Posts with «business» label

Microsoft reportedly lays off hundreds of employees

Microsoft has laid off off employees across multiple divisions, according to Axios, making it the latest big player in the tech space to cut jobs in the face of an economic downturn. A spokesperson told the publication: "Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead." While the tech giant didn't say which divisions were affected and how many people had been let go, Axios said there were under 1,000 layoffs.

The Verge Senior Editor Tom Warren added that the job cuts included people in the Experiences and Devices, Xbox and legal groups. Some of them were apparently veteran workers in the company. As Axios notes, the job cuts occurred across levels and regions, which means workers outside the US had also ben been laid off.

Microsoft showed signs that it was looking to operate with a leaner workforce this year when it slowed down hiring for its Windows, Office and Teams groups, citing the need to realign staffing priorities. In July, it laid off less than one percent (around 1,800) of its 180,000 workforce and then removed open job listings for its Azure cloud and security groups. Other tech companies have made similar moves over the past few months. Google also slowed its hiring due to what CEO Sundar Pichai called an "uncertain global economic outlook." Meanwhile, Meta reportedly started cutting staff and reorganizing teams to cut costs after Mark Zuckerberg warned employees that the company was facing "serious times."

Apple Store workers in Oklahoma City vote to unionize

The Apple Store workers who'd been planning to unionize since at least early this year have come long way from using encrypted chats to organize in secret. In June, an Apple Store in Maryland became the first location to unionize in the US. Now, another retail location in Oklahoma City has voted in favor of unionization, becoming the second Apple Store in the US to organize officially. According to The Wall Street Journal, the group is calling itself the Penn Square Labor Alliance, because the store is located at Oklahoma City's Penn Square Mall.

Around 100 employees are eligible for union membership in the store. Based on the information released by the National Labor Relations Board, 56 of those workers voted in favor of forming a union, while 32 voted against. The group is now planning to join the Communications Workers of America, which also represents workers from companies like AT&T and Verizon. Charity Lassiter, an employee at the Oklahoma City store and a member of the organizing committee, told The Journal: "Now that we've won the election, it is our hope that management will come to the table so that we may collectively work towards building a company that prioritizes workers over profit and encourages employees to thrive."

Meanwhile, an Apple spokesperson told the publication in a statement: "We believe the open, direct and collaborative relationship we have with our valued team members is the best way to provide an excellent experience for our customers, and for our teams. We're proud to provide our team members with strong compensation and exceptional benefits."

Previous reports indicate that Apple has been finding ways to dissuade workers to unionize. Just a few days ago, Bloomberg reported that the tech giant is offering its employees new perks, such as additional health benefits and funding for educational opportunities. However, the tech giant will reportedly withhold those benefits from unionized members who'll now have to negotiate for them. Back when talks about worker's organizing efforts started heating up, the company reportedly armed its managers with anti-union talking points. Employees formally accused the tech giant of union busting, and the NLRB found merit in the claims that Apple surveilled staff, limited access to pro-union fliers and help captive audience meetings to deliver its anti-union messaging. A hearing is scheduled to take place in December before an NLRB judge unless all parties involved agree on a settlement. 

Elizabeth Warren presses Texas on crypto miners’ energy use

Elizabeth Warren and six other Democratic senators are pressing Texas’ energy regulator on whether the crypto mining industry is putting additional strain on the state’s grid, and its impact on climate change.

In a letter to the Electric Reliability Council of Texas (ERCOT), the senators note that “cryptomining companies are flooding into states like Texas,” and raise questions about the industry’s impact on the state’s grid, which is already in a precarious position during major storms and other periods of high demand. “The Texas grid is particularly vulnerable given that it is the only independent state grid in the country, and does not interconnect to other states – meaning it has no buffer if there is a shortfall in supply,” the letter notes.

The senators also take issue with the payments mining companies receive from ERCOT at times of high demand. “In simple terms, the Bitcoin miners make money from mining that produces major strains on the electric grid: and during peak demand when the profitability of continuing to mine decreases, they then collect subsidies in the form of demand response payments when they shut off their mining operations and do nothing,” the letter says. “These subsidies to cryptominers also feed back into the worsening climate crisis. The energy used to mine Bitcoin and Ethereum in 2021 resulted in almost 80 million tons of carbon dioxide emissions.”

The letter asks for details on the amount of energy consumption used by crypto mining companies over the last five years, as well if residential electricity rate hikes have coincided with crypto miners’ arrival in the state.

Lawsuit accuses Meta executives of taking bribes from OnlyFans

A lawsuit accusing Meta of conspiring with OnlyFans is now known to include some serious allegations against top executives. Thanks to an accidentally unredacted court document, Gizmodo has learned that adult entertainers accused Meta global affairs President Nick Clegg, VP Nicola Mendelsohn and European safety director Cristian Perrella of taking bribes to give OnlyFans an unfair advantage over rivals. To support the allegations, the plaintiffs shared anonymously supplied wire transfers that were supposedly sent to execs through an OnlyFans subsidiary. The authenticity of the transfers hasn't been verified.

The adult stars maintain that OnlyFans sought to hinder competitors by placing content on a terrorist database, leading to a major drop in traffic. A lawsuit from FanCentro, an alternative to OnlyFans, made similar claims.

In a statement, a spokesperson told Engadget the bribery accusations were "baseless." You can read the full response below. The Facebook and Instagram owner already filed a motion to dismiss the suit over a lack of plausibility, and argued that it can't be held liable even if the plaintiffs succeed. Content decisions like these are protected by both First Amendment free speech rights and Section 230 of the Communications Decency Act, Meta said in its motion.

OnlyFans noted in a follow-up filing that it "inadvertently" left the Meta leaders' names unredacted. It asked the court to delete the relevant document. This comes more than a little late, of course. While the lawsuit certainly isn't guaranteed to survive close scrutiny, it's now clear just how serious the allegations really are.

"As we make clear in our motion to dismiss, we deny these allegations as they lack facts, merit, or anything that would make them plausible. The allegations are baseless."

Dutch court rules that being forced to keep a webcam on while working is illegal

A court in the Netherlands has ruled that a US company violated a Dutch worker's human rights by forcing him to keep his webcam on during work hours, TechCrunch has reported. Hired by Florida telemarketing firm Chetu, the employee was terminated for refusing to be monitored "for nine hours per day" by a program that streamed his webcam and shared his screens. 

The company said it fired the worker for "refusal to work" and "insubordination." However, the employee stated that he "didn't feel comfortable" being monitored all day. "This is an invasion of my privacy and makes me feel really uncomfortable. That is the reason why my camera is not on," he's quoted as saying in the court documents. (Chetu failed to show up for the court hearing.) 

"Tracking via camera for eight hours per day is disproportionate and not permitted in the Netherlands," the verdict states, adding that it also violated Article 8 of the European Convention on Human Rights. The court found that Chetu dismissed the employee unfairly and must pay a $50,000 fine, along with the worker's back wages, court costs, and unused vacation days. It was also required to remove a non-compete clause.

As Florida is an at-will state, employees can be fired for any reason as long as it's not illegal. In the Netherlands and other EU countries, however, you must have a valid motive for firing someone (refusal to perform work, culpable conduct, etc.) — otherwise, the employee has grounds to dispute it. 

Binance forced to briefly halt transactions following $100 million blockchain hack

Binance temporarily suspended fund transfers and other transactions on Thursday night after it discovered an exploit on its Smart Chain (BSC) blockchain network. Early reports said hackers stole cryptocurrency equivalent to more than $500 million, but Binance chief executive Changpeng Zhao said that the company estimates the breach's impact to be between $100 million and $110 million. A total of $7M had already been frozen.

The cryptocurrency exchange also assured users on Reddit that their funds are safe. As Zhao explained, an exploit on the BSC Token Hub cross-chain bridge, which enables the transfer of cryptocurrency and digital assets like NFTs from one blockchain to another, "resulted in extra BNB" or Binance Coin. That could mean the bad actors minted new BNBs and then moved an equivalent of around $100 million off the blockchain instead of stealing people's actual funds. According to Bleeping Computer, the hacker quickly spread the stolen cryptocurrency in attempts of converting it to other assets, but it's unclear if they had succeeded. 

Zhao said the issue has been contained. The Smart Chain network has also started running again — with fixes to stop hackers from getting in — so users might be able to resume their transactions soon. Cross-chain bridge hacks have become a top security risk recently, and this incident is but one of many. Blockchain analyst firm Chainalysis reported back in August that an estimated total of $2 billion in cryptocurrency was stolen across 13 cross-chain bridge hacks. Approximately 69 percent of that amount had been stolen this year alone. 

📢BNB Smart Chain (BSC) is running ok from 20+ mins ago.

The validators are confirming their status and the community infrastructure are upgrading as well.

— BNB Chain (@BNBCHAIN) October 7, 2022

Google will pay Arizona $85 million over illegally tracking Android users

Google will pay Arizona $85 million to settle a 2020 lawsuit, which claimed that the search giant was illegally tracking Android users, Bloomberg reports. At the time, Arizona Attorney General Mark Brnovich argued that Google continued to track users for targeted advertising, even after they turned off location data settings. If this sounds familiar, it's because Google is also being sued by attorneys general in Texas, Washington, D.C., and Indiana over similar data tracking complaints. Brnovich's office also notes that the $85 million settlement is the largest amount Google has paid per user in a privacy lawsuit like this. 

But given that Google is currently seeing quarterly revenue over $69 billion, the punishment may seem like a drop in the bucket. It's nothing compared to the $1.7 billion Google was fined by the EU over abusive advertising practices. In a statement, Google spokesman José Castañeda said the suit was related to older product policies that have been changed. “We provide straightforward controls and auto delete options for location data, and are always working to minimize the data we collect,” he said. “We are pleased to have this matter resolved and will continue to focus our attention on providing useful products for our users.”

Brnovich, meanwhile, says he's “proud of this historic settlement that proves no entity, not even big tech companies, is above the law."

Apple faces US labor complaint over union busting

Apple's alleged union busting has prompted federal action. As The New York Timesreports, the National Labor Relations Board has issued a complaint against Apple following accusations it broke multiple laws trying to thwart union organizers at the World Trade Center store in New York City. The Communications Workers of America (CWA) union claims Apple surveilled and questioned staff, limited access to pro-union fliers and made employees listen to anti-union speeches.

The NLRB found enough merit in two of the claims. A judge will hold a hearing on December 13th if there's no settlement.

We've asked Apple for comment. In a statement to The Times, a spokesperson said the iPhone maker disputed CWA's allegations and was anticipating "presenting the facts." In the past, Apple has maintained that unionization would hinder labor improvements and prevent "direct engagement" between the company and store workers. Apple told staff it would increase pay, but also that unionization could lead to fewer promotions and fixed hours.

There's no certainty the NLRB complaint will lead to change in Apple's labor practices. However, it comes as teams at multiple US stores have made unionization bids. While people at an Atlanta location gave up their efforts, Towson, Maryland workers voted to unionize this spring. Oklahoma City employees vote next week. There's mounting pressure on Apple to act, if just to minimize similar complaints.

Activision Blizzard found to have withheld raises from unionizing Raven Software workers

After investigating an unfair labor practice charge against Activision Blizzard, the National Labor Relations Board found that the company withheld raises from quality assurance workers at Call of Duty support studio Raven Software. The agency attributed this withholding to the workers' union activity.

The Communications Workers of America (CWA) filed a complaint on behalf of the workers in June. It accused Activision Blizzard of retaliating against those who were attempting to unionize in a number of ways, including by laying some off and dismantling the studio's QA department by moving workers to separate teams. The CWA also said that Activision Blizzard leadership solicited grievances, which the NLRB concurred with. The agency is still looking into some aspects of the original complaint, as The Washington Post notes.

The CWA filed an amended version of the complaint on Monday. It claimed that Activision Blizzard is continuing to violate labor laws by keeping QA workers at the studio separated without their own department.

In April, Activision Blizzard gave 1,100 QA testers full-time jobs and higher base pay. However, it said QA workers at Raven were not eligible for pay bumps “due to legal obligations under the National Labor Relations Act.” At the time, Raven QA workers were working toward a union election. They voted to unionize in May. Contract negotiations between Activision Blizzard and the Game Workers Alliance (the Raven QA workers' union) are ongoing.

“Despite their best efforts, Activision’s constant attempts to undermine its workers’ and impede our union election have failed," CWA and the Game Workers Alliance told Engadget in a statement. "We’re glad the NLRB recognized that Activision acted illegally when they unequally enforced policies by withholding company-wide benefits and wage increase from Raven workers for organizing. We want the company to bargain a fair contract in good faith and to move past all of the cheap — and illegal — tricks they tried to pull to prevent us from forming our union."

"Due to legal obligations under the [National Labor Relations Act] requiring employers not to grant wage increases while an election was pending, we could not institute new pay initiatives at Raven because they would be brand new kinds of compensation changes, which had not been planned beforehand," Activision Blizzard spokesperson Rich George told The Washington Post. "This rule that employers should not grant these kinds of wage increases has been the law for many years.”

FCC will start kicking voice providers out of its robocall database

Telecoms slow to adopt anti-robocall measures could soon face stiff punishment in the US. The Federal Communications Commission (FCC) now plans to remove seven voice service providers from its Robocall Mitigation Database for failing to comply with required anti-spam efforts, such as implementing STIR/SHAKEN call authentication to prevent spoofing. The companies have 14 days to "show cause" why they shouldn't be removed. If they don't, all their customers will be blocked from making calls. Effectively, their voice businesses are finished.

The companies include Akabis, Cloud4, Global UC, Horizon Technology, Morse Communications, Sharon Telephone and SW Arkansas. In all cases, the companies failed to share their anti-robocall plans even after the FCC warned them about violations. The FCC noted that STIR/SHAKEN is necessary for any provider with an IP-based network, and those without IP still have to show that they're mitigating illegal robocalls.

The FCC required that all carriers use STIR/SHAKEN by the end of June 2021. Major carriers like AT&T and Verizon (Engadget's former owner) were quick to adopt the technology. Small providers received extensions, but only so long as they detailed how they'd limit robocalls.

Removals aren't likely to significantly stem the tide of spam calls. However, the FCC's move (along with a campaign from state attorneys general) could discourage telecoms that either skimp on anti-robocall defenses or knowingly profit from scammers and telemarketers.