Jobs Data and Apple Layoffs | Bloomberg Technology
FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND. THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED BOOK THOUGH. -- O CAROLINE: THIS IS BLOOMBERG TECHNOLOGY COMING UP WEEK IT A READ ON THE TECH LABOR MARKET. THE JOBS REPORT COMES IN HOT. ED: A NEW FILING SHOWS APPLE/600 ROLES AFTER SCRAPPING ITS CAR AND SCREEN PROJECT. CAROLINE: META-CHANGES AS POLICIES AROUND AI TO ALLOW MORE AI CONTENT TO REMAIN ON THOSE PLATFORMS. WE TURN OUR ATTENTION TO THE MICRO
PICTURE AND I'M NOT JUST TALKED ABOUT THE EARTHQUAKE THAT WAS THE JOB STAYED UP. IT MANAGED TO PUSH STOCKS HIGHER. EVEN THOUGH WE DO STILL SEE US ALL OFF IN THE BOND MARKET. FOR NOW THERE SEEMS TO BE AN IDEA WITH THIS JOB AND RESILIENT LABOR FORCE BROADLY IT CAN BE SEEN AS NON-INFLATIONARY. I'M LOOKING AT THE DOLLAR INDEX
HIGHER THAN THE AFFECTS SPREADS. DALLAS IS SAYING IS HOLD YOUR HORSES WE WON'T HAVE ANY RATE CUTS SOON. WE WANT A LOOK AT THE KEY ASCENT ON THE MOVE.
BITCOIN IS DOWN AND EVEN THOUGH WE SEE AN UPTICK THE OTHER RISK ASSETS MANAGED TO CATCH UP WE ARE SEEING A STRONG U.S. DOLLAR. ED: WORTH NOTING THERE WAS ALSO AN UPWARD REVISION FROM 22,000 WHEN IT CAME TO WAGES AND EARNINGS. WE WILL THINK ABOUT WHAT THIS MEANS FOR SPECIFIC TECH NAMES IN JUST A MOMENT IT IS GOOD NEWS THAT CORPORATE AMERICA IS LOOKING GREAT. THE CONCERN IS THE TIMING OF A FED RATE CUT IN THE VALUE OF FUTURE CASH FLOWS IN THE MARKET PUSHING OUT THAT RATE CUT TO SEPTEMBER FROM JULY. CAROLINE: LET'S GET OUR HEADS AROUND THE JOBS NUMBER.
YOUR TAKE ON THE NUMBERS? ALL WE HAVE HAD INBOUND IS COMPANIES BECOMING MORE CONTAINED WITH THEIR HIRING, MORE FOCUSED ON THE AI SIDE OF THE EQUATION AND LETTING PEOPLE GO. WHAT DO YOU MAKE OF THE RESILIENT JOBS MARKET? >> TODAY'S NUMBER WAS A SOLID NUMBER. TOTAL JOBS ADDED HAS BEEN FLUCTUATING BETWEEN 2, 300. WE ARE SEEING A STEADINESS IN THE JOB MARKET WITH JOBS ADDED. IN THE TECH SECTOR WE ARE SEEING IT STABILIZE SINCE 2023.
THE HIRING HAS LEVELED THE BOOK WE ARE NO LONGER SEEING MASSIVE DROP-OFFS WHEN IT COMES TO HIRING. ED: THE PACE OF HIRING AND TECH HAS LEVELED OFF AND IS NOT A BIG CONTRIBUTOR TO THE 303 WE SAW THIS MORNING? >> TWO THIRDS IS JUST COMING FROM THREE SECTORS GOVERNMENT, LEISURE AND HEALTH CARE. ED: I'M INTERESTED IN ESTIMATES WE ARE NOT HEARING BACK IN THE CONTEXT OF AI. WE HEARD THAT FROM OPENAI THERE IS A TALENT WAR WHICH MEANS YOU HAVE TO PAY MORE IN TECH OR STOCK.
WHAT IS YOUR DATA TELLING YOU? >> FOR TECHNICAL A I ROLES THERE IS NO SHORTAGE OF SUPPLY OF WORKERS. THE NUMBER OF WORKERS THAT HAVE THOSE TECHNICAL AI SKILLS HAS BEEN RISING BUT IS NOT ABLE TO KEEP UP WITH THE DEMAND SO THAT IS DRIVING WAGES UP AND COMPANIES WILL CONSIDER OTHER OPTIONS. THEY WILL LOOK TO OTHER PLACES LIKE BRAZIL AND INDIA TO BUILD THESE TOOLS IN HOUSE AND ALSO MANAGED TO KEEP CONTROL OF COSTS. CAROLINE: IMMIGRATION IS HELPING TO KEEP DOWN THE WAGE INFLATION PRESSURE. HOW MANY OF THOSE ARE COMING INTO THE TECH SECTOR IS HER TALENT COMING IN FROM ABROAD? ED: WE ARE NOT SEEING A TON OF TALENT COME IN BUT WE ARE SEEING THE RECOVERY FROM THE PANDEMIC. IT KNOCKED OFF A LOT OF MOVEMENT WITHIN THE TECH SECTOR AND WE SEE THOSE NUMBERS COME BACK UP. THERE IS A GAP CREATED BY THE
WORKERS WHO DID NOT COME SO WE ARE STILL NOT THERE IN TERMS OF MAKING UP THE GAP FOR THOSE WORK ORDERS BUT IT IS STARTING TO COME BACK AT A LEVEL IN THE PACE THAT WILL HELP SUPPORT THAT SITE THERE? CAROLINE: WHAT ABOUT DIVERSITY, THE DISPARITY IN WAGES , HOW ARE THE DEMOGRAPHICS SHAKING OUT? >> ONE REASON WE HAVE SEEN THAT LINK AND IS THAT WHEN THE LABOR SLOWS DOWN WE SEE LESS WOMEN HIRED INTO LEADERSHIP. THEY ARE APPLYING BUT ARE LESS LIKELY TO MAKE THEIR WAY INTO THE TOP LEVELS OF LEADERSHIP IT IS CLEAR THAT PEOPLE ARE DISPROPORTIONATELY IMPACTED AS WE CONTINUE TO SEE THE AIR BEING LED OUT OF THE MARKET UNTIL WE START TO SEE INTEREST RATES CUT THAT WILL IMPACT THE LABOR MARKET. ED: WE PAUSE FROM BREAKING HAVE THIEN'S THE FAA SAYS THERE IS A GROUND STOP AT JFK AND NEWARK AIRPORTS. THERE IS A FOUR .2 MAGNITUDE EARTHQUAKE THAT MAY IMPACT AIR TRAFFIC OPERATIONS.
FOR MORE REAL-TIME INFORMATION GO TO OFFICIAL CHANNELS. I AM ONE OF THOSE PEOPLE TO TO FLY BACK TO THE WEST COAST. LET'S STICK WITH THE TOP SPOTS. ACCORDING TO FILINGS, APPLE LAID OFF 600 EMPLOYEES AS PART OF THE DECISION TO END HIS CAR AND SMARTWATCH DISPLAY PROJECT. WHAT DO WE KNOW? >> WE'VE KNOWN ABOUT THE LAYOFFS FOR QUITE SOME TIME.
THE APPLE CARD PROJECT WAS BEING ENDED AND WE BROKE THE NEWS THAT THE DISPLAY PROJECT WAS GOING TO BE ENDED. THIS WASN'T EFFORT WHERE APPLE WAS CUSTOM DESIGNING ITS OWN SCREEN. TYPICALLY THEY RELIED ON LG AND THEY WERE TEST MANUFACTURING THEIR OWN DISPLAYS OF FACILITIES IN SANTA CLARA. BOTH OF THOSE PROJECTS ENDED BUT THE PEOPLE WERE LAID OFF. THE TOTAL WAS 614 PEOPLE IN CALIFORNIA. THE LAYOFFS WERE HIGHER THAN THAT THERE WAS A GROUP OUT OF A SECRETIVE FACILITY IN ARIZONA AND IN ASIA SEVERAL HUNDRED PEOPLE WERE WORKING ON THE DISPLAY PROJECT.
THE LAYOFF IS PROBABLY CLOSE TO 1000. CAROLINE: CAN YOU GIVE US THE CONTEXT IS RELATIVE TO THE NUMBER OF EMPLOYEES THEY HAVE? MARK: THEY HAVE NEARLY 180,000 EMPLOYEES CORPORATE AND RETAIL. ON THE CORPORATE SIDE IT IS PROBABLY CLOSER TO 70,000. A COUPLE OF PERCENTAGE POINTS OF THE COMPANY.
THESE ARE NOT THE FAST LAYOFFS LEUCINE FROM OTHER COMPANIES IN SILICON VALLEY. FOR APPLE, THIS IS THREE MAJOR ROUNDS OF LAYOFFS. THEY JUST DON'T DO THIS. YOU HAD SAN DIEGO IN JANUARY 121 PEOPLE AN OFFICE WHERE THEY DID INNOVATION AND TESTING FOR SIRI AND OFFERED THOSE JOBS TO PEOPLE IN TAXES. YOU CAN PROBABLY COUNT ON YOUR HANDS THE NUMBER OF PEOPLE MOVING FROM SAN DIEGO TO TEXAS. ANOTHER 614 PEOPLE IT IS NOTABLE THAT THEY HAVE COME TO THE POINT WHERE THEY ARE KILLING R&D PROJECTS AND LAYING PEOPLE OFF. CAROLINE: THANK YOU FOR COMING IN ON THE DAY YOU'RE SUPPOSED TO HAVE OFF. PARAMOUNT UNDER PRESSURE.
THIS COMES FROM CNBC THAT THE UNIQUE OFFER FOR PARAMOUNT IS CONTINUING TO TRADE PUBLICLY BUT THE OFFER COMING FROM SKY DANCE MEANS IT WILL BE DILUTING EXISTING SHAREHOLDERS BUT ALIGN VOTING CONTROL WITH THE REDSTONE FAMILY. I SKYDANCE TAKING OVER THE REDSTONE FAMILY SHARES. WE ARE DOWN 4.5% AFTER ARRIVAL YESTERDAY.
ED: BREAKING NEWS, REUTERS IS REPORTING THAT TESLA HAS SCRAPPED PLANS FOR A LOW-COST CAR. REUTERS REPORTING THAT TESLA HAS SCRAPPED PLANS FOR A LOW-COST CAR. THE STOCK IS DOWN 5%. THERE WAS AN IDEA THAT A MODEL UNDER 25,000 WAS COMING. THERE WAS A BIG IMPETUS TO DOING IT, THEY DELAYED IT AND IT WAS BACK ON THE TABLE. REUTERS CITING SOURCES ON THE STORY WE WILL GET ON THE PHONE AND ASK ELON MUSK AND OTHER EXECUTIVES OF THIS IS TRUE BUT THE REUTERS REPORT IS THAT THE PAVEMENT IS THEY GO BACK TO FOCUSING ON ROBOTAXIS. BUILD THE VEHICLE WHERE OWNERSHIP IS NOT IMPORTANT.
THEY WERE LOOKING FOR CONTROL OF THE FLEET. CAROLINE: LONG-TERM THIS WAS THE 2006 MASTER PLAN YOU CAN BUILD EXPENSIVE CARS BUT 25,000 SEEMS TO ALL BE TOO MUCH. THE COMPETITION COMING FROM CHINA DO YOU THINK THAT IS THE CASE OR IS IT THE ELEMENT OF MARGIN? ED: WERE SUPPOSED TO BE BETWEEN TWO WAVES THE NEXT WAVE WAS TO BE BUILT ON THE CHEAPER MODEL. LET'S BE PATIENT. THE STOCK IS REACTING AND A LOT OF INVESTORS WILL SAY I WILL HOLD FOR THE LONG TERM BECAUSE THEY ARE PRICING IN THE ROBOTAXI. CAROLINE: LET'S GO TO ANOTHER KEY STORY MEDA IS CHANGING IS ARTIFICIAL INTELLIGENCE TO ALLOW FOR MARK CONTENT -- MORE CONTENT TO REMAIN ON HIS PLATFORM. THEY WILL ALLOW IT BUT MARKET?
>> A COUPLE OF YEARS AGO THEY CAME WITH A MANIPULATED MEDIA POLICY IF SOMEONE UPLOADS A VIDEO THAT WAS AI GENERATED TO MISLEAD IT THEY WOULD TAKE IT DOWN BUT THEY SAY IF THEY DON'T VIOLATE A DIFFERENT ROLE WITHIN THE COMPANY AND THE ONLY ISSUE IT WAS AI GENERATED EVEN IF IT WAS MISLEADING. THERE ARE A COUPLE OF DIFFERENT WAYS THEY COULD LABEL THESE AS AI OR MISLEADING BUT THEY ARE LEAVING THEM UP. CAROLINE: HOW DOES THIS DIFFER FROM OTHERS? >> I'M NOT SURE THEY'RE ABLE TO ENFORCE THESE THINGS THE WAY THEY SAY THEY ARE WE SAW THIS IN THE 2020 ELECTION. MANIPULATIVE VIDEOS AND AUDIOS SHOW UP. THE REASON WE ARE FOLLOWING THIS NEWS, EVEN IF IT IS A SMALL NUMBER OF POST IS THAT THEY COULD BE SHARED BY PRESIDENT TRUMP AND MAJOR CAMPAIGNS THAT ARE TRYING TO INFLUENCE THE ELECTION. CAROLINE: THIS DOES COME IN THE POLITICAL CONTEXT OF GENERATIVE AI BEING THE FLAVOR DU JOUR. DO WE SEE COMPANIES TRY TO
FRONT RUN POLITICIANS? >> THERE IS NO FRAMEWORK OF HOW THEY SHOULD MODERATE GENERATIVE AI WE HAVE SEEN CHRIS KLUG COME OUT AND SAY WE NEED RULES, REGULATORS PUT GUARDRAILS ON THIS THING BECAUSE OTHERWISE IT IS UP TO THE COMPANIES THEMSELVES AND MEDA IS TRYING TO BE PROACTIVE. UNLESS THERE IS ANYONE HOLDING YOU TO, X AND OTHERS ACCOUNTABLE IT IS SO FOR THEMSELVES. THEY ARE DOING THIS PROACTIVELY BECAUSE THERE IS NO FRAMEWORK FROM THE U.S. AND OTHERS. CAROLINE:
NOW BACK TO ALL THINGS TESLA. ED: TESLA SHARES ARE DOWN 4%, REUTERS REPORTING TESLA SCRAPPED THEIR PLANS FOR A LOW-COST CAR. THE IDEA THAT TESLA WILL COMMIT TO HIS PREVIOUS STRATEGY OF FOCUSING ON SELF-DRIVING ROBOTAXIS IN THE ORIGINAL PI THESIS IS THEY WOULD MANAGE THESE FLEAS. ED: SHARES OF TESLA HAVE DROPPED SHARPLY IN THE LAST FIVE MINUTES. REUTERS IS REPORTING THAT TESLA HAS SCRAPPED PLANS FOR A LOWER COST EV.
THE REUTERS REPORT SAYS IS THAT TESLA WANTS TO FOCUS ON BUILDING A ROBOTAXI. JOINING US IS CRAIG TRUDELL, FOR HOUSEKEEPING, BLOOMBERG IS CONTACTING TESLA DIRECTLY AND ALL OF OUR REPORTING TO THE TRIED TO WORK OUT THE VALIDITY OF THIS REPORT BUT IT HAS MOVED TO MICAS. WHAT DO YOU MAKE OF IT? CRAIG: MY FIRST REACTION WAS WHAT? I DO THINK ON ONE HAND IT'S NOT A HUGE SHOCK IN THE SENSE THAT ANYONE WHO READ WALTER ISAACSON'S PRE-AUGER FEE IS FAMILIAR WITH THIS IDEA THAT ELON HAD TO BE TALKED INTO THIS MODEL AND HE WANTED TO BE TALKED OUT OF IT. WE WILL BE ABLE TO BUILD SELF DRIVING VEHICLES RENDERING THE CHEAP CAR USELESS. THE PROBLEM WITH THAT IS THAT HE HAS BEEN TRYING TO DO THIS FOR EIGHT YEARS.
IT HAS BEEN SELLING FULL SELF-DRIVING AND HE JUST DOESN'T HAVE IT. IT IS AN INCREASINGLY CAPABLE SYSTEM AND AT OTHER TIMES IT DOESN'T WORK. IT IS NOT SAY. HE ISSUES THIS DICTATE TO HIS EMPLOYEES THAT THEY NEED TO DEMONSTRATE THIS BEFORE EVERY SALE AND HE HIMSELF PUTS IN HIS EMAIL THIS IS A SUPERVISED SYSTEM.
THIS COMPANY IS A LONG WAY FROM BEING ABLE TO OFFER A ROBOTAXIS SO THIS IDEA THEY WOULD CANCEL AN AFFORDABLE CAR THAT THEY DESPERATELY NEED US HARD TO BELIEVE. CAROLINE: LET'S TALK ABOUT THE DESPERATE NEED. SOME CITING BYD, IS THOUGHT ANTAGONIZING THE COST PERSPECTIVE? CRAIG: WE ONLY HAVE TO LOOK AT THE NUMBERS THAT CAME OUT THIS WEEK. THE MODEL THREE MODEL WHY ARE RUNNING OUT OF THE ABILITY TO SQUEEZE MORE JUICE OUT OF THOSE TWO. IN CHINA, THEY ARE LOSING SHARE TO A COMPANY LIKE BYD WHO HAS MODELS UNDER 10,000. THE DIRECTION THE CHINA MARKET IS GOING IS LOWER, LOWER.
HIS MODEL THREE HAS PRICED LESS EXPENSIVELY IN A LONG WAY FROM THEIR COMPETITORS AND IN OTHER PARTS OF THE WORLD, EVEN IN THE U.S. WHERE IT HAS BEEN A DOMINANT PLAYER, REMAINS IN CONTROL OF THE MAJORITY OF EV SALES IT IS GETTING MORE COMPETITIVE AND IT IS DIFFICULT TO KEEP WITH THEIR LEAST EXPENSIVE MODEL BEING 35,000. ED: THIS IDEA THAT THEY WOULD MANUFACTURE THEIR WAY TO A 25,000 EV. THEY TOLD US THOSE. THEY WOULD CHANGE THE WAY IT WAS BUILT. THE OUT RIGHT SCRAPPING OF A LOW-PRICED EV WHEN THEY COMMUNICATED HOW THEY WOULD DO IT. CRAIG: IT WOULD BE HARD TO FATHOM THEY COULD MOVE TO THIS UNBOXED ASSEMBLY APPROACH WITH AN EXISTING VEHICLE.
IS NOT THE SORT OF THING YOU DO. THIS IS NOT THE SORT OF MOVE THAT YOU MAKE THAT INSPIRES CONFIDENCE. THIS SUGGESTS YOU ARE FLAILING WHEN TIMES ARE TOUGH. CAROLINE: OUT ON THE DAY WHERE THEY WERE MARKING DOWN THE MODEL WHY SUV IT FEELS LIKE THE PILE ON IS CONTINUING.
WHAT IS THE NEXT ITERATION WE SHOULD LOOK OUT FOR? CRAIG: WE SHOULD LOOK OUT FOR MORE PRICE CUTS ON THE FRONT END. THEY TRIED TO PLAY A DIFFERENT APPROACH BY DOING A TEMPORARY DISCOUNT THAT WOULD GO AWAY. IT'S NOT GOING TO LAST. CAROLINE: THANK YOU SO MUCH. WE HAVE BIG CONVERSATIONS AFTER
THE BREAK. YOU WILL WANT TO STICK WITH US WITH THE DEEP DIVE FROM THE CEO OF LEVI'S. ED: WELCOME BACK TO BLOOMBERG TECHNOLOGY. AND EARTHQUAKE RATTLED NORTHERN NEW JERSEY AND WAS FELT IN THE HUDSON VALLEY. REPORTS SAY AS OF 4.7 TREMOR. THE GOVERNOR POSTING HER TEAM IS ASSESSING IMPACTED DAMAGE AND PRESIDENT BIDEN HAS BEEN BRIEF. CAROLINE: LET'S GET A QUICK CHECK ON THE
MARKETS. WE ARE SEEING THOUGHT THE MARKET HAS TRADE HIR GHER, 10 YEAR GUILT SOME YIELD RISING. WE WILL SEE THOSE RATE CUTS COMING AS SOON AS JUNE BUT THE MARKET STARTS TO DOUBT THAT. WE HAVE BEEN LOOKING AT WHAT HAS BEEN A CASE WITH TESLA THE SHARE PRICES UNDER PRESSURE BY 5.5%. THE AFFORDABLE CAR PLANS ARE BEING SCRAPPED AND THERE IS A REFOCUS BACK ON THE ROBOTAXI PROGRAM. WE ARE TRYING TO UNDERSTAND THE VERACITY OF THESE WERE WORDS.
ED: CHECK THIS OUT. IT LOOKS LIKE I AM NOT THE ONLY PAY AREA LOCAL IN NEW YORK CITY. DAYS AFTER THE COMPANY REPORTED EARNINGS AND IS SIGNIFICANT MILESTONE OF THE IPO.
THERE IS SOME BIGGER STORY AND THAT IS BEYONCE. I AM DELIGHTED TO SAY MICHELLE GASPED. FOR THOSE LIVING UNDER A ROCK BEYONCE DROPPED HER ALBUM AND ONE OF THE TITLE TRACKS WAS LEVI'S JEANS. THAT MUST'VE BEEN QUITE A BOOST. >> WE ARE SO HONORED THAT SOMEONE LIKE BEYONCE WHO IS A CULTURE SHAPER WITH NAME A SONG AFTER US. COMPLETELY ORGANIC. ED: WHAT DO YOU MEAN? >> WE HAD NOTHING TO DO WITH IT BUT THAT BEING SAID, ONE OF THE THINGS THAT ARE SO CRITICAL ABOUT LEVI'S WE BEEN AROUND HER 107 YEARS IT'S IMPORTANT WE REMAIN AT THE CENTER OF CULTURE.
WE ARE INVITING BRAN WHO RESONATES WITH SO MANY PEOPLE TO HAVE THAT YOUTHFULNESS AND RELEVANCE, THERE'S NO BETTER TESTAMENT THAN TO HAVE SOMEONE LIKE BEYONCE NAME A SONG AFTER US. CAROLINE: WHAT HAS NOT DONE TO SALES? MICHELLE: IT'S SO EARLY BUT IT IS PART OF THE BIGGER THING HAPPENING IS THAT WE ARE HAVING A GREAT MOMENT. WE WERE SO PLEASED TO START THE YEAR OFF SO STRONG. UNDERNEATH THAT, A LOT OF GOODNESS. THE DENIM CATEGORY HAS STABILIZED AND WE ARE EXPECTING THE CATEGORY TO GROW. LEVI'S IS GROWING SHARES WITH MEN'S, WOMEN, YOUTH, MIDDLE INCOME CONSUMER.
AS WE THINK ABOUT OUR BUSINESS DRIVING THAT OPTIMISM. THAT BUSINESS IS OUT FOR EIGHT CONSECUTIVE QUARTERS, UP 8% AND ALSO WHAT IS DRIVING THAT IS WHAT IS HAPPENING IN TANDEM. DENIM IS HAVING A MOMENT. WE ARE LEAVING AND TRENDS. AS WE THINK ABOUT OUR MEN'S AND WOMEN'S BUSINESS. LOOSE FISTS AND BAGGY FAVORITES ARE. DRESSES, SKIRTS, OF TRIPLE DIGITS. THERE ARE A LOT OF GREAT THINGS
TO BE EXCITED ABOUT. CAROLINE: THERE'S A LOT TO BE SAID ABOUT PLANNED TO PUT INTO PLACE. LEVI'S DID BECAUSE THEY WERE THE ONLY KEY BRANDS THAT WOULD TRUST DESTINY'S CHILD SO SHE COMES FROM THIS PLACE OF AUTHENTICITY. YOU HAVE REBRANDED THE INSTAGRAM HANDLE.
WHAT DO YOU DO WITH THE ONLINE ELEMENT OF THIS? HOW MUCH HAS TECHNOLOGY BEEN THERE FOR YOU? MICHELLE: TESTAMENT TO OUR TEAM WHEN THAT HAPPENED THEY GOT AFTER IT TO BRENDA AND WE HAVE HAD BRILLIANT IMPRESSION TO GIVE YOU A SENSE. DIRECT TO CONSUMER IS OMNI-CHANNEL. COMMERCE HAS BEEN UP DOUBLE DIGITS BUT IT IS ALL CONNECTED AND AS WE CONNECT WITH THEIR CONSUMER ALL SHIPS RAISE.
YOU MADE A COMMENT ABOUT AMAZON. PEOPLE CAN BUY LEVI'S WHEREVER THEY WANT TO. WE LOVE WHEN THEY BRING AGED WITH THE STORE. THEY CAN SEE ALL OF THEIR OUTFITS, BUT AS MANY STORES AND WE HAVE 3000 STORES WE ARE INTENDING TO BUILD A LOT MORE. ONE OUT THERE SHAWN STILL ASSAY IN TIME FOR THE OLYMPICS. -- CHAMPS D'ELYSEE. PEOPLE CAN BUY THEIR LEVI'S
WHEREVER THEY LIKE TO SHOP. ED: DID BEYONCE RESULT IN AN UPTICK OF SALES? MICHELLE: I'M NOT GONNA GIVE YOU A NUMBER BUT IT IS A PRIVILEGE. ED: SAN FRANCISCO IS STILL FACING LOCATION ISSUES WERE PEOPLE ARE SHUTTING STORES. WHICH YOU CONTEMPLATE THAT?
MICHELLE: WE ARE HEADQUARTERED IN SAN FRANCISCO AND WE ARE HERE TO STAY. DEEPLY COMMITTED TO SAN FRANCISCO WITH THE BEAUTIFUL FLAGSHIP STORE AND THEY ARE DOING GREAT. AND BEING PART OF THE SOLUTION TO BRINGING BACK THE VIBRANCY. CAROLINE: IT WAS SO GREAT TO HAVE YOU HERE. IT IS A JOY TO HAVE THE CEO MICHELLE GAS WHERE THE VICES ARE TRIED. SOME UPDATE ON THE EARTHQUAKE HERE ON THE EAST COAST THE AIRPORT DOES REMAIN OPEN AND OPERATIONAL.
THE EARTHQUAKE RATTLED NORTHERN NEW JERSEY AND WE WILL CONTINUE TO MONITOR THOSE HEADLINES. ED: I'M GONNA KEEP LOOKING AT TESLA HERE. LET'S BRING UP THE SHARES. WE ARE NOW PREPARING THE DECLINE DOWN 2% FOR MORE THAN FIVE, 5.5%.
MUSK SAYS REUTERS IS FLYING IN THE REPORT ON LOW-COST EV. ELON MUSK HAS JUST STATED THAT REUTERS IS LYING AND THAT IS WE HAVE ILANA WEINSTEIN FROM THE IDF GROUP. ED: AN UPDATE FROM ELON MUSK IN A POST ON X RESPONDING TO SOMEONE ELSE WHO POSTED THE REUTERS HEADLINE. MUSK SAYS REUTERS IS LYING (AGAIN). THEY ARE NOW TRADING 2.6% LOWER. REUTERS HAD REPORTED THAT TESLA
WAS SCRAPPING PLANS FOR A 25,000 OR LOW-COST EV IN FAVOR OF ROBOTAXIS. ELON MUSK TAKING TWO ACTS SAYING THEY ARE LYING BUT THE STOCK HAS NOT PAIRED ALL OF US TO CLIENT. CAROLINE: WE WILL KEEP YOU UP-TO-DATE. WHEN IT COMES TO ARTIFICIAL INTELLIGENCE AND CLOUD FLARE CAN BRING THEIR AI TO THEIR OWN SPACE. LET'S BRING IN MATTHEW WHO CAN MAKE THIS SO MUCH MORE SIMPLE THAN WHAT WE ALL HAVE TO SAY. WHAT WE KEEP HAVING TO TALK ABOUT IS HOW YOU INTEGRATE THAT INTO YOUR WORKFLOW AND HOW EXPENSIVE IT CAN BE.
YOU'RE TRYING TO MAKE IT MORE EASILY ADOPTABLE? >> THERE IS NOT ONE AI SOLUTION FOR EVERY COMPANY. WE ARE MARKETING WITH THE MARKETPLACE FOR THE LATEST AI MODEL SO WE HAVE MADE IT INCREDIBLY SIMPLE FOR THE MODELS ON THE MARKETPLACE. ANYTHING CAN DEPLOY THOSE BOTTLES ACROSS THE CLOUD FLARE NETWORK. HIKE CAN YOU GET THE VALUE OF AI WITHOUT BLOWING THE BUDGET? CAROLINE: YOU CAN SEE WHERE TRENDS ARE MEETING REALITY AND THERE IS SO MUCH HYPE THAT WE TALK ABOUT HOW REAL HIS THOUGHT HYPE AND HOW MUCH ARE YOU SEEING COMPANIES EMBRACE GENERATIVE AI? MATTHEW: THERE IS SOME REAL HERE BUT IT WILL BE A WHILE BEFORE WE TAKE THESE DEMO OF MAKE GOOD PRODUCTS. THE HYPE IS JUSTIFIED BUT I ALSO THINK WHERE COMPANIES WILL HAVE TO EXPERIMENT AND TRY DIFFERENT THINGS IN DIFFERENT MODELS SO IT IS CRITICAL TO BE ABLE TO BRING THE RIGHT AI YOUR COMPANY NEEDS IN THE MOST COST-EFFECTIVE WAY. THAT'S WHAT WE'RE HERE TO DELIVER A CLOUD FLARE. ED:
HERE IS WHAT HE SAID ABOUT THE AI SUPPLY CHAIN. >> WILL BE ABLE TO ADAPT TO THIS DEMAND TO THE NEXT 10 YEARS? PART OF IT IS TO BRING MODELS TO BEAR IN MAKING SURE THE UNDERLYING HARDWARE EXISTS TO BUILD THE SYSTEMS WE NEED TO SERVE THE DEMAND. ED: ARE YOU CONVINCED YOUR CUSTOMER BASE HAS EVEN WORKED OUT IN WHAT FORM THEIR DEMAND IS AND WHAT THEY PLAN TO DO WITH GENERATIVE AI? MATTHEW: I THINK EVERYONE IN THE BUSINESS WORLD IS EXPERIMENTING IN THE SPACE. IF NOT YOU REALLY RISK RUNNING BEHIND. WE DON'T WANT PEOPLE JUST LIGHTING MONEY ON FIRE RUNNING AI EXPERIMENTS. WE WANT TO MAKE SURE THEY HAVE THE MODELS THAT MAKE THE MOST SENSE FOR THEIR BUSINESS AND EMPLOYEE IN THE WAY THAT'S MOST COST-EFFECTIVE.
WE HAVE BEEN ABLE TO DEPLOY OUR GPU MACHINES AND MORE THE 150 CITIES WORLDWIDE MAKING US THE MOST WIDELY DISTRIBUTED AI PLATFORM OUT THERE WHICH IS POWERFUL AS WE SERVE CUSTOMERS AROUND THE WORLD. ED: WHY HUGGING FACE? MATTHEW: IF YOU WANT TO EXPERIMENT WITH VARIOUS AI MODELS THEY ARE THE PLACE TO GO. IS IN HUB FOR AI. THIS IS WHERE THEY DOWNLOAD THOSE BOTTLES MAKING IT EASY FOR ANYONE TO DISTRIBUTE THE WORK THEY ARE BUILDING WITH AI TOOLS AND THAT IS THE PART OF CLOUD FLARE'S NETWORK THAT IS NOT DEPLOYING THOSE MODELS AND USING THEM TO SOLVE BUSINESS CHALLENGES.
THAT'S A POWERFUL COMBINATION IS SOMETHING WHERE EXCITED TO BE DOING WITH THEM. CAROLINE: WHAT'S INTERESTING IS THE ANXIETY GIVEN TO THE WORK PLACE. I WENT TO DOVETAIL INTO THE SOMETHING YOU HAVE EXPERIENCED AND TACKLED HEAD ON. PEOPLE BEING LAID OFF IN THE TECH SECTOR? ONE OF YOUR EMPLOYEES WAS LAID OFF AND IT WENT VIRAL.
YOU ACTUALLY TOOK TO TWITTER SAYING THE VIDEOS PAINFUL FOR ME TO WATCH. IT SHOULD NOT BE OUTSOURCED. HOWEVER YOU THINKING ABOUT YOUR OWN EMPLOYEE BASE? MATTHEW: ACROSS THE INDUSTRY COVID WAS A STRANGE TIME AND A LOT OF COMPANIES STOPPED HIRING PEOPLE EVEN IF THEY DID NOT PERFORM. I DON'T WANT TO TALK ABOUT ANY SPECIFIC EMPLOYEE. WE THINK IT IS IMPORTANT WE HAVE A CULTURE OF PERFORMANCE AND WE HAVE A CULTURE OF PEOPLE WHO DO WELL ARE REWARDED FOR THAT AND IF THEY DON'T THEY'RE OFF THE TEAM.
LAST YEAR WE HAD 1.2 MILLION APPLIED TO WORK FOR CLOUD FLARE AND WE ARE WAY AHEAD OF THAT TREND FOR Q1 WITH A RECORD NUMBER OF APPLICANTS. THEY ARE INCREDIBLY TALENTED PEOPLE WHO WANT TO WORK FOR AND DELIVER ON OUR MISSION OF DELIVERING A BETTER INTERNET INCLUDING WITH WORKERS ACT. ED: WE APPRECIATE YOUR CANDOR ON SOCIAL MEDIA THAT WAS WIDELY SHARED BY YOU ARE DOING SOMETHING THAT WE LEARNED A LOT ABOUT, PARTNERSHIPS TO ADD AI ACCESS. THANK YOU SO MUCH. OFFICIALS ARE IN BELGIUM FOR THE TRADE MINISTERIAL MEETING BEFORE ELECTIONS ON BOTH SIDES OF THE ATLANTIC.
THE COUNCIL RESPONSIBLE FOR REGULATION EFFORTS ARE WORKING TO SET AI STANDARDS AND HOW THE TWO BLOCKS CAN COLLABORATE. >> WHEN IT COMES TO AI WE HAVE HAD AN AGREED APPROACH AND I THINK THE LIKELIHOOD THAT WILL PRODUCE ARTIFICIAL INTELLIGENCE YOU COULD TRUST US SO MUCH PRETTIER. ARTIFICIAL INTELLIGENCE HOLDS IMMENSE PROGRESS IF THE NEGATIVE SIDES CAN BE CONTROLLED. CAROLINE: THE TWO SIDES ALSO ANNOUNCED A NEW DIALOGUE BETWEEN THE U.S. AND EU OFFICE. HERE IS GINA RAIMONDO. >> AI IS CHANGING THE GAME AND AI COLLABORATION BETWEEN THEIR OFFICE AND OUR SAFETY INSTITUTE WILL GET STRONGER ALL LED BY THE TTC. CAROLINE:
AWAY FROM DIPLOMACY, ED: SPURRED BY ACTIVIST INVESTORS THEY ARE ASKING SHAREHOLDERS TO CHANGE HIS BOARD OF DIRECTORS OR TERMS FROM ONE TERM DOWN FROM THREE. BYRON DIETER WILL NOT SEEK REELECTION AND THE BOARD WILL BE REDUCED TO NINE MEMBERS FROM 10 UPON THE END OF HIS TERM. I DON'T GET THIS. ARE THEY PLAYING DEFENSE BECAUSE THERE'S A THREAT? >> THIS IS TWILIO SEEKING TO AVOID WHAT HAPPENED WITH THIS NAME. ACTIVIST INVESTORS AIRING DIRTY LAUNDRY. WHAT WE ARE SEEING HERE IS A CLASSIC TALE WHERE THEY HIT A WALL. THEY HAD THEIR GROWTH PLUMMET
AND THEY HAD TO DO LAYOFFS AND ACTIVIST INVESTORS SHOW UP. THEY HAVE BEEN AGITATING FOR CHANGES AND THEY HAVE MADE A NUMBER OF CHANGES TO KEEP THESE INVESTORS HAPPY AND PREVENT FROM GETTING INVOLVED IN A PROXY BATTLE. CAROLINE: I AM INTERESTED THIS COMES AFTER JEFF LAWSON HAD TO STAND DOWN AMID ALL OF THIS. IS THERE VIEWPOINT THE IT WILL BE CHANGING SWIFTLY ENOUGH? >> THE WELL-KNOWN FOUNDERS STEPPED DOWN AND WENT BOARD TERMS WHERE YOU CAN VOTE SOMEONE OUT EACH GIVEN YEAR IMPROVE YOUR FUNDAMENTALS AND WE WILL VOTE YOUR SLATE OF CANDIDATES OUT. WE SAW A STATEMENT SAYING WE WILL CONTINUE TO PUT PRESSURE ON THESE BUSINESSES. THEY WERE HOPING THEY WOULD SELL ITSELF.
THE ODDS WE SEE MORE HEADLIGHTS COMING OUT OF TWILIO ARE INCREASING. ED: WELL, AN INCREDIBLE FRIDAY. WE WILL HAVE TO HASH IT OUT ON THE POD. THIS IS BLOOMBERG.
2024-04-08 16:56
