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Facebook parent company Meta will lay off 11,000 employees | CNN Business

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Facebook parent company Meta will lay off 11,000 employees | CNN Business


New York
CNN Enterprise
 — 

Fb guardian firm Meta on Wednesday stated it’s shedding 11,000 workers, marking essentially the most vital job cuts within the tech big’s historical past.

The job cuts come as Meta confronts a variety of challenges to its core enterprise and makes an unsure and expensive guess on pivoting to the metaverse. It additionally comes amid a spate of layoffs at different tech corporations in current months because the high-flying sector reacts to excessive inflation, rising rates of interest and fears of a looming recession.

“As we speak I’m sharing among the most troublesome adjustments we’ve made in Meta’s historical past,” CEO Mark Zuckerberg wrote in a weblog publish to workers. “I’ve determined to cut back the scale of our group by about 13% and let greater than 11,000 of our gifted workers go.”

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The job cuts will influence many corners of the corporate, however Meta’s recruiting group might be hit significantly laborious as “we’re planning to rent fewer folks subsequent 12 months,” Zuckerberg stated within the publish. He added {that a} hiring freeze could be prolonged till the primary quarter, with few exceptions.

In September, Meta had a headcount of greater than 87,000, per a September SEC submitting.

Meta’s core ad gross sales enterprise has been hit by privateness adjustments applied by Apple, advertisers tightening budgets and heightened competitors from newer rivals like TikTok. In the meantime, Meta has been spending billions to construct a future model of the web, dubbed the metaverse, that probably stays years away from widespread acceptance.

Final month, the corporate posted its second quarterly income decline and stated that its revenue was reduce in half from the prior 12 months. As soon as valued at greater than $1 trillion final 12 months, Meta’s market worth has since plunged to round $250 billion.

“I wish to take accountability for these selections and for the way we bought right here,” Zuckerberg wrote in his publish Wednesday. “I do know that is powerful for everybody, and I’m particularly sorry to these impacted.”

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Shares of Meta rose 5% in buying and selling Wednesday following the announcement.

Meta will not be alone in feeling the ache of a market downturn. The tech sector has been dealing with a dizzying actuality verify as inflation, rising rates of interest and extra macroeconomic headwinds have led to a surprising shift in spending for an business that solely grew extra dominant as shoppers shifted extra of their lives on-line through the pandemic.

“Initially of Covid, the world quickly moved on-line and the surge of e-commerce led to outsized income development,” Zuckerberg wrote Wednesday. “Many individuals predicted this may be a everlasting acceleration that might proceed even after the pandemic ended. I did too, so I made the choice to considerably improve our investments. Sadly, this didn’t play out the way in which I anticipated.”

“I bought this fallacious, and I take accountability for that,” he added.

Meta’s headcount in September was almost twice the 48,268 staffers it had at the beginning of the pandemic in March of 2020.

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A handful of tech firms have introduced hiring freezes or job cuts in current months, typically after having seen fast development through the pandemic. Final week, rideshare firm Lyft stated it was axing 13% of workers, and payment-processing agency Stripe stated it was slicing 14% of its workers. The identical day, e-commerce big Amazon stated it was implementing a pause on company hiring.

Additionally final week, Fb-rival Twitter introduced mass layoffs impacting roles throughout the corporate as its new proprietor, Elon Musk, took the helm.

Along with the layoffs, Zuckerberg stated the corporate expects to “roll out extra cost-cutting adjustments” within the coming months. Meta, which like different tech giants is understood for its huge, perk-filled workplaces, is rethinking its actual property wants, he stated, and “transitioning to desk sharing for individuals who already spend most of their time outdoors the workplace.”

“General,” he stated, “it will add as much as a significant cultural shift in how we function.”

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Live news: Singapore upgrades economic forecasts after growth outpaces expectations

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Live news: Singapore upgrades economic forecasts after growth outpaces expectations

Australian logistics company WiseTech has cut its revenue and profit forecasts after a series of allegations about its founder and chief executive Richard White disrupted its development and product release plans. 

WiseTech stock fell 14 per cent on Friday after the company cut its revenue forecast for the current financial year to between A$1.2bn ($780mn) and A$1.3bn from A$1.3bn-A$1.35bn.

Earnings before interest, taxation, depreciation and amortisation is now forecast to be between A$600mn and A$660mn, down from as high as A$700mn previously. 

White, the 69-year old co-founder, has faced accusations of bullying and the non-disclosure of relationships with employees. The company released an independent report into the accusations on Friday that found that there had been “no impropriety”.

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Smollett's attorneys praise overturn of actor's conviction

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Smollett's attorneys praise overturn of actor's conviction

It was a decision that Jussie Smollett’s lead attorney said was no surprise, but it still took nearly six years to arrive at Thursday’s conclusion.

The Illinois Supreme court ruled Thursday that the case against the “Empire” actor never should have been brought in the first place, with the main argument centering around Smollett striking a deal with the Cook County State’s Attorney’s Office to drop charges in 2019.

“This was a vindictive persecution,” said Nenye Uche, Smollett’s lead attorney. “This was not a prosecution.”

Smollett’s attorneys had argued that a deal existed between their client and Cook County States Attorney Kim Foxx’s office when initial charges were dropped in the case in March 2019, three weeks after the actor had officially been charged and accused with staging a racist, homophobic attack in Chicago’s Streeterville neighborhood earlier that winter.

According to defense attorneys, the agreement held that there would be no prosecution if Smollett did community service and paid a $10,000 fine. However, they said the deal was upended by public reaction to the plea bargain, which Foxx said is common in misdemeanor cases like Smollett’s.

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“You almost never see these cases end up in a courtroom,” she said.

A special prosecutor was later hired in the case and ultimately brought new charges against Smollett, which resulted in a conviction and a prison sentence of 150 days.

Smollett’s attorneys said everyone from the office of the Special Prosecutor on down should have known better than to pursue the new charges, arguing that a contract existed by way of that plea agreement, and that trying the case exposed their client to double jeopardy.

“None of us wants that to happen to us, to have a deal and they take that agreement back,” said attorney Shay Allen.

In their 32-page ruling, the Illinois high court agreed with that assessment. In the 5-0 majority opinion penned by Justice Elizabeth Rochford, the justices acknowledged that many in the public thought the initial deal clearing Smollett was unjust.

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“What would be more unjust than the resolution of any one criminal case would be a holding from this court that the State was not bound to honor agreements upon which people have detrimentally relied,” she said.

But while appointed special prosecutor Dan Webb said he disagreed with the Supreme Court’s finding, faulting its factual and legal reasoning, Uche called the ruling a victory, especially in the age of social media.

“The big challenge is holding the line for the rule of law,” Uche said. “That’s exactly what the court did today.”

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ICC issues arrest warrant for Israeli PM Benjamin Netanyahu

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ICC issues arrest warrant for Israeli PM Benjamin Netanyahu

The International Criminal Court has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former defence minister Yoav Gallant “for crimes against humanity and war crimes”.

The move is a dramatic escalation of legal proceedings over Israel’s offensive in Gaza, and marks the first time that the court, which was set up in 2002, has issued a warrant for a western-backed leader.

It means that the ICC’s 124 member states — which include most European and Latin American countries and many in Africa and Asia — would be obliged to arrest Netanyahu and Gallant if they entered their territory. But the court has no means of enforcing the warrants if they do not.

The warrants, however, will reinforce the sense that Israel has become increasingly isolated internationally over the conduct of its war against Hamas in the besieged Gaza strip.

Announcing the decision on Thursday, the court said there were “reasonable grounds” to believe that Netanyahu and Gallant bear criminal responsibility for “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts”.

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It said there were reasonable grounds to believe the pair bear criminal responsibility “for the war crime of intentionally directing an attack against the civilian population”, and had “intentionally and knowingly deprived” Gaza’s civilians of food, water, medical supplies, fuel and electricity.

The court said it had unanimously decided to reject Israel’s appeal against the ICC’s jurisdiction. Neither Israel nor its largest ally the US are members of the court.

The Israeli prime minister’s office branded the warrants “antisemitic” and said Israel “rejects with disgust the absurd and false actions and charges against it”, calling the ICC “a biased and discriminatory political body”.

“No anti-Israel resolution will prevent the state of Israel from protecting its citizens,” it said. “Prime Minister Benjamin Netanyahu will not give in to pressure, will not flinch and will not retreat until all the war goals set by Israel . . . are achieved.”

Palestinian officials welcomed the ICC’s announcement. Husam Zomlot, Palestinian ambassador to the UK, said the warrants were “not only a step towards accountability and justice in Palestine but also a step to restore the credibility of the rules-based international order”. Hamas called on the court to expand the warrants to other Israeli officials.

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Yoav Gallant at an observation post overseeing southern Lebanon last month © Ariel Hermoni/GPO/dpa
Mohammed Deif
The ICC has also issued an arrest warrant for Mohammed Deif, who Israel in August said it had killed © Israel Defense Forces

The ICC also issued an arrest warrant for Hamas leader Mohammed Deif for crimes against humanity and war crimes over the militant group’s October 7 2023 attack on Israel that triggered the war in Gaza. Israel said in August it had killed Deif in an air strike in Gaza a month earlier.

In the US, figures from both the Biden White House and incoming Republican administration condemned the warrants. The White House said it “fundamentally rejects” the ICC’s decision.

“We remain deeply concerned by the prosecutor’s rush to seek arrest warrants and the troubling process errors that led to this decision,” said the US National Security Council.

Mike Waltz, who will serve as national security adviser when Donald Trump’s administration takes office next year, said the ICC had “no credibility”. “You can expect a strong response to the antisemitic bias of the ICC and UN come January,” he wrote on X.

Senator Lindsey Graham, a close Trump ally, called for fresh sanctions against the court. Trump’s previous administration imposed sanctions on top ICC officials, including then-prosecutor Fatou Bensouda, over its probe into allegations of war crimes in Afghanistan. The Biden administration later lifted them.

“The court is a dangerous joke. It is now time for the US Senate to act and sanction this irresponsible body,” Graham said.

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Republicans will control all three branches of government next year, raising the likelihood that the US will bring in new sanctions against the ICC.

However, the EU’s top diplomat, Josep Borrell, said the warrants were not political, and that the court’s decision should be respected and implemented.

The Dutch foreign minister, Caspar Veldkamp, said the Netherlands “will act on the arrest warrants”, but other European countries struck a more equivocal line.

A spokesperson for UK Prime Minister Keir Starmer said “we respect the independence of the International Criminal Court” and added: “There is no moral equivalence between Israel, a democracy, and Hamas and Lebanese Hizbollah, which are terrorist organisations.”

ICC prosecutor Karim Khan originally sought the warrants in May for Netanyahu, Gallant, Deif and two other Hamas leaders, Yahya Sinwar and Ismail Haniyeh, both of whom Israel has since killed.

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The ICC’s move comes as Israel faces intense criticism over the toll of its offensive in Gaza.

The hostilities began when Hamas militants stormed into Israel in October 2023, rampaging through communities, killing 1,200 people, according to Israeli officials, and taking another 250 hostage.

In response, Israel launched a ferocious assault on Gaza, with Gallant announcing a “complete siege” of the strip. Israel’s offensive has killed almost 44,000 people, according to Palestinian officials, displaced 1.9mn of the enclave’s 2.3mn inhabitants and reduced most of it to rubble.

The UN and aid agencies have criticised Israel for restricting the delivery of aid, while warning of the threat of famine and disease.

The fighting has also triggered legal proceedings at the International Court of Justice, which deals with cases against countries.

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That court, the highest in the UN system, is hearing a case brought by South Africa accusing Israel of genocide against the Palestinians in Gaza, which Israel has vehemently denied.

Additional reporting by Anna Gross

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