Thursday, January 25, 2024

Microsoft adds more job cuts to the gaming industry

TechCrunch Newsletter
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By Christine Hall

Thursday, January 25, 2024

Good afternoon and welcome to TechCrunch PM! Today we look at more layoffs — this time at Microsoft. Meanwhile, Pixel 8 Pro users can take their temperature, there's an update on Apple's App Store changes in the European Union, and we aren't surprised that kids are on TikTok more than YouTube.

Christine

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Image Credits: NurPhoto / Getty Images

TechCrunch PM Top 3

Microsoft lays off 1,900 employees: We just wrote about Riot Games cutting jobs and now the gaming industry layoffs continue. Over at Microsoft, the company is cutting 1,900 jobs at Activision Blizzard, just three months after Microsoft completed its $68.7 billion acquisition of the gaming company. Granted, redundant jobs are reduced after an acquisition, but the sting is still there.

That's hot: One of Google's new features for the Pixel 8 Pro is the ability to use the Thermometer app to measure body temperature. Yours or someone else's. The true test will be if you can use it on a squirmy baby.

Meet PayPal's new features: PayPal is giving some of its new updates the AI treatment for more personalization. One is a new CashPass cash-back offering called "Smart Receipts" for recommendations and enhanced checkout and guest experiences. There are also some Venmo enhancements for small businesses and a new offers platform for merchants.

TechCrunch PM Top 3 image

Image Credits: Google

More top reads

Mmm . . . the internet: When Amanda looked at mmm.page, she described it as "MySpace meets Linktree, except not really." The website-creating company describes itself as "Tumblr x Animal Crossing x Mii Plaza." Whichever one you think, they both agree that creating websites should be fun and easy.

One sweet ride: Pricey electric vehicles seem to be everywhere now, and the Porsche Macan EV is no exception. Not everyone is racing over to buy one, so this is most likely a test for Porsche to see if drivers will want a Macan and are willing to shell out more than the popular gas-powered version.

Weather junkies will love this: Apple's widget support cleared away the clouds for Weather Up's fully interactive app that will help you see if sunny days are ahead.

A kid's attention span: A new study examining the online habits of children aged 4 through 18 reports that across the globe, children spent an average of 112 minutes daily on TikTok's short video app in 2023, an increase from 107 minutes the year prior. While YouTube remains a kid favorite, they spent 60% more time on TikTok last year.

Here's how Apple is responding to the Digital Markets Act, and some are not pleased: While Apple prepares the iOS for changes related to the European Union’s Digital Markets Act, Epic Games CEO Tim Sweeney calls Apple's new App Store rules a case of "malicious compliance" filled with "junk fees."

File this under WTF: 23andMe is now saying hackers were actually breaking into its system for five months before the genetic testing company caught on.

More mmm, depending on your taste: Plant-based "meat" company Chunk Foods gobbled up some more venture capital and a new partnership as it starts to make its mark in Latin America.

ICYMI: The Russia-linked hacking group Midnight Blizzard has struck again. Hewlett Packard Enterprise said its cloud-based email system was compromised by the group, which is also being blamed for a similar breach on Microsoft's corporate network.

Before you go: Learn what OpenAI is doing to its models and pricing and more about the new government probe into autonomous driving company Cruise related to a pedestrian crash that happened last October.

More top reads image

Image Credits: mmm.page

On the pods

On today’s Chain Reaction, Jacquelyn interviewed Anatoly Yakovenko, co-founder of Solana Labs, the technology company that aims to help grow the ecosystem for the layer-1 blockchain Solana. The conversation focused on Solana Mobile and its flagship web3 Android smartphone, Saga, which sold out in mid-December, as well as its new phone, Chapter 2 — which was announced last week.

Anatoly and Jacquelyn discussed the long road to selling out Saga, how important rewards and developers are and the nitty-gritty details for Chapter 2. They also dove into the company's strategy and long-term mission of going up against Google and Apple app stores and how long it may take for Solana Mobile to break even. Listen here.

On the pods image

Image Credits: Bryce Durbin

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Tesla predicts muddy roads ahead for EV sales

TechCrunch Newsletter
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By Alex Wilhelm

Thursday, January 25, 2024

Good morning, and welcome to TechCrunch AM! Today on the docket we have: why startups do layoffs ahead of IPOs; how a new startup cluster is forming; notes on how to build a consumer packaged goods startup; and where VCs see the future of fintech heading. As a bonus, there's also a cool take on what happened to Tesla's stock!

Alex

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TechCrunch Top 3

  1. Swiggy cuts staff (again) to prep for an IPO: Layoffs may just have been 2024's most popular trend if it weren't for LLMs and AI. Case in point: Indian food delivery startup Swiggy is cutting 400 more jobs after axing 380 last year. The company has an IPO in its sights this year, and so is making difficult tradeoffs to bolster its bottom line.
  2. Fintech's future isn't as gray as you'd think: Venture capital firm GGV recently came up with a list of fintech startups that investors are most excited about today. It's a neat list, but we felt it was more interesting to see where fintech's next winners are being built. And boy do they have a ton of market still left to attack.
  3. Tesla predicts slower EV sales growth: Tesla's stock is down 8% in pre-market trading after the company said in its Q4 2023 results that its EV sales could grow notably slower in 2024 compared to last year. The company's cars are also selling for much less than they used to, which is affecting its margins. Tesla's energy storage business, however, is growing rapidly.
TechCrunch Top 3 image

Image Credits: Indranil Aditya / NurPhoto / Getty Images

Don't miss these

Bluesky melds open source, content moderation: How do you balance open source software and content moderation? That's the challenge facing Twitter-alternative Bluesky as its user base expands. Bluesky has more than 3 million users today, TechCrunch reports.

Meta tightens rules for teenagers: After launching parental supervision tools in 2022, Instagram is making it harder for teens to receive messages from accounts they don't follow. The company previously limited adults' ability to reach out to teens, but is now broadening the scope of the restriction.

DXwand raises $4M for conversational AI in MENA: Building AI tech is global work, but not all models and technologies in the realm of artificial intelligence work as well in every language. So DXwand wants to build conversational AI for Arabic and its dialects. The startup has attracted a $4 million Series A round, led by Shorooq Partners and Algebra Ventures, based in the UAE and Egypt, respectively.

How to build a beverage startup: Have you seen an Olipop where you shop? The beverage company's bright cans and limited sugar content are a popular mix. TechCrunch's Found podcast recently brought on Ben Goodwin, the co-founder and CEO of Olipop, to dig into how he built the company and fundraised in a "riskier, and very saturated, consumer category like beverage."

The new, improved Worldcoin orb will see you now: Worldcoin's eyeball-scanning tech is getting a makeover. The crypto startup has a big goal of creating a blockchain-based ID product for everyone in the world. It will take a little time to scan the world, however, with just over 3 million users scanned thus far, but perhaps a "more friendly" orb will help win over those unsure.

Mushroom roots are big business: Infinite Roots just raised $58 million for its mycelium-based business. The company reckons that the substance (mushroom roots) is going to shake up what and how we eat. Other startups are also digging at mycelium, including Meati, Nature's Fynd, Myco Technology, and Sqim. Say hello to the newest and coolest startup cluster!

Alinea Invest raises $3.4M for Gen Z wealth management: This is a very cool fundraise. Alinea Invest has built a wealth management tool for Gen Z women, and has seen 225,000 downloads and reached a run-rate of $1.8 million. What makes Alinea stand out is the company is run by just six people today, and is already profitable. Surely it will hire more folks, but to see a startup actually make money in its early days while also growing fast is a rare enough achievement. How did it manage the feat? By charging $120 per year for its service.

Ask Sophie: As an immigrant, how can I work in space tech? Immigration lawyer Sophie Alcorn digs into the space industry, and how working cross-border in areas of technology that fall under regulation is possible with the right preparation.

We spent some time digging into Bilt Rewards, Kittl, and Bulk Exchange's fundraises on Equity this week. Bilt was an interesting pick due to the space it operates in (fintech); Kittl has a unique geographic location and competition (Germany, Canva); and Bulk Exchange's target market (construction materials) doesn't get talked about often enough.

Also: Innovation Endeavors just closed a $630 million Fund V, and plans to invest in 30 to 35 new companies.

Don't miss these image

Image Credits: Marco Bello and Eva Marie for the Knight Foundation

Before you go

Pokemon v. Palworld: The biggest story in gaming today is Palworld, a title that shot up the global sales charts and is turning heads not only for its gameplay, but also for a potential lawsuit around IP infringement and copyright.

Dubbed "Pokemon with guns," Palworld is now being looked into by Pokemon Company, which might have a thing or two to say about the new game's "pals," which are basically bootleg Pokemon. We could be looking at a test case regarding IP, and what counts as inspiration and what counts as theft.

Before you go image

Image Credits: Pocketpair

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