WebProNews

Tag: CNBC

  • Russian Invasion of Ukraine Threatens Fragile Semiconductor Supply

    Russian Invasion of Ukraine Threatens Fragile Semiconductor Supply

    In the wake of Russia’s invasion of Ukraine, experts are concerned the conflict could significantly impact the semiconductor supply chain.

    Semiconductor manufacturers have been struggling to keep up with demand since the outset of the pandemic. Early lockdowns and quarantines impacted supply, while people working from home and avoiding public activities drove up demand.

    According to VentureBeat, research firm Techcet attributes Ukraine with supplying 90% of the neon gas used in the lasers the US semiconductor industry relies on to manufacture chips. Further complicating the issue, Russia supplies 35% of the palladium for US chipmakers.

    CNBC is reporting that Ukrainian President Volodymyr Zelenskyy says Russian troops have been stopped “in most directions,” as of early Friday morning. It’s unclear if the situation will stabilize, or if it will continue to deteriorate.

    One thing is certain: The longer the conflict goes on, the more likely the semiconductor supply chain will fall further behind.

  • JPMorgan CEO Jamie Dimon Doubles Down on Economic Warning

    JPMorgan CEO Jamie Dimon Doubles Down on Economic Warning

    JPMorgan CEO Jamie Dimon has already warned about the state of the economy but has now doubled down, revealing exactly what worries him.

    Dimon is one of the most influential leaders in finance, so when he expresses concerns about the economy, people take notice. In early June he warned an economic “hurricane is right out there down the road coming our way,” but he’s now revealed what he believes are the biggest issues creating that hurricane.

    According to CNBC, Dimon made his comments at JPMorgan Chase’s latest quarterly release. Dimon acknowledged there were some bright spots, such as the “economy continues to grow and both the job market and consumer spending, and their ability to spend, remain healthy.”

    Dimon then went on to highlight the plethora of negative factors that he believes will take a toll on the economy:

    “But geopolitical tension, high inflation, waning consumer confidence, the uncertainty about how high rates have to go and the never-before-seen quantitative tightening and their effects on global liquidity, combined with the war in Ukraine and its harmful effect on global energy and food prices are very likely to have negative consequences on the global economy sometime down the road.”

    In his comments in June, Dimon said it was still unclear what kind of economic hurricane was on the horizon, whether “it’s a minor one or Superstorm Sandy.” It’s a safe bet his latest comments aren’t going to ease too many people’s minds.

  • Netflix Lays Off An Additional 300 Employees

    Netflix Lays Off An Additional 300 Employees

    The hits keep on coming for Netflix, and not the blockbuster kind, as the company lays off an additional 300 employees.

    Netflix experienced its first subscriber drop in a decade, and the company has warned of slowing growth. After an initial round of 150 layoffs a month ago, the company has axed an additional 300 jobs, representing roughly 3% of its workforce.

    “Today we sadly let go of around 300 employees,” Netflix said in a statement, according to CNBC. “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”

    The company has been working on additional ways to boost subscribers and revenue, including charging more for account sharing, introducing games, and more.

    It remains to be seen if these endeavors will turn the steaming company’s fortunes around.

  • Bill Gates: Crypto and NFTs ‘100% Based on Greater Fool Theory’

    Bill Gates: Crypto and NFTs ‘100% Based on Greater Fool Theory’

    Don’t count Bill Gates as a fan of cryptocurrency or NFTs, with the tech icon calling them “100% based on greater fool theory.”

    The crypto market is in the midst of a massive downturn, one that has seen billions wiped from the ledgers. While many are looking at this as a buying opportunity, Gates is not impressed with crypto or NFTs, according to CNBC. Gates referred to both, but especially NFTs, as being “based on fool theory,” meaning the value on an already overvalued asset only goes up when enough investors want them.

    “I’m used to asset classes … like a farm where they have output, or like a company where they make products,” Gates said, regarding NFTs.

    On the topic of crypto, Gates said: “I’m not involved in that. I’m not long or short any of those things.”

    Interestingly, Gates comments come at a time when NFTs are increasingly gaining mainstream support. Salesforce recently unveiled its own NFT platform, NFT Cloud, as a way for companies to mint and sell NFTs. The company emphasized their intention of making their platform a trusted marketplace, one that would be environmentally friendly, addressing two of the biggest critiques of the burgeoning tech.

    Only time will tell if the crypto market will recover, and if NFTs will continue to gain steam. In the meantime, it doesn’t sound like Gates will be investing in either.

  • Adobe CEO: E-Commerce Price Drops Should Fuel Strong Shopping

    Adobe CEO: E-Commerce Price Drops Should Fuel Strong Shopping

    Adobe CEO Shantanu Narayen had some good news for the e-commerce sector, saying that dropping prices in some categories should help fuel strong shopping.

    Government and business leaders the world over are worried about the state of the economy. Rising inflation, supply chain issues, unfilled jobs, the war in Ukraine, and other factors threaten an economic downturn. JPMorgan CEO Jamie Dimon likened it to a hurricane, although it’s still unclear how bad a hurricane it will be. Despite the cause for trepidation, Narayen believes the e-commerce sector has some reason to be optimistic.

    “When you look at the total expense, in addition to the macroeconomic, where there may be a little bit more concern, what’s happening is actually you’re seeing some price decreases in elements like electronics or things that are happening with games,” Narayen said in an interview on Mad Money.

    As a result of the decreased prices, especially in categories that have previously been hit hard by supply chain issues, Narayen believes digital shopping will continue at a healthy pace.

    “Nothing’s going to change as it relates to people saying, ‘I want to do digital engagement, I want to perhaps buy digitally, pick up physically and you know, the multi-channel thing,” he added.

    Narayen’s comments are some of the few elements of good news amid the economic uncertainty.

  • Starlink IPO Still a Few Years Away

    Starlink IPO Still a Few Years Away

    Investors and employees hoping for a Starlink IPO will have to wait a while longer, with Elon Musk saying it’s still several years away.

    Starlink is the leading low-Earth orbit (LEO) satellite internet provider. Unlike traditional satellite internet, Starlink’s LEO status allows it to offer speeds and latency comparable with traditional broadband. In fact, Starlink is already giving traditional internet companies a run for their money. Despite some being eager to see a quick IPO, according to CNBC, Musk told SpaceX employees it’s still three or four years away.

    “I’m not sure exactly when that [IPO] is, but maybe it will be like — I don’t know, just guessing — three or four years from now,” Musk said at an all-hands meeting.

    Musk reiterated his belief that Starlink needs to be “in a smooth sailing situation” with “good predictability.” Only then, “I think spinning it off as a public company can make a lot of sense,” he continued.

  • Tesla Monitored Employee Facebook Group During Unionization Push

    Tesla Monitored Employee Facebook Group During Unionization Push

    New details have emerged about Tesla’s response to unionization efforts, including the fact that the company monitored an employee Facebook group to keep tabs on developments.

    Tech companies have a complicated relationship with unionization efforts. Until recently, unions within the tech industry were almost unheard of and many companies are aggressively fighting recent organization efforts. According to CNBC, Tesla hired a PR firm to help monitor an employee Facebook group, as well as employees’ broader social media, during unionization efforts in 2017.

    MWW PR was the firm Tesla hired. The firm primarily monitored discussions about a sexual harassment lawsuit and allegedly unfair labor practices within the company.

    “MWW consulted with Tesla in 2017-2018 on a broad employee communications engagement during a period of rapid growth at the Company,” a spokesperson told CNBC. “It is a common practice to review media coverage and public social conversation about a company to gain insights into issues and perceptions of stakeholders about the brand.”

    While Tesla may not have broken any laws with its actions, the revelation is not sitting well with many experts.

    “Any organization can engage in ‘social listening,’ using publicly available social media data to gain insights for product development, or to understand voters, public and employee sentiment and more,” Jennifer M. Grygiel, a Syracuse University associate professor, said. “But there are laws in the US that protect the rights of people to organize. If you’re a PR firm, or a manager who has to infiltrate a semi-private group? That’s dishonest. And I doubt Tesla would send a PR firm to figure out how to support workers involved in organizing.”

  • Broadcom and VMware Reach Deal for $61 Billion

    Broadcom and VMware Reach Deal for $61 Billion

    Broadcom has reached a deal to acquire VWmare for $61 billion in one of the biggest tech acquisitions in history.

    News broke Sunday that Broadcom and VMware were in talks for the former to purchase the latter. At the time, there was no indication of a possible price or the terms of a potential deal. According to CNBC, the a deal has been struck for $61 billion in a cash-and-stock transaction.

    The deal would be the third-largest tech deal, behind Microsoft’s pending deal for Activision Blizzard at $69 billion and Dell’s purchase of EMC for $67 billion, and help Broadcom continue its diversification efforts.

    Broadcom is well known as one of the leading semiconductor manufacturers in the world, with its chips used in a wide array of products, such as smartphones, networking equipment, and more. The company has increasingly been moving into the enterprise software market, an unsurprising move given the volatility of the semiconductor market and the shortages it has been experiencing.

    It remains to be seen if the deal will pass regulators. Broadcom is well known for using acquisitions to help it grow, but its deals haven’t always been approved. In late 2017, the company made an attempt to acquire Qualcomm, in a bid the latter company rejected. Broadcom then tried to move forward in a hostile takeover attempt that was blocked by the US.

    Nonetheless, if the deal should go through, it will make Broadcom a major player in the virtualization and cloud market.

  • Google Cloud Makes Major Play to Be THE Web3 Cloud Provider

    Google Cloud Makes Major Play to Be THE Web3 Cloud Provider

    Google Cloud is working to become THE cloud provider for Web3 developers and apps, forming a team dedicated to Web3.

    Web3 is the next major evolution of the web, and heavily relies on blockchain technology to improve security, privacy, and decentralization. Google clearly sees the potential, forming a new team focused on supporting Web3 developers, according to CNBC.

    Amit Zavery, a vice president at Google Cloud, wrote an email to employees outlining the company’s plans:

    “While the world is still early in its embrace of Web3, it is a market that is already demonstrating tremendous potential with many customers asking us to increase our support for Web3 and Crypto related technologies,” he wrote.

    In a statement to CNBC, Zavery clarified that Google wasn’t interested in getting on the cryptocurrency bandwagon specifically, but is more interested in supporting blockchain technologies.

    “We’re not trying to be part of that cryptocurrency wave directly. We’re providing technologies for companies to use and take advantage of the distributed nature of Web3 in their current businesses and enterprises.”

    Google is currently in third place in the cloud market, behind AWS and Microsoft, although the company has a reputation for being popular among developers. Appealing to Web3 developers and establishing itself as their first option could be the company’s ticket to increasing its market share.

  • Elon Musk Poised to Become Twitter’s Interim CEO

    Elon Musk Poised to Become Twitter’s Interim CEO

    More details are emerging about what Twitter will look like post-Musk takeover, and it appears the tech mogul will become its interim CEO.

    After weeks of intrigue and “will it, won’t it happen” speculation, Elon Musk and Twitter came to an agreement for the tech CEO to purchase Twitter for $54.20 a share. One of the big questions that remains was whether Twitter’s existing CEO, Parag Agrawal, would continue in his position or be replaced. It appears the latter option is likely to happen, with CNBC reporting that Musk plans to takeover as interim CEO for several months post-acquisition.

    Agrawal has only had the top job at Twitter since late November 2021, replacing co-founder Jack Dorsey when he stepped away to focus exclusively on Square.

    With his new role, Musk will be CEO of three companies: Tesla, SpaceX, and Twitter. Only time will tell if the roll will truly be permanent, or if Musk will pull a Steve Jobs and turn an interim title into a permanent one.

    Given Musk’s love of Twitter, our money is on the latter.

  • Amazon Charging US Sellers 5% Fee For Inflation and Fuel

    Amazon Charging US Sellers 5% Fee For Inflation and Fuel

    Amazon is increasing its fees for US-based sellers, charging an additional 5% fee for inflation and fuel charges.

    Amazon is the world’s biggest e-commerce marketplace and is increasingly one of the largest shipping companies in the US. The company relies on third-party sellers for many of the products that populate its marketplace, but those sellers are about to get hit with additional fees, thanks to the increased cost of business Amazon is facing.

    According to CNBC, Amazon is notifying US sellers it will be charging them a 5% surcharge for inflation and fuel costs.

    “The surcharge will apply to all product types, such as non-apparel, apparel, dangerous goods, and Small and Light items,” the notice stated. “The surcharge will apply to all units shipped from fulfillment centers starting April 28.”

    The e-commerce giant says the costs are “subject to change.”

  • Internet Speeds Will Need a Major Boost for the Metaverse to Be a Reality

    Internet Speeds Will Need a Major Boost for the Metaverse to Be a Reality

    The metaverse — the convergence of virtual, augmented, and in-person reality — may be all the rage, but it needs faster internet speeds to succeed.

    Virtually every major tech company, including Apple, Google, Meta, and Microsoft are racing to stake their claim in the metaverse. Even traditional companies are looking for ways to cash in, with JPMorgan opening a location in the metaverse.

    According to CNBC, however, Meta CEO Mark Zuckerberg says “creating a true sense of presence in virtual worlds delivered to smart glasses and VR headsets will require massive advances in connectivity.”

    Similarly, Dan Rabinovitsj, VP of connectivity at Meta told CNBC that connectivity has been the bottleneck slowing down the development of the metaverse.

    “If you really look at the pace of innovation in the telecom world, compared to other markets, it’s been harder to go faster in this space,” Rabinovitsj said. “One of the things that we’ve tried to change is that trajectory of innovation.”

    Meta’s comments echo ones from Intel, in which that company’s executive identified computation power as another major bottleneck that needs to be addressed before the metaverse can truly thrive.

  • Lawmakers Want Answers About the FBI’s Use of Pegasus Spyware

    Lawmakers Want Answers About the FBI’s Use of Pegasus Spyware

    Lawmakers want information about Pegasus, the spyware developed by NSO Group, demanding answers from Apple and the FBI about the latter’s use of it.

    Pegasus is a spyware application NSO markets to law enforcement and government agencies. In mid-2021, however, news broke that NSO had sold Pegasus to authoritarian regimes that were using the software to spy on journalists, human rights activists, and diplomats. The news was particularly notable over the fact that the software was being used to target Apple’s iPhone, a platform otherwise known for having good security.

    The reaction was swift and severe, with AWS banning NSO, Apple suing the company, and Congress adding it to the Entity List, essentially blacklisting it. Among the revelations, however, was that the FBI was one of NSO’s customers.

    Lawmakers want answers regarding the FBI’s use of the software, according to CNBC, sending letters to both Apple and the FBI to ascertain the scope of the FBI’s involvement.

    “The Committee is examining the FBI’s acquisition, testing, and use of NSO’s spyware, and potential civil liberty implications of the use of Pegasus or Phantom against U.S. persons,” reads the letter to Apple.

    The FBI has long been critical of the security and encryption modern devices provide users, seeking to undermine that security at nearly every opportunity. Its efforts have included supporting efforts to legislate weaker encryption, wanting Apple and others to develop backdoors in their security, and investing in tools —like Pegasus —that can break encryption.

  • UK Will Require Tech Firms to Verify User Identity When Posting Online

    UK Will Require Tech Firms to Verify User Identity When Posting Online

    The UK is preparing to implement its Online Safety Bill, including provisions that will require tech firms to combat online trolls with ID verification.

    The nature of the internet has often been at odds with societal good. By design, the internet was built around anonymity. In recent years, however, that anonymity has come under increasing scrutiny as online harassment and trolls have become a major issue. The issue has especially come into focus as anonymous accounts have been used to spread misinformation, often with far-reaching consequences.

    The UK wants to address that issue by stripping away that anonymity and requiring tech companies to verify user identities, according to CNBC.

    “Tech firms have a responsibility to stop anonymous trolls polluting their platforms,” U.K. Digital Minister Nadine Dorries said in a statement Friday.

    “People will now have more control over who can contact them and be able to stop the tidal wave of hate served up to them by rogue algorithms.”

    Needless to say, online platforms are not happy with the UK’s plans. Many online platforms, civil rights groups, and privacy advocates view anonymity as an important element to preserving people’s safety and privacy, especially against oppressive regimes.

    The Online Safety Bill doesn’t specify how tech companies should implement ID verification, leaving them leeway to find the method that best fits. Some of the potential options include facial recognition, two-factor authentication, or verification with some form of government ID.

  • Google Relaxing Vaccine and Mask Requirements

    Google Relaxing Vaccine and Mask Requirements

    Google is making major changes to its policies, relaxing its vaccine and mask requirements, as well as reinstating many office-based perks.

    Like many companies, Google has struggled to strike a balance between bringing people back to the office and keeping them safe. The company signaled in July 2021 that it would require vaccination for employees returning to the office. A few months later, in December, it said employees who refused to get vaccinated would be fired.

    The company is now changing its policies, according to CNBC, and will no longer require vaccination. In addition, Google is dropping its mask and social distancing requirement, and is relaxing its testing requirements as well. The news was shared with employees via an email from David Radcliffe, VP, Real Estate and Workplace Services.

    The company is also reinstating some of the perks it is well-known for, such as massage services, fitness centers, and the various “informal space,” including game rooms, lounges, music rooms, and more.

    “We’re at the beginning of a journey, so the office experience will feel pretty similar to what it was like pre-Covid,” Radcliffe said. “We’re designing and piloting options to support new ways of working together and we’ll gather insights, data and feedback to help us learn as we go.”

    According to CNBC, the change is the result of the current state of the pandemic, which appears to be waning significantly, for the first time since the onset.

  • GM Kills Off Marketplace

    GM Kills Off Marketplace

    GM has announced it has killed off Marketplace, one of its more innovative convenience features.

    Marketplace was an app that allowed GM owners to purchase gas, food, drinks, and more from their in-vehicle infotainment systems. The company first unveiled the product in 2017, and it was a comprehensive way for drivers to access various roadside services. In addition to fuel, food, and drinks, drivers could make hotel reservations, as well as order curbside pickup. Marketplace was also touted as a way for businesses to more easily engage with drivers and potential customers.

    Despite its innovative features, GM is killing off Marketplace, according to CNBC.

    “We routinely evaluate our services to ensure they provide the best experience for our members. In this spirit, we have decided to discontinue our Marketplace services,” GM said in an email to vehicle owners.

    It seems low adoption rate is to blame for the feature’s untimely demise, with one engineer saying activation was only in the “thousands.”

  • Salesforce Developing NFT Platform

    Salesforce Developing NFT Platform

    Salesforce is getting in on the NFT bandwagon, telling employees it is developing its own NFT platform.

    NFTs (non-fungible tokens) have taken the digital world by storm. Born out of the same blockchain that powers cryptocurrencies, NFTs are unique digital assets, such as digital art, that can be bought and sold. In fact, some NFTs have already fetched millions of dollars.

    Salesforce clearly sees the potential of NFTs, with co-CEOs Marc Benioff and Bret Taylor telling employees about the company’s plans to develop its NFT platform, according to CNBC. CNBC’s sources asked not to be named, since the event where the announcement was made was a private one. Similarly, Salesforce has not made an official statement regarding its plans.

    Nonetheless, as one of the leading cloud-based software providers, Salesforce embracing NFTs could help propel the tech even further into the mainstream.

  • Zoom Exec Sees Growth Post-Pandemic Thanks to Hybrid Work

    Zoom Exec Sees Growth Post-Pandemic Thanks to Hybrid Work

    Zoom is one of the companies that has benefited most from pandemic-fueled workplace changes, and sees that continuing post-pandemic.

    Zoom was one of many videoconferencing platforms vying for customers before the pandemic, although with a focus primarily on the enterprise. Once COVID-19 swept the globe, however, the company became a household name as companies, schools, churches, and families turned to the platform to stay connected.

    Some experts have wondered how the company will sustain its meteoric growth post-pandemic, but at least one executive doesn’t think that’s an issue. 

    Ricky Kapur, head of Asia Pacific at Zoom, told CNBC that hybrid work will continue to drive growth.

    “I think there are three big shifts that are happening post-pandemic that businesses are investing in and that’s spurring our growth and relevance,” said Kapur.

    “Employees are demanding flexible work arrangements and the ability to work frictionless, irrespective of where they are,” Kapur added.

    “Whether it’s a retail experience, the ability to live feed into the store and speak with a live person — see a product, have a real conversation, and then make a purchase decision. Consumers are expecting that from companies,” he continued.

  • In the Wake of Major Cloud Outages, Multicloud Is the Future

    In the Wake of Major Cloud Outages, Multicloud Is the Future

    Following multiple AWS outages that crippled entire sections of the internet, companies are increasingly looking to a multicloud future.

    Multicloud refers to companies relying on multiple cloud vendors rather than a single one. AWS experienced two major outages in as many weeks, bringing some of the biggest sites and services on the web to a halt.

    According to CNBC, the outages are causing companies to look more closely at multicloud options. As evidence of that is HashiCorp’s public offering, just two days after the AWS outage. HashiCorp helps companies utilize multiple clouds. In just its second day of trading, the company surged to a market cap of more than $15 billion.

    Critics have long warned that reliance on just a few cloud vendors could put entire industries at risk, and it appears companies are increasingly taking notice of those warnings, especially in the wake of AWS’ failures.

  • Google Will Fire Employees Who Refuse to Get Vaccinated

    Google Will Fire Employees Who Refuse to Get Vaccinated

    Google is drawing a line in the sand, saying it will cut pay and eventually fire employees who refuse to get the COVID-19 vaccination.

    Companies and governments are racing to get as many people vaccinated as possible, with experts calling vaccination the single biggest aid to avoiding hospitalization or death. Especially with the omicron variant threatening to set off another wave of infections, efforts to vaccinate people have gone into high gear.

    According to a memo seen by CNBC, Google is telling employees that if they refuse to get vaccinated, their pay will be cut and they will eventually be fired.

    A Google spokesperson said that, “our vaccination requirements are one of the most important ways we can keep our workforce safe and keep our services running,” adding the company stands “behind our vaccination policy.”

  • Do Better? Better.com CEO Apologizes for 900 Employee Zoom Layoff

    Do Better? Better.com CEO Apologizes for 900 Employee Zoom Layoff

    Better.com CEO Vishal Garg has learned firsthand how he can do better in the future: Don’t do a mass layoff of 900 employees in a Zoom meeting.

    Garg made headlines last week when he laid off 900 employees at once in a Zoom meeting, saying: “If you’re on this call, you are part of the unlucky group…Your employment here is terminated, effective immediately.”

    Needless to say, the complete and utter lack of finesse, the lack of respect for his employees, lack of people skills, not to mention lack of basic common sense, did not go over well with employees or the company’s other executives. In fact, CNET reports the company has experienced “mass resignations,” including its vice president of communications, head of PR and head of marketing.

    Garg has now written a letter (PDF) apologizing for his handling of the layoffs.

    I want to apologize for the way I handled the layoffs last week.

    I failed to show the appropriate amount of respect and appreciation for the individuals who were affected and for their contributions to Better.

    I own the decision to do the layoffs, but in communicating it I blundered the execution. In doing so, I embarrassed you.

    I realize that the way I communicated this news made a difficult situation worse. I am deeply sorry and am committed to learning from this situation and doing more to be the leader that you expect me to be.”

    This isn’t Garg’s first issue, when it comes to employee management, that has come to light. Forbes obtained an email last November in which Garg slammed his own employees.

    “You are TOO DAMN SLOW. You are a bunch of DUMB DOLPHINS and…DUMB DOLPHINS get caught in nets and eaten by sharks. SO STOP IT. STOP IT. STOP IT RIGHT NOW. YOU ARE EMBARRASSING ME,” Garg wrote. 

    It’s clear Better.com’s CEO needs to do far better himself, but only time will tell if he actually will. In the meantime, Garg provided a case study of how not to handle a layoff.