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Amazon’s latest layoffs impact Canadians across the country

Amazon has started laying off employees, including Canadians, under restructuring plans first shared in March.

That memo said the changes would impact 9,000 individuals. Economic uncertainty plays a role, Amazon Web Services CEO Adam Selipsky said at the time.

Layoffs began Wednesday, LinkedIn posts shared by one-time Amazon employees show. The impacted employees reside in Canada, the U.S., and Costa Rica, according to a recent internal memo Selipsky shared with employees, as per CNBC.

“Given this rapid growth, as well as the overall business and macroeconomic climate, it is critical that we focus on identifying and putting our resources behind our top priorities — those things that matter most to customers and that will move the needle for our business,” Selipsky said in the memo.

Several former Canadian Amazon employees have taken to social media to share they’ve been laid off, impacting their roles as product managers and software engineers, and more.

Source: CNBC, LinkedIn

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EA cuts around 800 jobs shortly after reporting major profits

EA has laid off nearly 800 employees, or six percent of its roughly 12,900-person workforce.

Andrew Wilson, the company’s CEO, confirmed the cuts in a blog post on Wednesday.

“As we drive greater focus across our portfolio, we are moving away from projects that do not contribute to our strategy, reviewing our real estate footprint, and restructuring some of our teams,” Wilson wrote of the layoffs. This follows EA’s cuts of 200 Apex Legends QA testers last month, although it’s not clear if EA is counting some or all of those people among the six percent.

However, this all comes just two months after EA reported earning approximately $7 billion USD ($9.47 billion CAD) in net revenue last year, which works out to $5 billion USD ($6.76 billion CAD) in gross profits, an 18 percent year-over-year increase. Meanwhile, Wilson himself earned $19.9 million USD ($26.9 million CAD) in 2022, which was already made to be about half his 2021 salary due to shareholders taking issue with his executive bonuses. For context, EA reported to the SEC that its median employee income for 2022 was $115,569 USD ($156,372 CAD), meaning Wilson makes roughly 172 times more than those who work below him, on average.

In the blog post, Wilson says EA is offering eligible employees other roles within the company and, “where that’s not possible,” providing severance pay and health benefits to others. It’s currently unclear exactly who among EA’s global workforce has been affected by the layoffs. The publisher has several studios in Canada, in particular, including a flagship Vancouver campus (FIFA and NHL), BioWare Edmonton (Mass Effect) and the Montreal-based Motive (this year’s Dead Space).

For now, Wilson is singling out the success of FIFA 23, which he says is pacing to be the franchise’s biggest title, as well as Apex Legends and The Sims. One month from now, the company also has Star Wars Jedi: Survivor, the highly-anticipated sequel to 2019’s best-selling Jedi: Fallen Order. Clearly, then, the company isn’t hurting, which makes these layoffs all the more disappointing.

EA’s layoffs follow many other recent cuts in the tech sector, including thousands at Meta, Amazon, Google and Microsoft.

Image credit: EA

Source: EA

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Microsoft eliminated a responsible AI team as it integrates AI into products

Back in January, Microsoft announced it would layoff 10,000 employees across the company. One of the teams eliminated in the layoffs was Microsoft’s ethics and society team within the artificial intelligence (AI) organization.

The ethics and society team layoff comes as the company rushes to integrate AI tools developed by OpenAI into products, making AI widely available to the public.

In its recent newsletter, Platformer outlined that the ethics and society team played an important role in ensuring that Microsoft’s responsible AI principles are actually reflected in the products it ships. That includes identifying risks in the adoption of OpenAI technology in products like Bing.

The team was at its largest in 2020 with some 30 employees, including engineers, designers and philosophers. Platformer reports the team was cut to roughly seven people in October, and several members were moved to other areas.

At the time, Microsoft’s corporate vice president of AI, John Montgomery, told employees there was “pressure” from CTO Kevin Scott and CEO Satya Nadella to move current and upcoming OpenAI models “into customers’ hands at a very high speed,” according to Platformer.

Employees on the ethics and society team pushed back and asked Montgomery to reconsider, but he refused. Montgomery did promise the team wouldn’t be eliminated.

About five months later, on March 6th, the team was called into a meeting  to hear a “business critical update.” They were told their team would be eliminated.

An employee told Platformer the elimination leaves a foundational gap when it comes to user experience and the design of AI products. The employee warned that the elimination exposed Microsoft and human beings to risk.

Microsoft still has other responsible AI teams

Microsoft says it’s still increasing overall investment in responsibility work and that it maintains an Office of Responsible AI. Moreover, in a statement to Platformer, Microsoft said it is “committed to developing AI products and experiences safely and responsibly, and does so by investing in people, processes, and partnerships that prioritize this.”

Despite that, the elimination of a team focused on responsible AI work raises concerns, especially as Microsoft forges ahead with publicly available AI tools. These tools pose significant risks, but as employees told Platformer, Microsoft became less concerned in long-term, responsible thinking as it shifted focus to shipping AI tools quickly.

Moreover, it’s clear why Microsoft wants to move quickly with AI. Microsoft previously told investors that every one percent of market share it could take from Google in search would result in $2 billion USD in annual revenue. Since launching a revamped Bing Search with AI-powered Chat, Microsoft revealed that Bing now has 100 million daily active users, roughly a third of them new since the revamp.

Microsoft sees an opportunity with AI and its taking it, but time will tell if the gamble pays off.

Source: Platformer

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Google defends layoffs as former employees outline lack of notice

Many former Google employees who were part of the company’s layoffs earlier this week appeared to be blindsided by the move.

Various former employees took to social media to share they only found out they were impacted because they could not log in to their emails or enter their workplace with their passes.

In a town hall earlier this week, Google executives defended their actions. “Cuts were made in a very structured, very prioritized way, nothing was random about it,” CEO Sundar Pichai said, according to reporting from Business Insider.

But this isn’t how employees saw it. Social media posts from former employees reveal they did receive an email notifying them of their layoffs, but it was last minute and came at odd hours, like one employee who received her email at 4:47am, hours before the start of her typical workday.

This TikTok from @nicolesdailyvlog outlined that experience in real-time, revealing her manager wasn’t even informed of her layoff.

@nicolesdailyvlog

The Google layoffs were not how I expected to start off 2023, but I know it’s only up from here 🥲 #techlayoffs #googlelayoffs #techgirl #corporatelife #techvlog #dayinmylife #techlayoffs2023

♬ Flowers – Miley Cyrus

Google laid off 12,000 employees in total. Fiona Cicconi, the company’s chief people officer, said 750 executives were involved in making the layoff decisions, Business Insider reports. The company’s strategic priorities and the performance and productivity of each employee were considered.

Source: Business Insider Via: 9to5Google

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Twitter employees sue over mass layoffs

Twitter employees filed a class-action lawsuit against the company over new owner Elon Musk’s plan to cut roughly half of the company’s workforce starting Friday, arguing it violates U.S. federal and California state law.

The lawsuit, filed Thursday in a San Francisco federal court, asks the court to issue an order requiring Twitter to obey the federal Worker Adjustment and Retraining Notification (WARN) Act. The act restricts companies from performing mass layoffs without at least 60 days of advanced notice. It also seeks to restrict Twitter from soliciting employees to sign documents that could give up their right to participate in litigation.

Since Musk took over Twitter, the company has been in turmoil. Workers were assigned to Musk projects and forced to work long hours and weekends under threat of being fired if they didn’t meet tight deadlines. At the same time, team leaders were asked to draw up lists of employees that could be cut. A letter sent to employees on November 3rd warned them that they would receive an email by 9am PST/12pm ET on November 4th about their future at the company.

However, some employees have already started losing access to internal systems like email and Slack channels. That includes some of those assigned to Musk projects. Other employees took to Twitter to share updates about their status or post support under the hashtag ‘#OneTeam.’

“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” attorney Shannon Liss-Riordan told Bloomberg. Liss-Riordan filed the lawsuit against Twitter, but was also behind a lawsuit against Tesla, another Musk company, for laying off about 10 percent of its workforce in June.

However, Tesla won a ruling from a federal judge in Austin, Texas, that forced the workers to pursue their claims in closed-door arbitration rather than in open court. Musk called the lawsuit “trivial” during an interview.

“We will now see if he is going to continue to thumb his nose at the laws of this country that protect employees. It appears that he’s repeating the same playbook of what he did at Tesla,” Liss-Riordan said.

Musk’s Twitter cuts are part of an ongoing effort to reduce costs and squeeze profit from the social network after his acquisition saddled the company with some $13 billion USD (about $17.6 billion CAD) of debt. Musk’s other plans include increasing the cost of Twitter Blue to $8/mo USD, making verification a paid feature, and adding paywalled video.

The latest news on Twitter and Musk can be found here.

Source: Bloomberg

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Musk to cut half of Twitter’s workforce on Friday: report

Twitter layoffs are coming. While there’s been some debate about how many Twitter employees stand to lose their jobs — some reports went as high as 75 percent — it looks like about half the company’s employees could get let go.

According to a report from Bloomberg, Twitter’s new CEO and dude who desperately wants you to think he’s cool, Elon Musk, plans to cut 3,700 Twitter jobs. Currently, the Twitter workforce stands at roughly 7,500 people. The information comes from people with knowledge of the matter, who said Musk plans to inform affected staffers on Friday. Moreover, Musk plans to reverse the company’s work-from-anywhere policy and force employees to return to the office, although there may be some exceptions.

Musk and a team of advisors reportedly considered a variety of layoff scenarios and policy changes at Twitter, and the people who spoke to Bloomberg noted plans could still change. One scenario reportedly included offering laid-off workers 60 days’ worth of severance pay.

Once the layoffs were sorted, Twitter’s chief accounting officer, Robert Kaiden, left the company. Kaiden marks one of the last pre-Musk executives to depart the company, according to Bloomberg.

Layoffs were an expected part of Musk’s Twitter takeover. Musk made it clear from the start that he intended to fire people, with the only real question being how many people would lose their jobs. Since taking over, Twitter staff have reportedly worked long hours and over the weekend on various projects for Musk, under threat of being fired if they missed the deadline.

Meanwhile, leaders were tasked with drawing up lists of employees who could be cut, and senior personnel were told to target a 50 percent reduction in headcount, Bloomberg reported. Musk reportedly had engineers and director-level staff from Tesla review the lists, which were drawn up and ranked based on individuals’ contributions to Twitter’s code. Musk previously tweeted about focusing on Twitter’s core product, noting that “Software engineering, server operations & design will rule the roost.”

All these cuts come as Twitter contends with massive debt from the Musk acquisition. The Wall Street Journal reported that Musk’s purchase saddled Twitter with $13 billion USD (about $17.95 billion CAD) in debt, with interest payments expected to total $1 billion USD (roughly $1.4 billion CAD) annually. That debt appears to be driving much of Musk’s decision-making as he rushes to make cuts and introduce changes to squeeze a profit from Twitter. Along with cutting staff, plans include increasing the cost of Twitter Blue to $8/mo, adding verification to Blue, and introducing a paywalled video feature.

For the latest on the Musk x Twitter news, check out MobileSyrup’s coverage here.

Header image credit: Shutterstock

Source: Bloomberg

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SoundCloud cuts 20 percent of its workforce

SoundCloud has reduced its workforce by 20 percent following an email from CEO Michael Weissman on August 3rd.

“Making changes that affect people is incredibly hard. But it is one that is necessary given the challenging economic climate and financial market headwinds,” the email reads.

As reported by Billboard, the memo states the cuts help the company get on “a path to sustained profitability.” Financial decisions have impacted other parts of the company as well.

A SoundCloud spokesperson confirmed the news to Billboard. “[SoundCloud] announced an approximate 20% reduction of its global workforce due to a significant company transformation and the challenging economic and financial environment.”

This isn’t the first time the company faced mass lay-offs. Back in 2017, SoundCloud cut 40 percent of its workforce.

The company will “continue to be laser focused on our mission to lead what is next in music,” Weissman’s memo goes on to say.

SoundCloud isn’t alone in cutting its workforce, as many other tech companies have recently followed a similar path. Last month Shopify announced it was laying off 10 percent of its workforce, and Tesla closed its San Mateo, California office.

Image credit: Shutterstock 

Via: Billboard

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Tesla lays off 200 Autopilot employees in California

Tesla has reduced its workforce by nearly 200 after laying off employees responsible for training the manufacturer’s Autopilot AI system.

The layoffs, first reported by Bloomberg, focus on the company’s San Mateo, California office and primarily feature hourly workers responsible for labelling training data.

TechCrunch reports the San Mateo office had 276 employees prior to the layoffs. After removing 195 workers, Tesla will relocate the remaining 81 employees to another office. The publication says most of the workers filled “moderately low-skilled, low-wage jobs.”

The layoffs come just days after founder Elon Musk confirmed Tesla would reduce its staff by 10 percent. However, the reduction was aimed at the company’s salaried workforce and Musk said its hourly staff will grow, leading to an overall reduction of 3.5 percent. News of the reduction broke earlier this month when Musk told company execs in an email that he had a “super bad feeling” about the economy. 

As with many ongoing actions surrounding Musk and his business ventures, the recent layoffs of hourly workers question the legitimacy of his comments.

Image credit: Shutterstock

Source: Bloomberg and TechCrunch via The Verge 

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Elon Musk to cut Tesla’s workforce by 3.5 percent

Tesla CEO Elon Musk plans to cut Tesla’s workforce by 3.5 percent.

Musk confirmed the number during an interview with Bloomberg News Editor-in-Chief John Micklethwait at the Qatar Economic Forum on June 21st. Over the next three months, Tesla will cut about 10 percent of its salaried workforce but expects to grow hourly staff, leading to an overall 3.5 percent workforce reduction.

Bloomberg notes that Tesla hired rapidly while building new factories in Austin, Texas and Berlin, Germany. The company has roughly 100,000 employees globally. The cuts have affected human resources representatives and software engineers.

The cuts reportedly took many by surprise, with the company terminating several employees immediately, according to Bloomberg. Two workers at Tesla’s Reno, Nevada battery factory alleged in a lawsuit that the company didn’t comply with the 60-day notification required by the States’ ‘Worker Adjustment and Retraining Notification Act.’

“Let’s not read too much into a preemptive lawsuit that has no standing,” Musk deflected when asked about the lawsuit during the interview.

The Tesla staff reductions come amid Musk’s stance against remote work. Musk has publicly derided work-from-home, and in an email cited by Bloomberg, wrote that Tesla employees are “required to spend a minimum of 40 hours in the office per week.”

Further, Musk claimed in the email that that was why he had “lived in the factory so much — so that those on the line could see me working alongside them.” Musk said if he hadn’t done that, Tesla would have gone bankrupt “long ago.”

Musk’s position on remote work similarly has Twitter employees spooked amid his ongoing attempt to purchase the company. Coupled with Musk’s suggestion there may be layoffs at Twitter if he acquires the company, it’s understandable that people are worried.

Source: Bloomberg