Science & Technology
Meta to cut 10,000 jobs in second round of layoffs
Facebook-parent Meta Platforms (META.O) said on Tuesday it would cut 10,000 jobs this year, making it the first Big Tech company to announce a second round of mass layoffs as the industry braces for a deep economic downturn, Reuters reported.
Meta shares jumped 6% on the news. The widely-anticipated job cuts are part of a restructuring that will see the company scrap hiring plans for 5,000 openings, kill off lower-priority projects and “flatten” layers of middle management.
They followed the company’s first mass layoff in the fall, which eliminated more than 11,000 jobs, or 13% of its workforce at the time, after a hiring spree that doubled the employee count it had as of 2020.
Worries of an economic downturn due to rising interest rates have sparked a series of mass job cuts across corporate America in recent months. Tech companies have led the way, shedding more than 290,000 workers since the start of 2022, according to tracking site Layoffs.fyi.
Meta’s purge of employees has been one of the sector’s most pronounced. On top of inflation woes, the company is also facing down unique threats to its core digital ads business while spending handsomely on Chief Executive Mark Zuckerberg’s plans to build a futuristic metaverse.
In a message to staff on Tuesday, Zuckerberg said most of the new cuts would be announced in the next two months, though in some cases they would continue through the end of the year, read the report.
“For most of our history, we saw rapid revenue growth year after year and had the resources to invest in many new products. But last year was a humbling wake-up call,” Zuckerberg wrote.
“I think we should prepare ourselves for the possibility that this new economic reality will continue for many years.”
Zuckerberg said he planned to further reduce the size of the recruiting team, which was already hard-hit in the fall layoffs. Restructurings in the tech group would be announced in late April and cuts to business groups would come in May.
Meta also will remove multiple layers of management and ask many managers to become individual contributors, while eliminating non-engineering roles, automating more functions and at least partially reversing a commitment to “remote-first” work that Zuckerberg made amid COVID-19 pandemic lockdowns, Reuters reported.
The first of the latest wave of cuts appeared to have started even before Zuckerberg’s announcement. On Friday, Meta said it was exploring “strategic alternatives” for Kustomer, a customer service company it acquired last year.
It also disbanded its skunkworks New Product Experimentation team and reassigned leader Ime Archibong to work on product for Messenger, according to an internal memo seen by Reuters. Both changes were initially reported by the Wall Street Journal.
Investors have grown wary of Zuckerberg’s prolific spending as revenue growth from Meta’s main businesses petered out amid high inflation and a digital ads pullback from the pandemic e-commerce boom.
The company also has struggled with Apple-led (AAPL.O) privacy changes and competition for young users from short video app TikTok.
At the same time, Meta has been pouring billions of dollars into its metaverse-oriented Reality Labs unit, which lost $13.7 billion in 2022, and investing in infrastructure to support its artificial intelligence usage.
Wall Street has been rewarding Meta steadily since its November restructuring, after its share price fell more than 70% earlier in 2022. The stock received another boost in February when Zuckerberg dubbed 2023 the “Year of Efficiency,” with new cost controls and a $40-billion share buyback.
The latest downsizing indicates “how desperate the company is to get costs under control as its revenues have fallen amid declining marketing budgets,” said Hargreaves Lansdown analyst Susannah Streeter, Reuters reported.
“Virtual reality is an expensive business to be in, so while (Meta) maps out a path through an uncertain landscape, it needs to find efficiencies elsewhere,” she added.
In his memo, Zuckerberg made scant mention of virtual reality and instead emphasized the company’s focus on AI, saying Meta’s single largest investment was in “advancing AI and building it into every one of our products.”
Meta has teased AI-powered “creative aids” that can generate images, videos and text but has yet to offer any such products on its apps, even as peers have launched dueling generative AI chatbots and productivity tools in recent months.
With the latest cuts, Meta expects expenses in 2023 to come in between $86 billion and $92 billion, lower than the $89 billion to $95 billion forecast previously, read the report.
Science & Technology
UAE sets minimum social media age at 15, mandates age checks
The government said the measures were designed to address concerns over children’s exposure to inappropriate content, unsafe online interactions, excessive social media use and the collection of personal data.
The United Arab Emirates has set a minimum age of 15 for social media use, becoming the first Arab country to introduce such a restriction as governments worldwide seek to address growing concerns over the impact of online platforms on children.
Under a resolution approved on Thursday, children under 15 will be prohibited from creating, using or operating personal social media accounts. The ban means they will not be able to post content, comment, share or join public groups, the government’s media office said, Reuters reported.
Teenagers aged 15 and 16 will be allowed to use social media platforms subject to enhanced safeguards, including age-appropriate content controls, restrictions on interaction with unknown users, screen-time management tools and parental supervision features.
The rules apply to all social media platforms operating in the UAE and require companies to implement robust age-verification measures, including digital identity checks and artificial intelligence-supported technologies. Self-declaration of age will not be accepted as a valid form of verification.
Platforms must also disable accounts created by children under 15, prevent users from circumventing age-verification systems and refrain from using children’s personal data for targeted advertising or behavioural profiling.
The government said the measures were designed to address concerns over children’s exposure to inappropriate content, unsafe online interactions, excessive social media use and the collection of personal data.
Social media companies will have up to 12 months to comply with the new regulations.
The UAE said the framework aligns with international efforts to strengthen online child protection while balancing digital access with safety.
Several countries, including Australia and others in Europe, have moved to tighten restrictions on children’s use of social media amid mounting concerns about its effects on mental health and online safety.
Regional
Iran banks hit by major cyber attack
Officials said a technical investigation confirmed that the disruptions were the result of a cyberattack.
Several major Iranian banks experienced service disruptions on Saturday following a cyberattack, according to the Coordinating Committee of Iran’s state-owned banks.
The outage affected four major financial institutions, including Bank Melli Iran, Bank Saderat Iran, and Bank Tejarat, causing interruptions to mobile and online banking services, automated teller machines (ATMs), point-of-sale (POS) terminals, and some card transactions.
Officials said a technical investigation confirmed that the disruptions were the result of a cyberattack.
The affected banks stated that their technical teams immediately implemented precautionary measures after detecting the incident in an effort to safeguard customer information and protect banking infrastructure.
Qatasi, secretary of the Coordinating Committee of Iran’s state-owned banks, said necessary recovery and repair measures had been carried out.
Authorities said there is currently no evidence that customer data was accessed without authorization, and no data breach has been reported.
Science & Technology
GLP-1 drugs may have a beneficial effect across many types of cancer
The drugs, originally designed to treat diabetes and found to promote weight loss, have also shown benefits for heart risks, sleep apnea and alcohol and substance abuse.
A growing body of evidence suggests that popular GLP-1 drugs, widely used for weight loss and diabetes, can provide protection against many types of cancer, Reuters reported.
More than two dozen studies presented over the past few days at the American Society of Clinical Oncology meeting in Chicago found that patients taking the drugs showed lower risks of developing cancer and disease progression, better survival, and improved responses to some treatments, compared with people who were not taking the GLP-1s.
The studies included analyses of clinical records and real-world databases tracking patients taking Novo Nordisk’s (NOVOb.CO), Wegovy or Ozempic, Eli Lilly’s (LLY.N), Zepbound or Mounjaro, or older GLP-1 treatments.
The studies were not designed to show how or why GLP-1 use might affect cancer treatment. But researchers believe by reducing inflammation, regulating insulin signaling and possibly engaging directly with tumor biology, they may contribute to a protective effect in cancer patients.
“Chronic inflammation is a fundamental biological pathway involved in the development and progression of many cancers,” said Dr. Elizabeth Susan McDonald of the University of Pennsylvania.
McDonald on Tuesday reported on a study of 110,000 women, showing those who took GLP-1 medications were up to 35% less likely to develop breast cancer than those who did not.
While obesity itself is a known risk factor for certain cancers, the anti-inflammatory effects of GLP-1s will likely prove to have a role in cancer prevention, McDonald said.
GLP-1 drugs include semaglutide, the active ingredient in Wegovy, Ozempic and Rybelsus; tirzepatide, sold as Mounjaro and Zepbound, as well as Lilly’s Trulicity, or dulaglutide, and Novo’s older liraglutide, sold as Saxenda and Victoza.
Some of the strongest signals of benefit came from a study of more than 12,000 patients that showed GLP-1 use was associated with markedly lower odds of cancers advancing to metastatic disease, particularly in lung, breast, colorectal and liver cancers.
People with those cancers who took liraglutide, pramlintide, dulaglutide, tirzepatide, lixisenatide, or semaglutide were 38% to 50% less likely to see the disease spread than people who took drugs from a different class of diabetes medicines known as gliptins.
Reduced cancer incidence, longer survival, and fewer metastases were also seen with GLP-1 use in patients with endometrial, bladder and prostate cancers, as well as in those with small intestine neoplasms and blood cancers, multiple studies found.
A separate analysis of patients treated at U.S. community oncology practices found GLP-1 use was associated with significantly better overall survival across six tumor types – breast, prostate, colorectal, lung, liver and kidney – with a roughly one-third reduction in the risk of death.
Researchers also reported that cancer patients receiving immunotherapies such as Merck’s (MRK.N), Keytruda and Bristol Myers Squibb’s (BMY.N), Opdivo or Yervoy appeared to fare better when they were taking GLP-1 drugs, suggesting a possible interaction with the immune system.
GLP-1 users with type 2 diabetes and stage 3 kidney disease had substantially lower mortality and lower rates of several malignancies, particularly lung, colorectal, and hepatocellular cancers, than non-users, read the report.
While GLP-1 medications carry a warning regarding a possible association with a type of thyroid cancer based on rodent studies, researchers say the recent findings point to a potential beneficial class effect across tumor types, rather than benefits confined to a small subset of cancers.
The drugs, originally designed to treat diabetes and found to promote weight loss, have also shown benefits for heart risks, sleep apnea and alcohol and substance abuse.
“These drugs have never been just glucose-lowering agents,” Dr. Marcin Chwistek of the Fox Chase Cancer Center in Philadelphia said at an ASCO press briefing.
Researchers cautioned that nearly all of the data presented were from observational studies, raising the risk of confounding factors. Patients prescribed GLP-1 drugs may differ in important ways, including overall health, access to care and concurrent treatments, that could influence outcomes.
While the various studies tried to account for those differences, none can prove the drugs improve cancer outcomes. Experts said trials in which GLP-1s are added to standard treatment in some cancer patients but not others are needed to establish clear anti-cancer benefits. Some trials are already being planned.
The apparent cancer benefits were not clearly tied to the drugs’ weight-loss effects, suggesting that alone does not explain the findings, Reuters reported.
A seven-year study with nearly 120,000 participants found GLP-1s were associated with lower rates of new prostate cancer diagnoses in high-risk men, compared to drugs such as Merck’s Propecia and GSK’s (GSK.L), Avodart, which are used to shrink enlarged prostate glands.
GLP-1 users had a “very small” reduction in body weight at one year, said Dr. Colton Jones of the University of Texas San Antonio Mays Cancer Center who presented the study at ASCO.
“We hypothesize that both weight loss and a direct anti-cancer effect and anti-inflammatory effect may be driving the associations observed in our study,” Jones said.
ASCO expert Chwistek said anti-inflammatory and immune-modulating properties have long suggested broader effects of GLP-1s.
Referring to one of the largest studies, Chwistek said: “What’s new here is the consistency across tumor types, and data this large and this consistent warrant a prospective randomized trial.”
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