US
Nike Announces Major Job Cuts
Nike has disclosed plans to lay off approximately 750 employees at its global headquarters in Oregon, USA, effective from June 28. This move is part of a broader strategy announced in February to reduce its global workforce by 2%, affecting over 1,600 positions, with the aim of saving up to $2 billion over the coming three years. As of May 31, 2023, Nike employed about 83,000 workers. The layoffs are a response to the need for cost reduction and increased efficiency, as Nike shifts from a distribution-focused to a direct-to-consumer (DTC) business model. Despite these challenges, Nike’s mobile and digital sales have doubled over the past four years, now representing 30% of total sales.
Netflix Reports Strong Quarterly Earnings
Netflix has announced a nearly 15% increase in revenue for the first quarter, reaching $9.37 billion and surpassing the expected $9.26 billion. The streaming giant added 9.3 million subscribers, bringing its total to a record 269.6 million worldwide, with a 16% year-over-year growth in paid memberships. Netflix’s marketing expenses rose to about $650 million from $555 million the previous year, while technology and development costs increased to $702 million from $687 million. Despite forecasting a lower-than-expected revenue of $9.5 billion for Q2, Netflix’s stock has risen by approximately 25% since the start of the year, although it dropped nearly 5% post-earnings due to the announcement of stopping the quarterly reporting of subscriber numbers and average revenue per member from Q1 2025.
Amazon Shifts Drone Delivery Program to Arizona
Amazon has decided to terminate its drone delivery operations in California and shift its focus to Arizona, aiming for a fresh start in implementing its futuristic delivery method. This move comes amid regulatory challenges and operational hurdles in California, showcasing the complexities and evolving dynamics in the deployment of drone technology. Arizona’s regulatory environment and operational conditions appear more favorable for Amazon’s aspirations to innovate in last-mile delivery solutions.
Shopee Report on Attracting Gen Z Shoppers
A survey by Shopee reveals that 60% of Gen Z shoppers prioritize platforms that offer simple searches, comparison tools, and useful reviews. About 30% of these young consumers have a strategy for their shopping cart, often keeping items for more than a day to research before purchasing. The survey highlights that free shipping, lower prices compared to competitors, and promotional discounts are key factors driving their purchasing decisions, with product quality being a secondary consideration. Furthermore, over 75% of Gen Z shoppers seek out customer reviews and engage with customer service before making purchases, and many use features like Shopee Live and Shopee Video to gather more product information.
Globe
TikTok Expands into Used Luxury Goods in the UK
TikTok Shop has launched a second-hand luxury goods category in the UK, following a successful six-month operation in the US. This new offering provides British consumers with a convenient platform within the TikTok app to purchase high-end used clothing, designer bags, and accessories from select UK brands including Sellier, Luxe Collective, and Sign of the Times. Despite concerns about counterfeit goods—a common challenge even for giants like Amazon and eBay—TikTok Shop has implemented a strict anti-counterfeiting policy, ensuring full refunds for buyers of verified counterfeit items. The platform is also collaborating with luxury brands like LVMH to combat fakes, and uses third-party certification for authenticity checks on all used luxury items sold in the US.
YouTube Launches Select Shorts Ads to Boost Brand Visibility
YouTube has introduced a new advertising service, YouTube Select Shorts, which allows advertisers to place ads alongside selected short videos in categories such as entertainment, beauty, fashion, lifestyle, food, gaming, and automotive. This service targets the massive audience of YouTube Shorts, which attracts over 2 billion monthly logins and 70 billion daily views. TV viewership of YouTube Shorts has exploded, growing over 100% from January to September 2023. YouTube Select Shorts aims to provide advertisers with customized options for ad style, format, and length, enhancing brand engagement and visibility across key content areas.
AI
Intel Unveils Hala Point: The World’s Largest Neuromorphic Computer System
Intel has made a significant leap in AI hardware with the unveiling of Hala Point, the largest neuromorphic computer system ever developed. Housed within a compact six-rack-unit data center chassis, Hala Point integrates 1.15 billion neurons and 128 billion synapses across about one hundred forty thousand neuromorphic processing cores. This system, which significantly surpasses its predecessor Pohoiki Springs in both scale and performance, consumes a maximum of 2,600 watts of power. Hala Point’s development reflects Intel’s commitment to advancing the efficiency and scalability of AI technologies, offering a brain-inspired architecture that minimizes data movement, which drastically enhances computational efficiency and sustainability.
Meta Launches LLaMA-3: The Latest in Open-Source AI Models
Meta has released LLaMA-3, touted as their most potent open-source AI model to date. This advancement highlights Meta’s commitment to democratizing AI technology, offering the research community and developers unprecedented access to state-of-the-art tools. LLaMA-3 promises enhancements in handling large datasets and complex computations, which could drive innovation across various sectors, including language processing, automated reasoning, and machine learning.
FDA Approves AI Tool for Bone Marrow Cancer Detection
The FDA has recently approved a groundbreaking artificial intelligence tool designed to detect early signs of cancer in bone marrow samples. This AI tool represents a significant advancement in medical technology, offering a more rapid and accurate diagnosis process compared to traditional methods. Its approval underscores the increasing reliance on AI-driven solutions in healthcare, particularly in fields requiring detailed image analysis and diagnosis, potentially improving outcomes for patients with hematological conditions.
Sam Altman Backs Exowatt: Pioneering AI in Energy Management
Sam Altman, through his venture, has made a strategic investment in Exowatt, a startup focused on integrating AI technologies into energy management systems. Exowatt aims to revolutionize how data centers manage power consumption, which is increasingly vital as AI model complexities and associated energy demands soar. This investment reflects a broader trend of utilizing AI to enhance efficiency and sustainability in critical infrastructure, aligning with global efforts to address energy challenges in tech-heavy industries.
HarperCollins Collaborates with AI Firm for Audiobook Production
HarperCollins has teamed up with an AI software company to transform the production of audiobooks. This collaboration involves the use of AI to narrate books, aiming to create more engaging and accessible listening experiences. The initiative not only highlights the publishing industry’s adaptability but also its willingness to embrace new technologies to meet evolving consumer preferences and expand its market reach.
