News

In an effort to achieve financial stability, Epic Games has announced that it will be laying off 16% of its workforce. CEO Tim Sweeney stated that about two-thirds of the job cuts will be outside of core development, allowing the company to reduce costs without interrupting major plans. Additionally, Epic will be selling its music platform, Bandcamp, to Songtradr, a music licensing platform. The company’s SuperAwesome advertising business will also be spun off as an independent company under the SuperAwesome brand. These moves come as Epic Games aims to rectify its spending and reduce losses. The layoffs at Epic Games reflect the broader trend of job cuts within the tech industry due to slowing growth and higher interest rates.

The U.S. Equal Employment Opportunity Commission (EEOC) has filed a lawsuit against Tesla, accusing the company of violating federal law by allowing racial harassment of its Black employees and subjecting them to retaliation. The complaint alleges that non-Black employees openly used slurs and epithets around work areas, while supervisors and managers failed to intervene. Tesla was also accused of neglecting to address the complaints made by Black workers. This legal action follows a previous state civil rights agency lawsuit and a $3.2 million damages ruling against Tesla for racial discrimination in 2015. The EEOC is seeking compensatory and punitive damages, back pay, and reforms in Tesla’s employment practices.

China Evergrande Group’s Chairman, Hui Ka Yan, has reportedly been placed under police surveillance, raising concerns about the embattled developer’s prospects as it faces the increasing threat of liquidation. Evergrande is the world’s most indebted developer, with over $300 billion in liabilities. The surveillance of Hui comes amidst an ongoing liquidity crisis in China’s property sector, which accounts for a significant portion of the country’s economy. While the reason for the surveillance remains unclear, it is not indicative of formal detention or arrest.

Evergrande’s offshore restructuring plan is also facing challenges, increasing the likelihood of bankruptcy or liquidation. Shares of Evergrande fell 19% following the news, adding further pressure to the troubled developer. Another major Chinese developer, Country Garden, is also facing financial troubles as it confronts a bond coupon repayment deadline. The Chinese property sector is experiencing significant distress, with concerns of further defaults and a potential ripple effect on the broader economy.

Target announced that it will be closing nine stores in major cities across the country due to violence, theft, and organized retail crime. The affected locations include Harlem in New York City, Seattle, the San Francisco-Oakland area, and Portland, Oregon. Target cited the safety of its team and guests, as well as unsustainable business performance, as the reasons behind the closures. The company has been vocal about the increase in organized retail crime at its stores, resulting in higher levels of shrink. Target’s decision to both close stores and explicitly blame retail crime sets it apart from other retailers.

The company has supported proposed legislation that aims to address organized retail crime by implementing stiffer penalties and creating a formal venue for information exchange. Store closures have been influential in motivating lawmakers to support these measures. Target’s business has faced challenges recently, including excess inventory and reduced consumer spending. The company has implemented various measures to combat retail crime, but they have not been sufficient at the affected locations. Target intends to support affected employees by offering opportunities to transfer to other store locations.

The announcement of closures coincided with the release of the National Retail Security Survey, which highlighted the ongoing impact of theft on retail sales. Target joins a growing list of retailers, such as Walmart, Nordstrom, and Walgreens, that have closed stores in major cities. These closures are attributed to factors such as market dynamics and unprofitability.

Federal Trade Commission (FTC) Chair Lina Khan defended the agency’s antitrust lawsuit against Amazon, emphasizing how the company’s monopoly power enabled it to impose a 50% tax on sellers. Khan stated that the lawsuit aims to protect free and fair competition and denied claims of punishing large companies for their success. The complaint alleges that Amazon has monopolized the online superstore market, offering an unmatched variety and selection of products. Khan highlighted the importance of considering aggregated harms resulting from Amazon’s scale to fully restore competition. Amazon, which dominates the U.S. e-commerce market, has argued that it competes with various online and offline retailers.

Employee surveillance has seen a significant rise, driven by the shift to hybrid work during the pandemic. Startups like Erudit have capitalized on this trend, offering AI-powered work monitoring software. Through integrating with existing workplace communication apps like Slack and Zoom, Erudit aims to provide real-time insights on employee productivity, alignment, autonomy, engagement, and satisfaction.

However, concerns about privacy, potential biases, and misinterpretations have been raised. While Erudit claims to anonymize chat data, many employees worry about the invasion of privacy. There are also concerns about the impact of cultural differences in text expressions and the potential for momentary lapses in judgment affecting assessments. Additionally, the actions taken by managers based on the data generated by such software may raise questions about fairness and unjust punishments. Despite these concerns, Erudit has gained numerous customers, and the company plans to expand its team in areas such as customer support, success, and sales.

Starpath Robotics, a startup company, has unveiled its plans to design, launch, and operate machines that mine and refine water for rocket propellant using resources found on the moon and Mars. The company intends to deploy a fleet of mining machines to excavate large amounts of dirt, which will then be processed into water and split into its constituent atoms. Starpath is developing a solar array to generate power for the processing plants, which will be installed in parts of the moon that receive near-permanent sunlight. The liquid oxygen produced will be stored underground in Teflon bags until it is needed as a propellant. Starpath’s CEO envisions a future where methane could be generated from Mars’ carbon-rich atmosphere, eliminating the need to bring additional resources.

The company has attracted investment from Hummingbird Ventures and Valhalla Ventures, and it aims to serve various customers ranging from small companies focused on water resources to larger spacecraft manufacturers. Starpath’s plans’ success depends on the availability of a commercial lunar Starship before 2028, as they need its payload capacity and customers. The company is focused on demonstrating the functionality of its full system in a terrestrial environment before space qualification. It aims to launch the mining and refinery system on a Starship to the moon’s south pole in 2026. Starpath estimates that it will require around $50 million in funding over the next few years and plans to expand its team of four employees to ten.