Friday 31 March 2023

Tech: Salesforce employees aren't happy

10 THINGS IN TECH

We made it to Friday, readers. I'm Paayal Zaveri and it's another busy one today.

There's no way around it: The biggest news of the day doesn't come from the world of tech.

Former President Donald Trump was indicted by a New York grand jury yesterday. This caps a nearly five-year investigation into Trump's personal and business finances by the Manhattan district attorney's office. Insider has a live updates page that you can follow.

That said, there's plenty happening in tech news, from Salesforce layoffs to an unusual new perk for Meta employees.

Let's get started on our top stories.

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1. Salesforce conducts more layoffs. Employees aren't happy about how the cloud giant is handling its plan to cut 10% of its workforce. CEO Marc Benioff personally responded to some employees who are complaining on Slack, my colleague Ashley Stewart reports.

The most recent round of cuts hit a sales team selling the highest-tier of support called Signature, as well as Salesforce.org, the unit that sells services to non-profits and educational institutions.
Employees are particularly frustrated with how the company has communicated its progress on the layoffs. They say it's unclear how many more rounds of cuts are coming.
The cost-cutting did help Salesforce avoid a proxy battle for control of its board, as activist investors pushed for Salesforce to focus on efficiency. One of those investors, Elliott Management, said earlier this week that it would drop its challenge to the board.

Read why Salesforce employees are upset at how the company is handling layoffs.

In other news:

2. Elon Musk and Sam Altman's messy relationship. Elon Musk helped found OpenAI, the company behind viral smash hit ChatGPT. But since a falling out with its CEO Altman, the two execs have been at odds. Here's a history of their feud.

3. If Apple can't make smart goggles happen, no one can. As you may remember, Apple is reportedly releasing mixed-reality smart goggles later this year. Its own execs are split on if it's a good idea. But experts say Apple is the one company who could make smart goggles a reality, my colleague Asia Martin reports.

4. Welcome to TikTok's sister app, Lemon8. Even as TikTok faces a ban in the US, its parent company Bytedance has rolled out a new app here, called Lemon8. It's building out its creator partnerships team in the US.

5. Apple launches buy now, pay later. Apple is getting in on the growing popularity of buy now, pay later services. It recently launched Apple Pay Later. Here's how it works.

6. Meta's new office perk: a DJ. Meta has been encouraging people to return to its Silicon Valley headquarters over the last few months. Its latest perk to entice office attendance is reportedly a DJ who plays dance music in one of its cafes. Dive into the latest on Meta's employee perks.

7. Virgin Orbit is ceasing operations. The satellite company founded by Richard Branson is laying off 85% of its staff and reportedly ceasing operations "for the foreseeable future." This is after the company was unable to secure much-needed funding. Here's what happened.

8. Lessons from "Instagram University." Meta recently hosted a virtual "Instagram University" event for creators. It taught people about the app's algorithm and how to best use it. My colleague Sydney Bradley attended. Here's her top five takeaways.

Odds and ends:

9. A rare PS5 deal. Ever since the PS5 released over two years ago it's been in high demand. But now it's finally getting a little easier to find it, and there's a pretty good special bundle discount if you get it with the blockbuster "God of War Ragnarok."

10. Gen Z loves dumb phones. As Gen Zers try to limit screen time, they're turning to so-called dumb phones. Remember the ones without screens or internet access? Here's how it's going for them.

The latest people moves in tech:

Ex-Googlers are taking their skills elsewhere. Google built much of the foundational technology behind today's generative-AI boom. Now ex-employees are raising millions for their own startups.
A top Google researcher resigned. He reportedly left earlier this year after warning execs that Google's AI chatbot Bard was trained off its rival ChatGPT.
Microsoft had more layoffs this week. But before that, it was one of the big tech companies that paid the best. Here's what engineers, analysts, and others made before recent layoffs.

Curated by Paayal Zaveri in San Francisco. (Feedback or tips? Email pzaveri@insider.com or tweet @paayalzaveri) Edited by Matt Weinberger (tweet @gamoid) in San Francisco and Hallam Bullock (tweet @hallam_bullock) in London.

Thursday 30 March 2023

Tech: AI needs to slow down

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10 THINGS IN TECH

Happy Thursday readers. I'm Paayal Zaveri, and today I'm finally giving ChatGPT a chance. The AI chatbot has been hugely popular over the last few months. It seems like it can do everything from have an intelligent-sounding conversation to write music to code.

I've been a little skeptical, though. Yes, it can do a lot, but its responses are not always the most accurate. I thought I'd test it out by having ChatGPT write a short intro for this newsletter. It took a few tries but here's what it came up with:

"Welcome to "10 Things in Tech" - your daily dose of the latest tech news. Stay up-to-date with the top 10 tech stories of the day, handpicked for you. Today is Thursday, March 30th, 2023."

Not bad! It's clear the technology is progressing rapidly.

But as ChatGPT and other generative AI tools get more and more impressive, it's also highlighting how big the ramifications can be. That's got many people asking for caution until we're fully aware of the risks and can put guardrails in place.

That's what our first tech story of the day is about. Let's dive in.

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Insider asked ChatGPT, the viral AI chatbot sweeping the internet, to whip up a layoff memo for a pretend tech company, Gomezon.

Tech leaders are calling for a pause on AI. Elon Musk, Steve Wozniak, researchers at Alphabet's DeepMind, and other AI leaders are calling for a pause on training AI models more powerful than OpenAI's GPT-4.

In an open letter, they said further development should be paused until we're "confident that their effects will be positive and their risks will be manageable." The letter also urges AI companies to create and implement a set of shared safety protocols for AI development.
That is important as worries mount about AI's impact on the job market. A new report from Goldman Sachs warned that 25% of the current workforce could be substituted by AI, while two-thirds could see some degree of automation to their jobs.
With an absence of regulation, how it turns out will all depend on which company wins. That could be OpenAI, Google, or a startup that outpaces all of them, my colleague Hasan Chowdhury writes.

My colleague Emilia David looked at why Elon Musk and other tech leaders are right: AI needs to slow down.

In other news:

Illustration picture shows the ChatGPT artificial intelligence software, which generates human-like conversations.

2. AI is giving rise to a new job: prompt engineer. One positive of AI is that new kinds of jobs are being created. Prompt engineers are in high demand, and these roles can have salaries as high as $335,000. Here's what the job entails.

3. Regulators are getting stricter on tech M&A. The DOJ is reportedly planning to block Adobe's $20 billion bid for Figma. It's just the latest in a series of crackdowns on big tech deals. If it continues, it could have broad implications for the tech M&A landscape, my colleague April Joyner and I report.

4. Fintech has a fraud problem. Fintech tools like Venmo and Cash App make it easier to bank, invest, and make payments. They also open the door to more fraud. Dive into fintech's messy relationship with fraud.

5. Driverless Teslas are still years away. Elon Musk has repeatedly said making self-driving cars is one of Tesla's main goals. He claims it's just a software update away. Read why experts say Tesla isn't getting there anytime soon.

6. Google's AI offensive. Google is racing to catch up to Microsoft in AI, as the latter's partnership with OpenAI has given it a leg up. My colleague Hugh Langley got his hands on an org chart showing the most important execs in Google's AI division.

7. Tech firms are demanding a return to office. Amazon, Apple, and Twitter are just a sampling of the firms that are pushing for or requiring employees back in the office. But after years of successful remote work, employees are fighting back.

8. Gen Z wants work-life balance. Gen-Z job seekers are shocking older hiring managers by asking about work-life balance in the first interview. And hiring managers from older generations are struggling to adapt. This is how expectations for work-life balance are changing.

Odds and ends:

A Nintendo Switch OLED model with designs themed after The Legend of Zelda: Tears of the Kingdom.

9. A limited-edition Nintendo Switch. Nintendo is releasing a limited-edition Switch OLED console to celebrate the new "Legend of Zelda" game. It releases on April 28 — here's how to preorder.

10. The best Apple Watch bands. An Apple Watch is an essential for many of us these days, but the right band can make all the difference. Check out Insider's review of the 18 best Apple Watch bands in 2023.

Wednesday 29 March 2023

Tech: Layoffs at Lucid

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10 THINGS IN TECH

It's Wednesday, readers. I'm Paayal Zaveri, and I'm getting tired of the rain. In California we've had a few months of heavy rain, and the San Francisco Bay Area is getting hit with another storm as I write this.

I grew up here and can't remember ever seeing this much rain. But I know California desperately needs it after decades of drought. So I'm eagerly waiting for the day when the weather is nice enough to enjoy a day outside.

Until then, I'll daydream about visiting warmer places and watch "Gilmore Girls" for the hundredth time. Let me know if you have any other cold weather show recommendations.

Now onto today's tech news.

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1. Lucid, a Tesla rival, is planning layoffs. The EV startup is planning to lay off hundreds of employees, my colleague Alexa St. John reported. About 18% of Lucid's workforce, or over 1,000 people, will be impacted.

Lucid has had a challenging few months, as it works to nail down manufacturing and production and get cars on the roads. Now layoffs are another hurdle.
It's not the only EV company that's struggling. Rivian has also struggled with production. Some customers are waiting years for their vehicle deliveries. It's another sign of how difficult it is for EV startups to break through Tesla's dominance of the market.
An internal memo from Lucid said employees would get details about the layoffs over the next three days. It also said the cuts will be company-wide, including at the executive level.

Read about Lucid's challenges, and why it's conducting layoffs.

In other news:

2. Disney is ditching the metaverse. Disney is the latest company to abandon its metaverse plans. It reportedly laid off its entire interactive storytelling team, as part of a broader restructuring. Read why it's shutting down its metaverse just a year in.

3. TikTok's Project Texas is far from done. In response to national security concerns regarding where TikTok's US user data is stored, the company enacted Project Texas. It's a plan where TikTok says it will route US user data into Oracle servers. My colleague Dan Whateley looked into why it's taking years to complete.

4. Tesla under investigation. Tesla is under investigation by the National Highway Traffic Safety Administration over concerns of seat belts disconnecting on their own. The inquiry covers Model X SUVs from 2022 and 2023. Read about what prompted the investigation.

5. Meta continues its "year of efficiency." Facebook parent company Meta is lowering bonus pay for lower-performing employees and reverting to two performance reviews a year. More layoffs are also on the way. It's all part of the firm's cost cutting plans.

6. Microsoft layoffs hit security org. Microsoft's security team was hit with layoffs, according to an internal email from exec Charlie Bell, my colleague Ashley Stewart reported. Security is a key area of investment for Microsoft, but has been slowed by the tech downturn. Read more.

7. Investors are flocking to a new AI technology. Investors are excited about a new AI category called vector databases. These tools help search the actual content of text, images, and videos. Read about the startups creating this new technology.

8. From sports star to investing. Professional runner Vanessa Fraser has a new gig — working at legendary venture capital firm Benchmark. My colleague Samantha Stokes talked to her about how she got there, and how she balances a Nike sponsorship with her day job at the VC firm.

Odds and ends:

9. Elon Musk could change EV charging for everyone. Insider's Tim Levin tested out charging a KIA EV at a former Tesla supercharger that's open to all EVs. Here's why he says this could be game changing.

10. Bosses, remember to praise your employees. Feeling blah at work these days? You're not alone. A recent Gallup survey found more people than ever before are disengaged from their jobs right now. But here's a simple thing bosses can do to help.

What we're watching today:

Shoptalk is this week in Las Vegas. It's a huge conference for retailers and ecommerce. Speakers from Amazon, Target, Wayfair, and other large ecommerce companies will be there.
"Avatar: The Way of Water" is now available to stream at home.

Tuesday 28 March 2023

Tech: TikTok 'Myth vs. Fact'

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10 THINGS IN TECH

Welcome back, readers. I'm Paayal Zaveri, a reporter with Insider's Tech Analysis team, filling in for my colleague Diamond Naga Siu this week.

One thing I keep thinking about: what's going to happen to TikTok?

After TikTok's CEO Shou Zi Chew testified in front of Congress last week, it seems like the stakes are even higher for the social media app. As a reminder: the Biden administration has demanded TikTok's US business be sold, or risk getting banned in the US.

Thursday's hearing did little to change lawmakers' minds, meaning that TikTok is dealing with the fallout. Now, it seems, TikTok wants to clear up some facts that lawmakers may have gotten wrong.

That's what our first story is about today. Let's get started.

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1. TikTok wants to clear up "Myth vs Fact." After the TikTok CEO's 5-hour hearing at Congress last Thursday, the company wants to reassure advertisers that it'll be fine. It sent them a "Myth vs. Fact" document, laying out some things lawmakers said that TikTok says aren't entirely accurate.

In the document, the company tried to dispel concerns about its ties to the Chinese government. Specifically, it addressed concerns that it could be forced to hand over US user data to the Chinese government.
The document states: "TikTok does not permit any government to influence or change its recommendation model."
Advertisers make up a large chunk of TikTok's user base, which the company says is now at 150 million monthly active users in the US. Most have just adopted a wait-and-see approach to the potential of a TikTok ban, and are exploring alternatives like Instagram reels and YouTube Shorts.

Read TikTok's full "Myth vs Fact" document here.

In other news:

2. AOC is against a TikTok ban. Rep. Alexandria Ocasio-Cortez is one of the few lawmakers who has spoken out against a TikTok ban. She says it doesn't address the core issue: that social media companies collect so much personal information, and there's no regulation to protect users.

3. Miami's crypto boom is over. During the pandemic, Miami became the de facto capital of the crypto boom, and people flocked to the city. But now that boom is over as crypto prices drop, and the crypto enthusiasts are slowly leaving, my colleague Linette Lopez reports.

4. Tim Cook is a better role model for CEOs than Elon Musk. Tech leaders are closely watching Musk's relentless focus on shrinking Twitter while growing its ambitions. However, experts told me that long-term it's a bad strategy. Read why they say Tim Cook's slow-and-steady style yields better results.

5. Inside OpenAI's master plan. OpenAI is laying the groundwork for people to use ChatGPT in their daily lives. If it wants to keep its lead, as Google, Amazon, and everybody else get in on the generative AI gold rush, speed is key. Here's how OpenAI is staying ahead.

6. Pharmacy startups are struggling. Pharmacy startups gained traction over the last few years, attracting tons of investment. The goal is to give patients a more personal, simple experience. But it's not easy. Here's why those startups are struggling to go up against giants like CVS and Walgreens.

7. Our online experience is getting worse. If it seems like using Google, Facebook, and Amazon is getting harder, you're not imagining it. It's all because Big Tech companies are putting their stock prices above the user experience. Here's what that means.

8. Not everyone loves Apple's next big thing. Apple's next big product launch is likely a mixed-reality headset that it's been working on for years. The company is reportedly planning to reveal it in three months. But not everyone at the company is happy about it.

Odds and ends:

9. Apple's new emojis. Apple iOS 16.4 came out yesterday, and with it 31 new emojis. It includes a shaking face, a donkey, and a long-awaited pink heart. See all the new emojis.

10. Rich people's new obsession: Immortality. This new exclusive club is exploring how to live longer and healthier lives. Membership has a $100 million net-worth minimum. Read about the club's perks here.

What we're watching today:

Shoptalk is this week in Las Vegas. It's a huge conference for retailers and ecommerce. Speakers from Amazon, Target, Wayfair, and other large ecommerce companies will be there.
In celebrity news, Selena Gomez and Zayn Malik are rumored to be dating. I'll be watching to see if it's true.