Market Minute: Microsoft Begins Layoffs, TikTok Banned & Adobe's Data Debacle

Here is a rundown of Cheddar News' top market stories of the day. 

TECH LAYOFFS 

Multiple outlets are reporting that Microsoft will begin a series of planned layoffs on Wednesday that could cut around 5 percent of its workforce, or 10,000 employees. CEO Satya Nadella warned the cuts were coming, and said the next couple of years were likely to be challenging, as the tech sector contracts after a decade plus of rapid growth. Amazon is also set to move ahead with plans to cut 6 percent of its 350,000 corporate employees. 

ADOBE'S DATA DEBACLE 

Adobe is facing backlash from customers who are concerned the software company is using personal images and video to train artificial intelligence models such as OpenAI’s Dall-E. Chief Product Officer Scott Belsky denied the accusations in an interview with Bloomberg, saying: "We have never, ever used anything in our storage to train a generative AI model." 

UNITED AIRLINES EARNINGS

United Airlines' fourth quarter earnings beat Wall Street estimates on the heels of a rebound in travel demand. The company reported a 31 percent increase from the same period before the pandemic. The gains were made despite the airline flying 9 percent fewer trips and a litany of other challenges, from winter storms to labor shortages to supply chain disruptions. 

UNIVERSITY BANS TIKTOK

The University of Texas at Austin is blocking access to TikTok on its Wi-Fi and wired networks. The move is a response to Gov. Greg Abbott's requirement that all state agencies delete the app from government-issued devices. The administration said it is also seeking to eliminate risks to information on the university's networks. University of Texas at Dallas and Texas A&M University System have since implemented similar restrictions.

More In Business

Food Prices at Their Highest Level in Decades

If you wince at the grocery store checkout, you’re not alone. Wall Street Journal reporter Jesse Newman breaks down why prices are so high – and not going down anytime soon.

Federal Reserve: Inflation Is, Uh, Still Up

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month. (Getty Images)

One Woman’s Journey ‘From the Battlefield to the Boardroom’

Dr. Sonja Stribling discusses her new book, how she built her career as a nine-figure entrepreneur, and why mentorship is crucial.

The Fed Should Be ‘Patient’ When Lowering Rates

Glen Smith, CIO at GDS Wealth Management, shares how investors can allocate their assets as the market broadens and why he’s eyeing June for the first potential rate cut.

Is 2024 the Most Affordable Year to Buy a New Car?

After years of price increases for cars and trucks in the United States, costs are slowing and in some cases falling, helping cool overall inflation and giving frustrated Americans more hope of finding an affordable vehicle.

Missed Out on Nvidia? Consider These 5 Chip Stocks Instead

Missed out on the Nvidia wave? Oh course you did — you’re reading this article aren’t you, instead of luxuriating on a white-sand beaches of Bali. But here are at least four other promising semiconductor stocks to add to your portfolio.

The Hidden Costs of ‘Buy Now, Pay Later’

MarketWatch reporter Venessa Wong explains what consumers might be missing when they use popular ‘buy now, pay later’ services.

Why Small Business Owners Are Cautious This Year

Robert Rodriguez, Managing Director, Northeast Divisional Director at Chase for Business breaks down the bank’s latest small business report.

Building Lapse, a New Social Media App

Fresh off a successful funding round, co-founder of Lapse Dan Silvertown shares thoughts on regulation, privacy, and why the money for great startups is still out there.

2024 Is Just the ‘Beginning’ of Tech’s A.I. Rally

Sylvia Jablonski, CEO and CIO at Defiance ETFs, discusses why she’s bullish about this year’s market – unless the Fed changes its mind on rate cuts.

Load More