Biz Doc 411 - Dec 5, 2022
Happy Monday! Me again. This week's Biz Doc 411 is ready for your inspection!
4 Stats
On Friday the markets cheered the jobs report. OK fine… so help me understand these fun stats:
1. Tech layoffs jump even higher.
In November the number of layoffs off in tech was as many as were let go in June, July and August combined. Think about that. The total tech sector layoffs in 2022 is now approx. 88,000 (per Crunchbase). In the background VCs are saying any company that has a proven a business model, meaning actually selling something and making a profit, (what a concept!) are likely to be fine but those that (A) have not proven their business model, (B) still have a significant monthly cast burn despite some nascent success or (C) depend on vanity stats, are very likely going to see cuts. In this context, "very likely" is like asking, "will the sun rise tomorrow?"
2. Hey Alexa, do I still have a job today?
Amazon revealed the following horrors about the Alexa "division": (A) It lost $3B in the past quarter and; (B) Is on pace to lose $10B in 2022 and; (C) Massive layoffs are coming, which is predictable when losses start with a $B. Amazon also disclosed that consumer customers mostly ask Alexa basic questions such as: What’s the temperature today? What’s the score of this game or that game? How many reindeer did Santa have? and Play holiday jazz music. Apparently customers asking those questions don’t generate Amazon revenue (or enough data that can be monetized), which was the point of Alexa in the first place.
3. It must suck to work in news media, especially this week. As they say, “This just In:”
- CNN announced hundreds more layoffs coming in December (and another restructuring).
- Gannett to cut another 6% of workers in round 2 of layoffs just 4 months after round 1.
- Politico announced tech site “Protocol” closing by year end.
- The Recount video news startup launched in 2018 said it’s suspending operations like right now.
- WaPo announced Sunday Magazine will shut down after final issue on… wait for it… Dec 25th
- Parade print edition discontinued.
- NPR said it’s looking to cut $10M and it already has a hiring freeze.
- Axios said there will be layoffs and we’ll get back to you with a number.
- Morning Brew said 14% of staff will be laid off.
4. Unintended Consequences Strikes Again – is the green lobby hurting unions?
Ford says it will take 40% LESS workers to build EVs versus gas-powered vehicles. Think. About. That. Do the unions (UAW) know about this? You, know, the ones that supported Biden (and Secretary of Transportation Pete Buttigieg) with millions during the election? Just asking.
1 Hero/Zero
This week we only have a HERO because there would be too many ZEROES to list.
HERO: Matt Taibbi – Investigative reporter with a massive following on Substack presents the Twitter censorship information from his own twitter account @mtaibbi and suddenly the left is calling him “The PR guy for the richest man on Earth.” Uh huh. I guess it stings to see that what people were saying was true: Twitter was cancelling accounts with conservative views, or views the Biden administration simply didn’t like. See also: the “I took care of those” quotes from internal Twitter emails. Welp, now we know - officially. Free speech is just that – free speech. Be careful what you cancel, folks, it’s a precedent for treatment you won’t like when the pendulum swings the other direction, and it always does. Get more of Matt Taibbi here - he deserves our support.
1 Very Interesting Article
Google Cloud has been losing money on sales commissions – huh?? Yepper.
Apparently Google sales reps have been receiving commissions based on customer contract VALUE (target revenue), not customer SPEND (actual revenue). This bloated the commissions paid to sales reps. Why? They were paid when they signed deals, which is BEFORE the customers actually ordered and paid for services. Apparently many customers ordered/used less services than the levels stated in the contract, but Google had already paid sales commissions to their reps based on what was stated in the contract. Oopsie. Fear not, Google’s CFO has apparently returned from PTO and the party is over. Read about this here.
See you next week, I miss you already.