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Tag: Axios

  • Yahoo Plans to Lay Off 1,000 Now, 600 Later

    Yahoo Plans to Lay Off 1,000 Now, 600 Later

    Yahoo is preparing for a round of layoffs, with plans to eliminate 1,000 jobs now and up to 600 in the second half of 2023.

    First reported by Axios, Yahoo’s layoffs will impact roughly 20% of the company’s workforce. Unlike many of the tech industry’s recent layoffs, Yahoo CEO Jim Lanzone said the decision was not a result of financial issues, but is simply part of a larger restructuring.

    “The moves are meant to simplify and strengthen the good parts of the business, while sunsetting the rest,” Lanzone said.

    As part of the company’s restructuring, Yahoo will be shutting down portions of its advertising business, which has long been outclassed by both Google and Meta. As a result, while the rest of the business is quite profitable, the advertising business has increasingly been an anchor that is dragging the company down.

    “A lot of resources were going into that unified stack without a return,” Lanzone added. “This was a longstanding issue with every variation of this company … that needed to be solved eventually.”

    Lanzone says the move will be “tremendously beneficial for the profitability of Yahoo overall,” and will help the company “to go on offense” in more profitable areas.

    The move comes at a time when Yahoo is teasing a return to the search market, so it will be interesting to see if getting back to the company’s roots is an area where Lanzone plans “to go on offense.”

  • FCC Commissioner Renews Calls for TikTok Ban

    FCC Commissioner Renews Calls for TikTok Ban

    Federal Communications Commissioner Brendan Carr has renewed calls for a ban on TikTok over data privacy concerns.

    Carr has been vocal in his belief the US should ban TikTok as the company continues to mislead users and lawmakers about how it handles US data. In an interview with Axios, Carr reiterated his desire to see the app banned.

    “I don’t believe there is a path forward for anything other than a ban,” Carr said.

    Carr also expressed his belief that there isn’t “a world in which you could come up with sufficient protection on the data that you could have sufficient confidence that it’s not finding its way back into the hands of the [Chinese Communist Party].”

    Carr’s criticism comes after TikTok was caught sending American data to China after promising US lawmakers that data was handled by a dedicated US-based team. The company later refused to guarantee American data wouldn’t make its way to China and has since been accused of planning to surveil specific Americans.

    Given the company’s long history of privacy abuses, it’s truly amazing the app hasn’t been banned already.

  • TikTok Is Planning to Build US Fulfillment Centers

    TikTok Is Planning to Build US Fulfillment Centers

    TikTok appears to be moving forward with its e-commerce plans, with it reportedly looking to build US fulfillment centers.

    TikTok is reportedly planning to expand its e-commerce ambitions, with a possible launch of TikTok Shop in the US in time for the holidays. According to Axios, the company is now planning to build fulfillment centers in the US.

    The discovery comes from various TikTok job postings, more than a dozen total, that describe an escalation of e-commerce plans.

    “By providing warehousing, delivery, and customer service returns, our mission is to help sellers improve their operational capability and efficiency, provide buyers a satisfying shopping experience and ensure fast and sustainable growth of TikTok Shop,” reads one job listing.

    Another Seattle-area job listing describes building fulfillment centers “from scratch.”

    It’s clear that TikTok is looking to significantly grow its e-commerce ambitions, although it remains to be seen what regulatory hurdles the company may encounter. Lawmakers are already leery of the company as a result of its ties to Beijing and its absolutely horrible reputation for privacy. It’s a safe bet the US will not be thrilled with the company becoming more intertwined with users’ lives and data.

  • Microsoft Is the Latest Company to Lay Off Employees

    Microsoft Is the Latest Company to Lay Off Employees

    Microsoft joins the ranks of other tech companies, laying off an undisclosed number of employees amid economic uncertainty.

    The tech industry has been grappling with a downturn in the economy. Many companies went on hiring sprees during the height of the pandemic, as remote workers and online shopping hit record levels. As things have returned to normal, and with an economic downturn looming, many companies found themselves overstaffed.

    Microsoft is the latest to start laying off employees, with Axios initially reporting on the layoffs. Microsoft confirmed the news in a statement to the outlet:

    “Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead.”

    Microsoft did not comment on the number, although Axios reported it was under 1,000.

  • Oracle Begins Audit of TikTok’s Algorithms for Beijing’s Influence

    Oracle Begins Audit of TikTok’s Algorithms for Beijing’s Influence

    TikTok is pulling out all the stops to prove it is independent of Beijing’s influence, turning to Oracle to audit its algorithms.

    TikTok has been under scrutiny for years over its data and privacy practices, with the Trump administration trying to ban the app. Experts are concerned about the wealth of data the app has access to, and how much of that data is available to Chinese authorities.

    The company’s executives even swore before Congress that Americans’ data was handled by an American team, only for it to be revealed that the data actually was handled by their colleagues in China.

    Read more: Is TikTok Replacing Google?

    Following new cries to ban the app, TikTok is going to great lengths to prove it can be trusted. According to Axios, that includes having Oracle audit the platform’s algorithms to prove how its data is being handled. The company has begun routing its US user data through Oracle’s servers as part of Project Texas, a reference to Oracle’s Texas-based headquarters.

    A spokesperson told Axios that the review process began last week and that Oracle will engage in “regular vetting and validation” of TikTok’s moderation and recommendation models. The reviews will also reveal how the platform’s algorithms recommend content “to ensure that outcomes are in line with expectations and that the models have not been manipulated in any way.”

    It’s an unusual step for a company or platform to open up its most secret code to another company for review. It likely helps that Oracle was in talks to buy TikTok when it was under threat of ban.

    Only time will tell if these measures are enough to reassure US lawmakers and if the company can finally deliver on the privacy promises it has made.

  • Meta Halts Millions in Funding for US News Publishers

    Meta Halts Millions in Funding for US News Publishers

    Meta is changing how it deals with US news publishers in the wake of its first-ever drop in revenue.

    Meta’s latest quarterly results were a bit of a disappointment, with the company reporting its first drop in revenue in the company’s history. As the company looks to cut expenses, it appears its news investments are among the first things to go, according to Axios.

    Meta first struck the deals in 2019, agreeing to pay publishers for their content for three years. The company was paying the New York Times more than $20 million, the Wall Street Journal more than $10 million, and CNN more than $3 million.

    Facebook says the move reflects what content its users are consuming.

    “A lot has changed since we signed deals three years ago to test bringing additional news links to Facebook News in the U.S. Most people do not come to Facebook for news, and as a business it doesn’t make sense to over-invest in areas that don’t align with user preferences,” a Facebook spokesperson told Axios.

    Campbell Brown, Meta’s VP of media partnerships, told employees the company was freeing up resources for more creative pursuits. Meta has already begun telling news publishers of its decision.

  • Amazon Music Set to Pass Pandora For Number Two Spot

    Amazon Music Set to Pass Pandora For Number Two Spot

    Amazon Music is set to pass Pandora as the second-largest music app, leaving only Spotify ahead of it.

    Spotify may be the market leader by a relatively wide margin, but the battle for second-place is much closer. Pandora has been in that position for some time, but Axios reports that Amazon Music will surpass it in 2022, with 53 million people expected to tune in at least once a month. In contrast, 49 million people are expected to listen to Pandora at least once a month in 2022.

    Despite its market dominance, Spotify has recently found itself mired in controversy over its support of Joe Rogan. As a result, multiple artists have pulled their music catalogs from the platform, leaving it in a more vulnerable position than it has been in years.

    Only time will tell if Amazon Music, Pandora, or Apple Music will be able to take advantage of Spotify’s predicament and make some major headway in the market.

  • Detroit Deploys First EV Charging Road in the US

    Detroit Deploys First EV Charging Road in the US

    Charging electric vehicles (EVs) is about to get a whole lot easier, at least for one section of road in Detroit, with in-road charging.

    Range anxiety is one of the biggest challenges to further EV adoption, with drivers worrying about how far they can travel, whether they’ll be able to find a charging facility en route, and how long charging will take.

    Electreon Wireless hopes to solve that by embedding EV charging capabilities right into roads. This could pave the way (pun intended) for EVs to operate without ever needing to be charged in the traditional manner.

    According to Axios, Electreon Wireless is embedding its technology in a section of road in Detroit’s Michigan Central district. The test area will be up to a mile long, and will be the first of its kind in the US.

    “What a great time to come to the U.S. and show there’s an alternative — a smarter, faster charging system that takes us to where we need to be,” Stefan Tongur, Electreon’s vice president of business development, told Axios.

  • The Next Corporate Real Estate Trend: Climate-Proof Locales

    The Next Corporate Real Estate Trend: Climate-Proof Locales

    The global pandemic has significantly changed the corporate real estate scene, but climate change may be poised to have an even greater impact.

    According to Axios, multiple companies are beginning to change locations, move headquarters or acquire new real estate in areas believed to be insulated from the effects of climate change. Conversely, this has meant that some locations that have been home to iconic businesses for years are seeing them move out.

    For example, Charleston, SC has seen an iconic hospital moving from its downtown home of 165 years to higher ground, after multiple floods impacted it.

    Similarly, Hewlett Packard Enterprise is moving from hurricane-vulnerable Houston to Spring, TX after it experienced flooding in 2016 and 2017.

    Spirit Airlines is also adding a campus in Orlando, FL, to compliment its Miramar location. Not only will the new location be less vulnerable to hurricanes, but Axios says the new campus will be hardened specifically to resist any hurricanes that might hit it.

    With scientist warning that many of the effects of climate change may be unavoidable at this point, it’s a safe bet that climate change will increasingly factor into the corporate decision-making process. While this may come at a significant cost for coastal areas, inland locations may be poised for a real estate boom as companies move inland.

  • Intel CEO: Previous CEOs Lost Focus on What Made Company Successful

    Intel CEO: Previous CEOs Lost Focus on What Made Company Successful

    Intel CEO Pat Gelsinger isn’t pulling any punches about why Intel has struggled recently, blaming his predecessors for leading the company the wrong way.

    Intel was once the undisputed leader of the semiconductor industry. In recent years, however, it has largely been eclipsed by TSMC, with even long-time rival AMD beating the company’s chips in performance and efficiency. Intel has also struggled with manufacturing issues, unfixable security flaws and more.

    In an interview with Axios, Gelsinger blamed previous leaders for losing the “maniacal” focus on manufacturing that helped make Intel such a powerhouse. The CEO believes much of that was due to previous CEOs not being engineers, as he is.

    Gelsinger wants to turn the company’s manufacturing around so much that if a client needs a million chips on Monday, Intel will have them on Sunday night — a far cry from the company’s recent inability to deliver enough chips to keep customers happy.

  • Your Next Streaming Service: Salesforce

    Your Next Streaming Service: Salesforce

    Salesforce is preparing to enter the video streaming market, a major departure from its current CRM and enterprise offerings.

    Salesforce is the leading customer relationship management (CRM) provider, and offers a host of complimentary applications and services. According to an exclusive provided to Axios, the company is preparing to add a video streaming service to its list of services.

    Salesforce+ will be a free video streaming service dedicated to business professionals, featuring original content from Salesforce and, eventually, SalesForce clients. The company has hired 50 editorial personnel to help launch the service, and has built its own studio in-house.

    “It’s going to help you learn things that help you do great at your job, whether you’re a salesperson, a marketing professional, a CEO, etc.,” said Chief Marketing Officer Sarah Franklin.

    The company hopes Salesforce+ will help customers establish an emotional connection to the company as well, making users “want to use our products and want to engage more with us.”

    Salesforce’s foray into streaming, on the heels of its Slack acquisition, highlights the growing convergence occurring in the industry, and the importance of companies embracing new ways of connecting with new and existing customers. It’s a safe bet Salesforce won’t be the last company to adopt this approach.

  • Google CEO Criticized For Response to AI Researcher’s Exit

    Google CEO Criticized For Response to AI Researcher’s Exit

    Google CEO Sundar Pichai has sent an email to Google employees in an effort to address backlash the company is facing over Dr. Timnit Gebru’s exit.

    Timnit Gebru is one of the leading artificial intelligence ethics researcher in the world, widely respected for her expertise. An issue arose as a result of a research paper Gebru and other researchers were working on. The paper tackled the ethical issues with large-scale AI language models (LLMs), and was approved internally on October 8. According to Gebru, she was later asked to remove her name from the paper because an internal review found it to be objectionable.

    As Gebru later pointed out in an interview with Wiredresearchers must be free to go where the research takes them.

    You’re not going to have papers that make the company happy all the time and don’t point out problems. That’s antithetical to what it means to be that kind of researcher.

    Google’s head of AI, Jeff Dean, said the paper was not submitted with the necessary two-week lead time. Gebru’s team, however, wrote in a blog post supporting Gebru that “this is a standard which was applied unevenly and discriminatorily.”

    As a result, Gebru gave her supervisors some conditions she wanted met, otherwise she would work toward an amicable exit from the company. According to her team, the conditions “were for 1) transparency around who was involved in calling for the retraction of the paper, 2) having a series of meetings with the Ethical AI team, and 3) understanding the parameters of what would be acceptable research at Google.”

    Instead of working with Gebru, her supervisors accepted her “resignation” effective immediately. Gebru’s team is quick to point out that “Dr. Gebru did not resign,” (italics theirs) and was instead terminated.

    The company’s actions brought swift and vocal backlash. Some 2,351 Googlers, along with 3,729 supporters in academia, industry and civil society have signed a petition in support of Gebru at the time of writing. It seems Pichai and Company realize the situation is not going away without being addressed.

    In an email to employees, first published by Axios, Pichai attempted to do damage control, apologizing for what happened and vowing to do better in the future.

    So far, the email has not been met with praise. Gebru took to Twitter to criticize the lack of accountability, as well as the insinuation she was an “angry Black woman” for whom a de-escalation strategy was needed.

    Similarly, others are criticizing Pichai’s email for essentially being tone-deaf. Jack Clark, Open AIPolicy Director, is one such voice.

    In our initial coverage of this situation, we stated: “It goes without saying that Google is providing a case study in how not to handle this kind of situation.”

    In the aftermath of Pichai’s email, that statement continues to ring true.

    Here’s the email in full:

    Hi everyone,

    One of the things I’ve been most proud of this year is how Googlers from across the company came together to address our racial equity commitments. It’s hard, important work, and while we’re steadfast in our commitment to do better, we have a lot to learn and improve. An important piece of this is learning from our experiences like the departure of Dr. Timnit Gebru.

    I’ve heard the reaction to Dr. Gebru’s departure loud and clear: it seeded doubts and led some in our community to question their place at Google. I want to say how sorry I am for that, and I accept the responsibility of working to restore your trust.

    First – we need to assess the circumstances that led up to Dr. Gebru’s departure, examining where we could have improved and led a more respectful process. We will begin a review of what happened to identify all the points where we can learn — considering everything from de-escalation strategies to new processes we can put in place. Jeff and I have spoken and are fully committed to doing this. One of the best aspects of Google’s engineering culture is our sincere desire to understand where things go wrong and how we can improve.

    Second – we need to accept responsibility for the fact that a prominent Black, female leader with immense talent left Google unhappily. This loss has had a ripple effect through some of our least represented communities, who saw themselves and some of their experiences reflected in Dr. Gebru’s. It was also keenly felt because Dr. Gebru is an expert in an important area of AI Ethics that we must continue to make progress on — progress that depends on our ability to ask ourselves challenging questions.

    It’s incredibly important to me that our Black, women, and underrepresented Googlers know that we value you and you do belong at Google. And the burden of pushing us to do better should not fall on your shoulders. We started a conversation together earlier this year when we announced a broad set of racial equity commitments to take a fresh look at all of our systems from hiring and leveling, to promotion and retention, and to address the need for leadership accountability across all of these steps. The events of the last week are a painful but important reminder of the progress we still need to make.

    This is a top priority for me and Google leads, and I want to recommit to translating the energy that we’ve seen this year into real change as we move forward into 2021 and beyond.

    — Sundar

  • Uber Looking to Sell Uber Elevate Air Taxi Business

    Uber Looking to Sell Uber Elevate Air Taxi Business

    Uber is in talks to sell its air taxi business, Uber Elevate, to Joby Aviation.

    While Uber is best known for its ride sharing business, the company has also been working toward deploying an air taxi service. Most recently, at CES 2020 in January, Hyundai and Uber announced a partnership to help make aerial ride sharing a reality.

    It now appears that Uber wants out, as it is in talks to sell its Uber Elevate division, according to Axios. The talks are in the advanced stages, and have been confirmed by multiple Axios sources. Joby was already an Elevate partner, making it an ideal option to buy the division.

    It remains to be seen how a possible sale could impact other partnerships, such as with Hyundai.

  • TikTok Pulling Out of Hong Kong

    TikTok Pulling Out of Hong Kong

    TikTok has announced plans to pull out of Hong Kong in the wake of a new national security law.

    China has been flexing its muscle in Hong Kong, effectively ending the long-standing ‘one country, two systems’ rule. When Britain turned Hong Kong over to Beijing in 1997, its citizens were guaranteed 50 years of autonomy. Despite that, the Chinese government has been trying to exercise more control recently, leading to widespread protests.

    In response, Beijing signed a national security law that gives authorities sweeping powers to punish secession and sedition, as well as search properties and prevent individuals being investigated from leaving the city.

    Tech companies around the world have expressed concern that China may try to use their platforms for censorship or surveillance, by requiring user data to be stored in China. As a result, TikTok is taking action. A spokesperson told Axios that: “In light of recent events, we’ve decided to stop operations of the TikTok app in Hong Kong.”

    The move comes at a time when owner ByteDance is trying to distance TikTok from China. The company operates two similar platforms: TikTok for the world, and a government-approved version in mainland China, called Douyin. Given the allegations that TikTok can’t be trusted to protect user privacy, ByteDance is trying to prove it is not beholden to Beijing.

    The next few weeks will likely be difficult for all of the social media networks as they come to terms with how—or if—they will continue operating in the city.