Here’s the trending news from the tech world. News we think every tech enthusiast should keep an eye on.
1)
Once the Clubhouse app has taken off, it’s laying off employees
Clubhouse, which had become a sensation during the pandemic lockdown, has announced that it is cutting more than half of its workforce. While it is not yet clear how many employees will be affected by this decision, co-founder Paul Davison said in October last year that the company has close to 100 employees. The social media audio app company now joins numerous companies that have resorted to mass layoffs to weather the ongoing economic downturn. Clubhouse had become the go-to app during the pandemic era with high-profile investors plunging into it and its valuation rising to $4 billion. However, Clubhouse was unable to keep pace in the post-pandemic era as its active user base continued to slide and decline dramatically.
2)
Fast stocks fall on poor first-quarter results
Shares of Snap fell as much as 20-25% on Thursday as investors got nervous about the company’s less-than-impressive first-quarter results. The video messaging company reported that its first-quarter revenue was down 7% from $1.06 billion exactly a year ago. While the company did not provide official guidance for the second quarter, it told investors that its earnings and domestic revenue will continue to remain under pressure in the second quarter. Snap isn’t the only one currently facing the brunt of the economic downturn. Even its larger counterpart, Meta, is being pinched hard. But unlike Meta, Snap doesn’t have huge cash reserves or a global presence to overcome today’s challenges.
3)
Intel reports quarterly loss (and it’s the biggest in company history)
To say that chipmaker Intel announced a poor first-quarter result on Thursday would be an understatement. Intel’s first-quarter loss for fiscal 2023 is its biggest quarterly loss in the company’s illustrious history. The semiconductor giant announced that its revenue fell 36% year-over-year to $11.70 and saw a 133% year-over-year decline in earnings per share. Due to increasing competition from AMD and TSMC, Intel is rapidly losing its market share and dominance in the chip market. What makes investors panic even more is the fact that Intel CEO Patrick Gelsinger has yet to announce a concrete and compelling turnaround plan for the company.
4)
Microsoft will stop making mice, keyboards and webcams
Microsoft has announced that it will stop making company-brand mice, keyboards and webcams. The tech giant will be phasing out these products in favor of Surface-branded PC accessories. This decision marks the end of an era of sorts for the Microsoft-branded PC hardware accessories business. The tech giant first entered the hardware business in 1983 when it launched its first mouse on the market. However, this decision will not have much impact on the company as the hardware business barely contributes to its top line.
5)
The failed launch of the spacecraft caused a fire in a state park in Texas
SpaceX’s long-awaited spaceship launch ended in failure a few days ago, causing a lot of heartburn among space enthusiasts and the general public. However, the failed launch also means that federal agencies will have to deal with the explosive aftermath of the mission for quite some time. Federal agencies say the failed launch ignited nearly 3.5 acres of Boca Chica State Park. The agencies noted that the fire did not cause any loss of life to animals or humans. SpaceX or Elon Musk have not yet spoken out on this issue.
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Once soaring app Clubhouse has reportedly laid off dozens of employees, a move that could create ripples across Silicon Valley and the tech industry at large. Clubhouse, a social media platform focused on real-time audio conversations, saw rapid growth at the end of 2020, but the app’s boom has been met with hype and criticism, pointing to the ensuing layoffs.
The downsizing reportedly impacted departments such as engineering and design, though it’s unclear how many employees were let go in total. Clubhouse attributed the layoffs to “changes in technology and our focus as a company.” At the same time, the platform promised to provide impacted employees with severance packages, job search services, and continued healthcare coverage.
Clubhouse’s bubble burst was yet another reminder of the ever-changing tech landscape, and several media outlets compared the proverbial rise and fall of the platform to other overnight successes, such as Vine and the Atari game console. Companies like Ikaroa must carefully consider not only how to succeed, but also how to sustain success in the throes of shifting tech trends.
