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Tag: Personnel

  • Amazon CEO says layoffs will extend into next year

    Amazon CEO says layoffs will extend into next year

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    NEW YORK — The mass layoffs that began in Amazon‘s corporate ranks this week will extend into next year, CEO Andy Jassy said Thursday.

    In a note sent to employees, Jassy said the company told workers in its devices and books divisions about layoffs on Wednesday. He said it also offered some other employees a voluntary buyout offer.

    “I’ve been in this role now for about a year and a half, and without a doubt, this is the most difficult decision we’ve made during that time (and, we’ve had to make some very tough calls over the past couple of years, particularly during the heart of the pandemic),” Jassy wrote in the memo.

    Seattle-based Amazon, which has been cutting costs in various areas of its business in the past few months, is undergoing an annual review process to figure out where it can save more money. Jassy said this year’s review is “more difficult” due to the economic landscape and the company’s rapid hiring in the last several years.

    Other tech companies — many of which had gone on hiring binges in the past few years — have also been trimming their workforce amid concerns about an economic slowdown. Among others, Facebook parent Meta said last week it would lay off 11,000 people, about 13% of its workforce. And Elon Musk, the new Twitter CEO, has slashed the company’s workforce in half this month.

    On Tuesday, Amazon notified authorities in California that it would lay off about 260 corporate workers at various facilities in the state. The company has not publicly disclosed how many employees it laid off this week across its entire corporate workforce, though some based in Seattle said they’ve also been let go.

    Jassy said the company hasn’t concluded how many other jobs will be impacted. He noted there will be reductions in certain divisions as the company goes through the annual review process, which will continue into next year. As they weigh job cuts, he said leaders at the company will prioritize what matters most to customers and the long-term health of the company.

    Amazon is offering severance packages for employees who leave the company. But — unlike Meta, for example — it hasn’t publicly provided details of the package.

    The company employs more than 1.5 million workers globally, primarily made up of hourly workers.

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  • Twitter Workers Say Farewell After Musk Ultimatum Over Terms of Employment Passes

    Twitter Workers Say Farewell After Musk Ultimatum Over Terms of Employment Passes

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    Company follows up with practical details after billionaire challenges remaining employees to be ‘hardcore’ or leave: ‘This is not a phishing attempt’

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  • New CEO of FTX blasts its handling of financial information

    New CEO of FTX blasts its handling of financial information

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    The new CEO of the collapsed cryptocurrency trading firm FTX, who oversaw Enron’s bankruptcy, said he has never seen such a “complete failure” of corporate control.

    John Ray III, in a filing with the U.S. bankruptcy court for the district of Delaware, said there was a “complete absence of trustworthy financial information.”

    “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray said. “From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”

    Ray noted that many of the companies in the FTX Group, particularly those in Antigua and the Bahamas, didn’t have appropriate corporate governance and many had never held a board meetings. The group also had cash management procedural failures, including the absence of an accurate list of bank accounts and account signatories. There was also insufficient attention paid to the creditworthiness of banking partners.

    Ray also addressed the use of corporate funds to pay for homes and other items for employees.

    “In the Bahamas, I understand that corporate funds of the FTX Group were used to purchase homes and other personal items for employees and advisors. I understand that there does not appear to be documentation for certain of these transactions as loans, and that certain real estate was recorded in the personal name of these employees and advisors on the records of the Bahamas,” he said.

    So far, debtors have found and secured “only a fraction” of the group’s digital assets that they hope to recover, with about $740 million of cryptocurrency secured in new cold wallets, which is a way of holding cryptocurrency tokens offline, said Ray.

    Ray was named CEO of FTX less than a week ago when the company filed for bankruptcy protection and its CEO and founder Sam Bankman-Fried resigned. The embattled cryptocurrency exchange, short billions of dollars, sought bankruptcy protection after the exchange experienced the crypto equivalent of a bank run.

    In its bankruptcy filing, FTX listed more than 130 affiliated companies around the globe. The company valued its assets between $10 billion to $50 billion, with a similar estimate for its liabilities.

    Bankman-Fried was recently estimated to be worth $23 billion. His net worth has all but evaporated, according to Forbes and Bloomberg, which closely track the net worth of the world’s richest people.

    FTX’s failure goes beyond finance. The company had major sports sponsorships as well, including Formula One racing and a sponsorship deal with Major League Baseball. Miami-Dade County decided Friday to terminate its relationship with FTX, meaning the venue where the Miami Heat play will no longer be known as FTX Arena. Mercedes was planning to remove FTX from its race cars starting last weekend.

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  • Arizona company adds $1B solar power parts plant in Alabama

    Arizona company adds $1B solar power parts plant in Alabama

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    MONTGOMERY, Ala. — Arizona-based First Solar Inc. has selected Alabama as the site of a more than $1 billion factory that will manufacture modules that generate solar power, the company announced Wednesday.

    First Solar said in a statement that the plant, to be located in Lawrence County in the Tennessee Valley region, will create more than 700 jobs.

    The factory is part of a previously announced plan to increase First Solar’s U.S. manufacturing capacity to more than 10 gigawatts by 2025, the company said. It already has three factories in Ohio, one of which is expected to begin production next year.

    First Solar describes itself as the only major solar manufacturer that has headquarters in the United States and is not making components in China. The project will bring the company’s total investment in U.S. manufacturing to more than $4 billion, it said.

    A bill signed by President Joe Biden in August will direct spending, tax credits and loans to bolster technology like solar panels; consumer efforts to improve home energy efficiency; emissions-reducing equipment for coal- and gas-powered power plants; and air pollution controls for farms, ports and low-income communities.

    First Solar CEO Mark Widmar said that legislation “has firmly placed America on the path to a sustainable energy future” and the new plants will help with the transition toward cleaner energy, which supporters say will help stem climate change.

    ———

    This story has been corrected to reflect that the plant will be in Lawrence County.

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  • Musk testifies in lawsuit over Tesla compensation package

    Musk testifies in lawsuit over Tesla compensation package

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    WILMINGTON, Del. — Tesla CEO Elon Musk took the witness stand Wednesday to defend himself in a shareholder lawsuit challenging a compensation package he was awarded by the company’s board of directors that is potentially worth more than $55 billion.

    Musk denied that he dictated terms of the compensation package or attended any meetings at which the plan was discussed by the board, its compensation committee, or a working group that helped develop it.

    “I was entirely focused on the execution of the company,” he said.

    Plaintiff’s attorney Greg Varallo spent much of his early cross-examination trying to draw Musk into admitting that he controls Tesla to such an extent that he can sway the board to do his bidding. Among other things, Varallo questioned Musk about his title of “Technoking,” a role that Musk has previously noted comes with “panache” and “great dance moves.”

    “I think comedy is legal,” Musk told Varallo, who had questioned whether Musk was “stone-cold sober” when he came up with the title.

    Varallo also suggested that one of the reasons that Musk developed a “master plan” for Tesla was to let people know he was in charge. He also noted that Musk makes recommendations regarding compensation for senior executives, and that he unilaterally made the decision to pause Tesla’s policy of accepting bitcoin from vehicle purchasers.

    “You’re asking complex questions that can’t be answered ‘yes’ or ‘no’,” Musk said when Varallo asked whether he came up with the vision for Tesla.

    The lawsuit alleges that the performance-based stock option grant was negotiated by the compensation committee and approved by Tesla board members who had conflicts interest due to personal and professional ties to Musk, including investments in his companies. It also alleges the shareholder vote approving the compensation plan was based on a misleading proxy statement.

    The shareholder plaintiff alleges that the proxy wrongly described members of the compensation committee as “independent,” and characterized all of the milestones that triggered vesting in the stock options as “stretch” goals meant to be difficult to achieve, even though internal projections indicated that three operational milestones were likely to be achieved within 18 months of the stockholder vote.

    Attorneys for the defendants have noted that two institutional proxy advising firms that urged shareholders to reject the plan nevertheless noted that it would require “significant and perhaps historic achievements” and require growth that “appear stretching by any benchmark.”

    The plan called for Musk to reap billions if Tesla hit certain market capitalization and operational milestones. For each incidence of simultaneously meeting a market cap milestone and an operational milestone, Musk, who owned about 22% of Tesla when the plan was approved, would get stock equal to 1% of outstanding shares at the time of the grant. His interest in the company would grow to about 28% if the company’s market capitalization grew by $600 billion.

    Each milestone in the plan includes growing Tesla’s market capitalization by $50 billion and meeting aggressive revenue and pretax profit growth targets. Musk would receive the full benefit of the pay plan, $55.8 billion, only if Tesla hit a market capitalization of $650 billion and unprecedented revenue and earnings within a decade.

    To date, Tesla has achieved all 12 of the market capitalization milestones and 11 operational milestones, resulting in the vesting of 11 of the grant’s 12 tranches and providing Musk over $52.4 billion in stock option gains, according to the lawsuit. Since the grant was awarded, Tesla’s market capitalization has increased from $59 billion to more than $613 billion now, having briefly hit $1 trillion early this year. Musk has sold Tesla stock to finance the Twitter purchase, adding downward pressure on the shares.

    Shares of Tesla and other automakers have been battered this year, but the Austin, Texas, company earned $5.5 billion in 2021, blowing away the previous year’s profit of $721 million. It also produced a record 936,000 vehicles, nearly double vehicle production in 2020.

    Attorneys for the plaintiff have suggested that incentivizing Musk to remain at Tesla’s helm by offering a huge compensation package was unnecessary, because he’s never suggested that he might leave. They’ve also suggested that Musk’s true motive in negotiating the package was to fund his dream to colonize Mars.

    In a November 2017 email to former Tesla General Counsel Todd Maron, Musk expressed optimism that the compensation package would be seen in a favorable light.

    “Given that this will all go to causes that at least aspirationally maximize the probability of a good future for humanity, plus all Tesla shareholders will be super happy, I think this will be received well,” he wrote, adding that “it should come across as an ultra bullish view of the future.”

    While on the stand, Musk also said that he does not want to be the CEO of any company.

    “I expect to reduce my time at Twitter and find somebody else to run Twitter over time,” Musk said, according to multiple media reports.

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  • Flying home for the holidays will cost you more this year

    Flying home for the holidays will cost you more this year

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    People still looking to book trips home to visit family or take a vacation during the holidays need to act fast and prepare for sticker shock.

    Airline executives say that based on bookings, they expect huge demand for flights over Thanksgiving, Christmas and New Year’s. Travel experts say the best deals for airfares and hotels are already gone.

    On social media, plenty of travelers think they are being gouged. It’s an understandable sentiment when government data shows that airfares in October were up 43% from a year earlier, and U.S. airlines reported a combined profit of more than $2.4 billion in the third quarter.

    Part of the reason for high fares is that airlines are still operating fewer flights than in 2019 even though passenger numbers are nearly back to pre-pandemic levels.

    “Fewer flights and more people looking to head home or take vacation for the holidays means two things: Prices will be higher, and we will see flights sell out for both holidays,” says Holly Berg, chief economist for travel-data provider Hopper.

    Yulia Parr knows exactly what Berg is talking about. The Annandale, Virginia, woman struggled to find a reasonably priced flight home for her young son, who is spending Thanksgiving with his grandmother in Texas while Parr visits her husband, who is on active military duty in California. She finally found a $250 one-way ticket on Southwest, but it’s not until the Tuesday after the holiday.

    Parr figures she waited too long to book a flight.

    “My husband’s kids are flying home for Christmas,” she said. “Those tickets were bought long ago, so they’re not too bad.”

    Prices for air travel and lodging usually rise heading into the holidays, and it happened earlier this year. That is leading some travelers in Europe to book shorter trips, according to Axel Hefer, CEO of Germany-based hotel-search company Trivago.

    “Hotel prices are up absolutely everywhere,” he said. “If you have the same budget or even a lower budget through inflation, and you still want to travel, you just cut out a day.”

    Hotels are struggling with labor shortages, another cause of higher prices. Glenn Fogel, CEO of Booking Holdings, which owns travel-search sites including Priceline and Kayak, says one hotelier told him he can’t fill all his rooms because he doesn’t have enough staff.

    Rates for car rentals aren’t as crazy as they were during much of 2021, when some popular locations ran out of vehicles. Still, the availability of vehicles is tight because the cost of new cars has prevented rental companies from fully rebuilding fleets that they culled early in the pandemic.

    U.S. consumers are facing the highest inflation in 40 years, and there is growing concern about a potential recession. That isn’t showing up in travel numbers, however.

    The number of travelers going through airport checkpoints has recovered to nearly 95% of 2019 traffic, according to Transportation Security Administration figures for October. Travel industry officials say holiday travel might top pre-pandemic levels.

    Airlines haven’t always done a good job handling the big crowds, even though they have been hiring workers to replace those who left after COVID-19 hit. The rates of canceled and delayed flights rose above pre-pandemic levels this summer, causing airlines to slow down plans to add more flights.

    U.S. airlines operated only 84% as many U.S. flights as they did in October 2019, and plan about the same percentage in December, according to travel-data firm Cirium. On average, airlines are using bigger planes with more seats this year, which partly offsets the reduction in flights.

    “We are definitely seeing a lot of strength for the holidays,” Andrew Nocella, United Airlines’ chief commercial officer, said on the company’s earnings call in October. “We’re approaching the Thanksgiving timeframe, and our bookings are incredibly strong.”

    Airline executives and Transportation Secretary Pete Buttigieg blamed each other for widespread flight problems over the summer. Airline CEOs say that after hiring more pilots and other workers, they are prepared for the holiday mob.

    Travel experts offer tips for saving money and avoiding getting stranded by a canceled flight, although the advice hasn’t changed much from previous years.

    Be flexible about dates and even destinations, although that’s not possible when visiting grandma’s house. In a recent search, the cheapest flights from Los Angeles to New York around Christmas were on Christmas Eve and returning New Year’s Eve.

    Look into discount airlines and alternate airports, but know that smaller airlines have fewer options for rebooking passengers after a flight is canceled.

    Fly early in the day to lower your risk of a delay or cancellation. “If something goes wrong, it tends to progress throughout the day — it gets to be a domino effect,” says Chuck Thackston, general manager of Airlines Reporting Corp., an intermediary between airlines and travel agents.

    There are plenty of theories on the best day of the week to book travel. Thackston says it’s Sunday because airlines know that’s when many price-conscious consumers are shopping, and carriers tailor offerings for them.

    For the most part, airlines have dodged the accusations of price-gouging that have swirled around oil companies — which drew another rebuke this week from President Joe Biden — and other industries.

    Accountable US, an advocacy group critical of corporations, linked airline delays and cancellations this summer to job cuts during the pandemic and poor treatment of workers. “But generally, we would say the airline industry is not currently at the same level as big food, oil or retail in terms of gross profiteering,” says Jeremy Funk, a spokesman for the group.

    Brett Snyder, who runs a travel agency and writes the “Cranky Flier” blog about air travel, says prices are high simply because flights are down from 2019 while demand is booming.

    “How is it gouging?” Snyder asks. “They don’t want to go (take off) with empty seats, but they also don’t want to sell everything for a dollar. It’s basic economics.”

    Travelers are sacrificing to hold down the cost of their trips.

    Sheena Hale and her daughter, Krysta Pyle, woke up at 3 a.m. and left their northwestern Indiana home an hour later to make a 6:25 a.m. flight in Chicago last week.

    “We are exhausted,” Hale said after the plane landed in Dallas, where Krysta was taking part in a cheer competition. “We started early because the early flights were much cheaper. Flights are way too expensive.”

    They’re not going anywhere for Christmas.

    “We don’t have to travel. We’re staying home with family,” Hale said.

    ———

    David Koenig can be reached at www.twitter.com/airlinewriter

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  • Norwegian battery firm plans $2.6 billion plant in Georgia

    Norwegian battery firm plans $2.6 billion plant in Georgia

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    ATLANTA — A Norwegian company will build a giant electric battery factory just southwest of Atlanta, company and state officials announced Friday, investing up to $2.6 billion over multiple phases.

    Freyr Battery said it would build an initial plant that would produce batteries that could hold 34 gigawatt hours of electricity each year. Among battery plants currently operating, that would be the second-largest worldwide, behind a factory owned by Panasonic and Tesla in Nevada.

    Freyr CEO Tom Jensen told attendees at the announcement in the Atlanta suburb of Newnan that the company’s vision of using renewable energy to make batteries could play an important role in reducing carbon emissions from electricity generation and transportation. The company’s initial plan is targeted toward storing electricity produced by renewable sources and releasing it later, but Jensen said sales to vehicle makers could also be included.

    Jensen said battery production is a “massive growth opportunity,” predicting 70% of decarbonization efforts will somehow include batteries.

    “We want to build something that matters, something that we can be proud of something that will matter for our children,” Jensen said. “Because at the end of the day, the world needs to rapidly decarbonize the society.”

    The company said it plans an initial investment of $1.7 billion, and would hire 720 people at a site it has purchased in an industrial park near Newnan, about 35 miles (55 kilometers) southwest of Atlanta. Phases through 2029 involving $700 million of additional investment could include more production lines, material processing and other activities.

    Employees are projected to make an average of $60,284 a year, said Molly Giddens of the Coweta County Development Authority.

    Freyr, named for the Norse god of peace and fertility, rain, and sunshine, is also building a large factory in northern Norway and is planning a battery cell production facility in Vaasa, Finland.

    The company aims to make batteries, an electricity-intensive process, using renewable energy. In Georgia, that could mean buying electricity from a dedicated solar facility with battery storage run by a third party, the company said.

    Freyr said it looked at 130 sites in 25 states before selecting Georgia, citing the availability of engineers trained by Georgia Tech and other schools, job training, and proximity to Atlanta’s big airport, Savannah’s port, railroads and highways.

    The company said it sees opportunities in the United States in part because of incentives for renewable energy passed by Congress earlier this year. Freyr said it intends to seek federal grants or loans.

    In addition, the company said it is getting “strong” financial incentives from state and local officials in Georgia. The state plans to pay for worker training, and Freyr will eligible for up to $4.5 million in state income tax credits over five years, as long as workers make at least $31,300 a year. Coweta County will give property tax breaks for 20 years, Giddens said, not disclosing a projected value. She said the company would also get a “quality jobs creation grant.”

    It’s the second huge battery factory announced in Georgia. Korean firm SK Innovation has built a $2.6 billion plant in Commerce, northeast of Atlanta, with plans to hire 2,600 workers eventually.

    The state has targeted the electric vehicle industry. Hyundai Motor Group has announced plans to invest $5.5 billion in a plant near Savannah and hire 8,100 workers, also planning to make batteries there. Electric truck maker Rivian has plans to build a plant east of Atlanta, investing $5 billion and employing 7,500 workers.

    ———

    Follow Jeff Amy on Twitter at http://twitter.com/jeffamy.

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  • Disney plans targeted hiring freeze and job cuts, according to a memo from CEO Bob Chapek

    Disney plans targeted hiring freeze and job cuts, according to a memo from CEO Bob Chapek

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    Disney plans to institute a targeted hiring freeze as well as some job cuts, according to an internal memo sent to executives.

    “We are limiting headcount additions through a targeted hiring freeze,” CEO Bob Chapek said in a memo to division leads sent Friday and obtained by CNBC. “Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold. Your segment leaders and HR teams have more specific details on how this will apply to your teams.”

    He added: “As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review.” Disney has approximately 190,000 employees.

    Chapek also told executives business travel should be limited to essential trips only. Meetings should be conducted virtually as much as possible, he wrote in the memo.

    Disney is also establishing “a cost structure taskforce” to be made up of Chief Financial Officer Christine McCarthy, General Counsel Horacio Gutierrez and Chapek.

    “I am fully aware this will be a difficult process for many of you and your teams,” Chapek wrote. “We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time.”

    The moves come after Disney reported disappointing quarterly results. Shares of the company fell sharply Wednesday, hitting a new 52-week low, before rebounding later in the week.

    McCarthy said during Disney’s earnings call Tuesday that the company was looking for ways to trim costs.

    “We are actively evaluating our cost base currently, and we’re looking for meaningful efficiencies,” she said. “Some of those are going to provide some near-term savings, and others are going to drive longer-term structural benefits.”

    Disney’s streaming services lost $1.47 billion last quarter, more than double the unit’s loss from a year prior. McCarthy said losses will improve in 2023, and Chapek has promised streaming will become profitable by the end of 2024.

    Other large media and entertainment companies, including Warner Bros. Discovery and Netflix, have cut jobs this year as valuations have slumped. Disney hasn’t announced any plans to eliminate jobs.

    The full memo can be read here:

    Disney Leaders-

    As we begin fiscal 2023, I want to communicate with you directly about the cost management efforts Christine McCarthy and I referenced on this week’s earnings call. These efforts will help us to both achieve the important goal of reaching profitability for Disney+ in fiscal 2024 and make us a more efficient and nimble company overall. This work is occurring against a backdrop of economic uncertainty that all companies and our industry are contending with.

    While certain macroeconomic factors are out of our control, meeting these goals requires all of us to continue doing our part to manage the things we can control—most notably, our costs. You all will have critical roles to play in this effort, and as senior leaders, I know you will get it done.

    To be clear, I am confident in our ability to reach the targets we have set, and in this management team to get us there.

    To help guide us on this journey, I have established a cost structure taskforce of executive officers: our CFO, Christine McCarthy and General Counsel, Horacio Gutierrez. Along with me, this team will make the critical big picture decisions necessary to achieve our objectives.

    We are not starting this work from scratch and have already set several next steps—which I wanted you to hear about directly from me.

    First, we have undertaken a rigorous review of the company’s content and marketing spending working with our content leaders and their teams. While we will not sacrifice quality or the strength of our unrivaled synergy machine, we must ensure our investments are both efficient and come with tangible benefits to both audiences and the company.

    Second, we are limiting headcount additions through a targeted hiring freeze. Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold. Your segment leaders and HR teams have more specific details on how this will apply to your teams.

    Third, we are reviewing our SG&A costs and have determined that there is room for improved efficiency—as well as an opportunity to transform the organization to be more nimble. The taskforce will drive this work in partnership with segment teams to achieve both savings and organizational enhancements. As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review. In the immediate term, business travel should now be limited to essential trips only. In-person work sessions or offsites requiring travel will need advance approval and review from a member of your executive team (i.e., direct report of the segment chairman or corporate executive officer). As much as possible, these meetings should be conducted virtually. Attendance at conferences and other external events will also be restricted and require approvals from a member of your executive team.

    Our transformation is designed to ensure we thrive not just today, but well into the future—and you will hear more from our taskforce in the weeks and months ahead.

    I am fully aware this will be a difficult process for many of you and your teams. We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time. Our company has weathered many challenges during our 100-year history, and I have no doubt we will achieve our goals and create a more nimble company better suited to the environment of tomorrow.

    Thank you again for your leadership.

    -Bob

    WATCH: Disney had to get into streaming, but Meta just did too much hiring

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  • Elon Musk is now working out of Twitter headquarters, thanks employees for long hours

    Elon Musk is now working out of Twitter headquarters, thanks employees for long hours

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    Elon Musk’s photo is seen through a Twitter logo in this illustration taken October 28, 2022.

    Dado Ruvic | Reuters

    On Friday, Twitter‘s new owner Elon Musk sent a companywide email to employees of the social media giant thanking them for working long hours since he took over on Oct. 28.

    Musk said he had personally stayed at Twitter’s headquarters office in San Francisco late on Thursday night as well. He then invited employees who have returned to the San Francisco office, and who survived last week’s 50% reduction in workforce, to come visit with him.

    Overnight, Twitter appeared to pause its $7.99/month Twitter Blue subscription service, which allowed users of the social network to pay to attain a blue verified-subscriber check mark. Many users abused the new subscriber badge to impersonate brands and famous people who acquired a blue check mark via the company’s original verification system.

    Among the brands that were impersonated were Eli Lilly, the pharmaceutical giant, video game multinational Nintendo, and Elon Musk’s electric vehicle company, Tesla.

    Two current Twitter employees told CNBC that they were fielding calls from colleagues and clients about all the changes to the platform.

    One said Twitter used to make product changes more slowly and carefully and that was because they had to balance user behavior, safety and revenue impact. The new more experimental approach that Musk is taking has troubled many including advertisers, and even the FTC.

    Employees also said they wanted more clarity about the company’s new time off and return to office policies and that Elon Musk’s e-mail left them with questions. Friday is a national holiday in the U.S., Veterans Day, and some workers did not expect they would have to come in, while others are wondering if they still have approved exceptions that will allow them to continue to work from home. Two employees told CNBC that they have not gotten formal guidance from the company’s human resources department on remote work.

    This week, Musk told Twitter employees that he was reversing the company’s previous “work from home forever” policy which had been enacted by his personal friend and collaborator, former Twitter CEO Jack Dorsey.

    Here’s the e-mail from Elon Musk to Twitter employees on Friday, transcribed by CNBC:

    From: Elon Musk

    Date: Nov. 11, 2022 [time stamp removed]

    To: Team at Twitter

    Subj. Being There (great movie)

    I was at Twitter HQ again until late into the night yesterday and would like to extend a note of appreciation to those who were there with me, as well as those working remotely, some of whom had been up even longer.

    To reaffirm, working remotely is fine if you cannot reasonably make it to the office and you are performing at an exceptional level. That said, I am a big believer in the esprit de corps and effectiveness of being physically in the same location.

    I will be in the office again today. Stop by the 10th floor if you’d like to talk about taking Twitter to the next level. The priority is near-term actions.

    Thanks,

    Elon

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  • Average long-term US mortgage rate back above 7% this week

    Average long-term US mortgage rate back above 7% this week

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    WASHINGTON — The average long-term U.S. mortgage rate returned to the 20-year highs of two weeks ago when rates breached 7% for the first time since 2002.

    Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate rose to 7.08% from 6.95% last week. A year ago the average rate was 2.98%.

    The rate for a 15-year mortgage, popular with those refinancing their homes, climbed to 6.38% from 6.29% last week. It was 2.27% one year ago.

    Last week, the Federal Reserve raised its short-term lending rate by another 0.75 percentage points, three times its usual margin, for a fourth time this year as part of its inflation-fighting strategy. Its key rate now stands in a range of 3.75% to 4%.

    More increases are likely coming, though there is some hope that the Fed will dial them down as more evidence comes in that prices have peaked.

    The Labor Department reported Thursday that consumer inflation reached 7.7% in October from a year earlier, the smallest year-over-year rise since January. Excluding volatile food and energy prices, “core” inflation rose 6.3% in the past 12 months. The numbers were all lower than economists had expected.

    Thursday’s report raised the possibility that the Fed could decide to slow its rate hike, a prospect that sent stock prices jumping as soon as the data was released.

    Two weeks ago, the average long-term U.S. mortgage rate topped 7% for the first time in more than two decades, which combined with sky-high home prices, have crushed homebuyers’ purchasing power by adding hundreds of dollars to monthly mortgage payments.

    Sales of existing homes have declined for eight straight months as borrowing costs have become too big of an obstacle for many Americans already paying more for food, gas and other necessities. Additionally, many homeowners seeking to upgrade or change locations have held off listing their homes because they don’t want to jump into a higher rate on their next mortgage.

    The sagging housing market has prompted real estate companies to dial back their financial outlooks and shrink their workforces. Online real estate broker Redfin on Wednesday said it was cutting 862 employees and shutting down its instant-cash-offer subsidiary RedfinNow.

    Redfin also laid off 470 employees in June, blaming slowing home sales. Through attrition and layoffs, Redfin has slashed more than a quarter of its workforce on the assumption that the housing downturn will last “at least through 2023,” it said in a regulatory filing.

    Another online real estate broker, Compass, has laid off hundreds of workers this year.

    While mortgage rates don’t necessarily mirror the Fed’s rate increases, they tend to track the yield on the 10-year Treasury note. The yield is influenced by a variety of factors, including investors’ expectations for future inflation and global demand for U.S. Treasurys.

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  • Facebook parent Meta cuts 11,000 jobs, 13% of workforce

    Facebook parent Meta cuts 11,000 jobs, 13% of workforce

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    Facebook parent Meta is laying off 11,000 people, about 13% of its workforce, as it contends with faltering revenue and broader tech industry woes, CEO Mark Zuckerberg said in a letter to employees Wednesday.

    The job cuts come just a week after widespread layoffs at Twitter under its new owner, billionaire Elon Musk. There have been numerous job cuts at other tech companies that hired rapidly during the pandemic.

    Zuckerberg said that he had made the decision to hire aggressively, anticipating rapid growth even after the pandemic lockdowns ended.

    “Unfortunately, this did not play out the way I expected,” Zuckerberg said in a statement. “Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.”

    Meta, like other social media companies, enjoyed a financial boost during the pandemic lockdown era because more people stayed home and scrolled on their phones and computers. But as the lockdowns ended and people started going outside again, revenue growth began to falter.

    Of particular concern to investors, Meta poured over $10 billion a year into the “metaverse” as it shifts its focus away from social media. Zuckerberg predicts the metaverse, an immersive digital universe, will eventually replace smartphones as the primary way people use technology.

    Spooked investors have sent company shares tumbling more than 71% since the beginning of the year and the stock now trades at levels last seen in 2015.

    An economic slowdown and a grim outlook for online advertising — by far Meta’s biggest revenue source — have contributed to Meta’s woes as well. This summer, the company posted its first quarterly revenue decline in history, followed by another, bigger decline in the fall.

    Some of the pain is company-specific, while some is tied to broader economic and technological forces.

    Last week, Twitter laid off about half of its 7,500 employees, part of a chaotic overhaul as Musk took the helm. He tweeted that there was no choice but to cut the jobs “when the company is losing over $4M/day,” though did not provide details about the losses. Snap, the owner of Snapchat, also recently laid off 1,000 workers and online real estate broker Redfin said Wednesday it is cutting 862 employees.

    Meta and its advertisers are bracing for a potential recession. There’s also the challenge of Apple’s privacy tools, which make it more difficult for social media platforms like Facebook, Instagram and Snap to track people without their consent and target ads to them.

    Although Meta has been hurt by broader economic trends that have curtailed spending on digital ads, the company’s challenges have been compounded by the rise of TikTok at the same time Zuckerberg is pouring billions into a metaverse that so far seems like a distant mirage, said Forrester Research analyst J.P. Gownder.

    “They are making a big bet on something that may not happen for another five to 10 years,” Gownder said. “What they need to be doing is trying to solve some of their fundamental business problems. This (mass layoff) is only a stopgap.”

    Zuckerberg said Meta is cutting costs across its business, but he added that this alone won’t big costs in line with its revenue growth.

    In addition to the layoffs, a hiring freeze at the company will be extended through the first quarter of 2023, Zuckerberg said. The company has also slashed its real estate footprint and he said that with so many employees working outside of the office, the company will transition to desk sharing for those that remain.

    More cost cuts at Meta will be rolled out in coming months, Zuckerberg said.

    Zuckerberg told employees Wednesday that they will receive an email letting them know if they are among those being let go. Access to most company systems will be cut off for people losing their jobs, he said, due to the sensitive nature of that information.

    “We’re keeping email addresses active throughout the day so everyone can say farewell,” Zuckerberg said.

    Former employees will receive 16 weeks of base pay, plus two additional weeks for every year with the company, Zuckerberg said. Health insurance for those employees and their families will continue for six months.

    Even with Wednesday’s reductions, Meta still has more than 75,000 workers around the globe. In fact, the company had 71,970 workers at the end of 2021, and less than 59,000 at the end of 2020.

    Brad Gerstner, the CEO of Meta shareholder Altimeter Capital, wrote an open letter to Zuckerberg last month urging him to tighten Meta’s belt.

    “Meta has drifted into the land of excess — too many people, too many ideas, too little urgency,” Gerstner wrote. “This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes.”

    Gerstner urged Zuckerberg to streamline costs and focus the company in an open letter posted on Medium. His suggestions include cutting 20% of the company’s workforce — which still would only set Meta back to 2021 levels of staffing, backing Gerstner’s point that the company has become bigger than it needs to be.

    Meta’s Wednesday layoffs, while historic for the company, breaks no tech industry records. Hewlett Packard let go about 2/3 of its workforce between 2010 and 2021, going from 324,600 employees to 111,000 as of Oct. 31, 2021 for HP Inc. and HP Enterprises, which had been one company back in 2010.

    And its peak in 1986, IBM had about 400,000 employees worldwide. At the end of last year, IBM had about 282,000 full-time workers.

    It’s not yet clear if Meta — and the social media economy — is on a similar trajectory. A decade ago, Facebook successfully pivoted its business from running a website on desktop computers to an app — then multiple apps — on smartphones. While it is possible that it will be able to make the switch again to a new communications platform in the metaverse, the world — and the company — have changed tremendously.

    “Meta has three huge problems to overcome: It is no longer an innovative groundbreaker; its grip on market domination is dwindling; and the promise of the metaverse, the centerpiece of Zuckerberg’s vision for the future of his company, has been diminished by a combination of consumer apathy, business skepticism, and the realities of a sinking worldwide economy,” Gerstner wrote.

    Shares of Meta Platforms Inc. added $5, or 5.2% to close at $101.47 on Wednesday.

    AP Technology Writer Michael Liedtke in San Francisco and AP Business Writer Haleluya Hadero in New York contributed to this story.

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  • Facebook parent Meta cuts 11,000 jobs, 13% of workforce

    Facebook parent Meta cuts 11,000 jobs, 13% of workforce

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    Facebook parent Meta is laying off 11,000 people, about 13% of its workforce, as it contends with faltering revenue and broader tech industry woes, CEO Mark Zuckerberg said in a letter to employees Wednesday.

    The job cuts come just a week after widespread layoffs at Twitter under its new owner, billionaire Elon Musk. There have been numerous job cuts at other tech companies that hired rapidly during the pandemic.

    Zuckerberg said that he had made the decision to hire aggressively, anticipating rapid growth even after the pandemic lockdowns ended.

    “Unfortunately, this did not play out the way I expected,” Zuckerberg said in a statement. “Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.”

    Meta, like other social media companies, enjoyed a financial boost during the pandemic lockdown era because more people stayed home and scrolled on their phones and computers. But as the lockdowns ended and people started going outside again, revenue growth began to falter.

    Of particular concern to investors, Meta poured over $10 billion a year into the “metaverse” as it shifts its focus away from social media. Zuckerberg predicts the metaverse, an immersive digital universe, will eventually replace smartphones as the primary way people use technology.

    Spooked investors have sent company shares tumbling more than 71% since the beginning of the year and the stock now trades at levels last seen in 2015.

    An economic slowdown and a grim outlook for online advertising — by far Meta’s biggest revenue source — have contributed to Meta’s woes as well. This summer, the company posted its first quarterly revenue decline in history, followed by another, bigger decline in the fall.

    Some of the pain is company-specific, while some is tied to broader economic and technological forces.

    Last week, Twitter laid off about half of its 7,500 employees, part of a chaotic overhaul as Musk took the helm. He tweeted that there was no choice but to cut the jobs “when the company is losing over $4M/day,” though did not provide details about the losses. Snap, the owner of Snapchat, also recently laid off 1,000 workers and online real estate broker Redfin said Wednesday it is cutting 862 employees.

    Meta and its advertisers are bracing for a potential recession. There’s also the challenge of Apple’s privacy tools, which make it more difficult for social media platforms like Facebook, Instagram and Snap to track people without their consent and target ads to them.

    Although Meta has been hurt by broader economic trends that have curtailed spending on digital ads, the company’s challenges have been compounded by the rise of TikTok at the same time Zuckerberg is pouring billions into a metaverse that so far seems like a distant mirage, said Forrester Research analyst J.P. Gownder.

    “They are making a big bet on something that may not happen for another five to 10 years,” Gownder said. “What they need to be doing is trying to solve some of their fundamental business problems. This (mass layoff) is only a stopgap.”

    Zuckerberg said Meta is cutting costs across its business, but he added that this alone won’t big costs in line with its revenue growth.

    In addition to the layoffs, a hiring freeze at the company will be extended through the first quarter of 2023, Zuckerberg said. The company has also slashed its real estate footprint and he said that with so many employees working outside of the office, the company will transition to desk sharing for those that remain.

    More cost cuts at Meta will be rolled out in coming months, Zuckerberg said.

    Zuckerberg told employees Wednesday that they will receive an email letting them know if they are among those being let go. Access to most company systems will be cut off for people losing their jobs, he said, due to the sensitive nature of that information.

    “We’re keeping email addresses active throughout the day so everyone can say farewell,” Zuckerberg said.

    Former employees will receive 16 weeks of base pay, plus two additional weeks for every year with the company, Zuckerberg said. Health insurance for those employees and their families will continue for six months.

    Even with Wednesday’s reductions, Meta still has more than 75,000 workers around the globe. In fact, the company had 71,970 workers at the end of 2021, and less than 59,000 at the end of 2020.

    Brad Gerstner, the CEO of Meta shareholder Altimeter Capital, wrote an open letter to Zuckerberg last month urging him to tighten Meta’s belt.

    “Meta has drifted into the land of excess — too many people, too many ideas, too little urgency,” Gerstner wrote. “This lack of focus and fitness is obscured when growth is easy but deadly when growth slows and technology changes.”

    Gerstner urged Zuckerberg to streamline costs and focus the company in an open letter posted on Medium. His suggestions include cutting 20% of the company’s workforce — which still would only set Meta back to 2021 levels of staffing, backing Gerstner’s point that the company has become bigger than it needs to be.

    Meta’s Wednesday layoffs, while historic for the company, breaks no tech industry records. Hewlett Packard let go about 2/3 of its workforce between 2010 and 2021, going from 324,600 employees to 111,000 as of Oct. 31, 2021 for HP Inc. and HP Enterprises, which had been one company back in 2010.

    And its peak in 1986, IBM had about 400,000 employees worldwide. At the end of last year, IBM had about 282,000 full-time workers.

    It’s not yet clear if Meta — and the social media economy — is on a similar trajectory. A decade ago, Facebook successfully pivoted its business from running a website on desktop computers to an app — then multiple apps — on smartphones. While it is possible that it will be able to make the switch again to a new communications platform in the metaverse, the world — and the company — have changed tremendously.

    “Meta has three huge problems to overcome: It is no longer an innovative groundbreaker; its grip on market domination is dwindling; and the promise of the metaverse, the centerpiece of Zuckerberg’s vision for the future of his company, has been diminished by a combination of consumer apathy, business skepticism, and the realities of a sinking worldwide economy,” Gerstner wrote.

    Shares of Meta Platforms Inc. added $5, or 5.2% to close at $101.47 on Wednesday.

    AP Technology Writer Michael Liedtke in San Francisco and AP Business Writer Haleluya Hadero in New York contributed to this story.

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  • Meta laying off more than 11,000 employees: Read Zuckerberg’s letter announcing the cuts

    Meta laying off more than 11,000 employees: Read Zuckerberg’s letter announcing the cuts

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    Meta is laying off 13% of its staff, or more than 11,000 employees, CEO Mark Zuckerberg said in a letter to employees Wednesday.

    “Today I’m sharing some of the most difficult changes we’ve made in Meta’s history,” Zuckerberg said in the letter. “I’ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go. We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1.”

    Shares of Meta were up about 4% in premarket trading.

    The layoffs come amid a tough time for Facebook parent company Meta, which provided lukewarm guidance in late October for its upcoming fourth-quarter earnings that spooked investors and caused its shares to sink nearly 20%.

    Investors have been concerned about Meta’s rising costs and expenses, which jumped 19% year over year in the third quarter to $22.1 billion. The company’s overall sales declined 4% to $27.71 billion in the quarter while its operating income dropped 46% from the previous year to $5.66 billion.

    “I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.” Zuckerberg said.

    He said Meta is making reductions in every organization but that recruiting will be disproportionately affected since the company plans to hire fewer people in 2023. The company extended its hiring freeze through the first quarter with a few exceptions, Zuckerberg said.

    “This is a sad moment, and there’s no way around that. To those who are leaving, I want to thank you again for everything you’ve put into this place,” he added.

    Impacted employees will receive 16 weeks of pay plus two additional weeks for every year of service, Zuckerberg said. Meta will cover health insurance for six months.

    Meta is heavily investing in the metaverse, which generally refers to a yet-to-be developed digital world that can be accessed by virtual reality and augmented reality headsets. This hefty bet has cost Meta $9.4 billion so far in 2022, and the company anticipates that losses “will grow significantly year-over-year.”

    Zuckerberg said during a call with analysts as part of its third-quarter earnings report that Meta plans to “focus our investments on a small number of high priority growth areas” during the next year.

    “That means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year,” Zuckerberg said. “In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”

    Meta counts more than 87,000 employees as of the end of September.

    Here’s Mark Zuckerberg’s letter to employees:

    “Today I’m sharing some of the most difficult changes we’ve made in Meta’s history. I’ve decided to reduce the size of our team by about 13% and let more than 11,000 of our talented employees go. We are also taking a number of additional steps to become a leaner and more efficient company by cutting discretionary spending and extending our hiring freeze through Q1.

    I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.

    How did we get here?

    At the start of Covid, the world rapidly moved online and the surge of e-commerce led to outsized revenue growth. Many people predicted this would be a permanent acceleration that would continue even after the pandemic ended. I did too, so I made the decision to significantly increase our investments. Unfortunately, this did not play out the way I expected. Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.

    In this new environment, we need to become more capital efficient. We’ve shifted more of our resources onto a smaller number of high priority growth areas — like our AI discovery engine, our ads and business platforms, and our long-term vision for the metaverse. We’ve cut costs across our business, including scaling back budgets, reducing perks, and shrinking our real estate footprint. We’re restructuring teams to increase our efficiency. But these measures alone won’t bring our expenses in line with our revenue growth, so I’ve also made the hard decision to let people go.

    How will this work?

    There is no good way to do a layoff, but we hope to get all the relevant information to you as quickly as possible and then do whatever we can to support you through this.

    Everyone will get an email soon letting you know what this layoff means for you. After that, every affected employee will have the opportunity to speak with someone to get their questions answered and join information sessions.

    Some of the details in the US include:

    • Severance. We will pay 16 weeks of base pay plus two additional weeks for every year of service, with no cap.
    • PTO. We’ll pay for all remaining PTO time.
    • RSU vesting. Everyone impacted will receive their November 15, 2022 vesting.
    • Health insurance. We’ll cover the cost of healthcare for people and their families for six months.
    • Career services. We’ll provide three months of career support with an external vendor, including early access to unpublished job leads.
    • Immigration support. I know this is especially difficult if you’re here on a visa. There’s a notice period before termination and some visa grace periods, which means everyone will have time to make plans and work through their immigration status. We have dedicated immigration specialists to help guide you based on what you and your family need. 

    Outside the US, support will be similar, and we’ll follow up soon with separate processes that take into account local employment laws.

    We made the decision to remove access to most Meta systems for people leaving today given the amount of access to sensitive information. But we’re keeping email addresses active throughout the day so everyone can say farewell.

    While we’re making reductions in every organization across both Family of Apps and Reality Labs, some teams will be affected more than others. Recruiting will be disproportionately affected since we’re planning to hire fewer people next year. We’re also restructuring our business teams more substantially. This is not a reflection of the great work these groups have done, but what we need going forward. The leaders of each group will schedule time to discuss what this means for your team over the next couple of days.

    The teammates who will be leaving us are talented and passionate, and have made an important impact on our company and community. Each of you have helped make Meta a success, and I’m grateful for it. I’m sure you’ll go on to do great work at other places.

    What other changes are we making?

    I view layoffs as a last resort, so we decided to rein in other sources of cost before letting teammates go. Overall, this will add up to a meaningful cultural shift in how we operate. For example, as we shrink our real estate footprint, we’re transitioning to desk sharing for people who already spend most of their time outside the office. We’ll roll out more cost-cutting changes like this in the coming months. 

    We’re also extending our hiring freeze through Q1 with a small number of exceptions. I’m going to watch our business performance, operational efficiency, and other macroeconomic factors to determine whether and how much we should resume hiring at that point. This will give us the ability to control our cost structure in the event of a continued economic downturn. It will also put us on a path to achieve a more efficient cost structure than we outlined to investors recently.

    I’m currently in the middle of a thorough review of our infrastructure spending. As we build our AI infrastructure, we’re focused on becoming even more efficient with our capacity. Our infrastructure will continue to be an important advantage for Meta, and I believe we can achieve this while spending less.

    Fundamentally, we’re making all these changes for two reasons: our revenue outlook is lower than we expected at the beginning of this year, and we want to make sure we’re operating efficiently across both Family of Apps and Reality Labs. 

    How do we move forward?

    This is a sad moment, and there’s no way around that. To those who are leaving, I want to thank you again for everything you’ve put into this place. We would not be where we are today without your hard work, and I’m grateful for your contributions.

    To those who are staying, I know this is a difficult time for you too. Not only are we saying goodbye to people we’ve worked closely with, but many of you also feel uncertainty about the future. I want you to know that we’re making these decisions to make sure our future is strong.

    I believe we are deeply underestimated as a company today. Billions of people use our services to connect, and our communities keep growing. Our core business is among the most profitable ever built with huge potential ahead. And we’re leading in developing the technology to define the future of social connection and the next computing platform. We do historically important work. I’m confident that if we work efficiently, we’ll come out of this downturn stronger and more resilient than ever.

    We’ll share more on how we’ll operate as a streamlined organization to achieve our priorities in the weeks ahead. For now, I’ll say one more time how thankful I am to those of you who are leaving for everything you’ve done to advance our mission.

    Mark”

    Watch: Meta has to go back to their core advertising business and double down.

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  • Facebook parent company Meta laying off 13% of employees

    Facebook parent company Meta laying off 13% of employees

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    Facebook parent Meta is laying off 11,000 people, about 13% of its workforce, as it contends with faltering revenue and broader tech industry woes, CEO Mark Zuckerberg said in a letter to employees Wednesday.

    The move that comes just a week after widespread layoffs at Twitter under its new owner, billionaire Elon Musk.

    Meta, like other social media companies, enjoyed a financial boost during the pandemic lockdown era because more people stayed home and scrolled on their phones and computers. But as the lockdowns ended and people started going outside again, revenue growth began to falter.

    An economic slowdown and a grim outlook for online advertising — by far Meta’s biggest revenue source — have contributed to Meta’s woes. This summer, Meta posted its first quarterly revenue decline in history, followed by another, bigger decline in the fall.

    Some of the pain is company-specific, while some is tied to broader economic and technological forces.

    Last week, Twitter laid off about half of its 7,500 employees, part of a chaotic overhaul as Musk took the helm. He tweeted that there was no choice but to cut the jobs “when the company is losing over $4M/day,” though did not provide details about the losses.

    Meta has worried investors by pouring over $10 billion a year into the “metaverse” as it shifts its focus away from social media. CEO Mark Zuckerberg predicts the metaverse, an immersive digital universe, will eventually replace smartphones as the primary way people use technology.

    Meta and its advertisers are bracing for a potential recession. There’s also the challenge of Apple’s privacy tools, which make it more difficult for social media platforms like Facebook, Instagram and Snap to track people without their consent and target ads to them.

    Competition from TikTok is also an a growing threat as younger people flock to the video sharing app over Instagram, which Meta also owns.

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  • WSJ News Exclusive | Meta’s Mark Zuckerberg Says He Is Accountable as Company Preps for Mass Layoffs

    WSJ News Exclusive | Meta’s Mark Zuckerberg Says He Is Accountable as Company Preps for Mass Layoffs

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    Layoffs are to begin on Wednesday morning, the CEO told hundreds of executives on Tuesday

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  • Editorial Roundup: United States

    Editorial Roundup: United States

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    Excerpts from recent editorials in the United States and abroad:

    Nov. 6

    The Washington Post on the humanitarian crisis in Haiti

    Haiti is in the throes of one of the most dire emergencies in its crisis-prone recent history, one increasingly likely to wash up on U.S. shores in the form of desperate migrants. Its government, which is integral to the problem, last month requested international military intervention, and United Nations Secretary General António Guterres agreed that “armed action” is urgently required. In response, the United States, Canada and other key powers have dithered — even as the Biden administration is reported to be preparing to house waves of Haitian refugees at the U.S. military base at Guantánamo Bay. The situation is untenable.

    In the absence of boots on the ground, there are few good means for halting a humanitarian and security meltdown in Haiti that has paralyzed fuel supplies, endangered fresh water and food delivery, triggered a cholera outbreak, and intensified what the United Nations has called “emergency” hunger threatening nearly one-fifth of the country’s 11.5 million people. Still, even without deploying police or soldiers, the Biden administration and its key allies have options for acting more forcefully and should move swiftly.

    The most immediate priority is to break an inland blockade by armed gangsters that for nearly two months has sealed off the country’s main fuel supply depot in Port-au-Prince, the capital. The cutoff, allegedly in protest of fuel price increases owing to the government slashing subsidies, has resulted in drastic consequences — shuttered gas stations, schools, hospitals and shops, as well as severe shortages of food and medicine. The United States and Canada have sent armored cars and other supplies to help Haiti’s police break the blockade, but those shipments have been inadequate.

    Washington could also flex its diplomatic muscle with Haitian authorities to encourage sustained negotiations between the unelected government of Prime Minister Ariel Henry and a broad opposition association of Haitian civic and nonprofit groups, known as the Montana Accord. The groups correctly argue that Mr. Henry’s administration is illegitimate and ineffectual. (Mr. Henry himself has been implicated in last year’s unsolved assassination of President Jovenel Moïse.)

    The Accord, named for a hotel in Port-au-Prince, has proposed a transitional period leading to elections, which are now impossible given the pandemonium that grips the nation. While the groups lack the means to organize elections, let alone confront the gangs, they at least enjoy a modicum of popular support, which the current government lacks. They deserve a role in determining Haiti’s future; Washington could give them that.

    Simultaneously, the United States should extend temporary protected status, set to expire in February, for tens of thousands of Haitians already living and working legally in the United States, thereby shielding them from the prospect of deportation to a country gripped by pandemonium.

    Without armed intervention, no prospective relief will be easy to achieve in a country that has dissolved into chaotic violence and florid dysfunction. However, to acquiesce to the status quo, as the Biden administration has done since the Moïse assassination, is to be morally complicit in an unfolding humanitarian tragedy. Washington cannot continue to pay lip service to resolving the crisis in Haiti. It can and should use its considerable influence to relieve the suffering of millions in the hemisphere’s poorest country.

    ONLINE: https://www.washingtonpost.com/opinions/2022/11/06/haiti-government-crisis-us-intervention/

    ———

    Nov. 3

    The New York Times on Democracy and political violence in the United States

    Over the past five years, incidents of political violence in the United States by right-wing extremists have soared. Few experts who track this type of violence believe things will get better anytime soon without concerted action. Domestic extremism is actually likely to worsen. The attack on Paul Pelosi, the husband of the speaker of the House of Representatives, was only the latest episode, and federal officials warn that the threat of violence could continue to escalate after the midterm elections.

    The embrace of conspiratorial and violent ideology and rhetoric by many Republican politicians during and after the Trump presidency, anti-government anger related to the pandemic, disinformation, cultural polarization, the ubiquity of guns and radicalized internet culture have all led to the current moment, and none of those trends are in retreat. Donald Trump was the first American president to rouse an armed mob that stormed the Capitol and threatened lawmakers. Taken together, these factors form a social scaffolding that allows for the kind of endemic political violence that can undo a democracy. Ours would not be the first.

    Yet the nation is not powerless to stop a slide toward deadly chaos. If institutions and individuals do more to make it unacceptable in American public life, organized violence in the service of political objectives can still be pushed to the fringes. When a faction of one of the country’s two main political parties embraces extremism, that makes thwarting it both more difficult and more necessary. A well-functioning democracy demands it.

    The legal tools to do so are already available and in many cases are written into state constitutions, in laws prohibiting private paramilitary activity. “I fear that the country is entering a phase of history with more organized domestic civil violence than we’ve seen in 100 years,” said Philip Zelikow, the former executive director of the 9/11 Commission, who pioneered legal strategies to go after violent extremists earlier in his career. “We have done it in the past and can do so again.”

    As the range of violence in recent years shows, the scourge of extremism in the United States is evident across the political spectrum. But the threat to the current order comes disproportionately from the right.

    Of the more than 440 extremism-related murders committed in the past decade, more than 75% were committed by right-wing extremists, white supremacists or anti-government extremists. The remaining quarter stemmed from a range of other motivations, according to a study by the Anti-Defamation League. There were 29 extremist-related homicides last year: 26 committed by right-wing extremists, two by Black nationalists and one by an Islamic extremist. The Department of Homeland Security has warned again and again that domestic extremism motivated by white supremacist and other right-wing ideologies is the country’s top terrorism threat … the threat of violence has begun to have a corrosive effect on many aspects of public life: the hounding of election workers until they are forced into hiding, harassment of school board officials, threats to judges, armed demonstrations at multiple statehouses, attacks on abortion clinics and anti-abortion pregnancy centers, bomb threats against hospitals that offer care to transgender children, assaults on flight attendants who try to enforce COVID rules and the armed intimidation of librarians over the books and ideas they choose to share.

    Meanwhile, threats against members of Congress are more than ‌10 times as numerous as they were just five years ago … There are four interrelated trends that the country needs to address: the impunity of organized paramilitary groups, the presence of extremists in law enforcement and the military, the global spread of extremist ideas and the growing number of G.O.P. politicians who are using the threat of political violence not just to intimidate their opponents on the left but also to wrest control of the party from those Republicans who are committed to democratic norms …. Preserving the health of our democracy is as much a matter of preventive care as it is the application of a tourniquet. A promising place to start combating political violence is with extremist paramilitary groups.

    While the majority of such violence in the United States comes at the hands of people not strictly affiliated with these groups — the man who is accused of attacking Mr. Pelosi, for example, echoed their hatred of Nancy Pelosi, but it’s not clear whether the man had links to any of them — they are nonetheless often the vanguard of violent episodes, such as the Jan. 6 attack on the Capitol, and they are active in spreading their brands of ideological extremism online.

    They go by many names: the Oath Keepers, the Proud Boys, the Boogaloo Bois, the Three Percenters, the Wolverine Watchmen. Some fancy themselves militias, but they aren’t, according to the law. These groups have been around in their modern incarnations since the end of the Vietnam War, and their popularity has waxed and waned. In fact, ‌political violence is as old as the nation itself; right-wing frustrations with democratic outcomes have birthed militia movements throughout American history. Most notably, the Ku Klux Klan has spent over a century and a half, from Reconstruction to the present day, terrorizing Black Americans and others in service of political ends.

    Today, levels of political violence are high and climbing. In 2020 the Center for Strategic and International Studies found that violence from all political ideologies reached its highest level since the group began collecting data in 1994. And extremist paramilitary groups have again become a common presence in American life, on college campuses, at public protests and at political rallies‌.

    ONLINE: https://www.nytimes.com/2022/11/03/opinion/political-violence-extremism.html

    ———

    Nov. 4

    The Wall Street Journal on the labor market

    The Labor Department reported Friday that the economy created 261,000 new jobs in October, which beat Wall Street’s expectations. Upward revisions for September added to the evidence that the job market is holding up despite rising interest rates.

    But hold the confetti. The labor market also showed the beginning of some cracks, as the unemployment rate rose to 3.7% from 3.5% and 328,000 fewer people were employed. The labor participation rate fell for the second month in a row, and unemployment ticked up for nearly every demographic group except teenagers. This evidence suggests that while employers are still hiring, the pace of hiring is slowing.

    The upshot is that the job market is headed for harder time as the Federal Reserve’s interest-rate increases continue. Companies are already reporting job freezes and in some cases layoffs, especially in the tech industry where stock prices have been hammered this year.

    Elon Musk sent sacking notices to 3,700 Twitter employees on Friday, about half the workforce. Amazon said it is pausing new hires for the corporate workforce, citing the “unusual macro-economic environment.” Lyft is laying off workers, as is CNN. The larger story is that companies are putting up the storm windows in case there’s a recession coming in 2023, which there may be.

    The mixed jobs news is unlikely to deter the Federal Reserve from its drive to restrain inflation. Average hourly earnings rose at a healthy 4.7% rate in the last year, which is good news for workers but not for inflation. Wage pressure continues across the economy, especially for workers who leave for new jobs. The Atlanta Fed’s tracker has wage growth growing at an annual rate of 6.3% in the three months through September. Workers should enjoy the gains while they can because there are rougher days ahead as the Fed moves to fix Washington’s great inflation mistake.

    ONLINE: https://www.wsj.com/articles/the-contradictory-labor-market-jobs-report-october-hiring-labor-force-participation-unemployment-11667600385

    ———

    Nov. 2

    China Daily on U.S. trade with China

    Australian Resources Minister Madeleine King hit the nail on the head in an interview on Tuesday when she described the hope of some Western countries that they could soon end their reliance on China for rare earths as a “pipe dream”.

    This is because China holds the world’s largest reserves of the mineral resources and accounts for around 80% of global production of rare earths, which are needed for a wide variety of products, ranging from smartphones to aerospace technology to wind turbines.

    Yet rather than calling for joint international efforts to ensure the safety and stability of the industry and supply chains for the good of all countries, King insinuated that Australia and the United States should cooperate to boost investments in the minerals in order to break China’s monopoly, as it is a country “that has seen this need coming and made the most of it.”

    But despite being the world’s largest trading and manufacturing country, China has never and will not seek to weaponize trade or its dominant position in certain fields such as rare earths’ production. Rather, it continues to advocate and uphold free trade and economic globalization as a means to counter protectionism and the “decoupling” trend initiated by Washington that hurts the interests of all nations.

    King’s remarks highlight the dilemma that Australia finds itself in when it comes to its economic and trade ties with China. On the one hand, China has long been Australia’s biggest trading partner for both the export and import of goods. On the other hand, Canberra is willingly playing the role of Washington’s vanguard in the Asia-Pacific in its strategy to contain China, which means it has to toe the U.S. line even at the expense of its own interests.

    In the latest move, the U.S. is reportedly preparing to deploy up to six nuclear-capable B-52 bombers in northern Australia to send “a strong message to adversaries.” Australia had earlier joined the U.S. in banning Chinese telecommunications giant Huawei citing national security concerns, and has had running spats with China on such issues as human rights and the South China Sea after Washington began hyping up its groundless allegations of human rights abuses and coercive behavior on the part of China.

    China is doing its best to play its part in keeping the world economy and international trade stable. Other countries likewise need to shoulder their due responsibilities to ensure the normal functioning of relevant trade and economic cooperation, rather than trying to use the economy and trade as political tools or weapons, which only destabilizes the global economic system to the detriment of all.

    ONLINE: https://www.chinadaily.com.cn/a/202211/02/WS6362583ca310fd2b29e7fee6.html

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  • Supplier to hire 630 near Hyundai’s EV plant in Georgia

    Supplier to hire 630 near Hyundai’s EV plant in Georgia

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    STATESBORO, Ga. — An auto parts manufacturer plans to hire 630 workers at a new factory in southeast Georgia to supply Hyundai Motor Group’s first U.S. electric vehicle plant that’s under construction nearby, state officials said Monday.

    Joon Georgia will invest $317 million to produce parts in Bulloch County, Gov. Brian Kemp’s office said in a news release. The supplier will open shop roughly 30 miles (50 kilometers) west of the southeast Georgia site where Hyundai executives broke ground on the new EV plant two weeks ago.

    The company is “the first of many” expected to come to Georgia to supply the $5.5 billion Hyundai plant in Bryan County, Kemp said in a statement. The automaker plans to open its Georgia plant in 2025, producing up to 300,000 electric vehicles per year.

    Joon Georgia is a subsidiary of Ajin USA, which supplies parts to other Hyundai plants. It already operates a facility in Cusseta, Alabama, near the Georgia line that makes parts for Hyundai’s plant in Montgomery, Alabama, as well as for Kia’s auto plant in West Point, Georgia.

    The Joon Georgia factory near the Hyundai EV plant is expected to open near Statesboro in mid-2024, Kemp’s office said.

    “Joon Georgia’s announcement today is a landmark moment as we drive Georgia’s automotive industry into the future,” said Pat Wilson, commissioner of the Georgia Department of Economic Development, in a statement.

    State and local officials in Georgia lured Hyundai with tax breaks and incentives worth $1.8 billion, making it the state’s largest economic development deal.

    Wilson and other Georgia officials have insisted it’s a worthwhile investment. In addition to Hyundai hiring 8,100 workers, suppliers are expected to create thousands of additional jobs in the state.

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  • Musk threatens to boot Twitter account impersonators

    Musk threatens to boot Twitter account impersonators

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    BOSTON — Elon Musk tweeted Sunday that Twitter will permanently suspend any account on the social media platform that impersonates another.

    The platform’s new owner issued the warning after some celebrities changed their Twitter display names — not their account names — and tweeted as ‘Elon Musk’ in reaction to the billionaire’s decision to offer verified accounts to all comers for $8 month as he simultaneously laid off a big chunk of the workforce.

    “Going forward, any Twitter handles engaging in impersonation without clearly specifying “parody” will be permanently suspended,” Musk wrote. While Twitter previously issued warnings before suspensions, now that it is rolling out “widespread verification, there will be no warning.”

    In fact, “any name change at all” would compel the temporary loss of a verified checkmark, the world’s richest man said.

    Comedian Kathy Griffin had her account suspended Sunday after she switched her screen name to Musk. She told a Bloomberg reporter that she had also used his profile photo.

    “I guess not ALL the content moderators were let go? Lol,” Griffin joked afterward on Mastodon, an alternative social media platform where she set up an account last week.

    Actor Valerie Bertinelli had similarly appropriated Musk’s screen name — posting a series of tweets in support of Democratic candidates on Saturday before switching back to her true name. “Okey-dokey. I’ve had fun and I think I made my point,” she tweeted afterwards.

    Before the stunt, Bertinelli noted the original purpose of the blue verification checkmark. It was granted free of charge to people whose identity Twitter employees had confirmed; with journalists accounting for a big portion of recipients. “It simply meant your identity was verified. Scammers would have a harder time impersonating you,” Bertinelli noted.

    “That no longer applies. Good luck out there!” she added.

    The $8 verified accounts are Musk’s way of democratizing the service, he claims. On Saturday, a Twitter update for iOS devices listed on Apple’s app store said users who “sign up now” for the new “Twitter Blue with verification” can get the blue check next to their names “just like the celebrities, companies and politicians you already follow.”

    It said the service would first be available in the U.S., Canada, Australia, New Zealand and the U.K. However, it was not available Sunday and there was no indication when it would roll go live. A Twitter employ, Esther Crawford, told The Associated Press it is coming “soon but it hasn’t launched yet.”

    Twitter did not respond on Sunday to an email seeking comment on the verified accounts issue and Griffin’s suspension.

    Musk later tweeted, “Twitter needs to become by far the most accurate source of information about the world. That’s our mission.”

    If the company were to strip current verified users of blue checks — something that hasn’t happened — that could exacerbate disinformation on the platform during Tuesday’s midterm elections.

    Like Griffin, some Twitter users have already begun migrating from the platform — Counter Social is another popular alternative — following layoffs that began Friday that reportedly affected about half of Twitter’s 7,500-employee workforce. They fear a breakdown of moderation and verification could create a disinformation free-for-all on what has been the internet’s main conduit for reliable communications from public agencies and other institutions.

    Many companies have paused advertising on the platform out of concern it could become more unruly under Musk.

    Yoel Roth, Twitter’s head of safety and integrity, sought to assuage such concerns in a tweet Friday. He said the company’s front-line content moderation staff was the group least affected by the job cuts.

    Musk tweeted late Friday that there was no choice but to cut jobs “when the company is losing over $4M/day.” He did not provide details on the daily losses at Twitter and said employees who lost their jobs were offered three months’ pay as severance.

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  • Musk threatens to boot Twitter account impersonators

    Musk threatens to boot Twitter account impersonators

    [ad_1]

    BOSTON — Elon Musk tweeted Sunday that Twitter will permanently suspend any account on the social media platform that impersonates another.

    The platform’s new owner issued the warning after some celebrities changed their Twitter display names — not their account names — and tweeted as ‘Elon Musk’ in reaction to the billionaire’s decision to offer verified accounts to all comers for $8 month as he simultaneously laid off a big chunk of the workforce.

    “Going forward, any Twitter handles engaging in impersonation without clearly specifying “parody” will be permanently suspended,” Musk wrote. While Twitter previously issued warnings before suspensions, now that it is rolling out “widespread verification, there will be no warning.”

    In fact, “any name change at all” would compel the temporary loss of a verified checkmark, the world’s richest man said.

    Comedian Kathy Griffin had her account suspended Sunday after she switched her screen name to Musk. She told a Bloomberg reporter that she had also used his profile photo.

    “I guess not ALL the content moderators were let go? Lol,” Griffin joked afterward on Mastodon, an alternative social media platform where she set up an account last week.

    Actor Valerie Bertinelli had similarly appropriated Musk’s screen name — posting a series of tweets in support of Democratic candidates on Saturday before switching back to her true name. “Okey-dokey. I’ve had fun and I think I made my point,” she tweeted afterwards.

    Before the stunt, Bertinelli noted the original purpose of the blue verification checkmark. It was granted free of charge to people whose identity Twitter employees had confirmed; with journalists accounting for a big portion of recipients. “It simply meant your identity was verified. Scammers would have a harder time impersonating you,” Bertinelli noted.

    “That no longer applies. Good luck out there!” she added.

    The $8 verified accounts are Musk’s way of democratizing the service, he claims. On Saturday, a Twitter update for iOS devices listed on Apple’s app store said users who “sign up now” for the new “Twitter Blue with verification” can get the blue check next to their names “just like the celebrities, companies and politicians you already follow.”

    It said the service would first be available in the U.S., Canada, Australia, New Zealand and the U.K. However, it was not available Sunday and there was no indication when it would roll go live. A Twitter employ, Esther Crawford, told The Associated Press it is coming “soon but it hasn’t launched yet.”

    Twitter did not respond on Sunday to an email seeking comment on the verified accounts issue and Griffin’s suspension.

    Musk later tweeted, “Twitter needs to become by far the most accurate source of information about the world. That’s our mission.”

    If the company were to strip current verified users of blue checks — something that hasn’t happened — that could exacerbate disinformation on the platform during Tuesday’s midterm elections.

    Like Griffin, some Twitter users have already begun migrating from the platform — Counter Social is another popular alternative — following layoffs that began Friday that reportedly affected about half of Twitter’s 7,500-employee workforce. They fear a breakdown of moderation and verification could create a disinformation free-for-all on what has been the internet’s main conduit for reliable communications from public agencies and other institutions.

    Many companies have paused advertising on the platform out of concern it could become more unruly under Musk.

    Yoel Roth, Twitter’s head of safety and integrity, sought to assuage such concerns in a tweet Friday. He said the company’s front-line content moderation staff was the group least affected by the job cuts.

    Musk tweeted late Friday that there was no choice but to cut jobs “when the company is losing over $4M/day.” He did not provide details on the daily losses at Twitter and said employees who lost their jobs were offered three months’ pay as severance.

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  • Musk threatens to boot Twitter account impersonators

    Musk threatens to boot Twitter account impersonators

    [ad_1]

    BOSTON — Elon Musk tweeted Sunday that Twitter will permanently suspend any account on the social media platform that impersonates another.

    The platform’s new owner issued the warning after some celebrities changed their Twitter display names — not their account names — and tweeted as ‘Elon Musk’ in reaction to the billionaire’s decision to offer verified accounts to all comers for $8 month.

    “Going forward, any Twitter handles engaging in impersonation without clearly specifying “parody” will be permanently suspended,” Musk wrote. While Twitter previously issued warnings before suspensions, now that it is rolling out “widespread verification, there will be no warning.”

    In fact, “any name change at all” would compel the temporary loss of a verified checkmark, the world’s richest man said.

    Comedian Kathy Griffin had her account suspended Sunday for switching her screen name to Musk.

    Actress Valerie Bertinelli had done the same — posting a series of tweets in support of Democratic candidates on Saturday before switching back to her true name. “Okey-dokey. I’ve had fun and I think I made my point,” she tweeted afterwards.

    Before the stunt, Bertinelli noted the original purpose of the blue verification checkmark. It was granted free of charge to people whose identity Twitter employees had confirmed; with journalists accounting for a big portion of recipients. “It simply meant your identity was verified. Scammers would have a harder time impersonating you,” Bertinelli noted.

    “That no longer applies. Good luck out there!” she added.

    The $8 verified accounts are Musk’s way of democratizing the service, he claims. On Saturday, a Twitter update for iOS devices listed on Apple’s app store said users who “sign up now” for the new “Twitter Blue with verification” can get the blue check next to their names “just like the celebrities, companies and politicians you already follow.”

    It said the service would first be available in the U.S., Canada, Australia, New Zealand and the U.K. However, it was not available Sunday and there was no indication when it would roll go live. A Twitter employ, Esther Crawford, told The Associated Press it is coming “soon but it hasn’t launched yet.”

    Twitter did not respond on Sunday to an email seeking comment.

    If the company were to strip current verified users of blue checks — something that hasn’t happened — that could exacerbate disinformation on the platform during Tuesday’s midterm elections.

    Some Twitter users have already begun migrating from the platform — to alternatives such as Mastodon and Counter Social — following layoffs that began Friday that reportedly affected about half of Twitter’s 7,500-employee workforce. They fear a breakdown of moderation and verification could create a disinformation free-for-all on what has been the internet’s main conduit for reliable communications from public agencies and other institutions.

    Many companies have paused advertising on the platform out of concern it could become more unruly under Musk.

    Yoel Roth, Twitter’s head of safety and integrity, sought to assuage such concerns in a tweet Friday. He said the company’s front-line content moderation staff was the group least affected by the job cuts.

    Musk tweeted late Friday that there was no choice but to cut jobs “when the company is losing over $4M/day.” He did not provide details on the daily losses at Twitter and said employees who lost their jobs were offered three months’ pay as severance.

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