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Tag: Meta Platforms Inc

  • Meta says it will restore Donald Trump’s Facebook and Instagram accounts | CNN Business

    Meta says it will restore Donald Trump’s Facebook and Instagram accounts | CNN Business


    New York
    CNN
     — 

    Facebook-parent Meta said on Wednesday that it will restore former President Donald Trump’s accounts on Facebook and Instagram in the coming weeks, just over two years after suspending him in the wake of the January 6 Capitol attack.

    “Our determination is that the risk [to public safety] has sufficiently receded,” Meta President of Global Affairs Nick Clegg said in a blog post. “As such, we will be reinstating Mr. Trump’s Facebook and Instagram accounts in the coming weeks. However, we are doing so with new guardrails in place to deter repeat offenses.”

    Trump could be suspended for as much as two years at a time for violating platform policies in the future, Clegg said.

    With his Facebook and Instagram accounts reactivated, Trump will once again gain access to huge and powerful communications and fundraising platforms just as he ramps up his third bid for the White House.

    The decision, which comes on the heels of a similar move by Twitter, could also further shift the landscape for how a long list of smaller online platforms handle Trump’s accounts.

    It was not immediately clear whether Trump will seize the opportunity to return to the Meta platforms. Trump’s reps did not immediately respond to a request for comment.

    In a post on his own platform, Truth Social, Trump acknowledged Meta’s decision to reverse its suspension of his account and said “such a thing should never again happen to a sitting President, or anybody else who is not deserving of retribution.”

    Former President Trump’s team was not given advance notice of Meta’s decision, a source familiar with the matter told CNN. Many of his aides and advisers learned of the decision from media reports. Shortly before the announcement, Meta asked for a last-minute meeting with Trump’s lawyers this evening to discuss his possible reinstatement, but were not told what the final decision was. They were still in the meeting when Meta released the news, the source said.

    Twitter restored Trump’s account in November following its takeover by billionaire Elon Musk, but the former president has not yet resumed tweeting, opting instead to remain on Truth Social.

    But Trump’s campaign earlier this month sent a letter to Meta petitioning the company to unblock his Facebook account, a source familiar with the letter told CNN, making his return more likely. Although Twitter was always Trump’s preferred platform, he has a massive reach on Facebook and Instagram — 34 million followers and 23 million followers, respectively, ahead of his reinstatement. Previous Trump campaigns have lauded the effectiveness of Facebook’s targeted advertising tools and have spent millions running Facebook ads.

    Meta’s decision was quickly criticized by a number of online safety advocates and democratic lawmakers. Congressman Adam Schiff said in a tweet that restoring Trump’s “access to a social media platform to spread his lies and demagoguery is dangerous,” noting that Trump has shown “no remorse” for his actions around the January 6 attack. NAACP President Derrick Johnson called the decision “a prime example of putting profits above people’s safety.”

    But ACLU Director Anthony Romero called the decision “the right call,” joining several other groups in praising the move. He added: “The biggest social media companies are central actors when it comes to our collective ability to speak — and hear the speech of others — online. They should err on the side of allowing a wide range of political speech, even when it offends.”

    The company made the landmark decision to bar Trump from posting on Facebook and Instagram the day after the January 6 attack, in which his supporters stormed the US Capitol in a bid to overturn the 2020 election results.

    Many other platforms did the same in quick succession, but Facebook was clear that it planned to revisit the decision at a later date. After Facebook’s independent Oversight Board recommended that the company clarify what was initially an indefinite suspension, Facebook said the former president would remain restricted from the platform until at least January 7, 2023.

    Meta earlier this month was considering whether to restore Trump’s accounts with the help of a specially formed internal company working group made up of leaders from different parts of the organization, a person familiar with the deliberations told CNN. The group included representatives from the company’s public policy, communications, content policy, and safety and integrity teams, and was being led by Clegg, who previously served as UK Deputy Prime Minister.

    The company said in June 2021 that it would “look to experts to assess whether the risk to public safety has receded” in January 2023 to make a determination about the former president’s account.

    “If we determine that there is still a serious risk to public safety, we will extend the restriction for a set period of time and continue to re-evaluate until that risk has receded,” Clegg, then-vice president of global affairs at Meta, said in a statement at the time.

    Clegg said in his Wednesday post that the company believes “the public should be able to hear what their politicians are saying — the good, the bad and the ugly — so that they can make informed choices at the ballot box.” But, he said, “that does not mean there are no limits to what people can say on our platform.”

    In light of his previous violations, Trump will now face “heightened penalties for repeat offenses,” Clegg said, adding that the policy will also apply to other public figures whose accounts are reinstated following suspensions related to civil unrest.

    Clegg told Axios in an interview published Wednesday that the company does not “want — if he is to return to our services — for him to do what he did on January 6, which is to use our services to delegitimize the 2024 election, much as he sought to discredit the 2020 election.”

    “In the event that Mr. Trump posts further violating content, the content will be removed and he will be suspended for between one month and two years, depending on the severity of the violation,” Clegg said. However, the possibility of permanent removal of Trump’s accounts — which Clegg had previously indicated could be a consequence of future violations if his account were to be restored — no longer appears to be on the table.

    For content that doesn’t violate its rules but “contributes to the sort of risk that materialized on January 6th, such as content that delegitimizes an upcoming election or is related to QAnon,” Meta may limit distribution of the posts, Clegg said. The company could, for example, remove the reshare button or keep the posts visible on Trump’s page but not in users’ feeds, even for those who follow him, he said. For repeated instances, the company may restrict access to its advertising tools.

    If Trump again posts content that violates Meta’s rules but “we assess there is a public interest in knowing that Mr. Trump made the statement that outweighs any potential harm” under the company’s newsworthiness policy, Meta may similarly restrict the posts’ distribution but leave them visible on Trump’s page.

    –CNN’s Donie O’Sullivan, Kaitlan Collins and Kristen Holmes contributed to this report.

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  • Facebook to allow Trump back on platform after 2-year ban

    Facebook to allow Trump back on platform after 2-year ban

    Facebook parent Meta Platforms Inc. META will restore former President Donald Trump’s Facebook and Instagram accounts after the social-media platform banned him in the wake of the Jan. 6 riot at the U.S. Capitol in 2021.

    The reinstatement of those accounts is set to happen “in the coming weeks,” Nick Clegg, Meta’s president of global affairs, said in a statement late Wednesday.

    “As…

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  • DOJ sues Google over its dominance in online advertising market | CNN Business

    DOJ sues Google over its dominance in online advertising market | CNN Business



    CNN
     — 

    The Justice Department and eight states sued Google on Tuesday, accusing the company of harming competition with its dominance in the online advertising market and calling for it to be broken up.

    The move marks the Biden administration’s first blockbuster antitrust case against a Big Tech company. The eight states joining the suit include California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee and Virginia.

    The fresh complaint significantly escalates the risks to Google emanating from Washington, where lawmakers and regulators have frequently raised concerns about the tech giant’s power but have so far failed to pass new legislation or regulations that might rein in the company or its peers.

    For years, Google’s critics have claimed that the company’s extensive role in the ecosystem that enables advertisers to place ads, and for publishers to offer up digital ad space, represents a conflict of interest that Google has exploited anticompetitively.

    In Tuesday’s complaint, a copy of which was viewed by CNN, the Justice Department alleged that Google actively and illegally maintained that dominance by engaging in a campaign to thwart competition. Google gobbled up rivals through anticompetitive mergers, the US government said, and bullied publishers and advertisers into using the company’s proprietary ad technology products.

    As part of the lawsuit, the US government called for Google to be broken up and for the court to order the company to spin off at least its online advertising exchange and its ad server for publishers, if not more.

    Google, the US government alleged, “has corrupted legitimate competition in the ad tech industry by engaging in a systematic campaign to seize control of the wide swath of high-tech tools used by publishers, advertisers, and brokers, to facilitate digital advertising. Having inserted itself into all aspects of the digital advertising marketplace, Google has used anticompetitive, exclusionary, and unlawful means to eliminate or severely diminish any threat to its dominance over digital advertising technologies.”

    The suit was filed in the US District Court for the Eastern District of Virginia.

    Tuesday’s suit marks the federal government’s second antitrust complaint against Google since 2020, when the Trump administration sued over Google’s alleged anticompetitive harms in search and search advertising. That case is still ongoing. Google has also been the target of antitrust litigation by state and private actors.

    In a statement, Google said the DOJ suit “attempts to pick winners and losers in the highly competitive advertising technology sector.”

    “DOJ is doubling down on a flawed argument that would slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow,” a Google spokesperson said, adding that a federal judge last year knocked down a claim that Google colluded with Facebook in a separate antitrust suit led by the state of Texas. That judge also ruled, however, that a number of monopolization claims in the Texas case could move forward.

    The lawsuit is a frontal assault against Google’s massive, primary business of advertising. Google generated $209 billion in advertising revenue in 2021, according to its annual report, a figure representing more than 80% of its total revenue. By comparison, the next largest giant in online advertising, Facebook-parent Meta, generated $115 billion in 2021.

    Third-party estimates suggest that Google and Facebook accounted for the majority of US digital ad revenues, hitting a peak around 2017, with Google taking about a third of the market. Since then, however, others including Amazon have begun encroaching on that business.

    The US complaint echoes concerns that have prompted similar antitrust investigations in the United Kingdom and in the European Union.

    Google not only controls the platform publishers use to sell online ad inventory, the Justice Department alleged Tuesday, but also the advertising tools marketers use to claim that inventory and the exchange that facilitates those transactions.

    “Google’s pervasive power over the entire ad tech industry has been questioned by its own digital advertising executives,” the complaint said, “at least one of whom aptly begged the question: ‘[I]s there a deeper issue with us owning the platform, the exchange, and a huge network? The analogy would be if Goldman or Citibank owned the NYSE.’”

    Tuesday’s complaint marks an opening salvo against Big Tech by DOJ’s antitrust chief, Jonathan Kanter. Kanter has spent months laying the groundwork for a broader offensive against the tech industry’s most dominant companies, reflecting commitments by President Joe Biden and others in the US government to hold powerful firms accountable. Under Kanter, Justice Department antitrust officials have pushed to bring more cases to trial as well as to prosecute cases involving unconventional legal theories.

    In 2020, House lawmakers released a 450-page report finding that Google, along with Amazon, Apple and Facebook, hold “monopoly power” in key business segments. The report was the result of a 16-month investigation in which congressional staff reviewed corporate documents and interviewed the tech industry’s many customers and rivals. It concluded, among other things, that Google was uniquely positioned to benefit from its powerful role in the online ad industry.

    “With a sizable share in the ad exchange market and the ad intermediary market, and as a leading supplier of ad space, Google simultaneously acts on behalf of publishers and advertisers, while also trading for itself,” the report said.

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  • Meta, Twitter, Microsoft and others urge Supreme Court not to allow lawsuits against tech algorithms | CNN Business

    Meta, Twitter, Microsoft and others urge Supreme Court not to allow lawsuits against tech algorithms | CNN Business


    Washington
    CNN
     — 

    A wide range of businesses, internet users, academics and even human rights experts defended Big Tech’s liability shield Thursday in a pivotal Supreme Court case about YouTube algorithms, with some arguing that excluding AI-driven recommendation engines from federal legal protections would cause sweeping changes to the open internet.

    The diverse group weighing in at the Court ranged from major tech companies such as Meta, Twitter and Microsoft to some of Big Tech’s most vocal critics, including Yelp and the Electronic Frontier Foundation. Even Reddit and a collection of volunteer Reddit moderators got involved.

    In friend-of-the-court filings, the companies, organizations and individuals said the federal law whose scope the Court could potentially narrow in the case — Section 230 of the Communications Decency Act — is vital to the basic function of the web. Section 230 has been used to shield all websites, not just social media platforms, from lawsuits over third-party content.

    The question at the heart of the case, Gonzalez v. Google, is whether Google can be sued for recommending pro-ISIS content to users through its YouTube algorithm; the company has argued that Section 230 precludes such litigation. But the plaintiffs in the case, the family members of a person killed in a 2015 ISIS attack in Paris, have argued that YouTube’s recommendation algorithm can be held liable under a US antiterrorism law.

    In their filing, Reddit and the Reddit moderators argued that a ruling enabling litigation against tech-industry algorithms could lead to future lawsuits against even non-algorithmic forms of recommendation, and potentially targeted lawsuits against individual internet users.

    “The entire Reddit platform is built around users ‘recommending’ content for the benefit of others by taking actions like upvoting and pinning content,” their filing read. “There should be no mistaking the consequences of petitioners’ claim in this case: their theory would dramatically expand Internet users’ potential to be sued for their online interactions.”

    Yelp, a longtime antagonist to Google, argued that its business depends on serving relevant and non-fraudulent reviews to its users, and that a ruling creating liability for recommendation algorithms could break Yelp’s core functions by effectively forcing it to stop curating all reviews, even those that may be manipulative or fake.

    “If Yelp could not analyze and recommend reviews without facing liability, those costs of submitting fraudulent reviews would disappear,” Yelp wrote. “If Yelp had to display every submitted review … business owners could submit hundreds of positive reviews for their own business with little effort or risk of a penalty.”

    Section 230 ensures platforms can moderate content in order to present the most relevant data to users out of the huge amounts of information that get added to the internet every day, Twitter argued.

    “It would take an average user approximately 181 million years to download all data from the web today,” the company wrote.

    If the Supreme Court were to advance a new interpretation of Section 230 that safeguarded platforms’ right to remove content, but excluded protections on their right to recommend content, it would open up broad new questions about what it means to recommend something online, Meta argued in its filing.

    “If merely displaying third-party content in a user’s feed qualifies as ‘recommending’ it, then many services will face potential liability for virtually all the third-party content they host,” Meta wrote, “because nearly all decisions about how to sort, pick, organize, and display third-party content could be construed as ‘recommending’ that content.”

    A ruling finding that tech platforms can be sued for their recommendation algorithms would jeopardize GitHub, the vast online code repository used by millions of programmers, said Microsoft.

    “The feed uses algorithms to recommend software to users based on projects they have worked on or showed interest in previously,” Microsoft wrote. It added that for “a platform with 94 million developers, the consequences [of limiting Section 230] are potentially devastating for the world’s digital infrastructure.”

    Microsoft’s search engine Bing and its social network, LinkedIn, also enjoy algorithmic protections under Section 230, the company said.

    According to New York University’s Stern Center for Business and Human Rights, it is virtually impossible to design a rule that singles out algorithmic recommendation as a meaningful category for liability, and could even “result in the loss or obscuring of a massive amount of valuable speech,” particularly speech belonging to marginalized or minority groups.

    “Websites use ‘targeted recommendations’ because those recommendations make their platforms usable and useful,” the NYU filing said. “Without a liability shield for recommendations, platforms will remove large categories of third-party content, remove all third-party content, or abandon their efforts to make the vast amount of user content on their platforms accessible. In any of these situations, valuable free speech will disappear—either because it is removed or because it is hidden amidst a poorly managed information dump.”

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  • How Big Tech’s pandemic bubble burst | CNN Business

    How Big Tech’s pandemic bubble burst | CNN Business


    New York
    CNN
     — 

    In January 2021, Microsoft CEO Satya Nadella spoke in lofty terms about how the first year of the pandemic had sparked a staggering shift toward online services, benefiting his company in the process. “What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” he said.

    Two years later, the situation appears much more stark. This week, Microsoft said it planned to lay off 10,000 employees as businesses rethink their pandemic-era digital spending and confront broader economic uncertainty. Microsoft’s customers, Nadella said, are now trying “to do more with less.”

    Microsoft isn’t the only company experiencing such a dramatic reversal. Days later, Google-parent company Alphabet followed suit, saying it plans to cut around 12,000 jobs, amounting to more than 6% of its staff.

    Over the past three months, Amazon, Google, Microsoft and Facebook-parent Meta have announced plans to cut more than 50,000 employees from their collective ranks, a stunning reversal from the early days of the pandemic when the tech giants were growing rapidly to meet surging demand from countless households living, shopping and working online. At the time, many tech leaders seemed to expect that growth to continue unabated.

    By September of 2022, Amazon

    (AMZN)
    had more than doubled its corporate staff compared to the same month in 2019, hiring more than half a million additional workers and vastly expanding its warehouse footprint. Meta nearly doubled its headcount between March 2020 and September of last year. Microsoft

    (MSFT)
    and Google

    (GOOGL GOOGLE)
    also hired thousands of additional workers, as did other tech firms like Salesforce

    (CRM)
    , Snap

    (SNAP)
    and Twitter, all of which have announced layoffs in recent weeks, too.

    But many of those same leaders appear to have misjudged just how much growth spurred by the pandemic would continue once people returned to their offline lives.

    In recent months, higher interest rates, inflation and recession fears causing a pullback in advertising and consumer spending have all weighed on tech companies’ profits and share prices. Wall Street analysts now project single-digit revenue growth during the all-important December quarter for Google, Microsoft and Amazon, and declines for Meta and Apple, when they report earnings in the coming weeks, according to Refinitiv estimates.

    The recent cuts in most cases amount to a relatively small percentage of each company’s overall headcount, essentially erasing the last year of gains for some but leaving them with tens or in some cases hundreds of thousands of remaining workers. But it nonetheless upends the lives of many workers now left to search for new jobs after their employers exit a period of seemingly limitless growth.

    “They went from being on top of the world to having to make some really tough decisions,” said Scott Kessler, global sector lead for technology, media and telecommunications at investment firm Third Bridge. “To see this dramatic reversal of fortunes… it’s not just the magnitude of these moves but the speed that they’ve played out. You’ve seen companies make the wrong strategic decisions at the wrong times.”

    Apple

    (AAPL)
    remains an outlier as the one major tech company that has yet to announce layoffs, although the iPhone maker has reportedly instituted a hiring freeze of all areas except research and development. Apple

    (AAPL)
    grew its staff by 20% from 2019 through last year, markedly less than some of its peers.

    “They’ve taken a more seemingly thoughtful approach to hiring and overall managing the company,” Kessler said.

    Tech CEOs, from Meta’s Mark Zuckerberg to Salesforce’s Marc Benioff, have blamed themselves for over-hiring early on in the pandemic and misreading how a surge in demand for their products would cool once Covid-19 restrictions eased. Pichai on Friday also took the blame for Alphabet’s cuts, and said he plans to return the company’s focus to its core business and “highest priorities.”

    “The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here,” Pichai said in an email to employees that was posted to the company’s website Friday.

    Notably, however, none of the Big Tech company CEOs now overseeing layoffs appear to have been hit with any change to their compensation or title.

    The tech layoff announcements are likely to continue into the upcoming earnings season, Kessler said, amid ongoing economic warning signs. And even companies that might not yet be feeling the pain may follow their peers’ lead in trimming their workforces.

    “I think there is an element of [some companies saying], ‘We might not see this right now but all these other big companies, these companies that we compete with, that we know, that we respect, are taking these kinds of actions, so maybe we should be thinking and acting accordingly,” Kessler said.

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  • Instagram rolls out ‘quiet mode’ for when users want to focus | CNN Business

    Instagram rolls out ‘quiet mode’ for when users want to focus | CNN Business



    CNN
     — 

    Instagram on Thursday announced a new feature called “quiet mode,” which aims to help users focus and set boundaries with friends and followers.

    When the option is enabled, all notifications will be paused and the profile’s activity status will change to ‘In quiet mode.” If someone sends a direct message during this time, Instagram will automatically send an auto-reply notifying the sender that “quiet mode” is activated.

    While the feature applies to all users, Instagram appears to be focusing on teens. Instagram is pitching it as a tool to help with studying and prompting teens to turn on the feature “when they spend a specific amount of time on Instagram late at night.”

    The tool will roll out to users in the United States, United Kingdom, Ireland, Canada, Australia, and New Zealand, and plans to add it to more countries in the future.

    The tool is the latest example of instagram offering users more ways to manage their usage, after years of scrutiny over how much time people – and especially teens – spend on various social media applications, and the harms it can pose to their mental health.

    “These updates are part of our ongoing work to ensure people have experiences that work for them, and that they have more control over the time they spend online and the types of content they see,” the company said in a blog post.

    As part of that effort, the platform is also introducing features to give users more control over what shows up in their Explore feed. For example, it’s now possible to mark content with a “Not Interested” label to prevent similar content from showing up in the future. Instagram is also introducing an option to block words or lists of words, emojis or hashtags, such as #fitness or #recipes, from being recommended in the Explore feed.

    Instagram is updating its parental supervision tools, too. When a teen updates a setting, parents can receive a notification so they can talk to their teen about the change. Parents will also be able to view accounts their teen has blocked.

    In a series of congressional hearings in 2021, executives from Instagram, Facebook, TikTok, and Snapchat faced tough questions from lawmakers over how their platforms can lead younger users to harmful content, damage mental health and body image (particularly among teenage girls), and lacked sufficient parental controls and safeguards to protect teens.

    The social media companies vowed to make changes, and Instagram in particular has made many. It has since introduced an educational hub for parents with resources, tips and articles from experts on user safety, and rolled out a tool that allows guardians to see how much time their kids spend on Instagram and set time limits.

    Another Instagram feature encouraged users to take a break from the app, such as suggesting they take a deep breath, write something down, check a to-do list or listen to a song, after a predetermined amount of time. The company has also said it’s taking a “stricter approach” to the content it recommends to teens and actively nudges them toward different topics, such as architecture and travel destinations, if they’ve been dwelling on any type of content for too long.

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  • Ad mogul sees Meta rebounding ‘extremely strongly,’ Amazon ad revenue hitting $100 billion

    Ad mogul sees Meta rebounding ‘extremely strongly,’ Amazon ad revenue hitting $100 billion

    Sir Martin Sorrell, Executive Chairman, S4 Capital.

    Eóin Noonan | Sportsfile | Getty Images | Web Summit

    Advertising titan Martin Sorrell believes Meta will rebound “extremely strongly this year” and sees a promising outlook for U.S. tech giants, despite a bruising 2022 and mass layoffs.

    U.S. tech companies have let go of more than 60,000 employees in the last year, as slowing economic growth, higher interest rates in response to soaring inflation and competitive challenges squeezed margins and hammered the stock prices of tech behemoths.

    Facebook parent Meta in November announced plans to eliminate 13% of its staff, amounting to more than 11,000 employees. It also issued bleak fourth-quarter guidance that wiped out around a quarter of its market cap, pushing the stock to its lowest since 2016.

    A broad slowdown in online ad spending and competition from new rivals such as TikTok, along with challenges associated with privacy changes to Apple’s iOS, have hampered the social media group’s business over the past year.

    The company has also taken a substantial hit from its massive investment in building its augmented reality world known as the metaverse — a strategy that has proven divisive among analysts and investors.

    Sorrell, executive chairman of U.K. advertising agency S4 Capital, expects Meta to address most of its business challenges in 2023, while benefiting from China’s reopening.

    “I think you’ll see Meta come back extremely strongly this year, on the back of reels and business messenger, to deal with the competition from TikTok and other short form video competitors,” Sorrell told CNBC on the sidelines of the World Economic Forum in Davos, Switzerland.

    “Google had a solid year last year, and I think they’ll have a strong year this year. Amazon increased its advertising revenues from $31bn to $41bn, and I think [it] will hit $100bn in time, despite what you’re seeing in terms of jobs and hiring.”

    He also suggested that the reopening of the Chinese economy would be “huge” for big tech firms, noting that outbound Chinese business, or Chinese companies expanding their businesses abroad, were historically the second-largest profit centers for the likes of Meta, Amazon and Google parent Alphabet.

    Sorrell launched S4, which operates in both the digital advertising and digital transformation spaces, after leaving ad giant WPP in 2018. S4 on Wednesday confirmed its full-year guidance, and Sorrell said his clients’ advertising spending priorities in 2023 would be “topline growth in activation and performance” and “reducing [the] cost of digital transformation.”

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  • Microsoft, Amazon and other tech companies have laid off more than 60,000 employees in the last year

    Microsoft, Amazon and other tech companies have laid off more than 60,000 employees in the last year

    Microsoft CEO Satya Nadella speaks at the company’s Ignite Spotlight event in Seoul on Nov. 15, 2022.

    SeongJoon Cho | Bloomberg | Getty Images

    The job cuts in tech land are piling up, as companies that led the 10-year bull market adapt to a new reality.

    Microsoft said Wednesday that it’s letting go of 10,000 employees, which will reduce the company’s headcount by less than 5%. Amazon also began a fresh round of job cuts that are expected to eliminate more than 18,000 employees and become the largest workforce reduction in the e-retailer’s 28-year history.

    The layoffs come in a period of slowing growth, higher interest rates to battle inflation, and fears of a possible recession next year.

    Here are some of the major cuts in the tech industry so far. All numbers are approximations based on filings, public statements and media reports:

    Microsoft: 10,000 jobs cut

    Microsoft is reducing 10,000 workers through March 31 as the software maker braces for slower revenue growth. The company also is taking a $1.2 billion charge.

    “I’m confident that Microsoft will emerge from this stronger and more competitive,” CEO Satya Nadella announced in a memo to employees that was posted on the company website Wednesday. Some employees will find out this week if they’re losing their jobs, he wrote.

    Amazon: 18,000 jobs cut

    Earlier this month, Amazon CEO Andy Jassy said the company was planning to lay off more than 18,000 employees, primarily in its human resources and stores divisions. It came after Amazon said in November it was looking to cut staff, including in its devices and recruiting organizations. CNBC reported at the time that the company was looking to lay off about 10,000 employees.

    Amazon went on a hiring spree during the Covid-19 pandemic. The company’s global workforce swelled to more than 1.6 million by the end of 2021, up from 798,000 in the fourth quarter of 2019.

    Alphabet (Verily): 230 jobs cut

    Google parent company Alphabet had largely avoided layoffs until January, when it cut 15% of employees from Verily, its health sciences division. Google itself has not undertaken any significant layoffs as of Jan. 18, but employees are increasingly growing worried that the ax may soon fall.

    Crypto.com: 500 jobs cut

    Crypto.com announced plans to lay off 20% of its workforce Jan. 13. The company had 2,450 employees, according to PitchBook data, suggesting around 490 employees were laid off. 

    CEO Kris Marszalek said in a blog post that the crypto exchange grew “ambitiously” but was unable to weather the collapse of Sam Bankman-Fried’s crypto empire FTX without the further cuts.

    “All impacted personnel have already been notified,” Marszalek said in a post.

    Coinbase: 2,000 jobs cut

    On Jan. 10, Coinbase announced plans to cut about a fifth of its workforce as it looks to preserve cash during the crypto market downturn.

    The exchange plans to cut 950 jobs, according to a blog post. Coinbase, which had roughly 4,700 employees as of the end of September, had already slashed 18% of its workforce in June saying it needed to manage costs after growing “too quickly” during the bull market.

    “With perfect hindsight, looking back, we should have done more,” CEO Brian Armstrong told CNBC in a phone interview at the time. “The best you can do is react quickly once information becomes available, and that’s what we’re doing in this case.”

    Salesforce: 7,000 jobs cut

    Salesforce is cutting 10% of its personnel and reducing some office space as part of a restructuring plan, the company announced Jan. 4. It employed more than 79,000 workers as of December.

    In a letter to employees, co-CEO Marc Benioff said customers have been more “measured” in their purchasing decisions given the challenging macroeconomic environment, which led Salesforce to make the “very difficult decision” to lay off workers.

    Salesforce said it will record charges of $1 billion to $1.4 billion related to the headcount reductions, and $450 million to $650 million related to the office space reductions.

    Meta: 11,000 jobs cut

    Facebook parent Meta announced its most significant round of layoffs ever in November. The company said it plans to eliminate 13% of its staff, which amounts to more than 11,000 employees.

    Meta‘s disappointing guidance for the fourth quarter of 2022 wiped out one-fourth of the company’s market cap and pushed the stock to its lowest level since 2016.

    The tech giant’s cuts come after it expanded headcount by about 60% during the pandemic. The business has been hurt by competition from rivals such as TikTok, a broad slowdown in online ad spending and challenges from Apple’s iOS changes.

    Twitter: 3,700 jobs cut

    Lyft: 700 jobs cut 

    Lyft announced in November that it cut 13% of its staff, or about 700 jobs. In a letter to employees, CEO Logan Green and President John Zimmer pointed to “a probable recession sometime in the next year” and rising ride-share insurance costs.

    For laid-off workers, the ride-hailing company promised 10 weeks of pay, health care coverage through the end of April, accelerated equity vesting for the Nov. 20 vesting date and recruiting assistance. Workers who had been at the company for more than four years will get an extra four weeks of pay, they added.

    Stripe: 1,100 jobs cut

    Online payments giant Stripe announced plans to lay off roughly 14% of its staff, which amounts to about 1,100 employees, in November. 

    CEO Patrick Collison wrote in a memo to staff that the cuts were necessary amid rising inflation, fears of a looming recession, higher interest rates, energy shocks, tighter investment budgets and sparser startup funding. Taken together, these factors signal “that 2022 represents the beginning of a different economic climate,” he said.

    Stripe was valued at $95 billion last year, and reportedly lowered its internal valuation to $74 billion in July.

    Shopify: 1,000 jobs cut

    In July, Shopify announced it laid off 1,000 employees, which equals 10% of its global workforce. 

    In a memo to staff, CEO Tobi Lutke acknowledged he had misjudged how long the pandemic-driven e-commerce boom would last, and said the company is being hit by a broader pullback in online spending. Its stock price is down 78% in 2022.

    Netflix: 450 jobs cut

    Netflix announced two rounds of layoffs. In May, the streaming service eliminated 150 jobs after the company reported its first subscriber loss in a decade. In late June, it announced another 300 layoffs. 

    In a statement to employees, Netflix said, “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth.” 

    Snap: 1,000 jobs cut 

    In late August, Snap announced it laid off 20% of its workforce, which equates to over 1,000 employees. 

    Snap CEO Evan Spiegel told employees in a memo that the company needs to restructure its business to deal with its financial challenges. He said the company’s quarterly year-over-year revenue growth rate of 8% “is well below what we were expecting earlier this year.”

    Robinhood: 1,100 jobs cut

    Retail brokerage firm Robinhood slashed 23% of its staff in August, after cutting 9% of its workforce in April. Based on public filings and reports, that amounts to more than 1,100 employees.

    Robinhood CEO Vlad Tenev blamed “deterioration of the macro environment, with inflation at 40-year highs accompanied by a broad crypto market crash.”

    Tesla: 6,000 jobs cut

    In June, Tesla CEO Elon Musk wrote in an email to all employees that the company was cutting 10% of salaried workers. The Wall Street Journal estimated the reductions would affect about 6,000 employees, based on public filings.

    “Tesla will be reducing salaried headcount by 10% as we have become overstaffed in many areas,” Musk wrote. “Note this does not apply to anyone actually building cars, battery packs or installing solar. Hourly headcount will increase.”

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  • Global spending on mobile games falls 5% as high inflation causes market to cool

    Global spending on mobile games falls 5% as high inflation causes market to cool

    The Candy Crush Saga logo displayed on a phone screen.

    Jakub Porzycki | NurPhoto via Getty Images

    Spending on mobile games declined last year as consumers got more frugal with their purchasing decisions in response to rising inflation, according to a report from app analytics firm Data.ai.

    Mobile game spending fell 5% globally in 2022, to $110 billion, Data.ai, which was formerly known as App Annie, said in its “State of Mobile” report Wednesday. The report also looks at the broader state of sectors like mobile ads, retail and social media apps.

    Nevertheless, first-time installs of mobile titles rose 8% to a record 90 billion, with so-called “hypercasual” titles leading the gains.

    “We are seeing this major theme emerge of people being more price sensitive and financially more conservative,” Lexi Sydow, head of insights at Data.ai, told CNBC, adding that the “biggest hit” to spending on apps was in gaming.

    Faced with economic headwinds such as higher prices and borrowing costs, people are cutting back on discretionary purchases. Gaming especially has come under pressure.

    Global sales of games and services, including console and PC games, were expected to contract 1.2% year-on-year to $188 billion in 2022, according to a July research note from market data firm Ampere Analysis.

    In recent years, growth in mobile gaming has been the dominant story in the games industry, with major publishers making big bets on mobile game developers.

    Read more about tech and crypto from CNBC Pro

    Early last year, Take-Two bought mobile gaming firm Zynga for $12.7 billion. In 2016, the maker of Candy Crush Saga, King, was purchased by Activision Blizzard for $5.9 billion. U.S. tech giant Microsoft, meanwhile, is banking on continued growth in mobile gaming with its proposed $69 billion takeover of Activision Blizzard.

    That growth has been challenged lately by a number of macroeconomic headwinds, however, including a rise in the cost of living and higher interest rates.

    In 2020, Microsoft and Sony launched their respective next-generation gaming consoles, giving mobile more competition.

    Last year also saw a return to in-person activities and a normalization of travel rules from the height of the Covid-19 pandemic in 2020, when much of the world was hunkering down at home.

    Non-gaming apps proved more resilient in 2022, according to Data.ai’s research, with the value of purchases in such apps rising 6% year-over-year to $58 billion. The growth was driven mainly by subscriptions and in-app purchases in streaming platforms, dating apps and short-form video services like TikTok.

    Downloads of non-gaming apps grew 13% from the previous year, to 165 billion.

    That did little to offset the slump in mobile game spending, however, with spending across app stores slipping 2% to $167 billion. The figures include installs on third-party Android marketplaces in China, where Google’s official Play app store is banned.

    The market faces further headwinds in 2023, with recently introduced privacy measures from Apple expected to place greater strain on app makers.

    Apple launched its App Tracking Transparency feature, which gives users a prompt asking whether they wish to be targeted by advertisers, in 2021.

    Data.ai expects global app spend on games specifically to drop a further 3% to $107 billion this year as a result of decreased disposable income and changes to privacy.

    Google plans to adopt privacy curbs similar to Apple’s that would limit tracking across Android apps.

    “With limitations on your targeting capabilities from an advertiser standpoint, it becomes harder to attract the big whales who spend the most in games,” Sydow explained.

    The changes spell trouble for Meta, owner of the Facebook and Instagram social media platforms. Meta Chief Financial Officer David Wehner warned previously that Apple’s ATT could decrease its 2022 sales by $10 billion. The company made most of its $117.9 billion revenue in 2021 from advertising sales.

    Meta faces tense competition from rival firm TikTok. The Chinese-owned short video app last year reached $6 billion in overall lifetime spending and is only the second non-game app to achieve that milestone after Tinder, according to Data.ai.

    Sydow said the effects of Apple’s privacy measures hadn’t yet appeared in the 2022 numbers — with total spend dropping across both iOS and Google Play — but was likely to have a much greater impact this year.

    Despite the overall spending slowdown in 2022, there was still “more demand for mobile service than ever before,” Sydow added. First-time app downloads grew 11% to 255 billion, Data.ai said, while hours spent in apps climbed 9% to a record 4.1 trillion.

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  • Cramer: This market is split in two and only one part is worth owning right now

    Cramer: This market is split in two and only one part is worth owning right now

    Jim Cramer at the NYSE, June 30, 2022.

    Virginia Sherwood | CNBC

    Hardly a day goes by without someone asking me, “Why do you like Jay Powell so much?” He will question whether I am somehow buddies with the Federal Reserve chair, or assume I knew him before he got the job.

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  • LinkedIn is having a moment thanks to a wave of layoffs | CNN Business

    LinkedIn is having a moment thanks to a wave of layoffs | CNN Business


    New York
    CNN
     — 

    In a normal year at this time, a typical LinkedIn feed might be full of posts about year-end reflections on leadership and professional goals and suggested lifehacks for the year ahead — possibly with a few posts from CMOs offering tips on brand strategy, for good measure.

    Those posts are still there. But mixed in are many others about job hunts, offers of support for laid off friends and colleagues, and advice for coping with career hurdles in an uncertain economic environment.

    Some LinkedIn users affected by recent layoffs have formed groups on the site aimed at providing assistance, coordinating around signing exit paperwork and aiding with connections for new jobs. One LinkedIn group of employees affected by the November layoffs at Facebook-parent Meta, for example, now has more than 200 members. Even bosses who are doing the laying off have turned to LinkedIn to explain themselves and seek support or advice, as one marketing CEO did in a post alongside a tearful selfie last year (to mixed results).

    If the first year of the pandemic was marked by widespread layoffs in lower paying retail and services jobs, the past few months have been defined by something different: the prospect of a white-collar recession. Even as the overall job market remains strong, there has been a wave of recent layoffs in the tech and media industries — which just so happen to make up a core part of LinkedIn’s user base. Suddenly, the normally staid professional network has become both a vital lifeline for recently laid off workers and a surprisingly lively social platform.

    The LinkedIn mobile app was downloaded an estimated 58.4 million times worldwide in 2022 across the Google Play and Apple app stores, up 10% from the prior year, according to research firm Sensor Tower.

    The number of posts on LinkedIn mentioning “open to work” were up 22% during November compared to the same period in the prior year, according to data provided by the company. LinkedIn says it also saw a steady increase in the rate of users adding connections last year compared to the year prior, a sign that users were more active on the platform.

    The uptick in use appears to have been good for LinkedIn’s business. The platform posted 17% year-over-year revenue growth in the three months ended in September, according to parent company Microsoft’s most recent earnings report. Microsoft CEO Satya Nadella told analysts in the October earnings call that LinkedIn was seeing “record engagement” among its 875 million members, with growth accelerating especially in international markets.

    Some of LinkedIn’s momentum may predate the wave of layoffs. “There’s been an uptick in [LinkedIn use] since the pandemic,” said Jennifer Grygiel, an associate professor and social media expert at Syracuse University. “You had to do social distancing and we were quarantining and people were working remotely so there was a shift in real-life networking possibilities.”

    LinkedIn rose to the occasion — and now it may be rising to another one.

    Even apart from the layoffs, the social media landscape has been through a volatile year. Facebook and Instagram have been criticized by users for racing to turn their services into TikTok. TikTok has been criticized over concerns that user data could end up in the hands of the Chinese government. And after Elon Musk’s takeover of Twitter late last year, the platform has been criticized for morphing into a possible haven for its most incendiary users.

    But LinkedIn remains, as ever, LinkedIn — and at this moment, with fears of a looming recession and career concerns top of mind, LinkedIn may be just what the digital world needs.

    Grygiel said many people working in media or academia are likely now looking for somewhere to build and engage in professional communities other than Twitter. And while upstart Twitter alternatives like Mastodon have experienced a surge in growth, they still don’t have the same sort of network effect that comes with a legacy platform’s broad user base.

    LinkedIn in recent years has leaned into courting influencers who regularly post content to the site, potentially giving users more reasons to visit. And the platform has been growing its “learning” section, which provides video courses taught by various industry experts and which the company says experienced a 17% increase in hours spent as of November compared to the year prior. But lately it appears users have more than enough reason to use LinkedIn amid a wave of thousands of layoffs.

    Perhaps the clearest and most public examples of LinkedIn’s new centrality came from rival social networks like Twitter.

    In the wake of Twitter’s November mass layoffs — in which half the company was terminated, followed by additional firings and exits — many former and remaining employees took to LinkedIn, rather than the platform they had built, to seek support, community and new opportunities.

    One group of Twitter employees created a spreadsheet of laid-off workers from the company alongside recruiters hiring for other firms, and used LinkedIn to help facilitate sign-ups. Another pair of former Twitter employees set up a system to connect job hunters with recruitment professionals open to volunteering to provide free resume review and interview prep services, which they promoted through LinkedIn.

    “We completely understand how the job-hunting process can be scary and overwhelming … While we can’t guarantee where your next opportunity will be or when it will come, we can offer guidance, so you will be ready for that opportunity when it arrives,” Darnell Gilet, a former Twitter senior technical recruiter who helped coordinate the effort, said in a LinkedIn post.

    Gilet, who was affected by the mass layoffs at Twitter in November following Elon Musk’s takeover, told CNN last month that around 28 different recruiters and talent acquisition professionals had agreed to participate in the system, and that he himself had spoken to nearly two dozen job seekers since shortly after he was laid off to offer advice and support. He said LinkedIn seemed like the obvious place to promote the service.

    “Chaos creates opportunity for somebody, right?” Gilet said. “People are getting laid off and you have this recession that’s looming, the ideal place … that would have the greatest growth opportunity from that would be a platform that’s focused on careers like LinkedIn. So it makes perfect sense.”

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  • Did the market already show its hand in the first week of 2023? What we’ve learned so far

    Did the market already show its hand in the first week of 2023? What we’ve learned so far

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  • Lawmakers are trying to ban TikTok. That won’t be easy — it’s part of our culture now | CNN

    Lawmakers are trying to ban TikTok. That won’t be easy — it’s part of our culture now | CNN



    CNN
     — 

    Gabby Beckford’s plan to visit the British Virgin Islands started with a flurry of searches on what to wear, eat and do in between exploring the islands’ pristine beaches and sapphire waters.

    But instead of using Google or other search engines, she turned to TikTok.

    “On TikTok, I can search what restaurants to go to, I can see what people ate and their reaction to the food,” says Beckford, 27, who’s visiting the British territory in the Caribbean this week. “I can see what they’re wearing, what the weather’s like.”

    Beckford, a travel content creator who splits her time between Seattle and Washington, DC, says TikTok has become a lifeline for her and many other users. She says the short-form video platform is much more than cat videos and posts by “influencers.”

    To her it’s a one-stop shop for a wide range of content, from mental health advice to product reviews, all presented in bite-sized clips that don’t require plowing through blocks of text.

    “It’s visual,” she says. “I can tell who posted the content, and whether it’s done with me in mind.”

    Beckford’s devotion to TikTok illustrates why US lawmakers and others, who view the platform as a security threat because of its parent company’s roots in China, will have a challenge trying to scrub it from Americans’ digital lives.

    In recent weeks more than a dozen US states and the US House of Representatives have banned TikTok from government devices. One US congressman, Mike Gallagher of Wisconsin, called it “digital fentanyl” because of its addictive nature among young users and believes it should be blocked across the United States. Some universities also are restricting access to the app.

    But with more than 1 billion global users, TikTok may be too entrenched in our culture to be shut down. It was the most-downloaded app in the United States last year, and its users say its platform is much more than teens watching viral dance or cute animal videos. It’s become a critical tool for content creators, small business owners and many others who have made TikTok an integral part of their lives.

    Avid TikTok users tell CNN they’re not spending sleepless nights worrying about the app’s ties to China and whether it poses security risks.

    They are more concerned about what they say would be lost in a world without TikTok: business income, entrepreneurial opportunities and a platform – built around short, creative and informational videos – where they can express themselves and connect with others.

    TikTok has exploded in numerous ways since its international debut in 2017. It now hosts videos on almost every topic under the sun.

    Khamyra Sykes, 16, shares short comedy skits and lifestyle content with her 560,000 TikTok followers. She uses the platform to make money by partnering with clothing brands and doing political ads – like a get-out-and-vote clip for the recent midterm election.

    The Atlanta-area resident sometimes cross-posts her TikTok videos on Instagram, where she has 1.5 million followers. Like many other teens, Sykes also watches a lot of TikTok content. Some days, she says she falls asleep to TikTok videos – anything with cuddly puppies or tasty-looking recipes.

    Brands consider TikTok key to social media marketing, she says, and many consider the size of creators’ followings and their engagement numbers when signing promotional deals.

    Khamyra Sykes, 16, says brands consider creators' TikTok reach and engagement a key metric of social media success.

    “If Tiktok was banned in the US, I would lose out on a large part of my fanbase and also brand deals,” Sykes says. “Banning TikTok will cause a huge job loss for creators who depend solely on TikTok for their livelihood, and will have a devastating impact on small businesses that use it for marketing and sales.”

    Saman Movassaghi Gonzalez, an immigration attorney in Miramar, Florida, uses TikTok to market her law practice to her 83,000 followers. Her short videos offer a light take on an otherwise heavy subject: In one, an image of her morphs into a fiery superhero who takes flight. “Me on my way to get my client out of immigration deportation/removal proceedings,” the caption reads.

    “It’s entertaining and catchy, so it works in getting people’s attention in a short period of time,” Gonzalez tells CNN.

    Sometimes, she breaks into dances as informative captions with immigration facts scroll on the screen. The 42-year-old says she’s gained some clients though the app, and checks it hourly to stay on top of messages.

    “It fits my personality. There are so many options to showcase who you are through the app, whether it’s short clips, skits or dances,” Gonzalez says. “And I love spreading information to people while trying to make it fun and entertaining.”

    Immigration attorney Saman Movassaghi Gonzalez uses TikTok to explain immigration policies. Sometimes, she breaks out into a dance with informative captions in the background.

    Like Facebook and Instagram before it, TikTok has become deeply embedded in American culture.

    The platform has created bestsellers and hit songs. Millions turn to it for wellness tips and fashion advice. CNN and other media outlets post news clips on TikTok. Rihanna introduced her new baby to the world on TikTok. Some believe Madonna used TikTok to make a recent statement about her sexuality. TikTok has launched countless careers, dance trends and memes.

    The app is especially popular with young people. A majority of its users are Gen Z, and a third of them are under 19, says Saif Shahin, an assistant professor of digital culture at Tilburg University in The Netherlands.

    But – ask any parent of a teenager – some adults feel the app consumes too much of young people’s attention.

    “While most social media apps tend to be addictive, none is more so than TikTok,” Shahin says. “Every day, users spend an average of an hour and a half on TikTok, which is nearly double the average time spent on Facebook or Instagram.”

    A girl is holding her smartphone with the logo of the short video app TikTok in her hands.

    Can the Chinese government get your data from TikTok? Analyst weighs in

    This popularity, experts say, can be a double-edged sword. For example, public health experts have used TikTok to convey important messages during the coronavirus pandemic. The White House has even hosted TikTok influencers for briefings on the pandemic, the war in Ukraine and other pressing topics.

    But researchers found TikTok’s search engine has spread misinformation about the pandemic, abortion, school shootings and other topics.

    And while TikTok provides resources on mental health, Shahin says it and other social media platforms can heighten attention deficiency, anxiety and depression.

    “TikTok has changed some aspects of our lives negatively … it has shortened our attention span and allows for the proliferation of misinformation,” says Cristina Ferraz, founder of Houston-based marketing agency Thirty6five.

    “If TikTok were to go away, it would remove one of the free sources of joy, connection and entertainment still available to anyone, anywhere with a Wi-Fi connection,” Ferraz adds. “However, it would also remove access to a platform known to create space for bullying and illicit activities for Gen Z.”

    TikTok has made a number of announcements in recent years in an effort to ease concerns about its content, including adding controls to help parents restrict what their children can see on the app.

    “TikTok is loved by millions of Americans who use the platform to learn, grow their businesses, and connect with creative content that brings them joy,” a TikTok spokesperson told CNN last month.

    In response to concerns about national security, TikTok has said the Chinese Communist Party has no control over its platform and that ByteDance is a private company which is owned mostly by global institutional investors – including Americans.

    Taccara and Yinka Lawanson, a couple who go by Ling and Lamb on TikTok, have 3.7 million followers on the platform. When they first joined, they referred to it as “the fast food of social media.”

    “It was the app you could go to and feel that you have the creative freedom to be yourself … goofy, playful with no one judging you,” they said in an email to CNN. “It was the app that in 60 seconds or less allowed the user the opportunity to go viral and become a star – which other platforms did not offer at the time.”

    The thirtysomething Connecticut couple – she grew up in the US and he’s from Nigeria – share short musings about daily life, including their cultural differences from growing up on opposite sides of the world. Like all social media platforms, they say, TikTok has its pros and cons.

    Taccara and Yinka Lawanson, who go by Ling and Lamb on social media, say it's up to individuals to determine the positives and negatives of specific apps based on their needs.

    “It’s up to each individual to decide what apps are positive or negative for the purpose in which they are looking to use the app, or what they are looking to get out of it,” they say. “For us, we don’t really have negative viewpoints of TikTok, as it has allowed us the opportunity to build and grow a great community of people around the world.”

    Phillip Calvert, a Milwaukee resident who goes by PhilWaukee on TikTok, downloaded the app when he lived in Shanghai, China, in 2018. He didn’t have much choice – he says social media platforms such as Instagram were blocked in the country.

    Now that Calvert has moved back to the United States, he’s glad he got an early introduction to TikTok.

    “People don’t even ask me for my Instagram anymore, they ask me for my TikTok,” he says. Calvert believes the app, with its steady diet of digestible videos, has become Gen Z’s alternative to television.

    “The other day, I asked my 15-year-old cousin to watch TV until I return. He told me, ‘Why would I watch TV when I have TikTok?’ ” he says.

    Milwaukee resident Phillip Calvert  downloaded TikTok when he lived in Shanghai, China. He didn't have much choice -- other social media platforms were blocked in the country.

    Calvert, who’s in his 30s, earns income by posting travel videos and other content to TikTok. He says he earned his first TikTok payment from a Black History Month partnership.

    He’s trying to grow his TikTok following and checks the platform several times a day.

    “I don’t wake up in the middle of the night to check it, because I’m on it until the middle of the night,” he says. “If I had to give up all social media and keep one, I’d choose TikTok because it’s the newest, and it’s fascinating to see where this is going.”

    All the content creators CNN spoke to say that losing TikTok would be a major setback for their brands.

    Calvert is hoping the pushback against his favorite social app will have the opposite effect.

    “Sometimes when you take something and you vilify it, it gets bigger and better,” he says.

    But the creators also agree that if they’re barred from TikTok, they won’t spend too much time mourning. They’ll move on to the next shiny social platform.

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  • California forces companies to show pay on job listings, revealing big tech salaries

    California forces companies to show pay on job listings, revealing big tech salaries

    Steve Proehl | Corbis Unreleased | Getty Images

    A new law that went into effect this week requires most California employers to disclose salaries on job listings.

    The law affects every company with more than 15 employees looking to fill a job that could be performed from the state of California. It covers hourly and temporary work, all the way up to openings for highly paid technology executives.

    That means it’s now possible to know the salaries top tech companies pay their workers. For example:

    Notably, these salary listings do not include any bonuses or equity grants, which many tech companies use to attract and retain employees.

    California is the latest and biggest of the states and cities that have enacted pay transparency laws, including Colorado and New York City. But more than 20% of Fortune 500 companies are based in California, including leaders in technology and media, and advocates hope that California’s new law will be the tipping point that turns posting salary information into standard practice.

    In the U.S., there are now 13 cities and states that require employers to share salary information, covering about 1 in 4 workers, according to Payscale, a software firm focusing on salary comparison.

    California’s pay transparency law is intended to reduce gender and race pay gaps and help minorities and women better compete in the labor market. For example, people can compare their current pay with job listings with the same job title and see if they’re being underpaid.

    Women earn about 83 cents for every dollar a man earns, according to the U.S. Census.

    “You’re going to need a lot of different elements in place in order for men and women to get paid the same for the same amount of work and the same experience,” said Monique Limón, the California state senator who sponsored the new law. “And one of those is transparency around salary ranges.”

    But the new disclosures under the law might not tell the whole story of what a job pays. Companies can choose to display wide pay ranges, violating the spirit of the law, and the law doesn’t require companies to reveal bonuses or equity compensation.

    The law could also penalize ambitious workers who are gunning for more money because of their experience or skills, the California Chamber of Commerce said last year when opposing the bill. Some employers might be wary of posting pay to prevent bidding wars for top talent.

    In a comment to CNBC, a Meta spokesperson said, “To ensure fairness and eliminate bias in our compensation systems, we regularly conduct pay equity analysis, and our latest analysis confirms that we continue to have pay equity across genders globally and by race in the US for people in similar jobs.” The firm also noted that it generally pays full-time employees in equity as well as cash.

    Apple and Google did not immediately respond to requests for comment.

    The new law

    There are two primary components to California Senate Bill No. 1162, which was passed in September and went into effect Jan. 1.

    First is the pay transparency component on job listings, which applies to any company with more than 15 employees if the job could be done in California.

    The second part requires companies with more than 100 employees to submit a pay data report to the state of California with detailed salary information broken down by race, sex and job category. Companies have to provide a similar report on the federal level, but California now requires more details.

    Employers are required to maintain detailed records of each job title and its wage history, and California’s labor commissioner can inspect those records. California can enforce the law through fines and can investigate violations. The reports won’t be published publicly under the new law.

    Limón said the bill helps narrow pay gaps by giving information to people so they can negotiate their pay better or determine if they are being underpaid for their experience and skills. It will also help the state make sure companies are following existing equal pay laws.

    “The reason this is important is that we are not able to address problems that we cannot see,” she said.

    Limón said she also hopes that the requirement will help California companies recruit the best talent and compete against other states that don’t require employers to post salaries.

    Pay transparency laws could also spur companies to raise wages after they see that rivals are offering higher salaries. Some companies could even choose to post salary ranges on job listings where it’s not required.

    Ultimately, she said, helping to ensure women and people of color are getting paid equally will help California’s economy.

    “The consequence is not just for an individual; there are economic consequences for the state for people being underpaid,” Limón said. “That means that their earning power and how they’re able to contribute to this economy in California, whether it’s through a sales market, a housing market, through investment, is limited, because they are not being paid equitably.”

    Loopholes

    The new law doesn’t require employers to post total compensation, meaning that companies can leave out information about stock grants and bonuses, offering an incomplete picture for some highly paid jobs.

    For high-paying jobs in the technology industry, equity compensation in the form of restricted stock units can make up a large percentage of an employee’s take-home pay. In industries such as finance, bonuses make up a big portion of annual pay.

    “Especially for tech employees, ultimately people want to know how much they’re getting in total compensation,” said Zuhayeer Musa, co-founder of Levels.fyi, a firm focused on recruiting and coaching for technology workers which crowdsources compensation. “Sometimes stock compensation can be more than 50% of your actual total comp.”

    Musa said stock from big tech companies is basically liquid because it can be immediately sold on the stock market.

    The new law also allows companies to provide wide ranges for pay, sometimes ranging over $100,000 or more between the lowest salary and the highest salary for a position. That seemingly violates the spirit of the law, but companies say the ranges are realistic because base pay can vary widely depending on skills, qualifications, experience and location.

    Companies may be open to hiring candidates with a range of experience — starting from entry level to a more senior person — for a particular opening, said Lulu Seikaly, senior corporate attorney at Payscale.

    Seikaly said she recommends clients post job listings with a specific seniority level to narrow the potential pay range.

    “When we talk to customers, and they ask what do you think is a good-faith range, we tell them that’s a business decision, but the way we would do it, especially from the legal side, if you post by levels, that’s going to cover you a lot more than posting one wide range,” Seikaly said.

    Some California companies are not listing salaries for jobs clearly intended to be performed in other states, but advocates hope California’s new law could spark more salary disclosures around the country. After all, a job listing with an explicit starting salary or range is likely to attract more candidates than one with unclear pay.

    “I was telling some folks this morning that pay transparency right now is kind of the exception,” Seikaly said. “Give it five to 10 years, I think it’ll end up being the norm.”

    Gender pay gap remains despite more women entering the work force

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  • These 6 Club stocks look reasonably priced as Wall Street shuns high flyers

    These 6 Club stocks look reasonably priced as Wall Street shuns high flyers

    A Halliburton oil well fielder works on a well head at a fracking rig site January 27, 2016 near Stillwater, Oklahoma.

    J. Pat Carter | Getty Images

    We’re growing increasingly worried about some richly valued companies in our portfolio, including the likes of Nvidia (NVDA) and Microsoft (MSFT). Expensive stocks remain out of favor on Wall Street — just as they had been for much of last year — and there could be more room for them to fall as recession fears mount.

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  • CES 2023: Tech world to gather and show off gadgets

    CES 2023: Tech world to gather and show off gadgets

    NEW YORK — CES, the annual tech industry event formerly known as the Consumer Electronics Show, is returning to Las Vegas this week with the hope that it looks more like it did before the coronavirus pandemic.

    Media previews start Tuesday and Wednesday, with the show opening Thursday and continuing through Sunday.

    The show changed its name to CES several years ago to better reflect the changing industry and the event, which had expanded beyond audio and video to include automotive, digital health, smart phones, wearables and other technologies.

    Companies and startups will showcase innovations in virtual reality, robotics and consumer tech items to the media and others in the tech industry. The show is not open to the general public.

    Organizers say their goal is to draw 100,000 attendees. That would be a marked contrast with the look and feel of the past two shows — the last of which saw a 70% drop in in-person attendance amid the spread of the Omicron variant. The one before that was held virtually, replacing in-person displays and meet and greets with video streams and chats.

    Even if organizers reach their goal, it would still represent a 41% dip in attendance compared to the in-person show held in early 2020, before the pandemic consumed much of everyday life.

    Kinsey Fabrizio, senior vice president at the trade group Consumer Technology Association, said roughly 3,000 companies have signed up to attend the event.

    They include many startups and routine visitors like Amazon and Facebook parent Meta, both of which have recently cut jobs and implemented hiring freezes after beefing up their staff during the pandemic. Other tech companies have also been tightening their belts and laying off workers amid concerns about the economic environment.

    The Associated Press spoke with Fabrizio about CES and what consumers should expect at the show. The conversation has been edited for clarity and length.

    ———

    Q: The tech industry has been going through a rough time in the past few months. How do you expect that to impact the show?

    A: Yeah, for the last two years, the tech industry was booming. We’re seeing a recalibration now and as part of the recalibration, there are layoffs. But in terms of CES, the companies are coming big. And they’re going to be showcasing some of these solutions that were critical during the pandemic, and a lot of the solutions that have continued to change the way consumers live and behave. The momentum and excitement we’re seeing for the show hasn’t been impacted.

    Q: Are most of the exhibitors startups?

    A: We have a lot of startups and new companies. Over 1,000 new exhibitors for CES this year, which is on par with prior years. There will be some repeat customers in Eureka Park, where our startups are primarily stationed. They can be there for up to two years. But we will also have a lot of companies who’ve been at CES for a while.

    Q: The theme for the show is human security. How did you land on that?

    A: We were approached by The World Academy of Art and Science, which has been working with the United Nations for a long time on human security. You can think of it as basic human rights — access to food, health care, etc. And they wanted CES to really use this theme because our exhibitors are showcasing how they’re solving some of these big global challenges with technology.

    Q: Historically, CES has been more focused on convenience and personal tech. So this is going to be a shift.

    A: This is the shift. We’ve talked about how tech solves challenges in the world. But we’ve never had a theme at CES before. It’s always been about innovation and great products for the consumer. But for this show, you will be able to see the theme on the show floor and other places. For example, John Deere is showcasing some of their agricultural technology that really contributes to sustainability and access to food. Another company created a secure voting technology on the blockchain, which aligns with the U.N. theme of political security.

    Q: The metaverse is going to be another big topic. A lot of companies are investing in it. What can visitors expect to see at the show?

    A: The metaverse is a key theme. We’ll have a dedicated part of the show floor for Web3 technology. There’s also going to be shared and immersive virtual experiences. Automaker Stellantis and Microsoft have a partnership to create a showroom in the metaverse. There’s a company called OVR that has created a solution where you can smell in the metaverse. People are talking about unique ways to reach their customers, and different experiences people can have there. So that will be a big theme among both big and small exhibitors.

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  • Tesla stock wipes out three-day bounce, falls to lowest price in more than 2 years

    Tesla stock wipes out three-day bounce, falls to lowest price in more than 2 years

    It has taken just one day for Tesla Inc.’s stock to erase the entire bounce it enjoyed over the last three days trading sessions of 2022, as disappointing deliveries data helped trigger the biggest selloff in more than two years.

    The stock’s
    TSLA,
    -12.24%

    Tuesday drop knocked the electric vehicle maker’s market capitalization to 15th on the list of most valuation S&P 500 index companies.

    On Tuesday, Tesla’s market cap fell below that of consumer products company Procter & Gamble Co.
    PG,
    +0.01%
    ,
    with a current market cap of $359.18 billion, and was just below Nvidia Corp.
    NVDA,
    -2.05%

    at $352.15 billion, according to FactSet data. Tesla sat just above Chevron Corp.
    CVX,
    -3.06%
    ,
    which was at $336.43 billion. (See list of S&P 500’s 20 most valuable companies as of Tuesday’s closing prices below.)

    Tesla’s stock took a $15.08, or 12.2% dive, to $108.10 on Tuesday, to lead the S&P 500’s
    SPX,
    -0.40%

    decliners, after the company reported over the weekend that fourth-quarter deliveries that came up short of expectations for the third quarter in a row. It suffered the biggest one-day decline since it plummeted 21.1% on Sept. 8, 2020, and closed at the lowest price since Aug. 13, 2020.

    Don’t miss: Tesla delivery-target miss shows ‘demand cracks clearly happening’ that mean ‘numbers could be materially reset’ for coming years, analysts write.

    With about 3.16 billion shares outstanding as of Oct. 18, the stock’s decline shaved about $47.62 billion off Tesla’s market cap, to bring it down to $341.35 billion. That’s a far cry from the peak market cap of $1.24 trillion reached exactly one-year ago.

    After the stock hit the deepest oversold reading in its history based on the widely followed Relative Strength Index momentum indicator on Dec. 27, following the longest losing streak in more than four years, it ran up $14.08, or 12.9%, over the past three days.

    If there’s a bright side to Tuesday’s stock selloff, it’s that even though the price fell below the Dec. 27 closing price, the RSI ended the day at 24.86, which is up from the Dec. 27 record low of 16.56.

    That could be a preliminary sign of what chart watchers call “bullish technical divergence,” which is when prices make lower lows while the RSI makes a higher low. It’s still rather early to make that determination, however, as the stock needs to start bouncing again to see if RSI bottoms above the previous low.

    Market caps of the Top 20 most valuable S&P 500 companies:

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  • Apple-Apps-Top-10

    Apple-Apps-Top-10

    The top 10 apps on the Apple Store for week ending 1/1/2023

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  • CES 2023: Tech world to gather and show off gadgets

    CES 2023: Tech world to gather and show off gadgets

    NEW YORK — CES, the annual tech industry event formerly known as the Consumer Electronics Show, is returning to Las Vegas this week with the hope that it looks more like it did before the coronavirus pandemic.

    Media previews start Tuesday and Wednesday, with the show opening Thursday and continuing through Sunday.

    The show changed its name to CES several years ago to better reflect the changing industry and the event, which had expanded beyond audio and video to include automotive, digital health, smart phones, wearables and other technologies.

    Companies and startups will showcase innovations in virtual reality, robotics and consumer tech items to the media and others in the tech industry. The show is not open to the general public.

    Organizers say their goal is to draw 100,000 attendees. That would be a marked contrast with the look and feel of the past two shows — the last of which saw a 70% drop in in-person attendance amid the spread of the Omicron variant. The one before that was held virtually, replacing in-person displays and meet and greets with video streams and chats.

    Even if organizers reach their goal, it would still represent a 41% dip in attendance compared to the in-person show held in early 2020, before the pandemic consumed much of everyday life.

    Kinsey Fabrizio, senior vice president at the trade group Consumer Technology Association, said roughly 3,000 companies have signed up to attend the event.

    They include many startups and routine visitors like Amazon and Facebook parent Meta, both of which have recently cut jobs and implemented hiring freezes after beefing up their staff during the pandemic. Other tech companies have also been tightening their belts and laying off workers amid concerns about the economic environment.

    The Associated Press spoke with Fabrizio about CES and what consumers should expect at the show. The conversation has been edited for clarity and length.

    ———

    Q: The tech industry has been going through a rough time in the past few months. How do you expect that to impact the show?

    A: Yeah, for the last two years, the tech industry was booming. We’re seeing a recalibration now and as part of the recalibration, there are layoffs. But in terms of CES, the companies are coming big. And they’re going to be showcasing some of these solutions that were critical during the pandemic, and a lot of the solutions that have continued to change the way consumers live and behave. The momentum and excitement we’re seeing for the show hasn’t been impacted.

    Q: Are most of the exhibitors startups?

    A: We have a lot of startups and new companies. Over 1,000 new exhibitors for CES this year, which is on par with prior years. There will be some repeat customers in Eureka Park, where our startups are primarily stationed. They can be there for up to two years. But we will also have a lot of companies who’ve been at CES for a while.

    Q: The theme for the show is human security. How did you land on that?

    A: We were approached by The World Academy of Art and Science, which has been working with the United Nations for a long time on human security. You can think of it as basic human rights — access to food, health care, etc. And they wanted CES to really use this theme because our exhibitors are showcasing how they’re solving some of these big global challenges with technology.

    Q: Historically, CES has been more focused on convenience and personal tech. So this is going to be a shift.

    A: This is the shift. We’ve talked about how tech solves challenges in the world. But we’ve never had a theme at CES before. It’s always been about innovation and great products for the consumer. But for this show, you will be able to see the theme on the show floor and other places. For example, John Deere is showcasing some of their agricultural technology that really contributes to sustainability and access to food. Another company created a secure voting technology on the blockchain, which aligns with the U.N. theme of political security.

    Q: The metaverse is going to be another big topic. A lot of companies are investing in it. What can visitors expect to see at the show?

    A: The metaverse is a key theme. We’ll have a dedicated part of the show floor for Web3 technology. There’s also going to be shared and immersive virtual experiences. Automaker Stellantis and Microsoft have a partnership to create a showroom in the metaverse. There’s a company called OVR that has created a solution where you can smell in the metaverse. People are talking about unique ways to reach their customers, and different experiences people can have there. So that will be a big theme among both big and small exhibitors.

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  • More social media regulation is coming in 2023, members of Congress say

    More social media regulation is coming in 2023, members of Congress say

    The U.K.’s Online Safety Bill, which aims to regulate the internet, has been revised to remove a controversial but critical measure.

    Matt Cardy | Getty Images News | Getty Images

    Days after Congress passed a bipartisan spending bill banning TikTok from government devices, legislators and advocates say they are looking to further regulate social media companies in the New Year.

    TikTok, a video-sharing app owned by the Chinese company ByteDance, attracts more than 1 billion users every month. Lawmakers and FBI Director Christopher Wray have voiced concerns that TikTok’s ownership structure could make U.S. user data vulnerable, since companies based in China are required by law to hand over user information if the government requests it.

    TikTok has repeatedly said its U.S. user data is not based in China, though those assurances have done little to alleviate concerns.

    Rep. Mike Gallagher, R-Wisc., compared TikTok to “digital fentanyl” on Sunday, telling NBC’s “Meet the Press” that he thinks the ban on the app should be expanded nationally.

    “It’s highly addictive and destructive,” he said. “We’re seeing troubling data about the corrosive impact of constant social media use, particularly on young men and women here in America.”

    Facebook whistleblower Frances Haugen said Sunday that since social media platforms like TikTok, Twitter and YouTube operate using similar algorithms, regulators should push for more transparency about how they work as a first step.

    Haugen said she thinks most people are unaware of how far behind the U.S. is when it comes to social media regulation.

    “This is like we’re back in 1965, we don’t have seatbelt laws yet,” she told NBC’s “Meet the Press.”

    Congress failed to pass many of the most aggressive bills targeting tech in 2022, including antitrust legislation that would require app stores developed by Apple and Google to give developers more payment options, and a measure mandating new guardrails to protect kids online. Congress made more headway this year than in the past toward a compromise bill on national privacy standards, but there remains only a patchwork of state laws determining how consumer data is protected.

    Sen. Amy Klobuchar, D-Minn., said bipartisan support exists for many of these bills, and many have made it onto the Senate floor. But she said the tech lobby is so powerful that bills with “strong, bipartisan support” can fall apart “within 24 hours.”

    Klobuchar said on Sunday that things are only going to change with social media companies when Americans decide they have had enough.

    “We are lagging behind,” she told NBC’s “Meet the Press.” “It is time for 2023, let it be our resolution, that we finally pass one of these bills.”

    — CNBC’s Lauren Feiner contributed to this report

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