Tag Archives: E-commerce

How Apple Has So Far Avoided Layoffs: Lean Hiring, No Free Lunches

No company is certain to avoid significant cutbacks in an economic environment as volatile as the current one, and Apple isn’t immune to the business challenges that have hit other tech giants. It is expected next month to report its first quarterly sales decline in more than three years. Apple has also slowed hiring in some areas.

But the iPhone maker has been better positioned than many rivals to date in part because it added employees at a much slower clip than those companies during the pandemic. It also tends to run lean, with limited employee perks and businesses focused on hardware products and sales that have so far largely dodged the economic downturn, investors say.

An Apple spokesman declined to comment.

From its fiscal year-end in September 2019 to September 2022, Apple’s workforce grew by about 20% to approximately 164,000 full-time employees. Meanwhile, over roughly the same period, the employee count at Amazon doubled, Microsoft’s rose 53%, Google parent

Alphabet Inc.’s

increased 57% and Facebook owner Meta’s ballooned 94%.

Apple has about 65,000 retail employees working in more than 500 stores who make up roughly 40% of the company’s total workforce.

On Friday, Alphabet became the latest tech company to announce widespread layoffs, with a plan to eliminate roughly 12,000 jobs, the company’s largest-ever round of job cuts.

Alphabet’s cut follows a wave of large layoffs at Amazon, Microsoft and Meta. The tech industry has seen more than 200,000 layoffs since the start of 2022, according to Layoffs.fyi, a website that tracks cuts in the sector as they surface in media reports and company releases.

The last big round of layoffs at Apple happened way back in 1997, when co-founder

Steve Jobs

returned to the company, which then cut costs by firing 4,100 employees.

So far, Apple’s core business has shown itself to be resilient against broader downturns in the market. The other four tech giants have suffered amid slowdowns in digital advertising, e-commerce and PCs. In its September quarter, Apple reported that sales at its most important business—the iPhone—advanced 9.7% from the previous year to $42.6 billion, surpassing analyst estimates.

After a period of aggressive hiring to meet heightened demand for online services during the pandemic, tech companies are now laying off many of those workers. And tech bosses are saying “mea culpa” for the miscalculation. WSJ reporter Dana Mattioli joins host Zoe Thomas to talk through the shift and what it all means for the tech sector going forward.

Apple may face a rougher December quarter, which it is scheduled to report on Feb. 2, as the company encountered manufacturing challenges in China, where strict zero-Covid policies damped much economic activity. Many analysts expect that demand hasn’t subsided for its iPhones and as the company continues to ramp back up manufacturing, demand is anticipated to move to the March quarter.

The company’s business model hasn’t been totally immune to broader slowdowns. Revenue from its services business continued to slow, growing 5% annually to $19.2 billion in the September quarter, shy of the gains posted in recent quarters.

Tom Forte,

senior research analyst at investment bank D.A. Davidson & Co., said he expects Apple to reduce head count, but it might do that quietly through employee attrition—by not replacing workers who leave. The company could move in the direction of making other cuts or adjustments to perks that are common in Silicon Valley. Apple doesn’t offer free lunches to employees on its corporate campus, unlike other big tech companies such as Google and Meta.

Some of the tech giants cutting jobs have spent heavily on projects that are unlikely to turn into strong businesses anytime soon, said Daniel Morgan, a senior portfolio manager at Synovus Trust Co., which counts Apple among its largest holdings. “Both Meta and Google are terribly guilty of that,” he said.

Meta has been pouring billions of dollars into its Reality Labs for its new ambitions in the so-called metaverse. Meta Chief Executive

Mark Zuckerberg

has defended the company’s spending on Reality Labs, suggesting that virtual reality will become an important technological platform.

After announcing the layoffs, Alphabet Chief Executive

Sundar Pichai

said the company had seen dramatic periods of growth during the past two years. “To match and fuel that growth, we hired for a different economic reality than the one we face today,” he wrote in a message to employees on Friday.

Apple also is working on risky future bets, such as an augmented-reality headset due out later this year and a car project whose release date is uncertain, but at a more measured pace.

Write to Aaron Tilley at aaron.tilley@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Popular Steam Game Raises Price After 7 Years Without A Sale

Screenshot: Wube Software

Critically-acclaimed base-building hit Factorio is an odd duck. Since its 2016 Steam release, the game has never gone on sale. And now, the developer behind Factorio is changing the price of its popular game, but it ain’t getting a discount. Instead, the price is jumping up $5 next week. The devs blamed inflation for the sudden price increase, and interestingly enough, the general reaction from the community has been mostly positive.

Since its release seven years ago on Steam, Factorio has been a popular game, even though it never, ever goes on sale. On the game’s Steam page, it straight up has a disclaimer letting folks know that its devs have no plans to “take part in a sale or to reduce the price for the foreseeable future.” That’ll still be the case after it goes from $30 to $35 on January 26.

“This is an adjustment to account for the level of inflation since the Steam release in 2016,” the official Factorio Twitter account tweeted. You might expect a flood of angry responses from players, but it appears that the devs have done a good job of being transparent with their community, for example by giving them plenty of heads up about the upcoming price change. Factorio has also avoided microtransactions and other exploitative or expensive DLC. The end result is that not only are people fine with this price increase, but many are suggesting the studio offer more ways for players to help financially support the game.

“Fine, but now give me an add-on to spend more money [on] this game!” tweeted one player. “Honestly, I would love to see other ways to support the game as I already own it,” tweeted another fan.

Wube Software

You might be wondering why a studio would never let its game be a part of any Steam sale for nearly a decade. According to the makers of Factorio in a 2016 forum post, it’s about respecting players who bought the game and not rewarding people who “hold off” on buying it at a lower price.

“If you think [Factorio is] priced too high, then it is your choice to not purchase, and we hope that with enough time, and extra development, we will be able to convince you of its value.

Factorio isn’t the only game on Steam making changes to make more money as the economy continues to spiral down the drain. Military shooter Squad is going back on a promise its devs made about never doing paid DLC or cosmetics. In an upcoming update, Squad will get its first paid DLC in the form of new in-game emotes.

Here’s what the team behind the online milsim shooter had to say on Steam about the new, upcoming paid cosmetics:

As we look into the future we see a long and healthy life for Squad. It has a large and dedicated playerbase. We have plans for more updates and to support the game beyond 2023. While many of these planned updates will be free, we also realize that we need a way to continue to fund the development of Squad. Paid content like emotes is one such way to help fund that development and continue our work on improving the game.

Compared to how people reacted to Factorio’s price increase, the response from Squad’s player community has been far less positive, with some feeling betrayed after being promised that this wouldn’t happen. However, some were more open to the new option, understanding that developing a game isn’t easy or free and that at some point, studios need a way to bring in more income to help keep the lights on. That’s especially true as inflation continues to be a problem around the globe.



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The Dream Of DRM-Free Steam PC Games Is Fading Away

Photo: Casimiro PT (Shutterstock)

Good Old Games, or GOG, the digital-rights-management-free PC gaming marketplace and platform from CD Projekt, has officially ended a service that already didn’t feel terribly long for this world. What once seemed like a promising way to slowly import portions of your Steam library to GOG, where they could exist in an infinitely archivable format, has now finally evaporated.

GOG launched in 2008 as an alternative to other digital gaming storefronts on PC, focusing on making older, hard-to-find games purchasable. The cherry on top? All of these games would be available without any digital rights management software to restrict what you do with your .exe copies. Unlike Steam, GOG games are much easier to back up and re-install on multiple computers, all without ever needing to get tangled up in any sort of online account authorization. In 2012, the service expanded from older PC-gaming gems to modern titles, keeping the DRM-free policy in place.

In 2016, GOG announced “Connect,” a service that let you connect your Steam library to redeem select titles you already owned as DRM-free copies on GOG, with said games only eligible for redemption in a limited window of time. Those who’ve checked GOG.com/Connect in recent years, however, have found nothing but digital tumbleweeds. And now, in January of 2023, said link and service now just directs to GOG’s homepage, officially signaling the end of this once very promising program.

GOG.com/Connect always had an air of “this is too good to be true.” A service that gives you an extra copy of a game you already own, with no restrictions as to how you can backup, install, re-install, sell, or share it? How even?

But while the service was active, it wasn’t just a great way to migrate to a new platform, but rather a handy way to archive your Steam library. Though Steam is a pretty accessible and reliable platform that often gives you access to games you’ve purchased but have since been pulled off the storefront (2007’s Prey is one such example), DRM is still widely used on the Valve storefront and trying to use the service without a reliable internet connection can easily render a game unplayable, as many a traveling Steam Deck user has discovered. GOG Connect was once a promising solution to this issue. But, the idea of being able to some day move a substantial amount of your library into something archivable, without spending a dime, was just too good to be true.

Like many, I used this service a fair bit when it launched. I’d keep the link bookmarked to visit once a week. But as available games began to dry up, it drifted from memory. I still play the game of “should I get this on Steam or GOG?” every time something I want comes up on both services. The promise of GOG Connect once made that question irrelevant.

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Jack Ma Cedes Control of Fintech Giant Ant Group

Billionaire

Jack Ma

is ceding control of Ant Group Co., capping a tumultuous period for the Chinese fintech giant.

Mr. Ma will no longer be the controlling person of Ant, the company said in a statement on Saturday, confirming a previous report by The Wall Street Journal.

The changes are being made to reduce Ant’s reliance on the flamboyant Chinese billionaire, who co-founded

Alibaba Group Holding Ltd.

BABA 2.70%

and helped create Ant, the Journal reported previously.

Mr. Ma will continue to hold voting rights in an entity that controls Ant, alongside nine Ant executives and employees who will be also given voting rights.

Mr. Ma doesn’t hold an executive role at Ant or sit on its board, but is a larger-than-life figure at the company. He has controlled Ant via an entity in which he holds the dominant position. The agreements that allowed Mr. Ma’s dominance will be terminated. The nine other Ant executives and employees to be given the voting rights at the company can exercise their power independently of each other and of Mr. Ma, according to Ant’s statement.

Ant, which owns the popular digital-payment platform Alipay, has been forced to overhaul its operations amid a government crackdown that began with Beijing calling off the company’s multibillion-dollar initial public offering in November 2020. The IPO, which had been slated to happen in Shanghai and Hong Kong concurrently, would have raised more than $34 billion and valued Ant at more than $300 billion. 

Ant has been revamping its various business lines, from consumer lending to insurance, and will eventually become a financial holding company subject to regulations in line with traditional financial firms.

The change of control moves Ant a step closer to finishing its overhaul. Yet it also could put back a potential revival of Ant’s IPO for a year or more. Chinese securities regulations require a timeout on public listings for companies that have gone through a recent change in control.

Regulators didn’t demand the change but have given their blessing, the Journal reported previously. Ant is required to map out its ownership structure when it applies to become a financial holding company.

The nine others who will hold voting rights include Chairman

Eric Jing,

Executive Vice President Xiaofeng Shao and Chief Technology Officer Xingjun Ni, in line with the details in the previous Journal report. Mr. Shao is also the general secretary of Ant’s Communist Party committee, according to people familiar with the matter. Mr. Ni was instrumental in founding Alipay in 2004.

Mr. Ma has all but vanished from the public spotlight since he laid into Chinese regulators in a controversial speech days before Ant’s planned IPO in 2020. He retired from Alibaba in 2019 but continued to control Ant. The two companies that Mr. Ma co-founded have been charting separate courses in light of Beijing’s crackdown on big internet platforms. 

Mr. Ma’s control over Ant goes back more than a decade to the period when he was CEO of Alibaba. Throughout the years, he had contemplated giving up control of Ant out of corporate-governance concerns that risks may arise from Ant being too reliant on a single dominant figure atop the company, the Journal reported previously.

Write to Jing Yang at jing.yang@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Amazon Layoffs to Hit Over 17,000 Workers, the Most in Recent Tech Wave

Amazon.

AMZN -0.79%

com Inc.’s layoffs will affect more than 17,000 employees, according to people familiar with the matter, the highest reduction tally revealed in the past year at a major technology company as the industry pares back amid economic uncertainty.

The Seattle-based company in November said that it was beginning layoffs among its corporate workforce, with cuts concentrated on its devices business, recruiting and retail operations. At the time, The Wall Street Journal reported the cuts would total about 10,000 people. Thousands of those cuts began last year.

The rest of the cuts will bring the total number of layoffs to more than 17,000 and will be made over the coming weeks, some of the people said. As of September,

Amazon

AMZN -0.79%

employed 1.5 million people, with a large percentage of them in its warehouses. The layoffs are concentrated in the company’s corporate ranks, some of the people said.

Amazon

was one of the biggest beneficiaries of the Covid-19 pandemic as customers flocked to online shopping. The rush to Amazon’s various businesses, from e-commerce to groceries and cloud computing, pushed forward years of growth for the company. To keep up with demand, Amazon doubled its logistics network and added hundreds of thousands of employees.

When demand started to wane with customers moving back to shopping in stores, Amazon initiated a broad cost-cutting review to pare back on units that were unprofitable, the Journal reported. In the spring and summer, the company made targeted cuts to bring down costs, shutting physical stores and business units such as Amazon Care. Amazon later announced a companywide hiring freeze before deciding to let employees go.

Many tech companies have cut jobs as the economy sours. Amazon’s layoffs of more than 17,000 employees would represent the highest number of people let go by a tech company in the past few months, according to tallies released on Layoffs.fyi, a website that tracks the events as they surface in media reports and company releases.

The trend has affected companies such as Amazon and others that have acknowledged they grew too quickly in many cases.

Facebook

parent

Meta Platforms Inc.

said it would cut more than 11,000 workers, or 13% of its staff, adding to layoffs at

Lyft Inc.,

HP Inc.

and other tech companies. On Wednesday,

Salesforce Inc.

said that it was laying off 10% of its workforce. Co-Chief Executive

Marc Benioff

said the business-software provider hired too many people as revenue surged earlier in the pandemic. “I take responsibility for that,” he said.

Write to Dana Mattioli at dana.mattioli@wsj.com and Jessica Toonkel at jessica.toonkel@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Appeared in the January 5, 2023, print edition as ‘Amazon Layoffs To Exceed Initial Reports.’

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Amazon Kindle Scribe Review: Off to a Good Start

The latest addition to Amazon’s  (AMZN) – Get Free Report Kindle lineup is its biggest yet with the $339 Kindle Scribe. The giant e-reader has a familiar design and provides a reading experience that’s sure to make its namesake proud.

But the Scribe brings a new feature to the Kindle lineup–the ability to write on the eInk display using a stylus. You can create notebooks, or import documents to use the pen on. You also get a pen–albeit a basic one–for the base price of $339.

On paper, the Scribe sounds great. But in practice, it definitely feels like a first-generation product that’s missing key features to bring it to the same level as the competition and make it a true contender.

A Really big Kindle

Jason Cipriani/TheStreet

Let’s get this out of the way first: The Kindle Scribe is just a really big Kindle at its core. It has a 10.2 inch anti-glare display with a resolution of 300 ppi that shows text that’s clear and crisp. In fact, it looks nearly identical to the Kindle Oasis, but bigger.

The Scribe connects to and syncs with Amazon’s Kindle Store, bringing your Kindle library to a larger screen. It has all of the premium features you can get from the Paperwhite, such as an auto-adjusting front light and it charges via a USB-C port.

Reading on the Scribe is something you’ll undoubtedly have to get used to, at least if you’re accustomed to holding a Kindle in front of your face, as opposed to resting it on your lap. After a few minutes of holding the Scribe off of my lap, I found that it became heavy and I was constantly adjusting my grip. It weighs 443 gm, which is more than double the Paperwhite’s 205 gm and nearly triple the standard Kindle’s weight of 158 gm. It’s heavy… especially for an ereader.

There’s a wide section of the body that provides a spot to hold the Scribe without putting your hand on the display, and because the Scribe has auto-rotation, you can hold it in your right or left hand and the screen will change to match.

You’ll want to be cautious using the Scribe around water as it lacks any sort of waterproof rating, leaving that to the Oasis or the Paperwhite.

The USB-C port is centered along the left-edge of the Scribe, with the power button just below (or above, depending on how you’re holding the tablet) it. The placement of the port is so that you can charge the Scribe while still comfortably holding it.

This Is Just the Beginning for Digital Notebooks

Jason Cipriani/TheStreet

Of course, there’s more to the Scribe than its e-reader functionality–it doubles as a digital notebook. There’s not a whole lot of competition for devices like the Scribe. The reMarkable 2 is probably the most well-known, and even at that, I’d wager unless someone has specifically sought out a dedicated digital notebook device, it’s unlikely someone’s heard of it.

Thanks to Amazon and the Kindle Scribe, however, the concept of taking notes on a dedicated device and accessing them remotely is surely going to spur interest for this type of device.

Jason Cipriani/TheStreet

You have the option of buying the Scribe with 16GB, 32GB or 64GB storage, and with the basic pen or a premium pen. The basic pen is, as its name implies, very basic, having just one feature–the ability to write on the Scribe’s display. 

The premium pen has a shortcut button you can customize to do things like change the pen’s functionality to a highlighter while pressed. It also has an eraser on one end that you can press to the Scribe’s screen and remove any digital ink. 

Jason Cipriani/TheStreet

Either model of pen magnetically attaches to the right edge of the Scribe. It’s not an overly strong connection–you can knock the pen off if you brush it against your desk or as you put the tablet in your backpack–so just be mindful of that. Otherwise, the pen is always available and ready for use.

The display of the Scribe has a slightly textured finish that adds a touch of friction to the nib of the pen as it moves over it. You can’t feel it with your finger when you touch the screen, but it’s definitely noticeable with the pen. The end result is an experience that feels more like writing on paper and not a slab of glass. I actually have a screen protector on my iPad that’s designed to mimic this same experience. It’s called Paperlike, and it’s awesome. The fact that it’s built into the Scribe’s hardware is a welcome bonus.

Along the bottom of the main interface is a new tab labeled Notebooks. This tab is where you’ll find all your notebooks, which you can organize into folders.

All of your notebooks are synced with Amazon’s Kindle servers, and accessible on your iPhone or Android phone via the Kindle app. I haven’t figured out a way to access my notebooks on a computer.

Jason Cipriani/TheStreet

Inside a notebook, you can use the pen to write or sketch. There’s a small toolbar that expands and collapses to reveal a pen, highlighter or eraser tool. If you double-tap on a tool’s icon, you can customize the thickness of the digital ink or highlighter.

The basic tools are there, but I want more. I’ve used the reMarkable 2 and an iPad Mini to take notes, both of which have more advanced tools for my digital writing. For instance, I can select text and move it up or down on a page by using the select tool. The Scribe has a select tool, but only for deleting a section of your notebook.

Writing is a smooth process that offers very little latency between when the pen touches the screen and digital ink appears. I don’t have any issues with the latency, or lack thereof, on the Scribe. It’s on par with the reMarkable 2, and maybe a little slower than the iPad.

Another feature that’s missing from the Scribe at launch is the ability to convert your handwriting into text; a capability that helps with searching your notebooks for specific items.

Syncing documents to the Scribe can be done a couple of different ways, both of which are nice (but again, I’d like to see more). Right now you can use the Send to Kindle website to drag and drop documents that are then synced to your Kindle devices — or you can opt to have them sent only to your Scribe. Another method is to use the Kindle app on your iPhone or Android device.

The entire document-sharing process would be better if Amazon had support for some sort of cloud storage service, be it Google Drive, Dropbox or OneDrive.

Once you have a document on the Scribe, you can then write notes on it, sign it, or use the sticky note feature. When you’re finished you can then email the document to yourself or another person.

After using the Scribe for a few weeks, you can see the potential of it as a digital notebook, but it feels very much like a first-generation product. That’s not an entirely negative statement, but it does mean that the Scribe in its current form isn’t the best digital notebook device on the market. It has room to grow.

Bottom Line: Is the Kindle Scribe Worth it?

Jason Cipriani/TheStreet

The Kindle Scribe is a fantastic e-reader, especially if a larger-screened Kindle is your panacea. It does all of the things you’d expect an Amazon Kindle to do, with the added bonus of using a pen to take notes. But when used as a digital notebook, the experience doesn’t match the fit and finish of its e-reader counterpart.

I’m confident Amazon will continue improving the Scribe’s notebook experience through software updates, but it’s never a good idea to buy a product for what it could be. And I don’t make it a habit to recommend products based on the future.

That said, I can still recommend the Kindle Scribe to those who want a basic digital notebook that doubles as an e-reader. Or is it the other way around? Either way, go into it with proper expectations for what it can and can’t do and you’ll be alright.

If you want a Kindle experience, but don’t need something as big or pricey as the Scribe, the $140 Paperwhite is the best option for many, if not most.

Prices are accurate and items in stock at time of publishing.



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Wednesday had a huge debut on Netflix

Wednesday
Photo: Netflix

Get ready to toss out your Netflix confetti (made from shredded red envelopes and DVDs), because Netflix is having another parade in its own honor. As usual, the parade is in honor of a new thing on Netflix that got way better numbers than every other thing on Netflix, proving that Netflix is a good company that makes good stuff, and each new thing is better and more popular than the last new thing! Hip hip hooray!

So yeah, we’re as skeptical of this as we always are, but Deadline is reporting that Netflix is reporting that new Addams Family reboot/spin-off Wednesday just had the biggest week of any English-language series in Netflix history. It was apparently watched for 341 million hours in its debut, with more than 50 million households tuning in to see what Jenna Ortega’s angry goth child would be up to at the mysterious and magical Nevermore Academy. The series is directed by Tim Burton, and it also stars Gwendoline Christie, Jamie McShane, Percy Hynes White, Christina Ricci, Catherine Zeta-Jones, and Luis Guzmán.

The previous English-language record-holder was the first block of episodes for Stranger Things’ fourth season, which were viewed for 335 million hours at their highest. The current record-holder overall, separated from the English-language (and its bizarrely inconsistent grammatical rules), is Squid Game, which was watched for 571 million hours in its highest week. These numbers all come from Netflix, and “hours watched” is kind of a purposefully vague metric that has nothing to do with how a viewer felt about the thing they watched or even how much of the thing they actually watched—we know 50 million households put Wednesday on, but what if 10 of them watched 300 hours and the other 40 only watched one hour? That would be confusing data!

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Please Stop Putting Launchers In PC Games Already On Steam

Image: Kerbal Space Program | Kotaku

The was once a golden age of PC gaming where you could open up Steam (or even just launch an executable yourself!), boot up a game and the next thing you would see would be the game itself. For many big (and small) releases those days are now long gone, replaced by an era of launchers that are, at best, a nuisance.

If you want to play a Rockstar game on PC you need to install the company’s own launcher, which boots before you play the game you clicked to play, then makes you click another play button so you can finally play it. And that’s how it works when it’s working; when it’s not you simply can’t play any Rockstar games that you own, sorry!

Want to play a Total War game? You get a launcher. Paradox game? A launcher. Blizzard game? Battle.net. Fortnite? Epic Games Store. An EA game? Origin. Ubisoft? Hey, guess what, you gotta launch Ubisoft Connect, a launcher. Even Kalypso has a launcher.

Note that there are some bright spots here; Bethesda killed its own launcher off earlier this year and just let Steam handle everything, and some launchers have practical benefits like letting you manage your mods (Paradox) or jump straight into a save game (Creative Assembly).

While publishers have clear reasons to dump these things on us (from DRM to $$$), these launchers are wildly unpopular among players, in part because of the connectivity hassles (see Rockstar’s example above), but mostly because they’re just a pain in the ass, a speed bump on your way to the place you actually want to go.

Things have hit a new level of absurdity this week, though, with news that Kerbal Space Program—yes, the one with the little aliens building rockets—now has its own launcher for the Steam version of the game, announced as “a resource for news and updates about KSP & KSP 2 Early Access”.

Given the profile of the game, the fact it’s already launching through Steam and its reputation as a weird little indie sandbox, fan reaction has been understandably negative; folks are venting on Steam, while on the game’s Reddit workarounds have already been found to disable the launcher entirely.

Publishers, please, we’re begging you. This sucks. As the best comment in that Steam discussion says, “GAMES ON STEAM DO NOT NEED A LAUNCHER. STEAM IS THE LAUNCHER”.

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Lyft to Lay Off About 700 Employees in Second Round of Job Cuts

Lyft Inc.

LYFT -0.61%

said it is cutting 13% of staff, or nearly 700 jobs, the latest technology company to say it needed to reduce costs ahead of choppy economic conditions.

Confirming an earlier report by The Wall Street Journal, Lyft co-founders

John Zimmer

and

Logan Green

announced the cuts to staff Thursday. “There are several challenges playing out across the economy. We’re facing a probable recession sometime in the next year and ride-share insurance costs are going up,” they wrote in the memo viewed by the Journal.

“We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives. Still, Lyft has to become leaner, which requires us to part with incredible team members,” they added.

The ride-hailing company has more than 5,000 employees, which don’t include its drivers. Lyft laid off 60 people, or under 2% of its workforce, in July. In May, it said it planned to slow hiring and reduce the budgets of some of its departments.

Technology companies large and small have been announcing hiring freezes or staffing cuts this year after many hired at a breakneck speed through the pandemic and now confront a tougher economic outlook. This week,

Amazon.com Inc.

told employees it is pausing corporate hiring and payments startup Stripe Inc. said Thursday that it is laying off about 14% of its employees. Both blamed the harsh economic climate for their decisions.

San Francisco-based Lyft also said that it would sell its vehicle service centers and that most of that team is expected to receive roles from the acquiring company, which it didn’t name. Lyft has centers in nine markets.

The company maintained its third quarter and 2024 earnings outlook but said it expects to incur $27 million to $32 million in restructuring related to Thursday’s layoffs in this year’s fourth quarter. The company posts third-quarter results Monday.

Lyft shares have underperformed the broader market over the past 12 months. Through Wednesday’s close, its stock was down 71% from a year ago while the tech-heavy Nasdaq Composite Index was down 33%.

Rival

Uber Technologies Inc.’s

diversified business, which includes global rides operations and a food-delivery arm that became its lifeline during the pandemic, has fared better with Wall Street. Its stock is down about 37% in the past year.

In May, Uber said it would slow hiring. Both companies have struggled with a driver shortage over the past year, an imbalance that has pushed ride fares to record highs. Uber said active drivers and riders returned to prepandemic levels for the first time in this year’s third quarter.

Write to Preetika Rana at preetika.rana@wsj.com and Emily Glazer at emily.glazer@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Millennial’s beauty startup Social Bella raised over $225 million

When the Covid pandemic was raging in 2020, much of the world was in lockdown and more turned to online shopping.

But Chrisanti Indiana did the unexpected: she expanded her e-commerce business — offline.

Her beauty and personal care e-commerce startup, Sociolla, had just two brick-and-mortar stores in Indonesia in 2019. By the end of 2021, that number grew “10 times” more, she said.

“A lot of people actually told us that it’s a very bold move to actually open an offline presence, while everybody was closing their offline stores [during the pandemic],” she added. 

But that was a “well-calculated” move for Social Bella, which operates Sociolla. 

We know that this is the time for us to actually prepare … to make sure that after the pandemic, we can serve more and more consumers.

Chrisanti Indiana

Co-founder and CMO, Sociolla

“We know that this is the time for us to actually prepare … to make sure that after the pandemic, we can serve more and more consumers,” she added. 

Looking far ahead turned out to be the right move for the 31-year-old. Her online and offline approach transformed her e-commerce startup into a multimillion-dollar beauty conglomerate.  

Since 2018, it has raised around $225 million, and drawn an impressive list of investors that include East Ventures, Jungle Ventures, Temasek and Pavilion Capital.  

Indiana, the co-founder and chief marketing officer of Social Bella, tells CNBC Make It how she took her Jakarta-based startup to the next level.

Tackling counterfeits  

The idea for Sociolla came about in 2015, when Indiana returned home to Jakarta, after studying in Australia.  

The makeup junkie realized that in Australia, she had easy access to a wide range of beauty products from international brands. That was a stark contrast to Indonesia.

“There was lot of options for me, but then I came back and there’s basically none,” said Indiana. 

“There wasn’t a platform that had it all — I had to find specific sellers on social media, ask friends who can help purchase the product for you [when they are] overseas.”

What made matters worse for her was the online proliferation of counterfeit makeup products that were sometimes selling at “a fraction” of the original’s price. 

I still remember vividly in my mind that there’s a lot of like sellers online, especially on social media, that claim their products are 99% authentic. What does that mean, 99% authentic?

Chrisanti Indiana

Co-founder and CMO, Sociolla

“I still remember vividly in my mind that there’s a lot of like sellers online, especially on social media, that claim their products are 99% authentic. What does that mean, 99% authentic?” 

Indeed, locally made counterfeits in Indonesia are rife, thanks to cheap labor costs and materials. According to a local report, Indonesian authorities seized illegal cosmetic products worth $9 million in 2018 — twice the previous year’s amount. 

Seeing friends buying these products left Indiana perplexed. 

“It’s skincare, it’s makeup. It’s something that you put on your skin. It’s just bizarre for me,” she said. 

Sociolla has expanded into brick-and-mortar shops. It now has 47 stores in Indonesia and 16 in Vietnam.

Social Bella

Determined to build a space where consumers can get products that are safe and authentic, Indiana teamed up with her brother and friend to launch Social Bella, with a starting capital of $13,000.

“Since we started, we ensure that we only work with authorized distributors or brand owners,” Indiana said. 

Building an ‘ecosystem’

Sociolla may have started off as an e-commerce platform, but the trio had bigger dreams. 

Social Bella has since gone beyond offline shops — it’s also a distributor for beauty and personal care manufacturers worldwide.  

“We become an associate partner for a lot of global brands in Indonesia. We help them not only to distribute their products to Indonesia, but we also help them understand the market,” said Indiana.

On top of that, the business also operates Soco, which Social Bella says is Indonesia’s largest online review service for beauty products. Soco has amassed more than 2.5 million reviews for around 36,000 products, the company added. 

Social Bella was founded in 2015 by Chrisanti Indiana, her brother and president Christopher Madiam (left) and CEO John Rasjid (right).

Social Bella

The “beauty journey” for customers goes beyond putting something in their shopping carts and checking out, said Indiana. 

“We realized that there’s a lot of touch points that are really important … finding the right products for yourself is not just about going to the store and picking it up. You will make sure that you read the reviews, talk to your friends, or Google first,” she added. 

“Soco makes sure that they can access tons of product reviews before they purchase products.”

On top of that, Social Bella also runs Beauty Journal — a lifestyle website, and Lilla, an online retailer for mothers and babies.

That’s all part of building the business “ecosystem,” as Indiana calls it.

We want to make sure that we are scaling up and reaching more and more consumers. If Social Bella becomes a unicorn, it’s a bonus.

“We want to … to serve more and more women, not only in beauty and personal care, but also in other industries.”

The startup appears to be on the right track — it now boasts more than 30 million users across all its business units, said Social Bella, selling an inventory of 12,000 products from 400 brands worldwide.

Indonesia’s next unicorn? 

Over the last two years, Social Bella expanded aggressively, growing from just three Sociolla stores in Indonesia in 2020, to 47 stores there and 16 stores in Vietnam today.

While much of the expansion took place during the pandemic, Indiana said that had always been part of the plan for the e-commerce platform, lockdowns or not.

“It’s actually to create a seamless omnichannel experience … because we believe that we are serving the same customer whether she shops offline or online,” the Forbes’ 30 Under 30 Asia honoree said.

“They can choose to do click-and-collect or … she can also deliver the purchases to her home. It’s making sure that she can shop the way she likes.” 

Social Bella aims to serve more female customers.

Social Bella

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