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Businesses

Have CEOs Changed? (nber.org) 58

A new paper on the National Bureau of Economic Research: Using more than 4,900 assessments, we study changes in the characteristics and objectives of CEOs and top executives since 2001. The same four factors explain roughly half of the variation of assessed CEO characteristics in this larger sample of executive assessments as in Kaplan and Sorensen (2021). After the global financial crisis (GFC), the average interviewed CEO candidate has lower overall ability, is more execution oriented / less interpersonal, less charismatic and less creative/strategic than pre-GFC. Except for overall ability and execution oriented/interpersonal, these differences persist in hired CEOs. Interpersonal or "softer" skills do not increase over time, either for CEO candidates or hired CEOs. Pre- and post-GFC, we find a positive correlation between the ability of assessed CEOs and other C-level executives assessed at the same company, suggesting that higher-ability executives complement each other. Finally, we look at the relation between the objectives for which the CEOs are interviewed and CEO characteristics.
Businesses

Tech Giants Fight Indian Telcos' Bid To Regulate Internet Services, Pay For Network Usage (techcrunch.com) 14

Global technology giants are pushing back against attempts by India's telecom networks to bring internet services under stricter regulation, rejecting arguments that such measures are necessary to create a "level playing field" and address national security concerns. From a report: The Asia Internet Coalition (AIC), a powerful industry body that represents Amazon, Apple, Google, Meta, Microsoft, Netflix and Spotify, has forcefully argued against inclusion of the so-called over-the-top (OTT) services in the proposed regulatory framework for telecom operators. In a submission to the Telecom Regulatory Authority of India (TRAI), the AIC said there are fundamental differences in technology, operations and functionality between OTT services and traditional telecom operations.

[...] This resistance comes in response to a coordinated push by India's top telecom operators -- Bharti Airtel, Reliance Jio and Vodafone Idea -- to bring OTT services under a new authorization framework. Jio, India's largest telecom operator with more than 475 million subscribers, along with other telco operators have recommended that OTT providers contribute to network development costs based on their traffic consumption, turnover and user base.

Businesses

GoPro To Cut 15% of Workforce In Restructuring Push (reuters.com) 24

GoPro has announced a restructuring plan that involves cutting about 15% of its workforce. "The company expects to take charges in the range of $5 million to $7 million for the restructuring plan, with cash expenses of $1 million to be recognized in the third quarter and about $4 million to $6 million in the fourth quarter of 2024," reports Reuters. From the report: The layoffs - around 139 jobs - are expected to begin in the third quarter and would be completed by the end of 2024. Shares of the company, which had 925 full-time employees at the end of the second quarter ended June 30, were up 1.5% after the layoffs were announced. Earlier this month, GoPro reported revenue of $186 million for second quarter, down 22.7% compared to last year and operating expenses of $103 million, an increase of 5% from a year ago.
AI

Wyoming Voters Face Mayoral Candidate Who Vows To Let AI Bot Run Government 51

An anonymous reader quotes a report from The Guardian: Voters in Wyoming's capital city on Tuesday are faced with deciding whether to elect a mayoral candidate who has proposed to let an artificial intelligence bot run the local government. Earlier this year, the candidate in question -- Victor Miller -- filed for him and his customized ChatGPT bot, named Vic (Virtual Integrated Citizen), to run for mayor of Cheyenne, Wyoming. He has vowed to helm the city's business with the AI bot if he wins. Miller has said that the bot is capable of processing vast amounts of data and making unbiased decisions. In what AI experts say is a first for US political campaigns, Miller and Vic have told local news outlets in interviews that their form of proposed governance is a "hybrid approach." The AI bot told Your Wyoming Link that its role would be to provide data-driven insights and innovative solutions for Cheyenne. Meanwhile, Vic said, the human elected office contender, Miller, would serve as the official mayor if chosen by voters and would ensure that "all actions are legally and practically executed."

"It's about blending AI's capabilities with human judgment to effectively lead Cheyenne," the bot said. The bot said it did not have political affiliations -- and its goal is to "focus on data-driven practical solutions that benefit the community." During a meet-and-greet this summer, the Washington Post reported that the AI bot was asked how it would go about making decisions "according to human factor, involving humans, and having to make a decision that affects so many people." "Making decisions that affect many people requires a careful balance of data-driven insights and human empathy," the AI bot responded, according to an audio recording obtained and published by the Washington Post. Vic then ran through a multi-part plan that suggested using AI technology to gather data on public opinion and feedback from the community, holding town hall meetings to listen to residents' concerns, consulting experts in relevant fields, evaluating the human impact of the decision and providing transparency about the decision-making. According to Wyoming Public Media, Miller has also pledged that he would donate half the mayoral salary to a non-profit if he is elected. The other half could be used to continually improve the AI bot, he said.
Miller has faced some pushback since announcing his mayoral campaign. Wyoming's Secretary of State, Chuck Gray, launched an investigation to determine if the AI bot could legally appear on the ballot, citing state law that says only real people that are registered to vote can run for office. City officials clarified that Miller is the actual candidate, so he was allowed to continue. However, Laramie County ruled that only Miller's name would appear on the ballot, not the bot's.

OpenAI later shut down Miller's account, but he quickly created a new one and continued his campaign.
Businesses

Parents Rage Against New Fee To Keep Their Smart Bassinets Smart (nytimes.com) 91

Smonster writes: The maker of the Snoo, a popular high-tech bassinet, touched off a firestorm of outrage after requiring a paid subscription to use several key features. Most new parents are looking for a way to reclaim even a hint of the sleep they used to get pre-infant. So a smart bassinet that uses sensors to detect when a crying baby needs pacifying, simulating the sounds and rhythms of the womb, offers an irresistible promise to sleep-strapped parents: another hour or two of shut-eye. The dream doesn't come cheap: One of the more popular models, the Snoo retails for $1,700, though enterprising parents can score one secondhand from friends, neighbors or relatives whose own children have outgrown it.

But last month, that hand-me-down network was dealt a blow when Happiest Baby, the company that makes Snoo, began charging for access to some of the bassinet's premium features -- features that used to be available to Snoo users indefinitely, at no extra cost. Now, access to the app needed to lock in the bassinet's rocking level, to track the baby's sleep and to use the so-called weaning mode, among other features, will cost parents $20 a month. The change has angered secondhand users and original buyers alike. On Reddit, the new subscription model has prompted review bombs, group brainstorms for collective action and detailed instructions for outraged parents seeking recourse. Some have taken to filing complaints with the Federal Trade Commission, Better Business Bureau and state-run consumer protection offices.

United Kingdom

UK Tech Entrepreneur Mike Lynch Among Missing In Sicily Yacht Sinking (theguardian.com) 46

Longtime Slashdot reader whoever57 writes: A powerful storm sank the "Bayesian," a superyacht that was carrying Mike Lynch and some guests. In total, there is one confirmed death and another six missing, including Mike lynch and his daughter. It is believed that the yacht is effectively owned by Lynch. The 56-meter yacht had an aluminum hull and could carry 12 guests and a crew of up to 10. "Lynch co-founded Autonomy, a software firm that became one of the shining lights of the UK tech scene, in the mid-90s," notes The Guardian. "Once described as Britain's Bill Gates, Lynch spent much of the last decade in court defending his name against allegations of fraud related to the sale of Autonomy to the U.S. tech company Hewlett-Packard for $11 billion. The 59-year-old was acquitted by a jury in San Francisco in June, after he had spent more than a year living in effect under house arrest."

"He was awarded an OBE for services to enterprise in 2006, and appointed in 2011 to the science and technology council of the then prime minister, David Cameron. He was elected as a fellow to the Royal Academy of Engineering in 2008 and the Royal Society in 2014."

UPDATE 8/21/24: Authorities have recovered the bodies of former Autonomy CEO Mike Lynch and his teenage daughter Hannah. Lynch's wife, Angela Bacares, was rescued at sea and is recovering.
Businesses

GM Cuts 1,000 Software Jobs As It Prioritizes AI 108

General Motors is cutting around 1,000 software workers around the world in a bid to focus on more "high-priority" initiatives like improving its Super Cruise driver assistance system, the quality of its infotainment platform and exploring the use of AI. From a report: The job cuts are not about cost cutting or individual performance, GM spokesperson Stuart Fowle told TechCrunch. Rather, they are meant to help the company move more quickly as it tries to compete in the world of "software-defined vehicles." For example, Fowle said, that could mean moving away from developing many different infotainment features and instead focusing on ones that matter most to consumers.

The shuffle comes after GM has struggled with recent software problems. The automaker temporarily halted sales of its new Blazer EV in late 2023 after early vehicles encountered glitches. In June, GM promoted two former Apple executives to run its software and services division. The promotions were meant to fill the gap left by Mike Abbott, another Apple veteran who had joined GM as its executive vice president of software and services. Abbott left GM in March for health reasons.
AMD

AMD To Acquire Server Maker ZT Systems in $4.9 Billion Deal (yahoo.com) 7

AMD agreed to buy server maker ZT Systems in a cash and stock transaction valued at $4.9 billion, adding data center technology that will bolster its efforts to challenge Nvidia. From a report: ZT Systems, based in Secaucus, New Jersey, will become part of AMD's Data Center Solutions Business Group, according to a statement Monday. AMD will retain the business's design and customer teams and look to sell the manufacturing division. Closely held ZT has extensive experience making server computers for owners of large data centers -- the kind of customers that are pouring billions into new AI capabilities. The acquisition will "significantly strengthen our data center AI systems," AMD Chief Executive Officer Lisa Su said in the statement.
Social Networks

India's Influencers Fear a New Law Could Make them Register with the Government (restofworld.org) 25

Indian influencers It's the largest country on earth — home to 1.4 billion people. But "The Indian government has plans to classify social media creators as 'digital news broadcasters,'" according to the nonprofit site RestofWorld.org.

While there's "no clarity" on the government's next move, the proposed legislation would require social media creators "to register with the government, set up a content evaluation committee that checks all content before it is published, and appoint complaint handlers — all at their own expense. Any failures in compliance could lead to criminal charges, including jail term." On July 26, the Hindustan Times reported that the government plans to tweak the proposed Broadcasting Services (Regulation) Bill, which aims to combine all regulations for broadcasters under one law. As per a new version of the bill, which has been reviewed by Rest of World, the government defines "digital news broadcaster" as "any person who broadcasts news and current affairs programs through an online paper, news portal, website, social media intermediary, or other similar medium as part of a systematic business, professional or commercial activity."

Creators and digital rights activists believe the potential legislation will tighten the government's grip over online content and threaten the last bastion of press freedom for independent journalists in the country. Over 785 Indian creators have sent a letter to the government seeking more transparency in the process of drafting the bill. Creators have also stormed social media with hashtags like #KillTheBill, and made videos to educate their followers about the proposal.

One YouTube creator told the site that if the government requires them to appoint a "grievance redressal officer," they might simply film themselves, responding to grievances — to "make content out of it".
Power

Data Centers Are Consuming Electricity Supplies - and Possibly Hurting the Environment (yahoo.com) 77

Data center construction "could delay California's transition away from fossil fuels and raise electric bills for everyone else," warns the Los Angeles Times — and also increase the risk of blackouts: Even now, California is at the verge of not having enough power. An analysis of public data by the nonprofit GridClue ranks California 49th of the 50 states in resilience — or the ability to avoid blackouts by having more electricity available than homes and businesses need at peak hours... The state has already extended the lives of Pacific Gas & Electric Co.'s Diablo Canyon nuclear plant as well as some natural gas-fueled plants in an attempt to avoid blackouts on sweltering days when power use surges... "I'm just surprised that the state isn't tracking this, with so much attention on power and water use here in California," said Shaolei Ren, associate professor of electrical and computer engineering at UC Riverside. Ren and his colleagues calculated that the global use of AI could require as much fresh water in 2027 as that now used by four to six countries the size of Denmark.

Driving the data center construction is money. Today's stock market rewards companies that say they are investing in AI. Electric utilities profit as power use rises. And local governments benefit from the property taxes paid by data centers.

The article notes a Goldman Sachs estimate that by 2030, data centers could consume up to 11% of all U.S. power demand — up from 3% now. And it shows how the sprawling build-out of data centers across America is impacting surrounding communities:
  • The article notes that California's biggest concentration of data centers — more than 50 near the Silicon Valley city of Santa Clara — are powered by a utility emitting "more greenhouse gas than the average California electric utility because 23% of its power for commercial customers comes from gas-fired plants. Another 35% is purchased on the open market where the electricity's origin can't be traced." Consumer electric rates are rising "as the municipal utility spends heavily on transmission lines and other infrastructure," while the data centers now consume 60% of the city's electricity.
  • Energy officials in northern Virginia "have proposed a transmission line to shore up the grid that would depend on coal plants that had been expected to be shuttered."
  • "Earlier this year, Pacific Gas & Electric told investors that its customers have proposed more than two dozen data centers, requiring 3.5 gigawatts of power — the output of three new nuclear reactors."

Businesses

Will Electronic Price Labels Tempt Stores to Try 'Dynamic Pricing'? (yahoo.com) 221

"Electronic shelf labels are already common in Europe," reports the Los Angeles Times, "and will become wider spread in the U.S., with Walmart planning to implement the labels in 2,300 stores by 2026." And grocery giant Kroger also plans to introduce digital labels.

But will they also bring "dynamic pricing", where stores raise the price of ice cream on hot days — or jack the cost of water and canned goods before upcoming storms? Kroger and Walmart said they have no plans to implement dynamic pricing, and added that electronic shelf labels will only be used to help lower costs. "Kroger's business model is to lower prices over time so that more customers shop with us," a Kroger spokesperson said. "Any test of electronic shelf tags is to lower prices more for customers where it matters most. To suggest otherwise is not true." A Walmart spokesperson said updates to the electronic tags will be used to reflect lower prices for items on sale or final clearance. Prices will not change throughout the day, she said...

Grocery industry analyst Phil Lempert said the digital tags will help save time and money amid a labor shortage, but they could lead grocery chains down a slippery slope. "If you can make it electronic you can take a lot of costs out of the system, and that's great," Lempert said. "But once that's installed, and regardless of what any retailer is going to say, it's now easy to change prices."

Santiago Gallino, a professor specializing in retail management at the University of Pennsylvania, said he hasn't seen signs that retailers plan to use electronic shelf labels for surge pricing. "In my conversation with retailers, it's clear that those who are pushing towards this technology are mainly trying to drive efficiency up in the stores and try to reduce costs," Gallino said. "Grocery retailers operate on very thin margins, so every time they find technology that can help them save in labor, they will do that."

What grocery stores save in labor they may lose in customer trust and loyalty, however, said Dominick Miserandino [CEO of the retail disussion forum RetailWire.] "Consumers are exceptionally skeptical," he said. "When most of the consumer reaction to any product seems to be overwhelmingly negative, it's probably a product that one might want to reevaluate quickly."

The article notes one U.S. presidential candidate has already pledged they'd "work to pass the first-ever federal ban on price gouging on food."
Social Networks

41 Science Professionals Decry Harms and Mistrust Caused By COVID Lab Leak Claim (yahoo.com) 303

In 1999 Los Angeles Times reporter Michael Hiltzik co-authored a Pulitzer Prize-winning story. Now a business columnist for the Times, this week he covers new pushback on the COVID lab leak claim: Here's an indisputable fact about the theory that COVID originated in a laboratory: Most Americans believe it to be true. That's important for several reasons. One is that evidence to support the theory is nonexistent.

Another is that the claim itself has fomented a surge of attacks on science and scientists that threatens to drive promising researchers out of the crucial field of pandemic epidemiology. That concern was aired in a commentary by 41 biologists, immunologists, virologists and physicians published Aug. 1 in the Journal of Virology. The journal probably isn't in the libraries of ordinary readers, but the article's prose is commendably clear and its conclusions eye-opening. "The lab leak narrative fuels mistrust in science and public health infrastructures," the authors observe. "Scientists and public health professionals stand between us and pandemic pathogens; these individuals are essential for anticipating, discovering, and mitigating future pandemic threats. Yet, scientists and public health professionals have been harmed and their institutions have been damaged by the skewed public and political opinions stirred by continued promotion of the lab leak hypothesis in the absence of evidence...."

[O]ne can't advance the lab leak theory without positing a vast conspiracy encompassing scientists in China and the U.S., and Chinese and U.S. government officials. How else could all the evidence of a laboratory event that resulted in more than 7 million deaths worldwide be kept entirely suppressed for nearly five years... "Validating the lab leak hypothesis requires intelligence evidence that the WIV possessed or carried out work on a SARS-CoV-2 precursor virus prior to the pandemic," the Virology paper asserts. "Neither the scientific community nor multiple western intelligence agencies have found such evidence." Despite that, "the lab leak hypothesis receives persistent attention in the media, often without acknowledgment of the more solid evidence supporting zoonotic emergence," the paper says...

I've written before about the smears, physical harassment and baseless accusations of fraud and other wrongdoing that lab leak propagandists have visited upon scientists whose work has challenged their claims; similar attacks have targeted experts who have worked to debunk other anti-science narratives, including those about global warming and vaccines... What's notable about the Virology paper is that it represents a comprehensive and long-overdue pushback by the scientific community against such behavior. More to the point, it focuses on the consequences for public health and the scientific mission from the rise of anti-science propaganda... "Scientists have withdrawn from social media platforms, rejected opportunities to speak in public, and taken increased safety measures to protect themselves and their families," the authors report. "Some have even diverted their work to less controversial and less timely topics. We now see a long-term risk of having fewer experts engaged in work that may help thwart future pandemics...."

Thanks in part to social media, anti-science has become more virulent and widespread, the Virology authors write.

AT&T

As 17,000 AT&T Workers Strike, Some Customers Experience 'Prolonged' Outages (newsobserver.com) 40

17,000 AT&T workers from the CWA union went on strike Friday. NPR notes the strike affects workers in nine states: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. A North Carolina newspaper says the union will remain on strike until they believe AT&T "begins to bargain over a new contract in good faith" after their previous contract expired back on August 3.

And meanwhile, their article notes that the strike comes as some AT&T customers in North Carolina's Raleigh-Durham-Chapel Hill area "report prolonged internet outages." Saturday afternoon, AT&T also reported internet outages within a circle of northern Charlotte neighborhoods. "As far as the impact, the trained, experienced CWA members who are on strike do critical work installing, maintaining and supporting AT&T's residential and business wireline telecommunications network," CWA communications director Beth Allen said. "Customers should be aware that these workers will not be available to respond to service calls during the strike."

Since at least Wednesday, AT&T internet customers in Durham have reported being without residential service. According to the company's website, outages have been detected across a wide section of the city, including downtown and around Duke University.

AT&T has alerted some affected residents in southwest Durham their internet service "should be online" by Tuesday morning.

An AT&T spokesperson told the newspaper that "We have various business continuity measures in place to avoid disruptions to operations and will continue to provide our customers with the great service they expect."

A union executive said in a statement that AT&T's contract negotiators "did not seem to have the actual bargaining authority required by the legal obligation to bargain in good faith. Our members want to be on the job, providing the quality service that our customers deserve. It's time for AT&T to start negotiating in good faith so that we can move forward towards a fair contract."
Twitter

To Fight Censorship Order, X.com Announces It's Ending Business Operations in Brazil (engadget.com) 163

X.com "says it's ending business operations in Brazil effective immediately," reports Engadget, "but the service will remain available to users in the country." The company says Alexandre de Moraes, the president of the Superior Electoral Court and a justice of the Supreme Federal Court, threatened one of X's legal representatives with arrest if it did not "comply with his censorship orders." According to Reuters, de Moreas demanded that X remove certain content from its platform.

Rather than comply, X has opted to end its local operations "to protect the safety of our staff."

According to X, de Moraes made the threat in a "secret order," which it shared publicly. X owner Elon Musk claimed that the demand "would require us to break (in secret) Brazilian, Argentinian, American and international law."

United States

Can the US Regulate Algorithm-Based Price Fixing on Rental Housing? (investopedia.com) 119

"Some corporate landlords collude with each other to set artificially high rental prices, often using algorithms and price-fixing software to do it."

That's a U.S. presidential candidate, speaking yesterday in North Carolina to warn that the practice "is anticompetitive, and it drives up costs. I will fight for a law that cracks down on these practices."

Ironically, it's a problem caused by technology that's impacting some of America's major tech-industry cities. Investopedia reports: Harris proposed a slate of policies aimed at curbing the high cost of housing, which many economists have traced to a long-standing shortage. The affordability situation for both renters and first-time buyers took a turn for the worse starting in 2020 when home prices and rents rose sharply. Harris's plan called for the construction of 3 million new houses to close the gap between how many homes exist in the country, and how many are needed, with the aim of evening out supply and demand and putting downward pressure on prices. This would be accomplished by offering tax incentives to builders for constructing starter homes, by funding local construction, and by cutting bureaucratic red tape that slows down construction projects. Harris would also help buyers out directly, through the first-time buyer credit.

For renters, Harris said she would crack down on companies that own many apartments, who she said have "colluded" to raise rents using pricing algorithms. She also called for a law blocking large investors from buying houses to rent out, a practice she said was driving up prices by competing with individual private buyers. Harris's focus on corporate crackdowns extended to the food business, where she called for a "federal ban on price gouging on food and groceries," without going into specifics about what exact behavior the ban would target.

Investopedia reminds readers that the executive branch is just one of three branches of the U.S. government: Should Harris win the 2024 election and become president, her ideas are still not guaranteed to be implemented, since many would require the support of Congress. Lawmakers are currently divided with Republicans controlling the House of Representatives and Democrats in control of the Senate.
The Almighty Buck

US Fines T-Mobile $60 Million, Its Largest Penalty Ever, Over Unauthorized Data Access (reuters.com) 12

The U.S. Committee on Foreign Investment (CFIUS) fined T-Mobile $60 million, its largest penalty ever, for failing to prevent and report unauthorized access to sensitive data tied to violations of a mitigation agreement from its 2020 merger with Sprint. "The size of the fine, and CFIUS's unprecedented decision to make it public, show the committee is taking a more muscular approach to enforcement as it seeks to deter future violations," reports Reuters. From the report: T-Mobile said in a statement that it experienced technical issues during its post-merger integration with Sprint that affected "information shared from a small number of law enforcement information requests." It stressed that the data never left the law enforcement community, was reported "in a timely manner" and was "quickly addressed." The failure of T-Mobile to report the incidents promptly delayed CFIUS' efforts to investigate and mitigate any potential harm to U.S. national security, they added, without providing further details. "The $60 million penalty announcement highlights the committee's commitment to ramping up CFIUS enforcement by holding companies accountable when they fail to comply with their obligations," one of the U.S. officials said, adding that transparency around enforcement actions incentivizes other companies to comply with their obligations.
Businesses

Ex-Google CEO Says Successful AI Startups Can Steal IP and Hire Lawyers To 'Clean Up the Mess' 42

Eric Schmidt, at a recent talk where he also talked -- and then walked back the comment -- on Google's work-culture: If TikTok is banned, here's what I propose each and every one of you do: Say to your LLM the following: "Make me a copy of TikTok, steal all the users, steal all the music, put my preferences in it, produce this program in the next 30 seconds, release it, and in one hour, if it's not viral, do something different along the same lines."

That's the command. Boom, boom, boom, boom.

So, in the example that I gave of the TikTok competitor -- and by the way, I was not arguing that you should illegally steal everybody's music -- what you would do if you're a Silicon Valley entrepreneur, which hopefully all of you will be, is if it took off, then you'd hire a whole bunch of lawyers to go clean the mess up, right? But if nobody uses your product, it doesn't matter that you stole all the content.

And do not quote me.
Businesses

Eric Schmidt Walks Back Claim Google Is Behind on AI Because of Remote Work (msn.com) 82

Eric Schmidt, ex-CEO and executive chairman at Google, walked back remarks in which he said his former company was losing the AI race because of its remote-work policies. From a report: "I misspoke about Google and their work hours," Schmidt said Wednesday in an email to The Wall Street Journal. "I regret my error." Schmidt, who left Google parent Alphabet's board more than five years ago, spoke earlier at a wide-ranging discussion at Stanford University. He criticized Google's remote-work policies in response to a question about Google competing with OpenAI. "Google decided that work-life balance and going home early and working from home was more important than winning," Schmidt said at Stanford. "The reason startups work is because the people work like hell."

Video of Schmidt's talk was posted on YouTube this week by Stanford Online, a division of the university that offers online courses. The video, which had more than 40,000 views as of Wednesday afternoon, has since been set to private. Schmidt said he asked for the video to be taken down.

Businesses

Cisco Slashes Thousands of Workers As It Announces Yearly Profit of $10.3 Billion (sfgate.com) 51

An anonymous reader quotes a report from SFGATE: Cisco Systems is laying off 7% of its workforce, the company announced in a filing with the Securities and Exchange Commission on Wednesday. It's the San Jose tech giant's second time slashing thousands of jobs this year. The networking and telecommunications company is vast, reporting to have 84,900 employees in July 2023 before it chopped at least 4,000 in February. That means the new 7% cut will likely affect at least 5,500 workers. Cisco spokesperson Robyn Blum said in an email to SFGATE that the layoff is meant to allow the company to invest in "key growth opportunities and drive more efficiency in our business." [...]

More hints about the layoff's potential reasoning showed up in a Wednesday blog post from CEO Chuck Robbins. The executive wrote that Cisco plans to consolidate its networking, security and collaboration teams into one organization and said the company is still integrating Splunk; Cisco closed its $28 billion acquisition of San Francisco-based data security and management company in March. Cisco also announced its earnings for its last fiscal year on Wednesday. Total revenue was slightly down year over year, to $53.8 billion, but the company still reported a $10.3 billion profit during the same period.

Government

FTC Finalizes Rule Banning Fake Reviews, Including Those Made With AI (techcrunch.com) 35

TechCrunch's Lauren Forristal reports: The U.S. Federal Trade Commission (FTC) announced on Wednesday a final rule that will tackle several types of fake reviews and prohibit marketers from using deceptive practices, such as AI-generated reviews, censoring honest negative reviews and compensating third parties for positive reviews. The decision was the result of a 5-to-0 vote. The new rule will start being enforced 60 days after it's published in the official government publication called Federal Register. [...]

According to the final rule, the maximum civil penalty for fake reviews is $51,744 per violation. However, the courts could impose lower penalties depending on the specific case. "Ultimately, courts will also decide how to calculate the number of violations in a given case," the Commission wrote. [...] The FTC initially proposed the rule on June 30, 2023, following an advanced notice of proposed rulemaking issued in November 2022. You can read the finalized rule here (PDF), but we also included a summary of it below:

- No fake or disingenuous reviews. This includes AI-generated reviews and reviews from anyone who doesn't have experience with the actual product.
- Businesses can't sell or buy reviews, whether negative or positive.
- Company insiders writing reviews need to clearly disclose their connection to the business. Officers or managers are prohibited from giving testimonials and can't ask employees to solicit reviews from relatives.
- Company-controlled review websites that claim to be independent aren't allowed.
- No using legal threats, physical threats or intimidation to forcefully delete or prevent negative reviews. Businesses also can't misrepresent that the review portion of their website comprises all or most of the reviews when it's suppressing the negative ones.
- No selling or buying fake engagement like social media followers, likes or views obtained through bots or hacked accounts.

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