Latest news with #AIinvestments
Yahoo
3 days ago
- Business
- Yahoo
Tired Microsoft employees say layoffs impacting 9,000 people could've been avoided by reducing spending on AI instead: "I can't believe how deep the cuts run"
When you buy through links on our articles, Future and its syndication partners may earn a commission. Microsoft's last round of extreme layoffs left about 9,000 workers suddenly without a job and stunned, especially since they say disaster could have been avoided if the Xbox owner just reduced its AI investments instead. Tom Warren at The Verge reports that, according to sources familiar with the matter, Microsoft executives "had the choice" to either crater its workforce once again or minimize its spending on AI tech for the next fiscal year – and it apparently sided with the machines. Both current and former employees seem too exhausted with what feels like the video game industry's insatiable appetite for suffering – this year has been a pantry full of job loss and game death – to act surprised. On LinkedIn, Xbox user research specialist Chantal Van den bussche writes in a recent post, "The recent Microsoft layoffs hit hard, and I am lucky enough to still have a job. My friends and coworkers, not so much." "I am deeply saddened," continues Van den bussche, "I can't believe how deep the cuts run." Microsoft veteran Tom Sears, who worked at the company for 25 years before leaving in 2023, shares a similar sentiment on LinkedIn: "Layoffs often get framed as restructuring, but what's being lost is deeper: institutional memory, process clarity, and thoughtful leadership," he says. "This is not your father's or mother's Microsoft," Sears concludes. While announcing layoffs earlier this month, Microsoft Gaming CEO Phil Spencer informed employees that "our platform, hardware, and game roadmap have never looked stronger." But Sears likely disagrees, sharing in his post that "I am extremely disappointed with MSFT. Without question, they can do much better than what they are doing right now." Oblivion Remastered dev team spared the worst of mass layoffs at Virtuos, studio claims as it "remains fully committed" to projects like Cyberpunk 2077 and Metal Gear Solid Delta. Solve the daily Crossword
Yahoo
3 days ago
- Business
- Yahoo
Meta's AI Innovations Drive $850 Price Target as Analysts See Strong Q2 Ahead
Meta Platforms, Inc. (NASDAQ:) is one of the . On July 16, Canaccord Genuity analyst Maria Ripps raised the price target on the stock to $850.00 (from $825.00) while maintaining a 'Buy' rating. The firm is optimistic about Meta's second Q2 results and believes that the setup is compelling as it moves into FY26. 'We expect Meta to report solid Q2 results, with ad revenue growth remaining in the mid-teens y/y despite some modest q/q deceleration, in part reflecting tariff-driven uncertainty impacting budget deployments in the earlier part of the quarter. Growth likely remained buoyed by continued AI-driven improvements to content creation and ads recommendation models, with Meta having introduced a new generative ads recommendation model in Q1 that is twice as efficient at improving ad performance as legacy models. Looking ahead, we expect the pace of innovation to remain robust given recent AI investments, including acquiring 49% stake in Scale AI, hiring OpenAI and Apple researchers, unveiling Meta Superintelligence labs, and acquiring voice AI startup PlayAI. Copyright: buchachon / 123RF Stock Photo "These investments, coupled with the technical infrastructure build out, should support Meta's reported goal of enabling brands to fully create and target ads using AI by the end of 2026, among other initiatives. For Q2, we forecast ad revenue and total revenue to both increase ~14% y/y (vs. +16% y/y in Q1), with the modest q/q deceleration in part reflecting tariff-related uncertainty, and we expect OI of $16.7B, 37.5% margin, modestly below consensus. Given the recent investments Meta has been making in AI engineers/researchers, we do see some increased upside risk to FY25 OpEx guidance. That said, in addition to continued improvements to core monetization functions, Meta has several new tailwinds that should progressively build, including further automation of key advertiser functions, ads on WhatsApp and Threads, and a potential general release of the WhatsApp Business' chatbot offering. While we acknowledge shares are trading near all-time highs, we continue to think the setup is compelling, particularly as we move into FY26.' While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
Forbes
15-07-2025
- Business
- Forbes
Future-Proofing Leaders & CX: Soft Skills In An AI World
In a previous article, I cited a couple of studies from IBM and Accenture that reported that organizations' efforts to scale and deliver a return from their AI investments were being held back by a lack of a deep understanding of generative AI. The studies went on to say that organisations need not only to develop this capability but also to get several other things right if they are to harness the potential of generative AI. These include leadership alignment, enterprise strategy, data cleanliness and availability, the need for a modern technological infrastructure, the right internal skills and capabilities and the ability to manage large-scale change. The Accenture report went on to add that, in their view, talent development and new ways of working stood out as the imperative that offered the most potential to be the greatest differentiator of all of the imperatives they uncovered. However, the report noted, it was also the one that was the least developed in the organizations they surveyed. Disappointingly, the report stopped short of outlining the skills leaders and their teams will need to develop if they and their organizations are to thrive in this new AI-powered era. Soft skills However, a recent report by Skiilify, a research-based learning experience provider, sheds some light on what those new skills and capabilities might be. Their study was designed to identify the soft skills that leaders need to develop in order to thrive in an industry that is constantly evolving, the value they place on these skills, and the gaps between the perceived value of these soft skills and their actual development. Here are the main headlines of the study: While the survey focused on capturing the perspectives of tech leaders and the challenges they face, when I discussed the results recently with Dr. Paula Caligiuri, Co-Founder of Skiilify and a D'Amore-McKim School of Business Distinguished Professor at Northeastern University, she believed that the findings about skills deficiencies are directly translatable to all leaders. She also noted that two other things really stood out to her from the findings. The first was how each of these competencies was considered extremely important for the future. But, given where leaders are currently at, acquiring these new skills and competencies will require a 'big behavioural shift', Caligiuri suggests. Secondly, Caligiuri highlighted that most respondents felt they had 3-6 years to develop these competencies. This is partly aligned with Accenture's view that 'The rapid pace of technological change has reduced the half-life of skills to less than five years.' However, Caligiuri disagrees and warns that 'super-employees', those with deep technical skills and knowledge, as well as a mature set of developed soft skills, are in high demand right now, and that demand is only going to grow. As a result, Caligiuri suggests that leaders should start developing these skills now, as they will take time to develop. However, she also warns that the road ahead is likely to be 'tough' and that leaders will likely face 'some bumps and bruises along the way, but that leaders should stick with it', as these skills are likely to become increasingly important in the coming years. This is sound advice. But, one of the most telling findings for me emerging from the research was the insight that leaders often lacked the time to develop new skills. This is a real challenge. Not just for leaders but for their teams too. They not only have to create the space and time for themselves to experiment, fail, and learn, but they must also create an environment and culture that allows their team members to do the same. In a world where the pace of technological change appears to be constantly increasing, this, for some, will feel like an impossible task. However, that is the challenge emerging from this research. The truth is that if we want to achieve the better customer, employee, and business outcomes that we are all striving for, then leaders and their teams must carve out time and space to learn and try new things. This is essential if they are to give themselves a fighting chance of providing a superior experience to the customers they serve.
Yahoo
11-07-2025
- Business
- Yahoo
Piper highlights Meta as best large-cap pick, lifts forecasts on AI strength
-- Piper Sandler analysts reiterated Meta (NASDAQ:META) as their top large-cap internet pick, citing improving digital ad trends and rising investor sentiment heading into second-quarter results. "We like META most in Large Caps given strong checks & AI investments," the analysts wrote, raising their estimates for the company. Digital ad spend grew 6.6% year over year in the second quarter, a notable acceleration from the first quarter and 130 basis points above Piper's expectations. '2Q results returned to a beat/raise cadence after 1Q25 was the worst our ad buyer has seen since 4Q22,' the firm noted in its note assessing the sector. June was reportedly the strongest month, with performance advertisers capitalizing on brand and China reseller weakness. Commentary from Cannes also boosted optimism. Piper highlighted Meta's new WhatsApp ad units, with one ad buyer describing them as 'effective & interest-based' despite initial skepticism. Meta's resilience was said to have been evident throughout, the analysts said, helped by lower CPMs that 'brought in new advertisers that were priced out of the market.' AI continues to underpin Piper's bullish stance. The analysts pointed to the company's Reels product, new verticals such as travel and CPG, and CEO Mark Zuckerberg's hiring strategy and AI roadmap as key positives. 'We're excited to hear CEO Zuckerberg talk about the new AI hires and strategy,' they wrote, adding that investors appear braced for higher capital expenditures. Piper recently lifted Meta's out-year estimates, projecting that third-quarter revenue could hit $47 billion, or 16% year-over-year growth. 'Best execution in Internet, reiterate OW,' the analysts concluded. Related articles Piper highlights Meta as best large-cap pick, lifts forecasts on AI strength What Trump's Canada tariff escalation means for global investors Visteon upgraded by Baird and Goldman on tariff resilience, Toyota wins
Yahoo
18-06-2025
- Business
- Yahoo
Amazon CEO tells employees to expect cuts to white-collar jobs because of AI
Amazon CEO Andy Jassy said that generative AI is changing the company's workflow. He said that in addition to "efficiency gains," he expects that AI could mean white-collar job cuts. It's unclear exactly how widespread the reduction in force could be — or when it will happen. Amazon CEO Andy Jassy has a blunt new message about AI: It is going to "reduce" the company's workforce in the next few years. "As we roll out more Generative AI and agents, it should change the way our work is done," Jassy said in a memo posted to the Amazon website. "We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs." "It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company," he continued. Amazon currently employs about 1.5 million workers, according to its website. It is unclear how many employees, or in which sectors, would be affected by AI-driven job cuts. Business Insider previously reported that the company is freezing its hiring budget for its retail business this year. In a March earnings call, the company announced it would spend $100 billion on capital expenditures, mostly driven by AI investments and data centers, Business Insider reported. Jassy is not the first executive to suggest that advancements in AI will likely translate to job cuts in their businesses. The conversations around these types of reductions in force have become increasingly common — and less hypothetical. Allison Kirkby, CEO of the British telecom giant BT, warned that AI may lead to further job cuts at the firm after BT in 2023 announced plans to eliminate as many as 55,000 roles by 2030, Business Insider previously reported. In late May, Anthropic CEO Dario Amodei suggested AI could wipe out half of all entry-level white-collar jobs. Klarna CEO Sebastian Siemiatkowski said earlier this month that he expects the impact of AI on white-collar jobs to be so significant that it will lead to a recession. "It does not matter if you are a programmer, designer, project manager, data scientist, lawyer, customer support rep, salesperson, or a finance person — AI is coming for you," Micha Kaufman, the the CEO and founder of the freelance-job site Fiverr, wrote in an April email to employees that he shared on LinkedIn. Jassy had some advice for workers in his statement about how to navigate the changing professional landscape, describing AI as "the most transformative technology since the Internet." "As we go through this transformation together, be curious about AI, educate yourself, attend workshops and take trainings, use and experiment with AI whenever you can, participate in your team's brainstorms to figure out how to invent for our customers more quickly and expansively, and how to get more done with scrappier teams," Jassy said. "Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company." When reached by Business Insider, an Amazon spokesperson declined to comment further on Jassy's remarks. Read the original article on Business Insider
