• OpenAI and Microsoft have an internal definition for AGI, per The Information.
• The two companies agreed to define AGI as a system that can generate $100 billion in profits.
• OpenAI says on its website that AGI refers to AI systems that are smarter than humans.

OpenAI and Microsoft have a definition for artificial general intelligence, and it hinges on the money the emerging technology can bring in.

The two companies signed an agreement in 2023 that defined AGI as a system that can generate $100 billion in profits, The Information reported on Thursday, citing documents it had obtained.

OpenAI has, however, publicly defined AGI on its website as "a highly autonomous system that outperforms humans at most economically valuable work."

The ChatGPT maker added that its nonprofit board would decide whether AGI has been achieved.

"Such a system is excluded from IP licenses and other commercial terms with Microsoft, which only apply to pre-AGI technology," the company wrote on its website.

OpenAI and Microsoft did not respond to Business Insider's request for comment.

Based on its agreement with Microsoft, OpenAI still has some way to go before it can achieve AGI.

The company expects to accumulate losses of around $44 billion between 2023 to 2028, and could hit $100 billion in revenue in 2029, The Information reported in October, citing financial documents it had obtained.

"My guess is we will hit AGI sooner than most people in the world think and it will matter much less," OpenAI CEO Sam Altman said during an interview with Andrew Ross Sorkin at The New York Times DealBook Summit on December 4.

In November, Bloomberg reported that OpenAI is in preliminary talks with California's attorney general's office about becoming a for-profit company.

OpenAI was initially launched as a nonprofit research organization in 2015. The company closed a $6.6 billion funding round in October, valuing it at $157 billion.

• Elon Musk had some criticism for former Boeing CEO Dave Calhoun on Christmas Day.
• "Boeing is on a much better track with the new CEO," Musk wrote on X.
• Musk said Calhoun, an accounting graduate, "had no idea how airplanes or rockets worked."

Boeing is "on a much better track" after changing CEOs, Tesla and SpaceX CEO Elon Musk said on Wednesday.

Musk was talking about America's shortage of engineering talent on X when he was asked about the embattled aerospace manufacturer.

"That said, talking in terms of specific companies, Boeing is on a much better track with the new CEO. The prior guy had no idea how airplanes or rockets worked. Just zero," Musk wrote in his post.

Boeing was previously led by Dave Calhoun, who served as the company's CEO from January 2020 to July 2024.

The Virginia Tech accounting graduate was succeeded by former Rockwell Collins CEO Kelly Ortberg in August. Ortberg holds a degree in mechanical engineering from the University of Iowa.

When Boeing announced Calhoun's resignation in March, Calhoun said the decision was 100% his own.

"I've entered my fifth year. At the end of this year, I'll be close to 68 years old," Calhoun said in an interview with CNBC.

This isn't the first time Musk has criticized Calhoun's academic background. Back in June, Musk said that Boeing had lost touch with its engineering roots.

"The CEO of an aircraft company should know how to design aircraft, not spreadsheets," Musk wrote in an X post on June 25.

Representatives for Calhoun and Ortberg at Boeing did not respond to Business Insider's request for comment. Musk also did not respond to a request for comment.

Calhoun's departure came amid a deepening quality-control crisis at Boeing.

The aerospace company faced intense scrutiny in January after a door plug flew off a Boeing 737 Max 9 during an Alaskan Airlines flight from Oregon to California.

The incident resulted in a series of investigations from the Federal Aviation Administration, the Department of Justice, and the National Transportation Safety Board.

According to a Senate subcommittee report on Boeing's safety and quality practices that was published in June, several whistleblowers came forward to express concerns about how Boeing handles faulty plane parts.

Calhoun's predecessor, Dennis Muilenburg, was fired after two crashes involving a different Max variant, the Max 8, killed 346 people in 2018 and 2019.

Calhoun publicly apologized to the families of the crash victims during a Senate hearing in June, but defended Boeing's safety record when he was grilled by lawmakers.

"You're proud of the safety record?" Sen. Josh Hawley of Missouri asked Calhoun.

"I am proud of every action we've taken," Calhoun said.

In October, Ortberg shared his four-part turnaround plan for Boeing in a memo to employees.

Ortberg's plan called for a fundamental change in the company's culture, a stabilization of its business, an improvement in execution discipline, and the building of a new future for the planemaker.

"We need to be on the factory floors, in the back shops and in our engineering labs. We need to know what's going on, not only with our products, but with our people," Ortberg wrote.

"And most importantly, we need to prevent the festering of issues and work better together to identify, fix, and understand root cause," he added.

Boeing reported a net loss of $6.1 billion in the third quarter of 2024 in the same month. The company recorded a loss of more than $1.4 billion in the previous quarter.

Boeing's shares are down by over 31% this year.

"It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again," Ortberg said in his October memo.

• President-elect Donald Trump named Elbridge Colby as his next undersecretary of defense policy.
• In February, Colby said "disabling or destroying TSMC is table stakes" if China invades Taiwan.
• Colby made the same point in 2023, saying the US should never allow TSMC to fall into Chinese hands.

President-elect Donald Trump's pick for undersecretary of defense policy, Elbridge Colby, once called for the destruction of Taiwan Semiconductor Manufacturing Company's chip plants if China takes over Taiwan.

"There's no scenario in which Taiwan falls to the PRC and Taiwanese can expect TSMC and its central role to persist," Colby, a former senior Pentagon official, wrote in an X thread in May 2023.

"If China attacks Taiwan, Taiwan itself and US should not allow TSMC to fall intact into PRC hands," Colby wrote in the thread.

TSMC, Colby wrote, needs to be included in the US' semiconductor sanctions against China in the event that Taiwan surrenders. The US and its allies can't afford to allow China to "have such dominance over global semiconductors," he wrote.

Trump announced Colby's nomination in a Truth Social post on Sunday, calling him a "highly respected advocate for our America First foreign and defense policy."

Colby, a Harvard and Yale Law graduate, was part of the first Trump administration. He served as Trump's deputy assistant secretary of defense for strategy and force development from 2017 to 2018.

Colby made a similar point about TSMC in another X post earlier this year.

"Disabling or destroying TSMC is table stakes if China is taking over Taiwan," Colby wrote on February 24.

"Would we be so insane as to allow the world's key semiconductor company fall untouched into the hands of an aggressive PRC?" he added.

Representatives for Trump and Colby did not respond to requests for comment from Business Insider. TSMC also did not respond to a request for comment.

TSMC is the world's largest contract chipmaker. It counts US tech giants like Apple and Nvidia as major customers.

Its core base, Taiwan, is also home to smaller chip producers like MediaTek and ASE, making the island a critical node in the global semiconductor supply chain.

According to the US-based Semiconductor Industry Association, 92% of the world's most advanced microchips are produced in Taiwan.

In May, Commerce Secretary Gina Raimondo told lawmakers at a House hearing that a Chinese seizure of TSMC during a Taiwan invasion "would be absolutely devastating." The US is obliged by law to protect Taiwan by providing the island with military means to defend itself.

Under President Joe Biden, the US has strived to diversify its chip supply.

In August 2022, Biden signed the $52 billion CHIPS for America Act, which provides manufacturing incentives for chip production in the US.

The legislation drew criticism from Trump, who said in an interview with Joe Rogan in October that tariffs, not subsidies, would have been more effective.

"You could have done it with tariffs. You tariff it so high that they will come and build their chip companies for nothing," Trump said.

In December, the Biden administration introduced a new raft of export controls on China's semiconductor industry.

The restrictions, which target 140 Chinese companies, mark the third time the administration has cracked down on China's chipmaking industry since October 2022.

The list includes companies like Huawei, Naura Technology Group, and Semiconductor Manufacturing International Corporation.

• Tricia Goh is a final year computer science student at the National University of Singapore.
• Unlike most of her peers, Goh says she is not gunning for a job at a FAANG company.
• Goh received a job offer after competing a six-month internship at a Norwegian software company.

This as-told-to essay is based on a conversation with Tricia Goh, 22, a senior at the National University of Singapore studying computer science. The following has been edited for length and clarity. Business Insider has verified her education and employment history.

Landing a job in the tech industry isn't as easy as it once was. It's scary to read news stories about how tough the job market is for computer science graduates these days.

Computer science has also become more popular and competitive as a major. There are nearly a thousand students in my batch. This means that each of us could end up fighting with hundreds of people for the same number of roles.

Interestingly, studying computer science wasn't always on the cards for me. Like most Singaporean youths, I had no idea what I wanted to study at university when I graduated from junior college.

To get a better sense of what I wanted to do, I spent the nine months I had before college doing internships. I ended up doing two internships — at a primary school where I taught English and mathematics and at a local IT company that focuses on enterprise software.

Working at that IT company was a transformative experience.

I had the benefit of getting one-to-one guidance from the company's founder, and got to learn more about the tech industry and ecosystem.

The internship ended up sparking my interest in computer science.

In fact, even when school started, I still found myself heading back to the company to help out and brush up on my understanding of areas like cybersecurity and software engineering.

Interning my way to a full-time job

It wasn't easy adapting to university life during my first few semesters.

The curriculum was challenging, and I thought my grades didn't accurately reflect what I could contribute to a company if hired as a full-time employee. That drove me to do more internships to accrue hands-on experience.

This year, I did a six-month internship at a Norwegian software company. The company recently set up its headquarters in Singapore, and I participated in its efforts to break into the Asian market.

At the end of this internship, I was offered a full-time job.

Rejecting the FAANG rat race to walk my own path

Many of my peers are gunning for top high-paying jobs at FAANG companies like Facebook and Google.

People like me who don't aim for those positions often get asked questions like, "Why aren't you going for the best jobs out there? Why aren't you trying to get a job at Google?"

However, I have no regrets about prioritizing my own growth by working at a smaller company.

Working at a FAANG company may be something that many computer science students see themselves doing, but such a goal isn't in line with what I want out of my career.

My long-term goal is to become an entrepreneur and start my own company. I know that I won't be happy earning lots of money if it means working long hours.

I would rather do something more fulfilling that still allows me to support my family and live well. I don't mind opting out of the hustle of chasing big-name companies for smaller learning experiences instead.

Do you have a story to tell about your tech or finance career? Reach out to this reporter at [email protected].

• Steve Ballmer said his investment strategy is partly influenced by Warren Buffett.
• But Ballmer, whose net worth is larger than Buffett's, has an unconventional investment portfolio.
• More than 80% of Ballmer's portfolio is held in Microsoft stock, per The Wall Street Journal.

Steve Ballmer has an unorthodox investing approach.

The former Microsoft CEO is worth $151 billion, per the Bloomberg Billionaires Index, making him the ninth richest person the world.

That puts him ahead of famed investor Warren Buffett by a nearly $10 billion margin.

In an interview published Sunday, Ballmer told The Wall Street Journal that his investment strategy is partly influenced by Buffett, who has long said that since most people picking stocks cannot beat the returns of a general index fund. But there's one key difference.

The Journal reported that Ballmer keeps more than 80% of his portfolio in Microsoft stock. The rest is held in index funds. Ballmer declined to say how large his stake is in Microsoft.

"Microsoft's outperformed just about every other asset I could have owned," Ballmer told the Journal.

Ballmer's investment strategy goes against conventional wisdom, which suggests that people reduce their risk by diversifying their capital across different asset classes. And the world's wealthiest people typically go beyond stocks and bonds to invest in non-liquid assets like private equity and real estate. Ballmer said he is "mostly dialing out of private equity."

To be sure, Ballmer wasn't always going against the trend.

The 68-year-old tried diversifying in the past but said he struggled to find money managers who consistently beat the market.

"The only stock I really study still is Microsoft, because that's still overwhelmingly, overwhelmingly, overwhelmingly the No. 1 thing that I own," Balmer told the outlet.

Ballmer began his career at Microsoft in 1980 and succeeded founder Bill Gates as CEO in 2000.

According to regulatory filings, Ballmer held 333 million shares, or a 4% stake, in Microsoft when he stepped down as CEO in 2014.

Microsoft's shares are up 16.1% this year. The Seattle-based tech giant has been in front of the AI race with huge bets on startups like Sam Altman's OpenAI and France's Mistral AI.

In October, Microsoft CEO Satya Nadella said in an earnings call that the company's AI business is on track to top an annual revenue run rate of $10 billion next quarter.

This would make it the fastest business in Microsoft's history to reach that milestone, Nadella added.

Ballmer attributes his bumper gains in Microsoft's stock to luck.

"Forget the stock price. I had luck, essentially, in getting to listen to the right people," Ballmer told the Journal.

"But I also had luck in terms of my loyalty to the company and not wanting to be a seller as a leader of the business. It turned out to be a great investment thing, too," he added.

Ballmer did not respond to a request for comment from Business Insider.

• Nissan and Honda are reportedly considering a merger.
• But former Nissan CEO Carlos Ghosn said the move suggests that Nissan is in "panic mode."
• "There is practically no complementarity between the two companies," Ghosn told Bloomberg on Friday.

The potential merger between Japanese automakers Nissan and Honda is a "desperate move," said Carlos Ghosn, Nissan's former CEO.

On Tuesday, Japanese newspaper Nikkei said the two companies are entering into merger negotiations.

Pooling their resources would allow Nissan and Honda to better compete against rivals in the electric vehicle space like Tesla and China's EV makers, the outlet reported.

Honda and Nissan are the second and third largest automakers in Japan, respectively. Their local rival, Toyota, is the world's biggest automaker.

A Nissan-Honda merger would result in the world's third-largest car company by volume.

Last week, Nissan and Honda told Business Insider that they are "considering various possibilities for future collaboration" but added that "no decisions have been made."

Ghosn said in an interview with Bloomberg on Friday that pursuing a merger with Honda suggests that Nissan is in "panic mode."

"It's not a pragmatic deal because frankly, the synergies between the two companies are difficult to find," Ghosn said.

"There is practically no complementarity between the two companies. They are on the same markets. They have the same products. The brands are very similar," he added.

Ghosn, Nissan, and Honda did not respond to requests for comment from BI.

Ghosn, once considered a legend in the auto industry, experienced a dramatic fall from grace in 2018.

The former CEO and chairman of the Renault-Nissan-Mitsubishi alliance was arrested in Japan and charged with financial crimes in November 2018.

Ghosn was detained in a Japanese jail for over 100 days, before he fled the country by smuggling himself to Lebanon in a musical-instrument case in December 2019.

The disgraced auto chief has maintained his innocence. Last year, Ghosn filed a billion-dollar lawsuit against Nissan in Lebanon for damaging his finances and reputation.

On Friday, Ghosn told Bloomberg that the Japanese government — specifically Japan's Ministry of Economy, Trade, and Industry — was likely behind the Nissan-Honda merger talks.

"So at the end of the day, they're trying to figure out something that could marry the short-term problems of Nissan and the long-term vision of Honda," Ghosn said.

The merger talks come at a precarious time for Nissan, which has been grappling with falling profits and decreased sales this year. Last month, Nissan cut 9,000 jobs globally in a bid to reduce costs. The company's stock is down 20.7% this year.

Nissan is also facing increased competition from Chinese EV makers like BYD, as automakers vie for market share in developing markets like Southeast Asia and Latin America. Data compiled by the technology firm ABI Research for BI showed that Chinese carmakers accounted for 70% of the EV market in Thailand and 88% in Brazil in the first quarter of this year.

Nissan initially led the EV race when it launched the world's first mass-market EV, the Leaf, in 2010.

But the Japanese car company's EV strategy has since floundered. Nissan is one of the few car manufacturers in the US without a hybrid or plug-in offering.

"Nissan finds itself now with a very poor lineup of products and without obvious leadership in EVs, and that's the direct result of poor management," Andy Palmer, the former chief operating officer of Nissan, told BI in November.

• China wants to hit a military modernization milestone in 2027.
• But China's ongoing crackdown on military corruption could disrupt its progress, says the Pentagon.
• China suspended a top military official last month, a year after firing its last defense minister.

China's near-term military modernization goal could be bogged down by its corruption scandals, a senior US defense official said on Monday.

"The substantial problems they have with corruption that have yet to be resolved certainly could slow them down on the path toward the 2027 capabilities development milestone and beyond," the official told journalists during a press briefing.

A transcript of the briefing was published on Wednesday, the same day the Defense Department released its annual assessment on China's military capabilities.

According to the Pentagon's report, at least 15 high-ranking Chinese military officials and defense industry executives were removed from their positions between July and December 2023.

Last month, The Financial Times reported that defense minister Adm. Dong Jun was under investigation for graft, the third consecutive person in the role to be investigated. A defense ministry spokesperson denied the FT's report, calling it a "sheer fabrication."

Also last month, China's defense ministry said a senior military official, Adm. Miao Hua, was suspended and under investigation for "serious violations of discipline." The accusation usually refers to corruption.

The 69-year-old oversaw political indoctrination in the People's Liberation Army and served on the Central Military Commission. The six-person commission, chaired by China's leader, Xi Jinping, oversees China's armed forces.

Miao's suspension came just a year after China's last defense minister, Gen. Li Shangfu was fired. Li was in office for seven months before he was removed.

Li and his predecessor, Wei Fenghe, were eventually expelled from the Chinese Communist Party for alleged corruption in June. They were also stripped of their military ranks.

"In 2023, a new wave of corruption-related investigations and removals of senior leaders may have disrupted the PLA's progress toward stated 2027 modernization goals," the Pentagon's report said.

Earlier this year, US intelligence highlighted corruption effects including missiles filled with water and intercontinental ballistic missile silos sporting improperly functioning lids that could derail a missile launch.

US intelligence sources told Bloomberg in January that corruption was so severe in China's Rocket Force and the wider PLA that it would most likely force Xi to recalibrate whether Beijing can take on any major military action soon.

US officials believe that Xi wants China to be ready to invade Taiwan by 2027. China first announced the modernization goal in October 2020. The 2027 milestone will coincide with the centennial of the PLA's founding.

"That doesn't mean that he's decided to invade in 2027 or any other year," CIA chief William J. Burns said in an interview with CBS in February 2023.

Representatives for China's defense and foreign ministries did not respond to requests for comment from Business Insider.

• Elon Musk's DOGE has hired about 10 people so far, per Bloomberg.
• Boring Co. CEO Steve Davis and ex-Trump tech adviser Michael Kratsios are interviewing hires.
• The commission said in November that applicants could send their résumés via DM on X.

Elon Musk is tapping a mix of old and new faces to meet DOGE's staffing needs.

Last month, President-elect Donald Trump announced that Musk would co-lead an advisory group called the Department of Government Efficiency, or DOGE, alongside Vivek Ramaswamy.

DOGE, Trump said in his announcement, would be tasked with slashing excess regulations and trimming wasteful government spending. The commission is set to conclude its work by July 4, 2026.

On Wednesday, Bloomberg reported that The Boring Company CEO Steve Davis and former US chief technology officer Michael Kratsios were interviewing potential hires. DOGE has hired about 10 people thus far, the outlet reported, citing people familiar with the matter.

Musk's commission is also looking to recruit software engineers, including those with experience in artificial intelligence, per Bloomberg.

Much of the group's staffing is still unclear, including whether these are full-time roles, where they will be based, and how they will be paid.

According to a Bloomberg, DOGE is currently operating out of a SpaceX-leased office located near the White House.

In November, Musk said in an X post that DOGE employees will be involved in "tedious work" and draw zero compensation.

DOGE so far: a mix of Musk and Trump staffers

Davis is no stranger to Musk's enterprises.

The Boring Company chief holds a doctoral degree in economics from George Mason University and started out as a SpaceX engineer. Musk later handpicked Davis to run his tunneling company.

Davis was also involved in Musk's purchase of Twitter in 2022 and played a key role in Musk's pro-Trump super PAC, America PAC.

Joining Davis is Kratsios, who served as Trump's top technology advisor during his first administration. Prior to joining the Trump administration, Kratsios was tech billionaire Peter Thiel's chief of staff and a principal at Thiel Capital.

Kratsios is a managing director at Scale AI, a data labeling startup.

DOGE's first reported hire was announced by Trump — not Musk or Ramaswamy — earlier this month.

In a Truth Social post on December 4, Trump said that Republican lawyer William Joseph McGinley will serve as the commission's counsel.

McGinley, a former partner at the law firm Jones Day, served as Trump's White House cabinet secretary from 2017 to 2019.

Silicon Valley appears to have figured prominently in Musk's work on DOGE.

The Tesla and SpaceX CEO has reportedly been consulting Silicon Valley leaders, such as venture capitalist Marc Andreessen and Uber cofounder turned food tech entrepreneur Travis Kalanick, about his plans for the commission.

In November, the commission started an account on Musk's social network X and said that applicants could send in their CVs via direct message.

"We don't need more part-time idea generators. We need super high-IQ small-government revolutionaries willing to work 80+ hours per week on unglamorous cost-cutting," the post said.

Musk did not respond to a request for comment from Business Insider.

• Nissan and Honda are considering a merger to help them compete in the EV industry.
• The news sent Nissan stocks skyrocketing by as much as 24% in early trading on Wednesday local time.
• The Japanese car companies are struggling with slumping profits and stock prices.

Honda and Nissan are set to negotiate a possible merger that could see the two Japanese car heavyweights strengthen their existing ties and increase their collective power locally and globally.

Japanese newspaper Nikkei reported news of the possible merger on Tuesday, adding that the two car companies are hoping their combined resources will help both compete against Tesla and Chinese electric vehicle makers.

The two companies are in talks to set up an umbrella holding company to facilitate a merger, Reuters reported on Tuesday, citing a person with knowledge of the discussions.

"As announced in March of this year, Honda and Nissan are exploring various possibilities for future collaboration, leveraging each other's strengths," a spokesperson for Honda said in a statement to Business Insider on Tuesday.

"We will inform our stakeholders of any updates at an appropriate time," the statement added.

The merger could also include another automaker: Mitsubishi Motors, Bloomberg reported on Tuesday, citing people familiar with the matter. Nissan is Mitsubishi's largest shareholder.

"The contents of the report is not something that has been announced by our company. Nothing has been decided at the moment," Mitsubishi said in a statement to BI.

On Wednesday, Bloomberg reported that the parent company of Taiwanese tech giant Foxconn had approached Nissan to take a controlling stake in the automaker.

Representatives for Nissan and Foxconn did not immediately respond to BI's request for comment.

The news sent Nissan stocks skyrocketing. The company's shares were nearly 24% higher when local markets closed on Wednesday.

The stock's uptick follows a particularly difficult year for the car company. Amid falling profits and decreased sales, Nissan slashed its workforce by 9,000 jobs globally in November in an effort to reduce costs. Nissan's shares are down nearly 25% this year.

The potential consolidation comes after Honda and Nissan agreed to collaborate on EV batteries and software earlier this year.

During Nissan's November earnings call, CEO Makoto Uchida acknowledged that the company had fallen behind, saying the automaker needed to strengthen its competitiveness.

"There are limits if we are to do that alone. So, that had triggered us to engage in partnership with Honda," Uchida said on the call.

Honda investors, however, seemed less thrilled by the news.

The company's shares closed 3% lower on Wednesday. Honda's stock is down by over 15% this year.

December 18, 12:15 a.m. — This story has been updated with statements from Honda and Mitsubishi Motors.

• Elon Musk is the founder-CEO of rocket company SpaceX.
• But Musk isn't privy to all of SpaceX's classified work with the US government, per the WSJ.
• Musk obtained top-secret clearance in 2022.

SpaceX CEO Elon Musk's security clearance doesn't grant him complete access to the company's classified work with the US government.

Musk isn't allowed to enter SpaceX facilities where classified information is being deliberated upon, The Wall Street Journal reported on Sunday, citing people familiar with the matter.

The billionaire also isn't privy to the classified cargo SpaceX launches into space as part of the company's contracts with US national security agencies, per the outlet.

In October, Musk said at a Trump campaign event in Pennsylvania that he has "top-secret clearance" for his work at SpaceX.

Musk obtained his top-secret clearance in 2022, following a review process that took years, the Journal reported. SpaceX's lawyers had advised the company not to seek a higher security clearance for Musk because he would have to disclose details about his drug use and interactions with foreign nationals.

In 2018, Musk appeared to smoke a joint during an interview with Joe Rogan. Musk later said in an interview with "60 Minutes" that he had "no idea how to smoke pot."

When the Journal reported about Musk's drug use in January, he said that "not even trace quantities were found of any drugs or alcohol" in his system when NASA requested that he undergo three years of random drug testing.

As for interactions with foreign nationals, Musk's business dealings have seen him meet with various foreign leaders over the years.

In April, Musk visited China, where he met with Premier Li Qiang, the country's second-highest-ranking politician. The two discussed the roll-out of Tesla's self-driving technology in China.

In October, the Journal reported that Musk has been in regular contact with Russian President Vladimir Putin since late 2022. In a statement, SpaceX said the Journal's story was "incredibly misleading" and based on "completely unsubstantiated claims."

Musk and Trump's relationship grows closer

Musk's clearance status might no longer be a problem for him, given his close relationship with President-elect Donald Trump.

Musk endorsed Trump and spent at least $119 billion on his campaign. In the past weeks, he has reportedly joined Trump on calls with world leaders, including Ukrainian President Volodymyr Zelenskyy.

In November, Trump announced Musk as the co-lead of the Department of Government Efficiency, or DOGE. The SpaceX and Tesla CEO will lead the commission alongside Vivek Ramaswamy.

Musk and Ramaswamy have talked about significantly reducing the size of the federal workforce and shutting down entire government agencies like the Department of Education and the Consumer Financial Protection Bureau.

Musk founded SpaceX in 2002. It was valued at about $350 billion during the latest round of staff share purchases. Musk is currently worth an estimated $455 billion, per the Bloomberg Billionaires Index, making him the richest person in the world by a roughly $200 billion margin.

Representatives for Musk at SpaceX and the Defense Department did not respond to requests for comment from Business Insider.

• Andrew Minjun Park, 27, is a graduate student at Seoul National University.
• Park joined the protests in Seoul after South Korea's president abruptly declared martial law.
• He arrived at the National Assembly at about 11:45 p.m. Tuesday and stayed until the next morning.

This as-told-to essay is based on a conversation with Andrew Minjun Park, 27, a graduate student at Seoul National University. Park participated in the protests against martial law outside South Korea's National Assembly building on Tuesday night. The following has been edited for length and clarity.

I was preparing for my political science Ph.D. applications on Tuesday when I heard the news about South Korean President Yoon Suk Yeol declaring martial law.

At first, I thought it was fake news. Putting the country under martial law is something that's often associated with the authoritarian governments South Korea had in the '70s and '80s.

But after watching the president's address on YouTube, I realized he was dead serious.

To me, this was a critical moment in Korea's modern history

Initially, I didn't want to join the protests that were forming outside the National Assembly building.

There was a possibility the protests could turn violent. You could also get arrested since protests are illegal under martial law.

But as more and more photos of security forces descending on the building came in, it began to dawn on me that this situation couldn't be taken lightly.

The president had crossed the line when he got the military involved. What he had done posed a risk to democracy.

To me, this was a critical moment in Korea's modern history.

I knew I would regret it for the rest of my life if I didn't head down to the National Assembly.

The protests were scattered at first

I took the subway to the National Assembly. Unlike most nights, the train was packed. I think a few hundred people got off with me at the station when we arrived.

By the time I got to the building, it was around 11:45 p.m.

There was a police bus parked in front of the building's gate to prevent protesters from entering the National Assembly. I also saw helicopters flying over the building.

At first, the protests were scattered. Some groups were near the gate, while others were lingering behind. There didn't seem to be any central leadership.

I noticed that many of the people who were already there seemed to be party members or unionists. The unionists were wearing uniforms and waving their unions' flags.

But at around 12:30 a.m. or so, I started to see families and students arriving in larger numbers. Some parents brought their children along.

This was my first protest, and I wasn't prepared for the physical aspects of it.

It was really cold, and my hands hurt from trying to hold up a banner I had made. And because it was so crowded, I kept bumping into people.

When the National Assembly voted unanimously to block the president's decree, the protests' agenda began to shift toward calling for the arrest and impeachment of President Yoon.

The protests took place in a peaceful manner.

At around 4:30 a.m. or so, the president announced he would lift martial law and withdraw the troops. Cheers broke out among the protesters. That was when I decided to take a cab back home.

The situation is not over yet

After getting home, I called my parents to tell them I had gone to the protests. I had originally told them that I wasn't going to participate in the protests because I could tell they were worried.

They told me I had made the right decision in going. Both of my parents lived through martial law when they were young.

I am wary of what could happen next. There have been calls for President Yoon to resign and for him to be impeached or indicted.

If there are more protests calling for Yoon's removal, I think I will definitely be there, too.

• Elon Musk filed a lawsuit against OpenAI in February, only to briefly withdraw it in June.
• The withdrawal came after Musk met with Altman in March, per The WSJ.
• Musk has since refiled the lawsuit and coined a new nickname for Altman: "Swindly Sam."

Elon Musk briefly withdrew his lawsuit against OpenAI in June after he had a conversation with Sam Altman in March, The Wall Street Journal reported on Sunday.

Musk and Altman met at the sidelines of a technology conference in Big Sky, Montana. The pair shared a hug after speaking, the Journal reported, citing information from people who attended the conference.

The Tesla and SpaceX CEO filed a lawsuit against the ChatGPT maker in February. Musk accused OpenAI of violating its nonprofit mission by partnering with Microsoft. The billionaire cofounded OpenAI with Altman but left its board in 2018.

But Musk withdrew the lawsuit on June 11, just a day before a judge was set to consider OpenAI's request to dismiss it.

"More on this later," Musk wrote in an X post shortly after news of the lawsuit's withdrawal broke out.

In August, Musk refiled the lawsuit. This time around, Musk's lawyers argued that OpenAI's executives had "deceived" him into cofounding the company by playing on his concerns about AI's existential risks.

Last month, Musk amended his lawsuit to include Microsoft as a defendant and accused Microsoft and OpenAI of forming a monopoly.

Then, on Friday, Musk's lawyers filed an injunction against OpenAI to stop its transition to a for-profit entity.

When approached for comment, a spokesperson for OpenAI told Business Insider that Musk's latest filing, "which again recycles the same baseless complaints, continues to be utterly without merit."

Musk and Altman's rocky relationship

Musk and Altman's relationship has been turbulent. In addition to suing Altman, Musk recently gave him a nickname: "Swindly Sam."

Experts BI spoke to in March said that Musk's real goal with his lawsuits may have less to do with winning and more to do with publicly dragging Altman and OpenAI.

"These types of lawsuits can air a lot of dirty laundry, and it can be a major distraction that could impact their day-to-day operations," David Hoffman, a contract law expert from the University of Pennsylvania, told BI's Grace Kay at the time.

Musk has also been hard at work at his own AI ventures, pitching investors on his vision for Tesla as an AI company.

In April, Musk said in an earnings call that he thinks it's fundamentally wrong to "value Tesla as just like an auto company."

"We should be thought of as an AI or robotics company," Musk said in April.

That's in addition to the work Musk has done with xAI, an AI startup he launched in 2023.

xAI is reportedly valued at $50 billion, more than what Musk paid to acquire Twitter back in 2022, per a story published by the Journal on November 20.

Representatives for Altman at OpenAI and Musk did not respond to requests for comment from BI.

• Indonesian tycoons are working on a huge real estate project —building a new city in North Jakarta.
• The city, PIK 2, is worth about $16 billion and is intended to drive tourism to the area.
• Bloomberg reported the developers are in touch with partners in China and Singapore to build a port at PIK 2.

Indonesian business tycoons are moving ahead with an ambitious real estate project: building a new city in North Jakarta to boost tourism.

The city, called PIK 2, is being developed in a former poverty-stricken area now made up primarily of gated neighborhoods and golf courses, per Bloomberg.

The project, which is currently in its conceptual phase, is a collaboration between Agung Sedayu Group — run by entrepreneur Sugianto Kusuma — and Salim Group, led by billionaire Anthoni Salim.

The publicly traded parent company behind the project — PT Pantai Indah Kapuk Dua — has a $16 billion market capitalization.

Kusuma is the president, director, and owner of PT Pantai Indah Kapuk Dua, and both men are members of the influential group of ultra-wealthy businessmen known locally as the "Nine Dragons," per Bloomberg.

According to Agung Sedayu Group's website, PIK 2 will be "located approximately only 7 minutes from Soekarno-Hatta International Airport" and "will cover approximately 6,000 hectares."

The development could, by its slated completion in 2060, feature amenities including a safari area and an international motor racetrack, per Forbes.

Bloomberg reported that the development may also include a theme park and that the project's backers hope to make an appeal to major racing events, including Formula 1.

The Indonesian developers are also in touch with partners in China and Singapore to build a port at PIK 2 that would increase its appeal to international tourists, per Bloomberg.

However, the outlet reported the project's owner said its continued expansion depends on global economic conditions.

"It's going to require huge spending but we are not building everything in one go," Kusuma told Bloomberg of PIK 2. "This isn't a short-term project. It's not going to be built just by me but future generations can continue it. But we want to lay down a foundation first."

Kusuma's project isn't the only major development that's happening in Indonesia.

In 2019, then-Indonesia President Joko Widodo said the government plans to relocate the country's capital from Jakarta to East Kalimantan.

The move — which involves a new city called Nusantara being built on the eastern coast of Borneo — is projected to cost Indonesia an estimated $35 billion. The project is set to be completed by 2045.

Representatives for Kusuma at PT Pantai Indah Kapuk Dua and Agung Sedayu Group did not respond to requests for comment from Business Insider.

• Bernie Sanders says Elon Musk is right about the Defense Department's wasteful spending.
• The DOGE co-leader criticized the Pentagon's F-35 program and $841 billion budget last month.
• "Cool," Musk said in response to Sanders' remarks.

Elon Musk has a new supporter in his push to rein in government spending — Sen. Bernie Sanders of Vermont.

"Elon Musk is right," Sanders said of Musk's criticisms of the Defense Department's spending in an X post published Sunday.

"The Pentagon, with a budget of $886 billion, just failed its 7th audit in a row. It's lost track of billions," Sanders wrote.

In November, the Tesla and SpaceX CEO was tapped to co-lead President-elect Donald Trump's Department of Government Efficiency, or DOGE.

To be sure, Musk has yet to outline any specific cuts that the commission plans to make. But he did criticize the Pentagon's F-35 program in a series of X posts published on November 24.

Musk also referenced the Defense Department's $841 billion budget in an op-ed he wrote with his DOGE co-leader, Vivek Ramaswamy, for The Wall Street Journal on November 20.

"The Pentagon recently failed its seventh consecutive audit, suggesting that the agency's leadership has little idea how its annual budget of more than $800 billion is spent," Musk and Ramaswamy wrote.

Sanders echoed the pair's views on Sunday.

"Last year, only 13 senators voted against the Military Industrial Complex and a defense budget full of waste and fraud," Sanders wrote in his X post.

"That must change," he added.

When reached for comment, a spokesperson for the Defense Department pointed Business Insider to a press briefing given by the department's CFO, Michael J. McCord, on November 15. During the briefing, McCord said the Pentagon has "a lot of work to do" on its audit performance but is "making progress."

Common ground on military spending aside, Sanders and Musk do have their political differences.

The 83-year-old is the longest-serving independent in Congress, though the progressive politician did run for the Democratic Party's presidential nomination in 2016 and 2020.

On Saturday, Sanders released a statement saying that America needed to "defeat the oligarchs and create an economy and government that works for all, not just the few."

"Today, in America, we have a political system that is increasingly controlled by the billionaire class. In the recent elections, just 150 billionaire families spent nearly $2 billion to get their candidates elected," Sanders said in the statement.

Musk, on the other hand, was a major contributor to Trump's 2024 campaign. The billionaire spent just under $119 million on his pro-Trump political action committee, America PAC.

"Cool," Musk said in an X post in response to a New York Post story about Sanders' remarks on defense spending.

Representatives for Sanders and Musk didn't respond to requests for comment from BI.

• Seoul city authorities want to tackle the loneliness epidemic with a $322 million plan.
• Lonely individuals can call a 24/7 counseling hotline and win rewards for attending local events.
• While the plan is a step in the right direction, experts say it will not address the problem's roots.

Seoul's loneliness epidemic is eating the city from within.

The city glitters, but there's a reason the locals call South Korea "Hell Joseon." Locals contend with crippling debt and pressure-cooker academic and work lives. Loneliness and isolation stem from and compound those problems. It's a scourge that manifests in different ways across the metropolis's sprawling cityscape, and a pressing issue the government is keen to address.

According to a 2021 study from the Korea Institute for Health and Social Affairs, about 3.1% of those aged 19 to 39, or around 340,000 people, are considered to be lonely and reclusive.

At the extreme end is "godoksa," or lonely death, where someone dies by suicide or illness after living in social isolation.

Lonely deaths in South Korea increased from 3,378 in 2021 to 3,661 in 2023, per the South Korean Ministry of Health and Welfare's data.

The South Korean government plans to spend over $322 million on measures that attempt to fix loneliness. However, experts told Business Insider this initiative fails to address the root causes of the problem — and might not have the effect the government is hoping to achieve.

A 'Seoul Without Loneliness'

Titled "Seoul Without Loneliness," the five-year initiative takes a multi-pronged approach to address the problem.

City authorities said in an October statement that people experiencing loneliness can tap a 24/7 counseling hotline. They can also eat together in community spaces and collect perks and activity points for participating in sporting activities and attending local events.

"We will mobilize our resources to create a happy city where no one is isolated, implement the Seoul Without Loneliness initiative, and thoroughly manage the issue from prevention to healing, reintegration into society, and the prevention of re-isolation," Seoul Mayor Oh Se-hoon said in the statement.

When contacted by Business Insider, a representative for the Seoul Metropolitan Government said that the plan will involve all departments in the city's government collaborating to "establish a systematic support framework tailored to specific fields and life stages."

"'Seoul Without Loneliness' is a bold challenge for the city and not an easy path to take," the representative said. "While numerous trials and errors are expected, and not all issues can be resolved at once, Seoul is confident that continuous efforts and various innovative attempts will eventually lead to achieving its goals."

"Seoul will continue to do its utmost to create a city where all citizens can live happily," the representative added.

Last year, the country's Ministry of Gender Equality and Family said it would pay socially isolated youth around $500 a month to encourage them to mingle with society.

Prevention is better than cure when it comes to tackling loneliness

Psychologists and sociologists that Business Insider spoke to said that while October's initiative is a step in the right direction, it's not a silver bullet.

"It may be helpful for those who feel they're isolated and who are willing to get out of their loneliness. But for those who do not want outside help, then these policies are probably irrelevant to them," Joonmo Son, a sociology professor at the National University of Singapore, told BI.

"The other issue we need to think of is that the policy itself does not prevent loneliness. Rather, it's to prevent the lonely deaths of those who are isolated," Son added.

Eva Chen, a psychology professor at Taiwan's National Tsing Hua University, told BI that South Korea should address the country's competitive culture, which starts young.

Last year, nearly 80% of children participated in private education programs like "hagwons" or cram schools, according to data from South Korea's National Statistics Office. Families also splashed out $19.4 billion on private education — which can span all manner of supplementary drilling on schoolwork, from after-school "hagwon" sessions to tutoring.

"It's an incredibly competitive society, and you can see these issues start to appear when children start their formal schooling. You will notice that suicide rates among Korean students are fairly high when compared to neighboring countries," Chen said.

In 2023, South Korea recorded a suicide rate of 27.3 out of 100,000 people, the highest rate among OECD countries like the US, UK, and Japan.

Navigating such a competitive environment, Chen said, can result in people becoming more withdrawn and isolated.

"It sort of breaks down that willingness to be helpful. In young children, the natural tendency is toward empathy and valuing moral goodness over more superficial factors like your salary and your education," she continued.

Kee Hong Choi, a psychology professor at Korea University, said that his country's education system needs to be "changed dramatically" to become less competitive.

"People become individualistic because they are emotionally hardened from social pressure and judgment," Choi said.

"Many people get traumatized by these kinds of social comparisons in an education system and start to develop depressive, or social anxiety symptoms," he added.

Stakes are high for solving the problem of loneliness

South Korea's ongoing struggle with the loneliness epidemic poses both social and economic implications.

Sohyun Kim, a psychology professor at Korea University, told BI that "the problem of loneliness is one of the most urgent social and economic problems" the country faces.

"Many of these individuals are also financially struggling, which is not surprising as all of these issues can affect various areas of our lives, including our productivity, and also those who are financially more limited have been found to be at higher risk of isolation," Kim said.

Korea University's Choi said social isolation among youths could exacerbate the country's existing socio-economic problems, such as its birth rate.

South Korea's fertility rate was 0.72 in 2023, the lowest in the world. It's even lower in Seoul, which recorded a fertility rate of 0.55 in the same year.

Based on its current trajectory, the country's population of 51 million is expected to halve by 2100. That's another problem Seoul's government is trying to solve with its "birth encouragement" program to raise fertility rates. Nearly a fifth of South Korea's population lives in Seoul.

"Lonely individuals are, of course, less likely to form families. That's a huge problem for Korea right now, to produce the next generation of children, and more practically, the next generation of the workforce," National Tsing Hua University's Chen said.

• Putin says Trump is a "smart and experienced person" and can "come up with a solution" to the Ukraine war.
• Trump said on the campaign trail this year that he would end the war in 24 hours if elected.
• In 2022, Trump also said that he "knew Putin very well" and got along "great" with the Russian leader.

Russian President Vladimir Putin believes President-elect Donald Trump will be able to put an end to the ongoing war in Ukraine.

"President Trump, a smart and experienced person, will come up with a solution, especially given that he has gone through quite an ordeal of fighting to reclaim the Oval Office," Putin told reporters in Kazakhstan on Thursday.

Putin was speaking at the sidelines of a security summit in Kazakhstan's capital, Astana, when he was asked about President Joe Biden's recent decision to give Ukraine long-range missiles.

Representatives for Putin and Trump did not respond to requests for comment from Business Insider.

Trump talked about ending the Russia-Ukraine war in Ukraine while on the campaign trail. In July 2023, he said on Fox News that he would end the war within 24 hours if elected.

"I would tell Zelenskyy, no more. You got to make a deal. I would tell Putin, if you don't make a deal, we're going to give him a lot. We're going to give more than they ever got if we have to," Trump said.

Both Ukraine and Russia have been dismissive of Trump's proposal.

However, Putin's praise for Trump comes just weeks after the pair reportedly spoke over the phone. Trump also took a separate call with Ukrainian President Volodymyr Zelenskyy in November.

Putin and Trump talked about resolving the war in Ukraine and achieving peace in Europe during their call, The Washington Post reported on November 10, citing people familiar with the matter.

The Kremlin denied the call had taken place, while a spokesperson for the Trump campaign said they "do not comment on private calls" between Trump and other foreign leaders.

Putin's admiration of Trump appears to be mutual.

Shortly after Russia invaded Ukraine in 2022, Trump called Putin's move "genius" and "wonderful." He also said without substantiation that the reason Putin chose to invade Ukraine during Biden's presidency instead of his was because he had a better relationship with Putin.

"I knew Putin very well. I got along with him great. He liked me. I liked him," Trump said during a February 2022 appearance on the "Clay Travis and Buck Sexton Show."

Meanwhile, in February, Putin told the state-owned television channel Russia-1 that he would "work with any US leader whom the American people trust."

• Being born in the year of the dragon is auspicious, according to the Chinese lunar calendar.
• Dragon babies are regarded as smart, successful, and natural leaders.
• Experts say that being born in this year can make life harder at work and in school.

Jackson Koh was born in Singapore in the Chinese Year of the Dragon. Growing up, he says he was his aunts' and uncles' favorite — and he knows why.

"When I was young, every Chinese New Year, my relatives would ask, 'What zodiac is your child?' And my parents would say, 'Oh, he's a dragon,'" said Koh, a 23-year-old student at Singapore's Nanyang Technological University.

"And then all the relatives were, like, 'Wow! He's going to grow up to be very rich and very successful,'" he added.

"Obviously, listening to all this every year, it'll build up your ego. You just think, 'Oh, I'm a dragon, I'm special,'" Koh said.

Why the Dragon Year is special

There are 12 Chinese zodiac animals, arranged in the following order: rat, ox, tiger, rabbit, dragon, snake, horse, goat, monkey, rooster, dog, and pig. The cycle repeats every 12 years.

Under the lunar calendar, 2024 is the year of the dragon.

The dragon is the only mythical creature among the dozen animals. It's considered the most auspicious zodiac by the Chinese — and people in Asia make it a point to procreate, with hopes of birthing a child in those 12 calendar months.

According to Singapore's Department of Statistics, births went from 36,178 in 2011 to 38,641 in 2012, the most recent dragon year. The number of births in the following year, 2013, dipped back down to 35,681.

A similar trend of dragon-year birth spikes was observed in 1988 and 2000.

People born in the dragon year are said to be natural leaders, intelligent, and charismatic.

"Dragon babies are, for the most part, intensely desired and prized by their parents. Culturally, dragons are held in the highest esteem — they were symbols of the emperor," Ee Cheng Ong, an associate professor of economics at the National University of Singapore (NUS), told Business Insider.

Special attention, but more competition

Several dragon babies in Singapore told Business Insider they were a source of pride for their family elders, who showered them with more attention because of their birth year.

Melissa Anne Lim, a self-employed 23-year-old, said that, like Jackson Koh, she was doted on growing up.

"My grandma loves that I'm a dragon," said Lim. "Being a dragon baby kind of gave me a little more special attention, from the aunties especially."

Dragon babies are also likely to face more competition in school and in the workplace from their direct peers.

"Because schools have limited resources, including numbers of classrooms, facilities, and teachers, it is indeed correct that people born in such years may face disadvantages in terms of having larger class sizes and more competition in accessing 'top schools,'" said Kelvin Seah, a senior economics lecturer at NUS.

And it's not just schools. Seah said dragon babies will also have a tougher time looking for jobs after graduation.

"There are only so many jobs available in the economy. The larger cohort size means more competition for the limited number of jobs after graduation," Seah said.

In 2017, researchers from NUS published a study on the life outcomes of dragon babies in Singapore.

The study — which had a sample size of 4,608 and is based on local birth, employment, and university admissions data from 1960 to 2015 in Singapore — found that Chinese dragon babies earned 6.3% less than other Chinese birth cohorts upon entering the workforce.

The study also found that Chinese dragon babies were 2.3% less likely to gain admission to local universities in Singapore.

A numbers game

In other places where the lunar year is observed — and accorded cultural significance — people born in the year of the dragon also face a unique set of challenges.

In China, for instance, dragon babies taking the gaokao, the country's marathon university entrance exams, may face more intense competition with a larger cohort, said Stuart Gietel-Basten, a professor of social science and public policy at the Hong Kong University of Science and Technology.

China also sees birth rate spikes in dragon years. According to the National Bureau of Statistics of China, in 2012, China's birth rate reached 14.57 births per 1,000 people. That was an increase from 13.27 births per 1,000 people in 2011. Births dipped the following year, to 13.03 births per 1,000 people in 2013.

But the latest crop of dragon babies may have it easier, with competition evening out as birth rates drop.

And cultural expectations may be changing, Gietel-Basten added. Dragon babies might have once been subject to great pressure to exceed expectations, but Gietel-Basten says he'd be "surprised" if that same level of pressure would be applied to 2024's dragon babies as they grow older.

"You could even say that if you're a dragon baby, you become more confident," Gietel-Basten said. "And so you could prosper not out of the pressure that's been put on you, but because of that confidence."

Dragon baby spikes aside, birth rates remain low

Whether it's hard to be a dragon baby or not, one thing is clear: Asian countries — including Singapore and China, both of which follow the lunar year — are facing a birth rate problem.

In 2023, China's population fell for the second year in a row due to record-low birth rates. Singapore recorded a total fertility rate of 0.97 in 2023, the first time it had ever fallen below 1.0.

Policymakers across Asia are resorting to a wide range of measures to try to convince people to have more children.

In 2016, China dropped its controversial one-child policy and allowed couples to have two kids. The government changed its rules again in 2021 to let couples have up to three children.

Tokyo's government said in June that it was investing $1.3 million to launch its own dating app for residents. Japan's total population has declined for the 15th straight year in 2023.

Seoul is offering up to $730 in incentives to people looking to reverse their vasectomies and tubal ligations. South Korea in 2023 recorded the world's lowest fertility rate, at 0.72 births per woman.

Some leaders are using the allure of the dragon baby in their messaging to encourage more children.

In February, then-Singaporean Prime Minister Lee Hsien Loong said in his annual Chinese New Year message that it is a good time for families to "add a 'little dragon.'"

"I hope my encouragement prompts more couples to try for a baby, although I know that the decision is a very personal one," Lee said.

But higher than ordinary birth rates in a given year can also stress social systems.

"If there's still a bunching of baby deliveries in dragon years, that will create tension within schools and public educational resources," said Qian Wenlan, a finance and real estate professor at the National University of Singapore. Qian co-authored the 2017 study about life outcomes for dragon babies in Singapore.

"In some years, you just have to employ more teaching staff — such as adjunct teachers, for example — to accommodate and to educate more students," Qian added.

Still, even if the road is paved with challenges, sometimes being born a dragon is little more than a happy accident.

"At the end of the day, there are many other factors to take into consideration when we family plan," Lim, the 23-year-old dragon baby, said. "I have a niece and nephew who were both born in the year of the dragon. Did their parents plan for them to be dragons? Not exactly — but it was a pleasant surprise."

• Elon Musk's demand for Nvidia chips has put pressure on the company to deliver.
• A Nvidia sales lead told colleagues in an email that their supply chain was under strain, per the Journal.
• A Nvidia spokesperson told BI that the company has "worked hard to meet the needs of all customers."

Nvidia is feeling the pressure from trying to meet Elon Musk's insatiable demand for chips.

Musk's demand for chips was straining the chip giant's supply chain, a sales lead for Nvidia told colleagues in an email obtained by The Wall Street Journal.

The Journal's report, which was published on Wednesday, did not specify when the email was sent.

When approached for comment, a spokesperson for Nvidia told Business Insider that the company has "worked hard to meet the needs of all customers."

Nvidia has also "greatly expanded the available supply" of its chips, the spokesperson added.

Musk did not respond to a request for comment from BI.

Nvidia's chips have become a hot commodity among tech companies, who use them to train and deploy their AI models.

In January, Meta CEO Mark Zuckerberg told The Verge in an interview that Meta would own more than 340,000 Nvidia H100 GPUs by the end of 2024.

"We have built up the capacity to do this at a scale that may be larger than any other individual company. I think a lot of people may not appreciate that," Zuckerberg told the outlet.

Musk, meanwhile, has been building his own war chest of chips. The billionaire launched his own AI startup, xAI, in 2023 and has since raised billions of dollars in funding.

In June, CNBC reported that Musk had redirected $500 million worth of Nvidia chips from Tesla to X and xAI.

"Tesla had no place to send the Nvidia chips to turn them on, so they would have just sat in a warehouse," Musk said on X in response to CNBC's story.

Then, in September, Musk announced that xAI had brought a massive new training cluster of Nvidia chips online.

The system, dubbed Colossus, was built using 100,000 Nvidia H100 GPUs in Memphis, Tennessee, in 122 days, Musk wrote on X.

"Colossus is the most powerful AI training system in the world. Moreover, it will double in size to 200k (50k H200s) in a few months," Musk said in his post.

The engineering feat was praised by Nvidia's founder and CEO, Jensen Huang, who called it a "superhuman" feat.

"As far as I know, there's only one person in the world who could do that. Elon is singular in his understanding of engineering and construction and large systems and marshaling resources," Huang said in an interview on the "Bg2 Pod" podcast that aired on October 13.

"It's just unbelievable," Huang added.

Musk and Zuckerberg aren't the only tech executives hungry for Nvidia's chips.

Larry Ellison, the cofounder and chairman of Oracle, said in an earnings call in September that he and Musk had asked Huang for more GPUs while the three were having dinner.

"I would describe the dinner as me and Elon begging Jensen for GPUs," Ellison said.

The robust demand for chips has turned Nvidia into one of the most valuable companies in the world.

Nvidia announced its third-quarter earnings on November 20, where it recorded $35.08 billion in revenue for the quarter — a 94% year-over-year increase. The company's shares are up by 173% year to date.

• Marc Andreessen says that AI-controlled jets are "far superior" to their crewed counterparts.
• Drones, he said, can move much faster because they don't have to carry a person.
• Andreessen's comments echo that of Elon Musk, who said this week that he thinks crewed fighter jets are inefficient.

Elon Musk isn't the only tech executive who thinks drones are way better than fighter jets.

Marc Andreessen, a cofounder and general partner of the venture capital firm Andreessen Horowitz, made a similar comment during an interview on The Joe Rogan Experience that aired Tuesday.

AI-controlled jets, Andreessen told Rogan, are "far superior" to fighter jets that need pilots.

"And there's a bunch of reasons for that. And part of it is just simply the speed of processing and so forth," Andreessen said.

"But another big thing is if you don't have a human in the plane, you don't have the, as they say, the spam in the can, you don't have the human body in the plane," the venture capitalist continued.

"You don't have to keep a human being alive, which means you can be a lot faster, and you can move a lot more quickly," he added.

Representatives for Andreessen at Andreessen Horowitz did not respond to a request for comment from Business Insider.

Musk has been weighing in on the F35 fighter jet while advocating for drone warfare

Andreessen's comments to Rogan echo Musk's, who criticized the Pentagon's F-35 program in a series of X posts on Sunday.

"Crewed fighter jets are an inefficient way to extend the range of missiles or drop bombs. A reusable drone can do so without all the overhead of a human pilot," Musk wrote in one of his posts.

Musk continued to comment on fighter jets on Tuesday, making an X post responding to Andreessen's interview with Rogan.

"Future wars are all about drones & hypersonic missiles. Fighter jets piloted by humans will be destroyed very quickly," Musk wrote on Tuesday.

In the meantime, Silicon Valley has become increasingly interested in disrupting the defense sector.

Former Google CEO Eric Schmidt said he was a "licensed arms dealer" during a lecture he gave at Stanford University in April.

Schmidt said this was because he was working with Udacity CEO Sebastian Thrun to mass-produce drones for Ukraine's ongoing war with Russia.

Then, in August, startup accelerator Y Combinator said it was backing its first weapons startup, Ares Industries. The company said it wants to make smaller and cheaper anti-ship cruise missiles.

Musk's remarks on the F-35 have taken on a heightened significance given his recent appointment as the co-lead of President-elect Donald Trump's new Department of Government Efficiency, or DOGE.

Musk hasn't specified any cost cutting plans for the F-35 program. However, he did reference the Defense Department's $841 billion budget in an op-ed he wrote with his DOGE co-lead Vivek Ramaswamy for The Wall Street Journal on Wednesday.

"The Pentagon recently failed its seventh consecutive audit, suggesting that the agency's leadership has little idea how its annual budget of more than $800 billion is spent," the pair wrote.

Drones have been game-changing in modern warfare, but military experts say there are still advantages to having manned fighter jets over drones.

Justin Bronk, a Royal United Services Institute airpower analyst, told BI that a human pilot's flexibility is "very difficult to replicate in an automatic system."

The viability of drone technology also needs to be weighed against the F-35's extensive bombing, surveillance, battle management, and communications capabilities. On that front, uncrewed aircraft are "simply not there," Mark Gunzinger, a retired US Air Force pilot and the director of Future Concepts and Capability Assessments at the Mitchell Institute for Aerospace Studies, told BI.

When approached for comment, a Pentagon spokesperson told BI on Monday that the US's combat-capable aircraft "perform exceptionally well against the threat for which they were designed."

"Pilots continually emphasize that this is the fighter they want to take to war if called upon," the spokesperson said.

• Last year's job cuts weren't the end of layoffs. Further reductions continue in 2024.
• Companies like Flagstar Bank, Meta, PwC, Tesla, Google, Microsoft, and Nike have all announced cuts.
• See the list of companies reducing their worker numbers in 2024.

After a brutal year of layoffs in 2023, companies this year have continued to cut jobs across tech, media, finance, manufacturing, and retail.

Tech titans like Meta, IBM, Google, and Microsoft; finance leaders like Goldman Sachs, Citi, and BlackRock; accounting firms like PwC; entertainment behemoths like Pixar and Paramount; and corporate giants like Tesla, Dow, and Nike have all announced layoffs.

A survey in late December said nearly 40% of business leaders had expected layoffs this year, ResumeBuilder said. ResumeBuilder talked to about 900 leaders at organizations with more than 10 employees.

One major factor survey respondents cited was artificial intelligence. Around four in 10 leaders said they would conduct layoffs as they replace workers with AI. Last year, Dropbox, Google, and IBM announced job cuts related to AI.

Here are the dozens of companies with job cuts planned or already underway in 2024.

The US' biggest privately-owned company, Cargill, is cutting thousands of jobs

Cargill, the largest privately owned company in the US, is slashing 5% of its workforce.

The company, which is the world's largest agricultural commodities trader, will lay off thousands of workers from its 164,000-strong workforce, Bloomberg reported on Monday, citing an internal memo it had seen.

"To strengthen Cargill's impact, we must realign our talent and resources to align with our strategy," a Cargill spokesperson told BI.

The cuts would impact workers across all professional levels from countries in Asia, Latin America, North America, Europe, the Middle East, and Africa.

The layoffs will not touch its executive team but will impact its "next level senior leaders," Bloomberg reported, citing people familiar with the matter.

"The majority of these reductions will take place this year," Chief Executive Officer Brian Sikes said in the memo, seen by Bloomberg. "They'll focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work."

Microchip Tech is closing an Arizona factory

Microchip Technology, a chipmaker for a variety of consumer products, on Monday said it was closing a facility in Tempe, Arizona, as it deals with slower-than-anticipated orders.

The closure is expected to affect about 500 jobs from the company's total of 22,300, Microchip said. The closure will progress in stages and end in September 2025.

"While the company has taken steps to right size inventory and reduce expenses— including temporary pay reductions and company-wide and factory shutdowns—these measures have not been enough," a spokesperson for Microchip said in a statement on Tuesday.

Microchip also updated its revenue guidance for the quarter ending in December quarter to $1.025 billion, which is at the lower end of its earlier forecast.

The company's stock fell about 3% in after-hours trading and is down 22% year-to-date.

Publishing giant Hearst Magazines trims staff.

The owner of publications including Esquire and Cosmopolitan is conducting a round of layoffs, The Hollywood Reporter said in a November 21 report.

The exact number of positions impacted is not clear.

"After a thorough review of our business, we've decided to reallocate resources to better support our goals and continue our focus on digital innovation while strengthening our best in class print products," Hearst Magazines president Debi Chirichella told staff in a memo obtained by THR. "We will scale back in areas that do not support our core strategy and will eliminate certain positions as we reimagine our team structures to drive long-term growth."

Boeing starts issuing layoff notices to 400 workers amid plans for 10% global cut

In October, Boeing said that it would cut 10% of its 170,000-strong global workforce. The reduction plan will include 2,199 employees in Washington and another 50 in Oregon, according to the company's filings.

As part of the cuts, Boeing is laying off more than 400 workers who are part of its professional aerospace labor union. The Seattle Times reported that 438 members of the Society of Professional Engineering Employees in Aerospace (SPEEA) received pink slips.

These included engineers, scientists, analysts, technicians, and other jobs, the outlet reported.

In a note to employees on October 11, CEO Kelly Ortberg said Boeing was in a "difficult position" and that "restoring our company requires tough decisions."

The layoffs come at a difficult time for Boeing. Its share price has fallen more than 40% since the start of the year as it grapples with the fallout from a seven-week strike and technical faults like a door plug coming off an Alaska Airlines 737 Max midflight in January.

Representatives of Boeing and the SPEEA didn't immediately respond to a request for comment from Business Insider.

Exxon is cutting nearly 400 jobs after Pioneer merger

ExxonMobil is cutting about 400 employees from Pioneer Natural Resources, the oil and gas company it acquired earlier this year.

The cuts will come in seven stages and will be completed in May 2026, Exxon said in a notice to the Texas Workforce Commission.

The cuts represent almost 20% of Pioneer's pre-merger workforce and will mostly affect employees in Pioneer's suburban Dallas offices, the notice said.

AMD is laying off roughly 4% of its workforce.

AMD confirmed it would be reducing its global staff, which numbered around 26,000 total employees as of December 2023.

″As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps that will unfortunately result in reducing our global workforce by approximately 4%," an AMD representative said in a statement to Business Insider. "We are committed to treating impacted employees with respect and helping them through this transition."

The cuts are reportedly targeting sales and marketing roles in areas like consumer PC and gaming PC, according to Bloomberg.

The computer chipmaker is focusing efforts on the artificial intelligence industry as it chases rival Nvidia in the GPU market. In October, AMD raised its 2024 GPU sales estimates from its initial $4.5 billion to over $5 billion.

Chegg is cutting 21% of its employees as AI search destroys its business

Online education site Chegg is laying off staff for the second time this year as generative AI platforms obliterate its business model.

Chegg said it is cutting 319 employees, or 21% of its staff, as it faces strong competition from platforms like ChatGPT. The company slashed global headcount by 23% in June.

"The speed and scale of Google's AIO rollout and student adoption of generative AI products have negatively impacted our industry and our business," Nathan Schultz, Chegg's CEO, said in an earnings release. The company reported a loss of $212.6 million for the third quarter.

Chegg's stock has fallen nearly 85% since the start of this year.

23andMe is cutting 40% of its staff

Genetic testing company 23andMe is cutting 200 employees, or 40% of its workforce, to reduce costs and refocus its business.

The Bay Area-based company is also discontinuing further development of all its therapeutics programs, it said in a mid-November statement.

Anne Wojcicki, 23andMe's CEO and cofounder, has been trying to take the struggling company private since April.

23andMe debuted on the stock market in 2021 but fallen from its peak valuation of $6 billion — its market cap is now north of $100 million. Financial and strategic missteps, as well as high-profile user data hacks, have dragged the company down.

Beyond Inc. plans to cut 20% of its workforce

The parent company of Bed Bath & Beyond, Overstock, Zulily, and other brands revealed its decision to slash a fifth of its staff in an October SEC filing.

The workplace reduction was taken to create a more "variable, leverageable cost structure" and to help align the company with its "asset-light business that supports an affinity and data monetization model with a strong technology focus," Beyond Inc. said in the filing.

The cuts are estimated to save roughly $20 million annually in fixed costs and are expected to be "substantially implemented" in the fourth quarter of 2024.

The news came shortly after Beyond Inc. and Kirkland announced a partnership that means physical Bed Bath & Beyond stores will return in smaller-format "neighborhood" locations.

Meta added to the 20,000+ people it's laid off since 2022

Meta is eliminating some roles on units including Instagram, WhatsApp, and its VR and AR division Reality Labs.

"A few teams at Meta are making changes to ensure resources are aligned with their long-term strategic goals and location strategy," a Meta spokesperson told BI on October 17. "This includes moving some teams to different locations, and moving some employees to different roles."

It's unclear how many roles will be affected, but Meta has trimmed its staff significantly in the year and a half, with more than 20,000 job cuts since 2022. CEO Mark Zuckerberg proclaimed 2023 a "year of efficiency" at the company, and continued cost-cutting measures this year as the tech giant gets flatter in structure.

TikTok is laying off employees as part of content moderation changes.

TikTok is cutting employees in various locations as part of changes to its content-moderation strategy.

A spokesperson for the China-owned company told Reuters in October that 80% of content that violates its policy is now removed through automated technology.

The company did not provide details on the exact number of positions that it eliminated but told Reuters the cuts would affect "several hundred" employees.

PwC is cutting 1,800 employees.

Big Four accounting firm PwC is cutting 1,800 workers, which is about 2.5% of its staff. The cuts will impact staffers ranging from associates to managing directors — half of them offshore. Those affected by the cuts will be informed in October.

In an emailed statement to Business Insider, Tim Grady, PwC's US chief operating officer, said, "To remain competitive and position our business for the future, we are continuing to transform
areas of our firm and are aligning our workforce to better support our strategy, including attracting and moving the right talent and skill sets to the areas where we need them most. Right now, we are focused on running our business well and adapting to meet the needs of our clients and the rapidly changing market."

Nike's up-to-$2 billion cost-cutting plan will involve severances

Nike announced its cost-cutting plans in a December 2023 earnings call, discussing a slow growth in sales. The call subsequently resulted in Nike's stock plunging.

"We are seeing indications of more cautious consumer behavior around the world," Nike Chief Financial Officer Matt Friend said in December.

Google laid off hundreds more workers in 2024

On January 10, Google laid off hundreds of workers in its central engineering division and members of its hardware teams — including those working on its voice-activated assistant.

In an email to some affected employees, the company encouraged them to consider applying for open positions at Google if they want to remain employed. April 9 was the last day for those unable to secure a new position, the email said.

The tech giant laid off thousands throughout 2023, beginning with a 6% reduction of its global workforce — about 12,000 people — last January.

Discord laid off 170 employees.

Discord employees learned about the layoffs in an all-hands meeting and a memo sent by CEO Jason Citron in early January.

"We grew quickly and expanded our workforce even faster, increasing by 5x since 2020," Citron said in the memo. "As a result, we took on more projects and became less efficient in how we operated."

In August 2023, Discord reduced its headcount by 4%. According to CNBC, the company was valued at $15 billion in 2021.

Citi will cut 20,000 from its staff as part of its corporate overhaul.

The layoffs announced in January are part of a larger Citigroup initiative to restructure the business and could leave the company with a remaining head count of 180,000 — excluding its Mexico operations.

In an earnings call that month, the bank said that layoffs could save the company up to $2.5 billion after it suffered a "very disappointing" final quarter last year.

Amazon-owned Twitch also announced job cuts.

Twitch announced on January 10 that it would cut 500 jobs, affecting over a third of the employees at the live-streaming company.

CEO Dan Clancy announced the layoffs in a memo, telling staff that while the company has tried to cut costs, the operation is "meaningfully" bigger than necessary.

"As you all know, we have worked hard over the last year to run our business as sustainably as possible," Clancy wrote. "Unfortunately, we still have work to do to rightsize our company and I regret having to share that we are taking the painful step to reduce our headcount by just over 500 people across Twitch."

BlackRock is planning to cut 3% of its staff.

Larry Fink, BlackRock's chief executive, and Rob Kapito, the firm's president, announced in January that the layoffs would affect around 600 people from its workforce of about 20,000.

However, the company has plans to expand in other areas to support growth in its overseas markets.

"As we prepare for 2024 and this very exciting but distinctly different landscape, businesses across the firm have developed plans to reallocate resources," the company leaders said in a memo.

Rent the Runway is slashing 10% of its corporate jobs as part of a restructuring.

In the fashion company's January announcement, COO and president Anushka Salinas said she will also be leaving the firm, Fast Company reported.

Unity Software is eliminating 25% of its workforce.

Around 1,800 jobs at the video game software company will be affected by the layoffs announced, Reuters reported in January.

eBay cut 1,000 jobs

In a January 23 memo, CEO Jamie Iannone told employees that the eBay layoffs will affect about 9% of the company's workforce.

Iannone told employees that layoffs were necessary as the company's "overall headcount and expenses have outpaced the growth of our business."

The company also plans to scale back on contractors.

Microsoft is reportedly cutting 650 more jobs from its Xbox division

Microsoft will be laying off hundreds of employees in its Xbox gaming division, Bloomberg first reported in September.

The job cuts will mainly affect workers in corporate and support functions, the outlet reported, citing a memo sent by Microsoft Gaming chief Phil Spencer.

However, he reportedly added that the company is not planning to close any studios or remove any games or devices.

This comes after the company also slashed 1,900 workers at Activision, Xbox, and ZeniMax in late January.

Nearly three months after Microsoft acquired video game firm Activision Blizzard, the company announced layoffs in its gaming divisions. The layoffs mostly affect employees at Activision Blizzard.

Xbox in May also reportedly offered some employees voluntary severance packages after shutting three units and absorbing a fourth earlier in the month.

Salesforce is cutting 700 employees across the company, The Wall Street Journal reported

Salesforce announced a round of layoffs that the company says will affect 1% of its global workforce, The Journal reported in late January.

The cuts followed a wave of cuts at the cloud giant last year. In 2023, Marc Benioff's company laid off about 10% of its total workforce — or roughly 7,000 jobs. The CEO said the company over-hired during the pandemic.

iRobot is laying off around 350 employees and founder Colin Angle will step down as chairman and CEO

The company behind the Roomba Vacuum announced layoffs in late January around the same time Amazon decided not to go through with its proposed acquisition of the company, the Associated Press reported.

UPS will cut 12,000 jobs in 2024.

The UPS layoffs will affect 14% of the company's 85,000 managers and could save the company $1 billion in 2024, UPS CEO Carol Tomé said during a January earnings call.

Paypal CEO Alex Chriss announced the company would lay off 9% of its workforce.

Announced in late January, this round of layoffs will affect about 2,500 employees at the payment processing company.

"We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth," CEO Alex Chriss wrote in a January memo. "At the same time, we will continue to invest in areas of the business we believe will create and accelerate growth."

Okta is cutting roughly 7% of its workforce.

The digital-access-management company announced its plans for a "restructuring plan intended to improve operating efficiencies and strengthen the Company's commitment to profitable growth" in an SEC filing in February.

The cuts will impact roughly 400 employees.

Okta CEO Todd McKinnon told staff in a memo that "costs are still too high," CNBC reported.

Snap has announced more layoffs.

The company behind Snapchat announced in February that it's reducing its global workforce by 10%, according to an SEC filing.

Estée Lauder said it will eliminate up to 3,100 positions.

The cosmetics company announced in February that it would be cutting 3% to 5% of its roles as part of a restructuring plan.

Estee Lauder reportedly employed about 62,000 employees around the world as of June 30, 2023.

DocuSign is eliminating roughly 6% of its workforce as part of a restructuring plan.

The electronic signature company said in an SEC filing in February that most of the cuts will be in its sales and marketing divisions.

Zoom is slashing 150 jobs

Zoom announced 150 job losses in February, which amounted to about 2% of its workforce. It had announced it was laying off 1,300 people the previous February.

Paramount Global is laying off 800 employees days after record-breaking Super Bowl

In February, Paramount Global CEO Bob Bakish sent a memo to employees announcing that 800 jobs — about 3% of its workforce — were being cut.

Deadline obtained the memo less than a month after reporting plans for layoffs at Paramount. The announcement comes on the heels of Super Bowl LVIII reaching record-high viewership across CBS, Paramount+, and Nickelodeon, and Univision.

Morgan Stanley is trimming its wealth management division by hundreds of staffers

Morgan Stanley is laying off several hundred employees in its wealth-management division, the Wall Street Journal reported in February, representing roughly 1% of the team.

The wealth-management division has seen some slowdown at the start of 2024, with net new assets down by about 8% from a year ago. The layoffs mark the first major move by newly-installed CEO Ted Pick, who took the reins from James Gorman on January 1.

Expedia Group is cutting more than 8% of its workforce

An Expedia spokesperson told BI that it was implementing cutbacks, as part of an operational review, that were expected to impact 1,500 roles this year.

The company's product and technology division is set to be the worst hit, a report from GeekWire said, citing an internal memo CEO Peter Kern sent to employees in late February.

"While this review will result in the elimination of some roles, it also allows the company to invest in core strategic areas for growth," the spokesperson said.

"Consultation with local employee representatives, where applicable, will occur before making any final decisions," they added.

Sony is laying off 900 workers

The cuts at Sony Interactive Entertainment swept through its game-making teams at PlayStation Studios.

Insomniac Games, which developed the hit Spider-Man video game series, as well as Naughty Dog, the developers behind Sony's flagship 'The Last of Us' video games' were hit by the cuts, the company announced on February 27.

All of PlayStation's London studio will be shuttered, according to the proposal.

"Delivering and sustaining social, online experiences – allowing PlayStation gamers to explore our worlds in different ways – as well as launching games on additional devices such as PC and Mobile, requires a different approach and different resources," PlayStation Studios boss Hermen Hulst wrote.

Hulst added that some games in development will be shut down, though he didn't say which ones.

In early February, Sony said it missed its target for selling PlayStation 5 consoles. The earnings report sent shares tumbling and the company's stock lost about $10 billion in value.

Bumble slashed 30% of its workforce

On February 27, the dating app company announced that it would be reducing its staff due to "future strategic priorities" for its business, per a statement.

The cuts will impact about 30% of its about 1,200 person workforce or about 350 roles, a representative for Bumble told BI by email.

"We are taking significant and decisive actions that ensure our customers remain at the center of everything we do as we relaunch Bumble App, transform our organization and accelerate our product roadmap," Bumble Inc CEO Lidiane Jones said in a statement.

Electronic Arts reduced its workforce by 5%

Electronic Arts is laying off about 670 workers, equating to 5% of its workforce, Bloomberg reported in late February.

The gaming firm axed two mobile games earlier in February, which it described as a difficult decision in a statement issued to GamesIndustry.biz.

CEO Andrew Wilson reportedly told employees in a memo that it would be "moving away from development of future licensed IP that we do not believe will be successful in our changing industry."

Wilson also said in the memo that the cuts came as a result of shifting customer needs and a refocusing of the company, Bloomberg reported.

IBM cut staff in marketing and communications

IBM's chief communications officer Jonathan Adashek told employees on March 12 that it would be cutting staff, CNBC reported, citing a source familiar with the matter.

An IBM spokesperson told Business Insider in a statement that the cuts follow a broader workforce action the company announced during its earnings call in January.

"In 4Q earnings earlier this year, IBM disclosed a workforce rebalancing charge that would represent a very low single-digit percentage of IBM's global workforce, and we expect to exit 2024 at roughly the same level of employment as we entered with," they said.

IBM has also been clear about the impact of AI on its workforce. In May 2023, IBM's CEO Arvind Krishna said the company expected to pause hiring on roles that could be replaced by AI, especially in areas like human resources and other non-consumer-facing departments.

"I could easily see 30% of that getting replaced by AI and automation over a five-year period," Krishna told Bloomberg at the time.

Amazon is laying off hundreds in its cloud division in yet another round of cuts this year

Amazon is cutting hundreds of jobs from its cloud division known as Amazon Web Services, Bloomberg reported on April 3.

The reduction will impact employees on the sales and marketing team and those working on tech for its retail stores, Bloomberg reported.

"We've identified a few targeted areas of the organization we need to streamline in order to continue focusing our efforts on the key strategic areas that we believe will deliver maximum impact," an Amazon spokesperson told Bloomberg.

On March 26, Amazon announced another round of job cuts after the company said it was slashing 'several hundred' jobs at its Prime Video and MGM Studios divisions earlier this year to refocus on more profitable products.

"We've identified opportunities to reduce or discontinue investments in certain areas while increasing our investment and focus on content and product initiatives that deliver the most impact," Mike Hopkins, SVP of Prime Video and Amazon MGM Studios, told employees in January.

This year's cuts follow the largest staff layoff in the company's history. In 2023, the tech giant laid off 18,000 workers.

Apple has cut over 700 employees across its self-driving car, displays, and services groups

Apple slashed its California workforce by more than 600 employees in April.

The cuts came after Apple decided to withdraw from its car and smartwatch display projects.

The tech giant filed a series of notices to comply with the Worker Adjustment and Retraining Notification program. One of the addresses was linked to a new display development office, while the others were for the company's EV effort, Bloomberg reported.

Apple officially shut down its decadelong EV project in February. At the time, Bloomberg reported that some employees would move to generative AI, but others would be laid off.

Bloomberg noted that the layoffs were likely an undercount of the full scope of staff cuts, as Apple had staff working on these projects in other locations.

In late August, Bloomberg reported that Apple was slashing 100 jobs in its services group, citing people familiar with the matter.

The layoffs mainly involved people working on the Apple Books app and the Apple Bookstore, Bloomberg reported. Cuts were also made to other service teams like Apple News, the outlet added.

Representatives for Apple did not respond to a request for comment from Business Insider sent outside normal business hours.

Tesla laid off over 10% of its workforce

Tesla CEO Elon Musk sent a memo to employees on April 14, at nearly midnight in California, informing them of the company's plan to cut over 10% of its global workforce.

In his companywide memo, Musk cited "duplication of roles and job functions in certain areas" as the reason behind the reductions.

An email sent to terminated employees, obtained by BI, read: "Effective now, you will not need to perform any further work and therefore will no longer have access to Tesla systems and physical locations."

On April 29, Musk reportedly sent an email stating the need for more layoffs at Tesla. He also announced the departure of two executives and said that their reports would also be let go. Six known Tesla executives have left the company since layoffs began in April.

Grand Theft Auto 6 publisher Take-Two Interactive is reducing its workforce by 5%

Take-Two Interactive, the parent company of Rockstar Games, said on April 16 that it would be "eliminating several projects" and reducing its workforce by about 5%.

The move — a part of its larger "cost reduction program" — will cost the video game publisher up to $200 million. It's expected to be completed by December 31.

As of March 2023, the company said it employed approximately 11,580 full-time workers.

Peloton announced it was reducing its staff by 15% as the CEO stepped down

Peloton CEO Barry McCarthy is stepping down, the company announced May 2. Along with his departure, the fitness company is also laying off about 400 workers.

McCarthy is leaving his role just two years after replacing John Foley as CEO and president in 2022. Peloton said the changes are expected to reduce annual expenses by over $200 million by the end of fiscal 2025 as part of a larger restructuring plan.

Indeed is cutting 1,000 workers after laying off 2,200 in 2023

Careers site Indeed says it will lay off roughly 1,000 employees, or 8% of its workforce, as it looks to simplify its organization.

CEO Chris Hyams took responsibility for "how we got here" in a memo in May but said the company is not yet set up for growth after last year's global hiring slowdown caused multiple quarters of declining sales.

Hyams said the latest cuts will be more concentrated in the US and primarily affect R&D and Go-to-Market teams. It comes after last year's across-the-board reduction of 2,200 workers.

Walmart is axing hundreds of corporate jobs

Retail giant Walmart is cutting hundreds of corporate jobs and asking remote employees to come to work, The Wall Street Journal reported in May, citing people familiar with the matter.

Workers in smaller offices, such as those in Dallas, Atlanta, and Toronto, are also being asked to move to central locations like Walmart's corporate headquarters in Arkansas or those in New Jersey or California, the Journal reported.

Under Armour is slashing an unspecified number of jobs, incurring $22 million in severance costs

Under Armour confirmed it was conducting layoffs in its quarterly earnings report, which was released May 16.

The company said it will pay out employee severance and benefits expenses of roughly $15 million in cash-related and $7 million in non-cash charges this year related to a restructuring plan, with close to half of that occurring in the current fiscal quarter.

"This is not where I envisaged Under Armour playing at this point in our journey," CEO Kevin Plank told investors on the company's full-year earnings call. "That said, we'll use this turbulence to reconstitute our brand and business, giving athletes, retail customers and shareholders bigger and better reasons to care about and believe in Under Armour's potential."

Pixar cuts about 175 people in pivot back to feature films

Disney's Pixar Animation Studios is cutting 175 people, about 14% of its staff, Reuters reported.

The cuts started on May 21 as the studio returns to its focus on feature-length movies. Former Disney CEO Bob Chapek, who was axed in 2022, had increased staff across studios to create more content for the company's streaming service, Disney+.

Pixar cut 75 jobs last year, Reuters previously reported, part of a larger restructuring across Disney.

Lucid Motors is slashing around 400 jobs

In a regulatory filing, Lucid Motors said it would lay off about 400 employees as part of a restructuring plan that should be complete by the end of the third quarter.

"I'm confident Lucid will deliver the world's best SUV and dramatically expand our total addressable market, but we aren't generating revenue from the program yet," CEO Peter Rawlinson said in an email to employees obtained by TechCrunch.

The cuts come ahead of Lucid's launch of its first electric SUV later this year. It comes over a year after the California-based company laid off 1,300 employees, TechCrunch previously reported.

John Deere is laying off over 600 employees

John Deere, maker of the iconic green-and-yellow tractors, is laying off over 600 employees at factories in Illinois and Iowa, the AP reported July 1.

In May, John Deere said sales fell for the third consecutive quarter and projected that the declines would continue in the second half of its fiscal year.

Burberry is expected to cut 100s of jobs

London-based luxury retailer Burberry is expected to cut hundreds of jobs in the coming weeks, the Telegraph reported July 6.

Employees learned about the cuts in late June when they were told in a Zoom meeting that their roles could be eliminated or that they would need to apply for other jobs, according to the Telegraph.

Intuit announced cuts on July 10

Intuit announced on July 10 that it's cutting its workforce by 10%. The layoffs will affect 1,800 employees nationwide, but the company plans to hire 1,800 new employees in "key areas" like engineering, InvestorPlace reports.

The refocus on other areas is following a shift in focus on AI within the company, according to the outlet.

Intuit's stock dropped by 4.01% on July 10 after the company announced the layoffs.

Tinder parent Match group plans to cut 6% of jobs

Match Group, the parent company of Tinder and Hinge, said on July 30 that it would reduce its global workforce by about 6%, or about 156 employees because it is exiting the livestreaming business.

Match said it would remove the livestreaming service from its app Plenty of Fish and sunset the Hakuna app, which focuses on Korea and Japan.

The reduction in workforce is expected to save the company $13 million in annual costs.

Disney cuts 140 jobs across its TV division

Deadline and Bloomberg reported in July that Disney was making cuts across its TV division, to the tune of roughly 140 jobs — or 2% of the staff at Disney Entertainment Television (DET).

Layoffs will impact National Geographic, owned television stations, the marketing and publicity departments, and Freeform, per a source close to the matter, which notes no teams have been eliminated.

While Disney's cable TV business generates billions, it's on the decline, Bloomberg reports, and the company is seeking to cut costs.

Last year, Disney slashed 7,000 jobs across multiple rounds of layoffs as part of a strategy implemented by returning CEO Bob Iger.

Intel plans to eliminate thousands of jobs

Intel plans to cut thousands of jobs in response to a second-quarter earnings slump, Bloomberg reported earlier this week, citing unnamed people familiar with the move.

It was officially announced on August 1, as it posted Q2 earnings. The company intends to reduce its workforce by 15% by the end of 2024.

"Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones," Intel CEO Pat Gelsinger said in a statement. "Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation."

Intel's stock was down following the lackluster earnings.

The layoffs come after the chip maker laid off about 5% of its workforce last year, bringing its head count down to around 124,000, Bloomberg reported.

During the last round of layoffs, announced in October 2022, Intel faced a drop in demand for processors for personal computers and estimated the layoffs would save $10 billion in costs by 2025, per Bloomberg.

Intel did not immediately respond to a request for comment.

WW International is cutting jobs in corporate

Diet program creator WW International, formerly WeightWatchers, plans to lay off employees, it said in an earnings call on August 1.

The company did not specify the number of jobs it will cut. But the layoffs will largely focus on corporate positions, including a 40% cut in roles above and at the vice president level.

The cuts are expected to save the company $60 million, the company's chief financial officer said.

Dell is cutting sales jobs in new focus on AI products

Dell is cutting jobs on its sales team, Bloomberg reported. It wasn't immediately clear how many jobs Dell planned to eliminate.

In a memo announcing the cuts, company executives said that the choice was part of a restructuring to focus more on selling AI products and data center services, Bloomberg reported.

Dell did not immediately respond to a request for comment from BI, but a spokesman told Bloomberg: "Through a reorganization of our go-to-market teams and an ongoing series of actions, we are becoming a leaner company."

Paramount Global announced it plans to slash 15% of its US workforce

Paramount Global is planning to cut about 2,000 jobs ahead of its merger with Skydance Media, CNBC reported.

The company identified $500 million in cost savings as it prepared to join forces with Skydance, totalling about 15% of its US workforce, according to the outlet.

The cuts will begin in a few weeks and will mostly be finished by the end of 2024. Paramount employees in marketing and communications, finance, legal, technology, and other support functions have been targeted, the company said on an earnings call.

The cuts come about a month after Paramount agreed to merge with Skydance. Paramount shares jumped more than 5% after hours.

Stellantis is slashing white-collar and factory jobs

In August, the owner of Jeep and Dodge announced it is cutting 2,450 factory workers from its Warren Truck assembly plant outside Detroit.

The layoffs come because the company is ending production of the Ram 1500 Classic truck, Stellantis said. These factory cuts came after white-collar jobs were axed earlier this year.

On March 22, the company said it would lay off employees on its engineering, technology, and software teams in an effort to cut costs, CNBC reported.

Stellantis announced plans for another round of layoffs on July 30, according to Bloomberg. The company is offering voluntary buyouts to non-unionized US employees to "assist those interested in pursuing other career options or retirement," Stellantis said in a message seen by Bloomberg.

The job cuts, the total number of which remains unknown, come after a difficult first half of the year, with unit sales sinking by 16% in the US.

Sonos laid off about 6% of its workforce

The audio equipment company said it slashed roughly 100 jobs in August. The layoffs significantly targeted its marketing division, The Verge reported.

CEO Patrick Spence said in a statement to BI that the company is now focusing on departing employees and "ensuring they have the support they need."

"This action was a difficult, but necessary, measure to ensure continued, meaningful investment in Sonos' product roadmap while setting Sonos up for long term success," Spence said.

Sonos is also reducing some of its customer support offices and will close one in Amsterdam later this year, according to The Verge.

The company previously cut around 7% of its workforce in June 2023, a month after it announced a 24% revenue drop in the second quarter compared to the previous year.

Cisco announced two rounds of layoffs this year

In February, networking company Cisco announced it was slashing 5% of its workforce, upward of 4,000 jobs, Bloomberg reported.

The company said it was restructuring after an industry-wide pullback in corporate tech spending — which execs said they expect to continue through the first half of the year.

On August 14, in a filing, Cisco said it would further reduce its global workforce by 7% amid sales and revenue declines. Reuters reported earlier that the company was slashing around 4,000 jobs as it shifted attention to cybersecurity and artificial intelligence.

Per its latest annual filing, Cisco had about 85,000 employees as of July 2023.

GoPro is laying off nearly 140 employees

Long-troubled GoPro is laying off 15% of its 925 current employees, the company said in a filing.

The action sports camera maker reported a net loss of nearly $48 million in the quarter that ended in June, adding to a streak of consecutive losses.

The company laid off 4% of its staff in March.

Shell is reportedly planning for major cuts in its oil exploration division

Oil giant Shell will slash its workforce in oil and gas exploration and development by 20%, according to an August 29 report from Reuters. Company sources reportedly cited intentions to cut costs in the highly profitable segments due to "deep cuts in renewables and low-carbon businesses."

Exploration, wells development, and subsurface units will face hundreds of layoffs globally, with offices in Houston, The Hauge, and Britain expected to take the biggest hit, the sources told Reuters.

A Shell spokesperson would not comment directly on the layoffs but told Business Insider that, "Shell aims to create more value with less emissions by focusing on performance, discipline and simplification across the business."

"That includes delivering structural operating cost reductions of $2-3 billion by the end of 2025, as announced at our Capital Markets Day event in June 2023," the spokesperson added.

Goldman Sachs plans to lay off more than 1,300 workers, The Wall Street Journal reported

The global investment bank is set to cut hundreds of employees during annual reviews this year, The Wall Street Journal reported, citing people familiar with the situation.

Goldman Sachs is targeting low performers with the intention of laying off between 3% and 4% of its global workforce, equaling somewhere between 1,300 and 1,800 people, according to the outlet.

The cuts are already underway and will continue in the coming months, one person told the outlet. Goldman typically tries to cut anywhere from 2% to 7% of employees each year, per The Journal.

Gwyneth Paltrow's Goop is cutting 18% of staff

Goop is cutting 18% of its 216-person staff, citing a change to its organization, WWD wrote in September. It will now focus on beauty, fashion, and food — specifically its Goop Beauty and good.clean.goop beauty brands, G.Label clothing line, and Goop Kitchen restaurants.

That means it's moving away from wellness, home, travel, and sexual wellness, some of which are categories that once defined the brand.

Samsung plans to cut jobs globally this year, Reuters reported

Samsung is planning to cut jobs this year, a move that will impact workers in the US, Europe, Asia, and Africa, Reuters reported.

The electronic devices maker will cut up to 30% of staff in some divisions, the report says. It is unclear how many jobs will be impacted.

Samsung told Reuters in a statement that the workforce adjustments would not impact its production staff and that no specific targets for the cuts are in place.

Verizon is laying off 4,800 US employees

Verizon is letting go of 4,800 US-based management employees in a voluntary separation program.

The company said in a Securities and Exchange Commission filing that more than half of these employees would exit in September, while the rest will leave by the end of March 2025.

The telecommunications giant expects severance charges to cost as much as $1.9 billion before tax in the third quarter of this year.

General Motors is laying off about 1,700 employees in Kansas

General Motors is laying off 1,695 employees at its Fairfax plant in Kansas, the company said in a Worker Adjustment and Retraining Notification notice in mid-September.

The layoffs will begin in mid-November, and a second phase will continue in January, Reuters reported, citing a GM spokesperson. It is unclear which departments will be affected, but about 1,450 of these employees will be laid off temporarily, the spokesperson said.

In August, the carmaker laid off over 1,000 workers, or 1.3% of its workforce.

The August layoffs came primarily from GM's software and services business, which it had bulked up over the past few years. Last year, the company brought on two former Apple executives to run the unit.

Flexport conducts second round of layoffs in 2024

US logistics startup Flexport is laying off another 2% of its US staff this week as it aims to cut costs and reorganizes its retail delivery business.

The fulfillment center-focused cuts amount to about 40 people and were first reported by The Information, citing an internal memo.

In January, Flexport cut 15% of its staff, or around 400 people. Those cuts came after Flexport founder and CEO Ryan Petersen initiated a 20% reduction of its workforce of an estimated 2,600 employees in October 2023.

Flexport kicked off 2024 with the announcement that it raised $260 million from Shopify and made "massive progress toward returning Flexport to profitability."

NYCB's Flagstar Bank cuts 700 jobs

New York Community Bancorp's Flagstar Bank will cut 8% of its workforce, or 700 jobs, as it aims to revamp its business, the company's CEO, Joseph Otting, said in a statement on October 17.

An additional 1,200 employees will be laid off at the end of the quarter after the company sells its residential mortgage business.

NYCB is also changing its name to Flagstar Financial as part of the turnaround efforts after losses from its commercial real estate portfolio.

Chief, a networking group for female executives, made cuts across the company

Chief, which has positioned itself as the nation's largest network of senior executive women, confirmed to Business Insider on October 20 that it has shed roles.

The company told BI that the cuts, which had already been announced internally, mainly impacted "our technology and administrative functions."

"Like many companies, we are balancing growth and profitability," the spokesperson added.

In a June press release, the American company said 40% of its members were C-suite executives and that they represent more than 10,000 companies.

In April 2023, Chief cut 14% of its workforce in what the founders called a "challenging economic environment," TechCrunch reported at the time.

This January, the company said it would close its London offices — opened one year previously — to refocus on the American market.

Visa will reportedly lay off around 1,400 people

Visa plans to lay off around 1,400 workers this year, The Wall Street Journal reported on October 29.

In a statement provided to BI, a Visa spokesperson said the company expects to grow its workforce for the foreseeable future but that it is continuously evolving to serve clients, innovate, and grow, "which can lead to the elimination of some roles."

"When this happens, we are committed to supporting our employees," the spokesperson added.

Workers affected by layoffs included employees and contractors, with more than 1,000 in technology roles, the Journal reported, citing unnamed sources familiar with the situation. Visa has more than 30,000 employees.

Dropbox is slashing around 20% of its global workforce

The cloud storage company is laying off 528 employees, targeting "over-invested or underperforming" areas, CEO Drew Houston announced in an email sent to employees.

"As CEO, I take full responsibility for this decision and the circumstances that led to it, and I'm truly sorry to those impacted by this change," Houston wrote.

The Dropbox chief cited diminishing demand and macro headwinds in the company's core business, as well as excessive management levels, as contributing factors.

The layoffs come as the company is undergoing a "transitional period" with its growing File Sync and Share (FSS) business and greater efforts on products like Dash, Dropbox's AI-powered work assistant.

KPMG plans to cut nearly 4% of its US audit workforce.

Consulting giant KPMG informed about 330 people, or less than 4%, in its US audit workforce that they would be laid off within the next couple of weeks, a spokesperson told BI.

"The actions reflect our ongoing focus to align the size, shape and skills of our workforce to the market, while addressing continued low levels of attrition," the spokesperson said in a written statement.

This follows an earlier round of layoffs in March, as well as another one last summer, that also affected the company's audit unit, similarly due to low levels of voluntary exits, the spokesperson said.

Nissan said it will slash 9,000 jobs globally.

Japanese automobile giant Nissan said during its November earnings release that it would be cutting 9,000 jobs in an attempt to save money.

The car company reported lower revenue for the period, which it attributed to higher selling and production costs. Nissan said it brought in about 32 million yen, or $208 million, at the end of the first half of the fiscal year — a steep drop from the $1.4 billion it reported for the same time last year.

In addition to a 20% production capacity reduction, CEO Makoto Uchida will give up 50% of his compensation and other executives have taken voluntary pay cuts.

NASA JPL plans to cut about 5% of its workforce.

NASA's Jet Propulsion Laboratory in California is cutting its workforce for the second time this year.

In November, the agency announced it plans to lay off 325 employees, or about 5% of its workforce. The cuts follow a round of layoffs in February, where JPL cut 530 employees.

"Although we can never have perfect insight into the future, I sincerely believe that after this action we will be at a more stable workforce level moving forward," JPL Director Laurie Leshin wrote in a company-wide memo.

Leshin added that the reductions affect all areas of JPL including technical, project, business, and support areas. The layoffs are the result of "continued funding challenges" Leshin wrote.

JPL is responsible for some of NASA's most daring feats like landing the Curiosity rover on Mars and guiding Voyagers 1 and 2 into interstellar space.

Associated Press will lay off 8% of its global staff.

The Associated Press in November announced plans to reduce its staff by 8% through a combination of buyouts and layoffs.

"This is about ensuring AP's important role as the only truly independent news organization at scale during a period of transformation in the media industry," The Associated Press said in a statement about the cuts.

The union representing a portion of AP members indicated 121 of its guild members would be offered buyouts before layoffs began, per AP.

Less than half of the expected cuts will involve news employees, the outlet reported, and though the AP has bureaus around the world, a majority of the staff reduction will occur within the United States.

Sotheby's laid off 100 workers.

Sotheby's cut 100 employees from its New York offices on Tuesday, the company confirmed to multiple publications. The layoffs include back-office workers, junior staffers, and specialists, reports said.

The layoffs come as the auction market has experienced a recent slowdown in sales and earnings. The company also previously cut about 50 employees in its London location, Art News reported.

Sotheby's recently closed a deal in October for Abu Dhabi investment company ADQ to acquire a minority stake in the company. ADQ said in a press release about the deal that the $1 billion investment was meant to support Sotheby's domestic and international expansion plans.

Sotheby's did not immediately respond to a request for comment from BI.

Wells Fargo plans to cut over 700 workers in Oregon.

Wells Fargo filed two WARN notices on December 4 sharing plans to lay off over 700 workers in Oregon, including 500 people from its Hillsboro location and 221 employees from its Salem office. It also plans to shut down both offices.

The company said in its filing that it verbally notified employees of the changes on December 3, and plans to deliver formal notices for displacement in the fourth quarter of 2025. Wells Fargo said it will provide more details on impacted roles at a later time.

Those who don't get relocated into other roles within the business are eligible to receive severance based on years of service and their opportunity to use the company health plan at active rates, the filing said.

"We continue to bring the majority of our non-customer facing positions together in locations best suited for our customers and our company," a Wells Fargo spokesperson told BI. "This effort does not impact our commitment to serving customers and clients."

CVS files notice for 164 layoffs

CVS filed a WARN notice on Friday announcing 164 layoffs during a 14-day period beginning February 15.

The company shared plans in October to cut about 2,900 workers, which is less than 1% of the company, as part of a multi-year initiative to cut costs by $2 billion. The company said the vast majority of impacted workers were notified last week.

"Before taking this step, we prioritized finding cost savings everywhere we could, including closing open job postings," CVS said in a statement. "Decisions on which positions to eliminate were extremely difficult and do not diminish the value that impacted colleagues have brought to the company."

The company said most cuts would be corporate roles and wouldn't impact front line-line jobs in stores, pharmacies, and distribution centers.

The company also filed a WARN notice in October announcing 416 layoffs, 323 of which were remote. It filed another notice in November announcing 42 cuts, 30 of which were remote workers.

"We are committed to supporting these colleagues, who will receive severance pay and benefits, including access to outplacement services," the company said in a statement.

Party City announced mass layoffs

Party City sent an email to employees about mass layoffs at its New Jersey headquarters on Friday, CBS News reported. The company filed for bankruptcy protection in the Southern District of Texas the next day.

The company said in an announcement that the decision to "wind down" followed extensive efforts to continue operations in an "immensely challenging environment driven by inflationary pressures on costs and consumer spending."