and India. But it lagged behind local competitors such as Maimai.

    Maimai was launched in 2013 and dubbed the Chinese version of LinkedIn. In a few years it surpassed LinkedIn to become the most popular professional networking platform in the country, with 110 million verified members. A major feature that powered its success was that it allowed users to post anonymously in a chat forum.

    The operating environment in China has also become more challenging. Since Xi Jinping took power in 2012, he has tightened control over what can be said online and launched a series of crackdowns on the internet.

    “While we’ve found success in helping Chinese members find jobs and economic opportunity, we have not found that same level of success in the more social aspects of sharing and staying informed,” LinkedIn wrote in an October 2021 blog post. “We’re also facing a significantly more challenging operating environment and greater compliance requirements in China.”

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  • Social Security will not be able to pay full benefits in 2034 if Congress doesn’t act | CNN Politics

    Social Security will not be able to pay full benefits in 2034 if Congress doesn’t act | CNN Politics

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    CNN
     — 

    Americans’ Social Security checks will get a lot smaller in 2034 if lawmakers don’t act to address the pending shortfall, according to an annual report released Friday by the Social Security trustees.

    That’s because the combined Social Security trust funds – which help support payouts for the elderly, survivors and disabled – are projected to run dry that year. At that time, the funds’ reserves will be depleted, and the program’s continuing income will only cover 80% of benefits owed.

    The estimate is one year earlier than the trustees projected last year. About 66 million Americans received Social Security benefits in 2022.

    Medicare, meanwhile, is in a more critical financial condition. Its hospital insurance trust fund, known as Medicare Part A, will only be able to pay scheduled benefits in full until 2031, according to its trustees’ annual report, which was also released Friday.

    At that time, Medicare, which covered 65 million senior citizens and people with disabilities in 2022, will only be able to cover 89% of total scheduled benefits. Last year, Medicare’s trustees projected that the hospital trust fund’s reserves would be depleted in 2028.

    Immensely popular but long troubled, Social Security and Medicare are on shaky financial ground in large part because of the aging of the American population. Fewer workers are paying into the program and supporting the ballooning number of beneficiaries, who are also living longer. Also, health care is becoming increasingly expensive.

    Social Security has two trust funds – one for retirees and survivors and another for Americans with disabilities.

    Looking at them separately, the Old-Age and Survivors Insurance Trust Fund is projected to run dry in 2033, at which time Social Security could pay only 77% of benefits, primarily using income from payroll taxes. The date is one year earlier than estimated last year.

    The Disability Insurance Trust Fund is expected to be able to pay full benefits through at least 2097, the last year of the trustees’ projection period.

    Merging the two trust funds would require Congress to act, but the combined projection is often used to show the overall status of the entitlement.

    Social Security’s projected long-term health worsened over the past year because the trustees revised downward their expectations for the economy and labor productivity, taking into account updated data on inflation and economic output.

    However, the long-term projection for Medicare’s hospital trust fund’s finances improved, mainly due to lowered estimates for health care spending after the height of the Covid-19 pandemic. Also, the program is projected to take in more income because the trustees estimate the number of covered workers and average wages will be higher.

    Regardless, the bottom line remains that Medicare is not bringing in enough money to pay the costs it is expected to incur, said Cori Uccello, senior health fellow at the American Academy of Actuaries.

    “It’s still not a time to become complacent,” she said. Insolvency “is still less than a decade away.”

    The trustees’ reports are the latest warnings to Congress that they will have to deal with the massive entitlement programs’ fiscal problems at some point soon. But addressing their issues is politically challenging. Elected officials are hesitant to suggest any changes that could lead to benefit cuts, even though that could reduce their options in the future.

    “With each year that lawmakers do not act, the public has less time to prepare for the changes,” the trustees warned in a fact sheet.

    The programs’ shortfalls are back in the spotlight this year as President Joe Biden and House Republicans battle over how to address the nation’s debt ceiling drama and mounting budget deficits. GOP lawmakers want to cut spending in exchange for resolving the borrowing limit, while the White House has said it will not negotiate.

    In a memorable moment in his State of the Union address in February, Biden garnered public acknowledgment from congressional Republicans about keeping Social Security and Medicare out of the debt discussions.

    But “not touching” Social Security means a hefty cut in benefits within a decade or so.

    “Change is inevitable because without changes to current law, both Social Security and Medicare Hospital Insurance would go insolvent, subjecting program participants to sudden and severe payment cuts,” said Charles Blahous, senior research strategist at the Mercatus Center at George Mason University and former Social Security and Medicare trustee. “The outstanding question is whether change will be tolerably gradual, or instead highly damaging because it is too long delayed.”

    Though Biden has repeatedly vowed to protect Social Security, his latest budget proposal did not include a plan to stabilize its finances.

    However, his proposal did call for extending Medicare’s solvency by 25 years or more by raising taxes on those earning more than $400,000 a year and by allowing the program to negotiate prices for even more drugs.

    Spending on the entitlement programs is also projected to soar and exert increased pressure on the federal budget in coming years.

    Mandatory spending – driven by Social Security and Medicare – and interest costs are expected to outpace the growth of revenue and the economy, according to a Congressional Budget Office outlook released in mid-February.

    This story has been updated with additional information.

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  • Vodafone plans 11,000 job cuts | CNN Business

    Vodafone plans 11,000 job cuts | CNN Business

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    London
    CNN
     — 

    Vodafone said Tuesday it would cut 11,000 jobs over three years, as the telecom company unveiled a turnaround plan to revive its fortunes following years of poor performance.

    The job cuts would affect the firm’s UK headquarters and operations in other countries, Vodafone

    (VOD)
    added in a statement. Shares slid more than 4% in London.

    “Our performance has not been good enough,” CEO Margherita Della Valle said. “We will simplify our organization, cutting out complexity to regain our competitiveness.”

    Two decades ago, Vodafone was the world’s biggest mobile telecom group, having bought Germany’s Mannesmann in 2000 in the largest takeover in history. The deal was valued above $190 billion.

    But the company, which has businesses in 21 countries and partnership agreements with local operators in another 46 locations, has struggled to retain market share.

    Vodafone employs 104,000 people worldwide, according to its latest annual report. Apart from the United Kingdom, it is a major provider of mobile networks in Germany, Spain, Italy and parts of Africa.

    Della Valle, who was appointed to the role three weeks ago after almost 30 years with the company, said her priorities were “customers, simplicity and growth.”

    European telecoms companies have fared particularly poorly over the past decade, delivering lower returns to shareholders than in the United States, according to McKinsey.

    Within a challenging sector, Vodafone’s performance relative to peers had “worsened over time,” Della Valle said in a video posted to the company’s website.

    “Our performance relative to our major competitors in our largest markets has not been good enough, and we know that this is strongly connected to the experience of our customers not being good enough,” she added. Shares in Vodafone have fallen 28% over the past year.

    Under its turnaround plan, Vodafone would invest more in its customer experience and also direct more resources towards Vodafone Business, serving corporate clients, which was growing in nearly all the company’s European markets.

    The strategic overhaul comes as Vodafone’s results showed revenue for the year to March grew by just 0.3% to €45.7 billion ($49.8 billion). Adjusted earnings declined to €14.7 billion ($16 billion), below the company’s own guidance, because of high energy prices and a weak performance in Germany, its biggest market.

    Vodafone said it would generate free cash flow of around €3.3 billion ($3.6 billion) for this financial year, compared to €4.8 billion ($5.2 billion) for the year to end March.

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  • Meta’s business groups cut in latest round of layoffs | CNN Business

    Meta’s business groups cut in latest round of layoffs | CNN Business

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    New York
    CNN
     — 

    Facebook-parent Meta on Wednesday began cutting employees in its business groups as part of a previously announced round of layoffs, according to social media posts from impacted workers.

    Meta employees in operations, project management, marketing, policy, communications and risk analytics announced on LinkedIn Wednesday morning that they had been laid off.

    The company declined to confirm the reductions were underway, but a Meta spokesperson pointed CNN to the March blog post from CEO Mark Zuckerberg announcing that the company would cut 10,000 employees this year, and that affected members of the business groups would be notified this month.

    Zuckerberg previously said the business groups would be the third and final major round of those layoffs. Laid off members of Meta’s technology and recruiting teams were notified in the past two months. Some smaller reductions may continue through the end of 2023, Zuckerberg said in March.

    The 10,000 job reductions mark the second significant wave of layoffs at Meta in recent months. The company said in November that it was eliminating approximately 13% of its workforce, or 11,000 jobs, in the single largest round of cuts in its history.

    In September, Meta reported a headcount of 87,314, per a securities filing. With the 11,000 job cuts announced in November and the 10,000 announced in March, Meta’s headcount will fall to around 66,000 — a total reduction of about 25% — assuming no additional hiring.

    Meta has said the layoffs are part of its “year of efficiency,” as the company attempts to recover from repeated revenue declines, heightened competition, concerns about user growth and big losses in its Reality Labs division amid its pivot to building the so-called metaverse. Zuckerberg has also taken responsibility for over-hiring earlier in the pandemic, when there was strong demand for the company’s products and online advertising, which dropped off somewhat once the world reopened.

    The turnaround strategy is showing early signs of success. Meta’s stock jumped last month after the company posted a 3% year-over-year revenue increase for the first three months of 2023, reversing a trend of three consecutive quarters of revenue declines. Still, profits declined by nearly a quarter compared to the same period in the prior year, and price per advertisement — an indicator of the health of the company’s core digital ad business — also decreased by 17% from the year prior.

    Zuckerberg said on an earnings call with analysts last month that when Meta started its “efficiency work” late last year, “our business wasn’t performing as well as I wanted, but now we’re increasingly doing this work from a position of strength.”

    But left in its wake are the thousands of employees affected by layoffs.

    “Finding work you care about and believe in and the right people to be in the trenches with is an incredible dream; it also makes moments like this incredibly difficult,” one employee affected by Wednesday’s layoffs said in a LinkedIn post. The employee called the cuts a “shock to the system.”

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  • Job site ZipRecruiter cutting 20% of its staff | CNN Business

    Job site ZipRecruiter cutting 20% of its staff | CNN Business

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    New York
    CNN
     — 

    Fewer employers looking for workers means 270 employees at job search site ZipRecruiter will soon be out of a job.

    The company is cutting 20% of its staff by the end of this month, the company disclosed in a filing late Wednesday.

    “This action was taken in response to current market conditions and after reducing other discretionary expenses, with a view toward driving long-term efficiency,” according to the filing.

    The company had previously said it is experiencing a “typical softness in jobs posting” in January, but sounded other alarms about a slowing in the labor market. Its first quarter revenue fell 19% from a year earlier and it forecast that its revenue in the current quarter would be down nearly 30% from the second quarter of 2022.

    The job search site still projects adjusted earnings that are roughly the same for this year as last year, although it said to do so it would “respond to our environment quickly” by “increasing our focus on profitability during times of decreased demand from employers.”

    About half of the 270 employees losing their job are in the sales and customer support teams. The company will take a charge of between $7 million to $9 million to cover severance costs. It expects to still make the same level of profits, excluding special items such as severance, as in its earlier guidance.

    It also announced that CEO Ian Siegel agreed to a 30% cut in base salary, as of June 1. He has a base salary of $550,000, according to an earlier filing, but had total compensation last year of about twice that amount.

    Layoffs across the tech sector have become widespread in recent months. Amazon, one of the nation’s largest private-sector employers, has announced two rounds of job cuts this year totaling 27,000 positions, and Facebook holding company Meta has announced 21,000 job cuts since last fall. Alphabet, Microsoft and Salesforce — and especially Twitter — have all announced large job cuts.

    Outplacement firm Challenger, Gray & Christmas said Thursday there have been 137,000 layoffs in the sector in the first five months of the year, the most job cuts in the sector since there were 168,000 in all of 2001, the year after the dot.com bubble burst.

    Despite all the job cuts in technology and also in media, US employers overall are still hiring more people than they’re cutting.

    Private sector employment increased by 278,000 jobs in May, according to ADP’s monthly National Employment Report released Thursday, much stronger than the 170,000 forecast by economists. Economists are also forecasting a gain of 190,000 jobs for May when the Labor Department issues its monthly jobs report Friday. The April jobs report also came in much stronger than expected, as employers added 253,000 jobs.

    Still, hiring is at a slower pace than a year ago, when employers added 445,000 jobs a month, on average, in the first half of 2022. The Labor Department’s count of job openings, while up 3% in April compared to March, is down 14% from a year earlier — though that still means there are 1.8 jobs available for every job seeker.

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  • Google workers in London stage walkout over job cuts | CNN Business

    Google workers in London stage walkout over job cuts | CNN Business

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    Reuters
     — 

    Hundreds of Google employees staged a walkout at the company’s London offices on Tuesday, following a dispute over layoffs.

    In January, Google’s parent company Alphabet announced it was laying off 12,000 employees worldwide, equivalent to 6% of its global workforce.

    The move came amid a wave of job cuts across corporate America, particularly in the tech sector, which has so far seen companies shed more than 290,000 workers since the start of the year, according to tracking site Layoffs.fyi.

    Trade union Unite, which counts hundreds of Google’s UK employees among its members, said the company had ignored concerns put forward by employees.

    “Our members are clear: Google needs to listen to its own advice of not being evil,” said Unite regional officer Matt Whaley.

    “They and Unite will not back down until Google allows workers full union representation, engages properly with the consultation process and treats its staff with the respect and dignity they deserve.”

    A Google employee attending the protest, who asked not to be named for fear of retaliation, told Reuters that talks between employees and management had been “extremely frustrating.”

    “It has been difficult for those involved. We have a redundancy process for a reason, so that employees can make their voice heard,” they said. “But it feels as if our concerns have fallen on deaf ears.”

    Google’s senior management has been engaged in redundancy talks in many parts of Europe, in line with local employment laws.

    Last month, workers at the company’s Zurich office in Switzerland staged a similar walkout, with employee representatives claiming Google had rejected their proposals to reduce job cuts.

    “As we said on January 20, we’ve made the difficult decision to reduce our workforce by approximately 12,000 roles globally. We know this is a very challenging time for our employees,” a Google spokesperson said.

    “In the UK, we have been constructively engaging and listening to our employees through numerous meetings, and are working hard to bring them clarity and share updates as soon as we can in adherence with all UK processes and legal requirements.”

    Google employs more than 5,000 people in the United Kingdom.

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  • Fixing Social Security involves hard choices | CNN Politics

    Fixing Social Security involves hard choices | CNN Politics

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    CNN
     — 

    There’s a reason why politicians have long shied away from addressing Social Security’s massive financial problems. The commonly proposed solutions involve cutting benefits or raising taxes, which would spark an outcry from a range of powerful constituents, including senior citizens and the business community.

    The situation, however, is only growing more critical. The combined Social Security trust funds are projected to run dry in 2034, according to the latest annual report from the entitlement program’s trustees that was released last week. At that time, the funds’ reserves will be depleted, and the program’s continuing income will only cover 80% of benefits owed.

    The estimate is one year earlier than the trustees projected last year.

    About 66 million Americans received Social Security benefits in 2022. It’s a vital lifeline for many of them. Some 42% of elderly women and 37% of elderly men rely on the monthly payments for at least half their income, according to the Social Security Administration.

    Though congressional Republicans’ drive to cut spending amid debt ceiling negotiations this year has prompted renewed interest in the entitlement’s finances, little is likely to happen, experts say. The insolvency date is still too far in the future.

    The last time Congress enacted a major overhaul, in 1983, Social Security was only months away from being able to pay full benefits. At that time, Democratic lawmakers who controlled the House agreed with Senate Republicans and then-GOP President Ronald Reagan to increase payroll taxes and gradually raise the full retirement age from 65 to 67, among other reforms.

    While President Joe Biden has promised to strengthen Social Security and defend it from any cuts by Republicans, he has yet to lay out a concrete vision for protecting the program. It was not included in his annual budget proposal this year, though he did suggest a financial fix for Medicare, which is facing its own solvency issues.

    Asked about the president’s plan, the White House said that the budget “clearly states his principles for strengthening Social Security.”

    “He looks forward to working with Congress to responsibly strengthen Social Security by ensuring that high-income individuals pay their fair share, without increasing taxes on anyone making less than $400,000,” said Robyn Patterson, assistant press secretary at the White House.

    A multitude of proposals have been floated over the years to address Social Security’s shortfall, many of which have multiple measures.

    Several options focus on saving the entitlement program money, though left-leaning advocates and senior citizen groups are quick to point out that these moves are actually benefit cuts that they would strenuously oppose.

    One common proposal is raising the retirement age. Currently, Americans can start collecting Social Security benefits at 62, though doing so would reduce their lifetime payments by as much as 30%.

    The full retirement age, which had been 65 for much of the program’s existence, is slowly rising to 67 for Americans born in 1960 or later.

    Some policymakers advocate for raising the full retirement age to 70 for future retirees, bringing it more in line with changes in life expectancy. That would mean those retiring earlier than that would get smaller monthly checks than under current law.

    Doing so could wipe out about a third of the Social Security trust fund’s 75-year deficit.

    Last year, the conservative Republican Study Committee released a budget plan that called for raising the full retirement age for future retirees at a rate of three months per year until it is increased to 70 for those born in 1978. It would then link the retirement age to future increases in life expectancy, as well as adjust the number of working years included in benefit calculations to 40 years, up from 35 years.

    Other options include reducing benefits for higher-income Americans, which was also included in the Republican Study Committee’s budget plan.

    New retirees’ Social Security benefits are one-third higher today than they were for folks who retired 20 years ago, even after accounting for inflation, according to Andrew Biggs, senior fellow at the right-leaning American Enterprise Institute. Plus, the maximum Social Security benefit in the US is two to three times higher than the maximum retirement benefit in Canada, the United Kingdom, Australia and New Zealand.

    Biggs supports placing a cap on the maximum benefit that the highest-earning retirees can receive. The maximum benefit this year is about $43,000 and will rise to $59,000 by 2050, he said. Though such a cap would only solve about 10% to 15% of the long-term solvency gap, Biggs argues it’s one step, and it only affects those who he says don’t depend on the benefits.

    “We’re going way, way beyond a pure safety net program,” Biggs said at a recent webinar hosted by the Committee for a Responsible Federal Budget, a government watchdog group. “Here we’re looking at a retirement program for middle income and upper income people.”

    Other suggestions that have been floated include changing the formulas that determine the benefits Americans get upon retirement or the annual cost-of-living adjustment retirees receive to slow the growth of payments.

    The main way to bring more money into the Social Security system is to increase the amount of payroll taxes collected.

    A proposal popular among Democrats and left-leaning experts is to lift the wage cap so that higher-income earners have to shell out more in payroll taxes.

    The Social Security tax rate of 6.2% is levied on both employers and employees, for a total rate of 12.4%. However, in 2023, it’s only applied to annual wages of up to $160,200. (By contrast, Medicare’s 2.9% total payroll tax rate is applied to all wages, and higher-income Americans are subject to an additional 0.9% Medicare tax.)

    When payroll taxes for Social Security were first collected in 1937, about 92% of earnings from jobs covered by the program were subject to the payroll tax, according to the Congressional Budget Office. By 2020, that figure had fallen to about 83% as income inequality has increased.

    Several congressional Democrats have floated proposals to raise the amount of wages subject to the payroll tax. Rep. John Larson of Connecticut wants to apply the payroll tax to wages above $400,000, which he says would extend the program’s solvency by nine years.

    Vermont Sen. Bernie Sanders, an independent, and Massachusetts Sen. Elizabeth Warren, a Democrat, introduced a bill earlier this year that would make multiple changes to Social Security, including subjecting all income above $250,000 to the payroll tax and applying it to investment and business income. They say their reforms would extend the entitlement’s solvency for 75 years.

    But changing the wage cap could also alter the fundamental design of Social Security, in which retirees’ benefits are tied to the amount of taxes they paid into the system while working.

    For instance, the proposal from Sanders and Warren would not credit the additional taxed earnings toward benefits. That would increase the beneficial impact on solvency but would also raise resistance among some advocates who believe the link between taxes and benefits should be maintained.

    Another option is raising the payroll tax rate. Increasing it to a total of 16% would just about assure 75 years of solvency, said Marc Goldwein, senior policy director for the Committee for a Responsible Federal Budget.

    Most lawmakers, however, would not find that type of tax hike very palatable, particularly not Republicans who control the House.

    While experts disagree on the best way to address Social Security’s shortfall, one thing they are generally united on is that waiting will only result in having to employ harsher solutions. But that isn’t spurring elected officials to action.

    “Nobody’s acting as if that’s something they’ve got to take seriously,” Biggs said. “So I’ll just be honest and say I’m worried about how this thing plays out.”

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  • ‘It’s an especially bad time’: Tech layoffs are hitting ethics and safety teams | CNN Business

    ‘It’s an especially bad time’: Tech layoffs are hitting ethics and safety teams | CNN Business

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    New York
    CNN
     — 

    In the wake of the 2016 presidential election, as online platforms began facing greater scrutiny for their impacts on users, elections and society, many tech firms started investing in safeguards.

    Big Tech companies brought on employees focused on election safety, misinformation and online extremism. Some also formed ethical AI teams and invested in oversight groups. These teams helped guide new safety features and policies. But over the past few months, large tech companies have slashed tens of thousands of jobs, and some of those same teams are seeing staff reductions.

    Twitter eliminated teams focused on security, public policy and human rights issues when Elon Musk took over last year. More recently, Twitch, a livestreaming platform owned by Amazon, laid off some employees focused on responsible AI and other trust and safety work, according to former employees and public social media posts. Microsoft cut a key team focused on ethical AI product development. And Facebook-parent Meta suggested that it might cut staff working in non-technical roles as part of its latest round of layoffs.

    Meta, according to CEO Mark Zuckerberg, hired “many leading experts in areas outside engineering.” Now, he said, the company will aim to return “to a more optimal ratio of engineers to other roles,” as part of cuts set to take place in the coming months.

    The wave of cuts has raised questions among some inside and outside the industry about Silicon Valley’s commitment to providing extensive guardrails and user protections at a time when content moderation and misinformation remain challenging problems to solve. Some point to Musk’s draconian cuts at Twitter as a pivot point for the industry.

    “Twitter making the first move provided cover for them,” said Katie Paul, director of the online safety research group the Tech Transparency Project. (Twitter, which also cut much of its public relations team, did not respond to a request for comment.)

    To complicate matters, these cuts come as tech giants are rapidly rolling out transformative new technologies like artificial intelligence and virtual reality — both of which have sparked concerns about their potential impacts on users.

    “They’re in a super, super tight race to the top for AI and I think they probably don’t want teams slowing them down,” said Jevin West, associate professor in the Information School at the University of Washington. But “it’s an especially bad time to be getting rid of these teams when we’re on the cusp of some pretty transformative, kind of scary technologies.”

    “If you had the ability to go back and place these teams at the advent of social media, we’d probably be a little bit better off,” West said. “We’re at a similar moment right now with generative AI and these chatbots.”

    When Musk laid off thousands of Twitter employees following his takeover last fall, it included staffers focused on everything from security and site reliability to public policy and human rights issues. Since then, former employees, including ex-head of site integrity Yoel Roth — not to mention users and outside experts — have expressed concerns that Twitter’s cuts could undermine its ability to handle content moderation.

    Months after Musk’s initial moves, some former employees at Twitch, another popular social platform, are now worried about the impacts recent layoffs there could have on its ability to combat hate speech and harassment and to address emerging concerns from AI.

    One former Twitch employee affected by the layoffs and who previously worked on safety issues said the company had recently boosted its outsourcing capacity for addressing reports of violative content.

    “With that outsourcing, I feel like they had this comfort level that they could cut some of the trust and safety team, but Twitch is very unique,” the former employee said. “It is truly live streaming, there is no post-production on uploads, so there is a ton of community engagement that needs to happen in real time.”

    Such outsourced teams, as well as automated technology that helps platforms enforce their rules, also aren’t as useful for proactive thinking about what a company’s safety policies should be.

    “You’re never going to stop having to be reactive to things, but we had started to really plan, move away from the reactive and really be much more proactive, and changing our policies out, making sure that they read better to our community,” the employee told CNN, citing efforts like the launch of Twitch’s online safety center and its Safety Advisory Council.

    Another former Twitch employee, who like the first spoke on condition of anonymity for fear of putting their severance at risk, told CNN that cutting back on responsible AI work, despite the fact that it wasn’t a direct revenue driver, could be bad for business in the long run.

    “Problems are going to come up, especially now that AI is becoming part of the mainstream conversation,” they said. “Safety, security and ethical issues are going to become more prevalent, so this is actually high time that companies should invest.”

    Twitch declined to comment for this story beyond its blog post announcing layoffs. In that post, Twitch noted that users rely on the company to “give you the tools you need to build your communities, stream your passions safely, and make money doing what you love” and that “we take this responsibility incredibly seriously.”

    Microsoft also raised some alarms earlier this month when it reportedly cut a key team focused on ethical AI product development as part of its mass layoffs. Former employees of the Microsoft team told The Verge that the Ethics and Society AI team was responsible for helping to translate the company’s responsible AI principles for employees developing products.

    In a statement to CNN, Microsoft said the team “played a key role” in developing its responsible AI policies and practices, adding that its efforts have been ongoing since 2017. The company stressed that even with the cuts, “we have hundreds of people working on these issues across the company, including net new, dedicated responsible AI teams that have since been established and grown significantly during this time.”

    Meta, maybe more than any other company, embodied the post-2016 shift toward greater safety measures and more thoughtful policies. It invested heavily in content moderation, public policy and an oversight board to weigh in on tricky content issues to address rising concerns about its platform.

    But Zuckerberg’s recent announcement that Meta will undergo a second round of layoffs is raising questions about the fate of some of that work. Zuckerberg hinted that non-technical roles would take a hit and said non-engineering experts help “build better products, but with many new teams it takes intentional focus to make sure our company remains primarily technologists.”

    Many of the cuts have yet to take place, meaning their impact, if any, may not be felt for months. And Zuckerberg said in his blog post announcing the layoffs that Meta “will make sure we continue to meet all our critical and legal obligations as we find ways to operate more efficiently.”

    Still, “if it’s claiming that they’re going to focus on technology, it would be great if they would be more transparent about what teams they are letting go of,” Paul said. “I suspect that there’s a lack of transparency, because it’s teams that deal with safety and security.”

    Meta declined to comment for this story or answer questions about the details of its cuts beyond pointing CNN to Zuckerberg’s blog post.

    Paul said Meta’s emphasis on technology won’t necessarily solve its ongoing issues. Research from the Tech Transparency Project last year found that Facebook’s technology created dozens of pages for terrorist groups like ISIS and Al Qaeda. According to the organization’s report, when a user listed a terrorist group on their profile or “checked in” to a terrorist group, a page for the group was automatically generated, although Facebook says it bans content from designated terrorist groups.

    “The technology that’s supposed to be removing this content is actually creating it,” Paul said.

    At the time the Tech Transparency Project report was published in September, Meta said in a comment that, “When these kinds of shell pages are auto-generated there is no owner or admin, and limited activity. As we said at the end of last year, we addressed an issue that auto-generated shell pages and we’re continuing to review.”

    In some cases, tech firms may feel emboldened to rethink investments in these teams by a lack of new laws. In the United States, lawmakers have imposed few new regulations, despite what West described as “a lot of political theater” in repeatedly calling out companies’ safety failures.

    Tech leaders may also be grappling with the fact that even as they built up their trust and safety teams in recent years, their reputation problems haven’t really abated.

    “All they keep getting is criticized,” said Katie Harbath, former director of public policy at Facebook who now runs tech consulting firm Anchor Change. “I’m not saying they should get a pat on the back … but there comes a point in time where I think Mark [Zuckerberg] and other CEOs are like, is this worth the investment?”

    While tech companies must balance their growth with the current economic conditions, Harbath said, “sometimes technologists think that they know the right things to do, they want to disrupt things, and aren’t always as open to hearing from outside voices who aren’t technologists.”

    “You need that right balance to make sure you’re not stifling innovation, but making sure that you’re aware of the implications of what it is that you’re building,” she said. “We won’t know until we see how things continue to operate moving forward, but my hope is that they at least continue to think about that.”

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  • Meta’s latest round of layoffs is underway | CNN Business

    Meta’s latest round of layoffs is underway | CNN Business

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    CNN
     — 

    Facebook parent Meta on Wednesday began its latest round of layoffs focusing on technical workers, who are often thought of as more immune to job cuts in Silicon Valley.

    Meta spokesperson Nkechi Nneji confirmed to CNN that some previously announced layoffs were taking place Wednesday, and pointed to CEO Mark Zuckerberg’s March announcement that the company would cut another 10,000 employees in the coming months.

    Zuckerberg’s notice said that restructurings and layoffs in Meta’s tech groups would take place in April. Among those affected by Wednesday’s layoffs were members of the company’s sustainability, well-being, user experience, news feed and messaging teams, according to public LinkedIn posts.

    Meta reportedly told North American employees to work from home on Wednesday in anticipation of the layoffs. (CNN has not independently confirmed that.)

    Members of Meta’s recruiting team were notified of additional layoffs last month, and cuts to the company’s business groups are expected to take place in late May.

    The 10,000 job reductions mark the second recent round of significant job cuts at Meta. The company said in November that it was eliminating approximately 13% of its workforce, or 11,000 jobs, in the single largest round of cuts in its history.

    In September, Meta reported a headcount of 87,314, per a securities filing. With 11,000 job cuts announced in November and the 10,000 announced last month, Meta’s headcount will fall to around 66,000 — a total reduction of about 25%.

    Meta has said the layoffs are part of its “year of efficiency,” as the company attempts to engineer a turnaround following repeated revenue declines, heightened competition, concerns about user growth and big losses in its Reality Labs division amid its pivot to building the so-called metaverse. Zuckerberg has also taken responsibility for over-hiring earlier in the pandemic, when there was strong demand for the company’s products and online advertising, which dropped off somewhat once the world reopened.

    Zuckerberg said last month that, in some cases, it may take through the end of this year to complete its staff restructuring processes.

    “As I’ve talked about efficiency this year, I’ve said that part of our work will involve removing jobs — and that will be in service of both building a leaner, more technical company and improving our business performance to enable our long term vision,” Zuckerberg said in his March statement.

    Meta is set to report earnings for the first three months of 2023 next week, during which Wall Street analysts expect it to post its fourth straight quarterly decline in revenue and a more than 30% decline in profits. Still, Meta’s shareholders appear to have been reassured by Zuckerberg’s plans for efficiency — the company’s shares were up more than 70% year-to-date as of midday Wednesday.

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  • These are the big ideas Republicans are pushing for 2024 | CNN Politics

    These are the big ideas Republicans are pushing for 2024 | CNN Politics

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    A version of this story appeared in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    Amend the Constitution! Touch the third rail! Think big and make things better!

    This is the big ideas period of American politics – a time that occurs roughly every four years in the lead-up to a presidential election – when candidates push expansive proposals, usually short on specifics.

    While the big ideas generally have little chance of becoming law, they speak to what the people who want to be president think will move primary voters.

    With President Joe Biden currently a lock for the Democratic nomination, most of the intellectual action this year is among Republicans.

    Below are some of the big ideas of the moment, which are usually unique to one or two candidates as opposed to positions that are standard for the party. I view these as distinct from the daily political issues – things like abortion rights, foreign policy, border security and gender rights, where there is a sliding scale of positions.

    Nikki Haley: Biden ‘likely’ won’t make it to end of second term

    Former South Carolina Gov. Nikki Haley, who is 51, wants to impose a “mental competency” test for older candidates over 75.

    With both of the current leading candidates – Biden and former President Donald Trump – well beyond when most people would consider retirement, age is already a major issue this year.

    It’s a smart way to tap into fears that Biden, in particular, has lost a step. But it’s hard to imagine it actually put into use. Who would administer this test? Who would assess the results? Why not all candidates?

    The point of the democratic system is that voters should get to choose. This proposal would necessarily limit their choices.

    On the other hand, age limits are not an entirely crazy idea. Corporations impose them on executives, for instance. Pilots have a mandatory retirement age of 65, although that could be raised in the near future to deal with a pilot shortage.

    Republican presidential candidate Vivek Ramaswamy speaks during the annual Conservative Political Action Conference in National Harbor, Maryland.

    Vivek Ramaswamy, a biotech founder, wants to raise the legal voting age to 25. It’s hard to imagine how this would work since the current voting age of 18 is guaranteed in the 26th Amendment.

    Democrats like former House Speaker Nancy Pelosi have in recent years pushed to go in the opposite direction, arguing to lower the voting age to 16.

    Ramaswamy says there would be exceptions to raising the voting age, such as for people who join the military or otherwise meet a “national service requirement.” Others could pass the same test given to naturalized immigrants.

    “I want more civic engagement. My hypothesis is that when you attach greater value to the act, we will see more 18-to-25-year-olds actually vote than do now,” Ramaswamy told The Washington Post.

    01 nikki haley town hall cnn 030823

    Nikki Haley calls for raising retirement age

    Nikki Haley and former Vice President Mike Pence are among those pushing to change the age at which Americans can access retirement benefits.

    While both Trump and Florida Gov. Ron DeSantis are swearing up and down that they will protect these key parts of the social safety net, Haley and Pence are calling for a more honest discussion about the nation’s finances.

    In their telling, raising the retirement age would only affect the youngest Americans – people in their 20s and younger, generations sure to live and work longer than their forebears.

    But specifics are hard to come by, as CNN’s Jake Tapper found when he asked Haley at a CNN town hall in early June what retirement age she is proposing. She said more calculations are needed to come up with a specific retirement age for people currently in their 20s.

    Meantime, she said, “we’re going to go tell them ‘Times have changed.’ I think (Trump and DeSantis are) not being honest with the American people.”

    DeSantis did recently acknowledge in New Hampshire that Social Security is “going to look a little bit different” for younger generations.

    Pence, at his own CNN town hall in early June, said raising the eligibility age for Social Security is one option to have the tough conversation about national spending, but not the only one.

    “It also could include letting younger Americans invest a portion of their payroll taxes in a mutual fund, like the TSP (Thrift Savings Plan) program that 10 million federal employees are in today,” he said.

    trump missouri rally

    Trump slams 14th Amendment at rally

    Both former President Donald Trump and Florida Gov. Ron DeSantis want to revoke birthright citizenship, or the right of every person born in the US to be an American citizen.

    They complain that even babies born to undocumented people become citizens. Birthright citizenship is guaranteed in the 14th Amendment, the key post-Civil War amendment that was meant to protect former slaves.

    Trump has been teasing an end to birthright citizenship for years, but there is not currently a meaningful effort to change the Constitution.

    Trump has pledged to sign an executive order. DeSantis has said he would lean on Congress and the court system. Actually changing the Constitution would be nearly impossible in today’s political environment.

    Former President Donald Trump’s most outside-the-box ideas have a futuristic “Jetsons” feel.

    He wants to build new “freedom cities” on federal land to reopen the American frontier and give people a chance at home ownership. He argues the plan could revitalize American manufacturing.

    And he envisions freeing Americans from hellish commutes by looking to the skies, taking the initiative to innovate vertical-takeoff vehicles. CNN’s report on Trump’s proposals notes that technology is already underway by industry, but a long way from being available to consumers.

    A government-planned city might seem like a strange proposal for a candidate whose party has long embraced free market ideals. But the idea of a planned city is not completely foreign – just look at Washington, DC.

    Republican presidential candidate Florida Gov. Ron DeSantis speaks during a town hall event in Hollis, New Hampshire on June 27, 2023.

    Florida Gov. Ron DeSantis wants to undo Trump’s greatest bipartisan achievement: The First Step Act, a criminal justice and sentencing reform law.

    The product of intense bipartisan negotiations during Trump’s term in office, the law was hailed for rethinking harsh prison sentences for nonviolent drug offenders.

    But the political landscape has changed since 2018, when Trump signed the law as president and DeSantis voted for it as a congressman. Now, DeSantis calls the law the “jailbreak bill.”

    Both men want to impose the death penalty for drug offenders, an especially awkward pivot for Trump, who has bragged about his compassion in setting drug dealers like Alice Johnson free when he commuted her sentence. The case helped build support for the First Step Act. Her crime could have made her eligible for the death penalty under his new plan.

    Trump still brags about the First Step Act, and repealing it would take help from Democrats in the Senate.

    DeSantis, meanwhile, is moving to the right of Trump on crime and even vetoed a bipartisan criminal justice law in Florida that passed easily through the Republican-dominated legislature.

    Pence also said in his CNN town hall he would “take a step back” from the First Step Act – though it is unclear what that means in practical terms.

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