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Tech giants continue layoffs after “year of efficiency”

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Recent workforce reductions at Google and Amazon have indicated that the tech giants are poised to continue cutting jobs in 2024 as they channel substantial investments into generative AI technologies.

Industry analysts and experts anticipate that these layoffs will be more targeted and of a smaller scale this year, with companies racing to gain ground in the AI race opting for such measures to offset their substantial expenditures in the field.

Ernst & Young initiates layoffs, cuts dozens of US partners

Alphabet recently hinted at this trend as it announced its intentions to invest in its “biggest priorities” while laying off approximately a thousand employees across various divisions, including its voice assistant unit and teams responsible for Pixel and Fitbit.

Even its advertising business faced cuts, with reports of hundreds of job reductions surfacing.

Amazon also joined the layoffs wave, releasing several hundred employees in its streaming and studio operations.

The company saw similar cutbacks in its Twitch live-streaming platform and Audible audiobook unit, as reported by media outlets.

In the month of January alone, the tech industry has seen over 7,500 employees let go, according to tracking website Layoffs.fyi.

D.A. Davidson & Co analyst Gil Luria emphasized, “No company wants to get left behind by the AI revolution and they are all making sure they have these capabilities and are prioritizing them, even when it is at the expense of other initiatives.”

Both Google and Amazon are aggressively investing in their AI endeavors. Google, aiming to close the gap with Microsoft in the AI race, unveiled its long-awaited Gemini model last month. Simultaneously, Amazon is developing a model codenamed “Olympus” to compete with OpenAI’s GPT-4 model, the maker of ChatGPT.

Nevertheless, the scale of these layoffs is expected to be significantly smaller compared to the massive workforce reductions witnessed in the previous year, thanks to a more stable economic climate that has prompted increased tech spending.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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Tesla is slashing prices to stay competitive

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Tesla cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000 each, days after the first-quarter deliveries of the world’s most valuable automaker missed market expectations.

Elon Musk’s electric-vehicle (EV) maker lowered the prices for its Model Y base variant to $42,990, while the long-range and performance variants are now priced at $47,990 and $51,490, respectively, according to its website.

The basic version of the Model S now costs $72,990 and its plaid variant $87,990. The Model X base variant now costs $77,990 and its plaid variant is priced at $92,900.
Tesla North America also said in a post on X said it would end its referral program benefits in all markets after April 30.

Referral program allows buyers to get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

Musk has postponed a planned trip to India where he was to meet Prime Minister Narendra Modi and announce plans to enter the South Asian market, Reuters reported on Saturday.
On Monday Reuters reported, citing an internal memo, that the EV maker was laying off more than 10% of its global workforce.
Earlier this month Reuters reported the EV maker had canceled a long-promised inexpensive car, expected to cost $25,000, that investors had been counting on to drive mass-market growth.
The EV maker reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.

Tesla is to report first-quarter earnings on Tuesday.

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TikTok launches Instagram competitor ‘Notes’

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TikTok Notes has launched in Australia & Canada as a formidable competitor to Instagram, offering a unique platform for content creation, text and sharing.

“TikTok Notes is a lifestyle platform that offers informative photo-text content about people’s lives, where you can see individuals sharing their travel tips and daily recipes,” reads the official App Store description.

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The app allows users to create content by combining short videos with text-based notes, closely resembling that of Meta’s Instagram.

Whether it’s sharing a quick tutorial, a personal anecdote, or a thought-provoking message, TikTok Notes is positioned to be a formidable social media platform.

Currently, the app is only available for download and “limited testing” in Australia and Canada.

As it gains momentum, the platform is poised to contest Instagram’s established reign in the social media landscape.

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Ramifications of a TikTok ban to impact Open Internet

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The United States’ longstanding advocacy for an open internet faces a critical juncture as Congress considers legislation targeting TikTok.

The proposed measures, including a forced sale or outright ban of TikTok, have sparked concerns among digital rights advocates and global observers about the implications for internet freedom and international norms.

For decades, the U.S. has championed the concept of an unregulated internet, advocating for the free flow of digital data across borders.

However, the move against TikTok, a platform with 170 million U.S. users, has raised questions about the consistency of America’s stance on internet governance.

Read more – Big tech to handover misinformation data

Critics fear that actions against TikTok could set a precedent for other countries to justify their own internet censorship measures.

Russian blogger Aleksandr Gorbunov warned that Russia could use the U.S. decision to justify further restrictions on platforms like YouTube.

Similarly, Indian lawyer Mishi Choudhary expressed concerns that a U.S. ban on TikTok would embolden the Indian government to impose additional crackdowns on internet freedoms.

Moreover, the proposed legislation could complicate U.S. efforts to advocate for an internet governed by international organizations rather than individual countries.

China, in particular, has promoted a vision of internet sovereignty, advocating for greater national control over online content.

A TikTok ban could undermine America’s credibility in urging other countries to embrace a more open internet governed by global standards.

 

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