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Spotify announces layoffs, cuts 200 jobs in podcast division

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Music streaming giant Spotify Technology SA has revealed plans to lay off 200 workers in its podcast unit, marking the company’s second round of layoffs as it undergoes a business restructuring following years of substantial investment. 

This move affects approximately 2% of Spotify’s workforce and aligns the company with others such as Meta Platforms and Roku, both of which have also implemented job cuts in response to an uncertain economic climate.

In early trading, shares of the Sweden-based company rose about 0.5%, outperforming the overall market, which displayed muted activity. Spotify had previously made aggressive investments to establish its podcast business, aiming to attract more advertisers through the higher engagement levels offered by the format.

However, this expansion strategy resulted in a significant increase in operating expenditure, growing twice as fast as its revenue last year. The combination of rising interest rates and high inflation has compelled businesses to reduce spending on advertisements. 

Consequently, Spotify initiated a 6% reduction in its workforce earlier in 2023 and announced the departure of Dawn Ostroff, who played a pivotal role in shaping the podcast business and navigating through controversies, including the backlash surrounding Joe Rogan’s show for allegedly spreading misinformation about COVID-19.

Sahar Elhabashi, the head of the podcast business at Spotify, explained on Monday that the company has made the “difficult but necessary decision to make a strategic realignment.” Additionally, Spotify intends to merge its Parcast and Gimlet studios into a single division called Spotify Studios, which will focus on producing Spotify originals.

Elhabashi further elaborated that Spotify will adopt a tailored approach for each show and creator, moving away from the previously uniform approach. This shift in strategy aims to provide greater flexibility and customisation to meet the unique needs of individual content creators and their shows.

By implementing these measures, Spotify aims to streamline its operations and optimise resources to adapt to the evolving economic landscape. The company recognises the importance of addressing cost management and ensuring long-term sustainability while maintaining its position as a prominent player in the music streaming and podcast industry. 

The layoffs in the podcast division are part of the broader efforts to restructure the business and maintain a competitive edge in the face of ongoing challenges.

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Instagram releases a kid-focused feature.

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With the help of this new Instagram function, parents will have more control over what their kids do online.

New users between the ages of 13 and 15 will have their Teen Accounts enabled immediately, while current users in the US, UK, Canada, and Australia will be gradually transferred to the new accounts over the course of the following 60 days.

Important characteristics of teen accounts

Teen accounts are by default set to private, which limits the display of their posts to authorized followers and keeps non-followers from getting in touch with them.

Restrictions on Teen Messaging: To minimize unwanted encounters, teens are only able to message people they follow or already have a connection with.

Control of Sensitive Content: Tight settings will prevent exposure to potentially dangerous content, like advertisements for cosmetic procedures or violent content.

Parental Control: Guardians can keep an eye on their offspring’s internet behavior, such as direct messaging and content intake.

Positive Content: By allowing teenagers to research interests, like sports, music, or the arts, they can enhance their online experience.

Extra protection

Reminding teenagers to take breaks after 60 minutes of app use is part of the daily limit.

Sleep mode: To encourage sound sleep habits, automatically mute notifications between 10 p.m. and 7 a.m.

Using artificial intelligence to power age verification, underage individuals can be identified and moved to teen accounts.

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Microsoft and BlackRock are set to establish a $30 billion fund for artificial intelligence infrastructure.

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AI models, particularly those employed in deep learning and extensive data processing, necessitate considerable computer power, resulting in increased energy usage.

The computational demands of AI have compelled technology firms to interconnect thousands of chips in clusters to attain the requisite data processing capacity, resulting in a significant increase in the demand for specialized data centers.

The investment entity, termed Global AI Infrastructure Investment Partnership, seeks to improve AI supply chains and energy procurement, according to BlackRock and Microsoft.

MGX, the investment firm supported by Abu Dhabi, will serve as a general partner in the fund, while Nvidia (NVDA.O), a manufacturer of AI chips, will provide its expertise.

The collaboration is expected to generate a total investment potential of up to $100 billion, inclusive of loan funding, according to the corporations.

The investments will primarily be in the United States, with the remainder allocated to partner countries, as stated by the firms.

The Financial Times initially reported on the development.

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Pakistan ascends 14 positions in the UN E-Government Index 2024.

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This significant breakthrough signifies Pakistan’s shift from the “Middle EGDI category” to the “High EGDI category” for the first time, indicating considerable improvements in digital government capabilities.

The nation’s E-Government Development Index has risen to 0.5095, an increase from 0.42380 in 2022. Although Pakistan remains behind global leaders such as Denmark (0.9847) and regional leaders like Singapore (0.969) and the Maldives (0.6745), this enhancement is a significant accomplishment.

Minister of State for Information Technology Shaza Fatima Khawaja has reaffirmed the government’s dedication to establishing a digital Pakistan.

During an event in Islamabad on Wednesday, she underscored the necessity for collaborative endeavors to promote innovation among the youth.

She asserted that the private sector ought to have a pivotal role in realizing a digital Pakistan. Shaza Fatima said that the administration is endeavoring to deliver exceptional stable and rapid internet connectivity.

She emphasized that Pakistan’s position in the UN’s e-governance development index had ascended by fourteen points. She stated that we are one of two Asian countries that have advanced from the medium tier to the top tier of digital e-governance, characterizing this as a notable accomplishment.

The Minister of State further asserted that Pakistan has made significant advancements in cyber security, attaining a premier rank in this field.

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