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In this photo illustration, the image of Elon Musk is displayed on a computer screen and the logo of twitter on a mobile phone in Ankara, Turkiye on October 06, 2022.

Muhammed Selim Korkutata | Anadolu Agency | Getty Images

Elon Musk asked Twitter employees to commit to a “hardcore” culture, where they are expected to work “long hours at high intensity,” or resign. They have until 5:00 p.m. Eastern time on Thursday to make their decision.

The company shared a “frequently asked questions” document overnight with employees, telling them “If you do not click ‘yes’ you are confirming your decision to resign. You will receive documents to confirm this and the offer of severance in exchange for a separation agreement.”

The document answer questions raised after Musk sent a companywide email on Wednesday to remaining employees, demanding they agree to working “long hours at high intensity” or receive “three months of severance.” He’s asking staffers agree to support his vision for “Twitter 2.0.”

Musk closed the $44 billion purchase of Twitter at the end of October and swiftly moved to cut about half of the company’s workforce, amounting to roughly 3,700 jobs.

The latest document says that those who do not say “yes” to the Musk ultimatum will, “not be entitled to statutory redundancy or other termination payments, unless otherwise required by local law.”

California’s Department of Industrial Relations declined to comment on whether these terms met applicable local laws. Twitter’s headquarters is located in San Francisco, but the company’s workforce is distributed.

Read below for a full copy of the FAQ.

Elon Musk says Twitter Blue to relaunch on Nov. 29

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House committee asks Microsoft’s Brad Smith to attend hearing on security lapses

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House committee asks Microsoft's Brad Smith to attend hearing on security lapses

Brad Smith, vice chair and president of Microsoft, speaks at Gateway Technical College in Sturtevant, Wisconsin, on May 8, 2024.

Alex Wroblewski | Bloomberg | Getty Images

A House committee wants Microsoft‘s top lawyer, Brad Smith, to attend a hearing this month on exploits of the company’s software that resulted in hackers obtaining U.S. government officials’ emails.

Politicians regularly request that technology companies send their leaders to Washington. The CEOs of Alphabet, Meta and TikTok have all answered questions from members of Congress in recent years. Microsoft, the world’s most valuable public company, sells subscriptions to email software that’s pervasive in business and government, making it an obvious target for hackers.

A proposed hearing before the House Committee on Homeland Security, at 10 a.m. ET on May 22 in Washington, would go over Microsoft’s response to China’s breach of U.S. government officials’ email accounts, which the company disclosed last summer. The attack involved accounts belonging to Commerce Secretary Gina Raimondo, the Rep. Don Bacon, R-Neb., and Nicholas Burns, the U.S. ambassador to China.

But Smith might not necessarily show up at the time the committee asked about in a letter it sent him on Thursday.

“We’re always committed to providing Congress with information that is important to the nation’s security, and we look forward to discussing the specifics of the best time and way to do this,” a Microsoft spokesperson told CNBC in an email on Thursday.

Last month, the Cyber Safety Review Board said in a 34-page report on the attack that “Microsoft’s customers would benefit from its CEO and board of directors directly focusing on the company’s security culture.”

Microsoft CEO Satya Nadella directed employees to put security first in a memo last week. The company announced operational changes that address shortcomings that the independent federal board identified in the report.

Charlie Bell, executive vice president for security, said the Microsoft would “improve the accuracy, effectiveness, transparency, and velocity of public messaging and customer engagement” after the board expressed concern about the company not correcting an error in a corporate blog post for months.

In January, Microsoft reported another cyberattack. This time, Russian intelligence gained access to some of the company’s top executives’ email accounts.

Committee chairman Mark Green, R-Tenn., and Bennie Thompson, D-Miss., said in their letter inviting Smith to the hearing that they were encouraged by the company’s plans to overhaul its security practices. But they said the company’s failure to stop attacks put Americans at risk.

“Given the gravity of the issues discussed above and the need for thorough examination and oversight, it is critical that you appear before the committee,” Green and Thompson wrote.

WATCH: Microsoft needs to prioritize security over feature development: Former CISA Director Chris Krebs

Microsoft needs to prioritize security over feature development: Former CISA Director Chris Krebs

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China’s biggest chipmaker SMIC warns of ‘fierce’ competition as it misses quarterly profit expectations

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China's biggest chipmaker SMIC warns of 'fierce' competition as it misses quarterly profit expectations

BEIJING, CHINA – DECEMBER 04: A logo hangs on the building of the Beijing branch of Semiconductor Manufacturing International Corporation (SMIC) on December 4, 2020 in Beijing, China. (Photo by VCG/VCG via Getty Images)

Vcg | Visual China Group | Getty Images

Semiconductor Manufacturing International Corporation on Friday warned of intense competition in the chip industry after its first-quarter profit missed expectations.

“Competition in the industry has been increasingly fierce and the pricing for commodity products basically follows the market trends,” SMIC said on Friday during the firm’s earnings call.

“The company fulfills its [long-term view] through constructing quality technology platforms that leap here in mainland China by one to two generations,” said SMIC.

SMIC, China’s biggest contract chip manufacturer, is seen as critical to Beijing’s ambitions of cutting foreign reliance in its domestic semiconductor industry as the U.S. continues to curb China’s tech power. SMIC lags behind Taiwan’s TSMC and South Korea’s Samsung Electronics, according to analysts.

The company’s first-quarter net income plunged 68.9% from a year earlier to $71.79 million, compared with LSEG analysts’ average estimate of $80.49 million.

Gross margin slid to 13.7% in the quarter – the lowest the firm has ever recorded in nearly 12 years – according to LSEG data.

Revenue for the first quarter was $1.75 billion, up 19.7% from a year earlier, as customers stocked up on chips, SMIC said. This handily beat LSEG estimate of $1.69 billion.

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“In the first quarter, the IC [integrated circuits] industry was still in the recovery stage and customer inventory gradually improved. Compared to three months ago, we have noticed that our global customers are more willing to build up inventory,” SMIC said on Friday.

Customers are building up inventory to brace for competition and respond to market demand, the firm said, adding that it was unable to fulfil a few rush orders in the first quarter as some production lines were running at near maximum capacity.

SMIC’s chips are found in automobiles, smartphones, computers, IoT technologies and others. More than 80% of its revenue in the first quarter came from customers in China, it said.

Bracing for competition

In a bid to build up competitiveness and increase market share, the firm said it was prioritizing areas such as capacity construction and R&D activities for investments.

“[To] ensure that the company maintain its leading position in fierce market competition and maximize the protection of investor interest … the company plans not to pay dividends for the year 2023,” said SMIC.

“We believe that as long as there’s demand from customers along with our technology and capacity readiness, we can ultimately be bigger, better and stronger despite the fierce competition.”

The company expects second-quarter revenue to rise by 5% to 7% from the first quarter on strong demand, while gross margin could dip further to between 9% and 11%.

“Along with the increase in capacity scale, depreciation is expected to rise quarter by quarter. So the gross margin is expected to decline sequentially,” SMIC said.

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Tesla accused by NLRB of creating policies to chill workers’ unionizing efforts in Buffalo

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Tesla accused by NLRB of creating policies to chill workers' unionizing efforts in Buffalo

Elon Musk, co-founder of Tesla and SpaceX and owner of X Holdings Corp., speaks at the Milken Institute’s Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California. 

Apu Gomes | Getty Images

Tesla is being accused of taking steps to keep employees in Buffalo, New York, from unionizing, according to a complaint from the National Labor Relations Board.

On Tuesday, the NLRB’s regional director for Buffalo, Linda Leslie, filed the complaint. In it, she said Tesla “promulgated and maintained,” an acceptable use policy for workplace technology in 2023 that was meant to “discourage its employees from forming, joining, or assisting the Union or engaging in other concerted activities,” after allegations were raised by members of Workers United.

CNBC obtained a copy of the complaint through a Freedom of Information Act request.

The policy restricted Tesla workers from “recording, unauthorized solicitating [sic] or promoting,” and “creating channels and distribution lists,” among other things, the complaint said.

The NLRB also claims the policy had the effect of “interfering with, restraining, and coercing employees in the exercise of rights guaranteed” under the National Labor Relations Act, which generally protects workers’ rights to discuss organizing, join a union and collectively negotiate for better pay and working conditions.

The Tesla Buffalo plant was supposed to manufacture solar panels, but has been used more recently to assemble electric vehicle charging equipment, and to house a team of AI software data labelers.

Last month, the Buffalo plant was home to a number of job cuts put in place as part of a broader restructuring at the electric vehicle company. According to a WARN notice filed in the state, Tesla is laying off 285 employees in the state of New York, mostly at the Buffalo factory. The company is eliminating thousands of jobs worldwide after declining EV sales in the first quarter.

Tesla and CEO Elon Musk have clashed with union proponents for years and were found to have engaged in union busting. In 2021, the NLRB decided that Tesla violated labor laws when it fired a union activist, and when Musk wrote on Twitter in 2018: “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing?”

An administrative court ordered the CEO to remove the post. Tesla challenged the order but its petition for review was denied. The post in question remains on Musk’s X account, where he has 182.7 million listed followers.

Tesla has also faced workers’ rights challenges in Europe. Last year, Swedish service technicians began a strike that continues today, with the labor group allowing for some authorized work to take place at times. The employees in Sweden, where a majority of the workplace is involved in unions, are seeking a collective bargaining agreement with Tesla.

Tesla didn’t immediately respond to a request for comment.

Read the complaint here:

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