News

The U.S. Supreme Court is set to hear an appeal by President Joe Biden’s administration challenging a lower court’s ruling that restricts the Securities and Exchange Commission’s (SEC) power to enforce securities laws through its in-house tribunal system. The case involves hedge fund manager George Jarkesy, who was fined and barred from the industry by the SEC for committing securities fraud. Critics argue that the SEC’s in-house system gives it an unfair advantage in prosecuting cases.

The case has significant implications for the SEC’s ability to root out wrongdoing in the securities industry. A separate challenge against the Financial Industry Regulatory Authority (FINRA) is also being considered by lower courts. Conservatives and business groups support these challenges, expressing concerns about the reach of federal regulatory power. The SEC has faced other legal attacks despite the Supreme Court’s conservative majority signaling skepticism towards expansive federal regulatory power.

Google’s Chief Legal Officer, Kent Walker, has urged the European Union (EU) to develop AI regulations that support innovation rather than rushing into the first set of rules. As EU countries and lawmakers finalize a draft proposal on AI regulations, one of the main concerns is the regulation of foundation models like OpenAI’s ChatGPT. Walker emphasized the need for hard trade-offs between security and openness, data access and privacy, and explainability and accuracy while ensuring proportionate, risk-based rules. He called for regulations that build upon existing frameworks and provide confidence for businesses to keep investing in AI innovation.

Volkswagen has announced a 10 billion euro savings program that will feature staff reductions as part of its efforts to boost efficiency in the shift to electric vehicles. The carmaker’s brand chief, Thomas Schaefer, emphasized the need to address high costs and low productivity, which have made its cars less competitive.

While Volkswagen had previously committed to no dismissals until 2029, it now aims to leverage partial or early retirements to reduce its workforce. The company also stated that the majority of the cost-cutting target will involve measures other than personnel reductions, with specific details to be outlined by year-end.

A number of retailers, including Tapestry, BJ’s Wholesale Club, and Hanesbrands, have recently issued lackluster fourth-quarter outlooks, causing concern for the crucial holiday season. Factors such as persistent inflation, slowing demand, and cautious consumer spending have contributed to reduced forecasts. This cautious sentiment among retailers raises questions about the overall health of the economy.

The holiday shopping season, which experienced significant growth during the pandemic, is expected to see a slowdown in 2023 due to dwindling savings accounts, inflation, and high interest rates. As a result, retailers are approaching the season with more caution than anticipated. Retailers like Walmart and Dick’s Sporting Goods have struck a cautious tone with their outlooks, despite some positive results. The overall lack of confidence among retailers spells trouble for the holiday quarter.

Amazon is implementing stricter measures to enforce its return-to-office mandate for corporate employees. According to internal posts viewed by CNBC, employees who do not comply with the policy of working in the office at least three days a week may be denied promotions. Managers are responsible for supporting employee growth and must ensure compliance with the in-person work requirement. Amazon’s decision to require employees to return to the office has sparked tensions and protests among staff. The company’s stance on remote work has evolved throughout the pandemic, initially planning to return to an office-centric culture before implementing the current mandate.

Amazon.com announced that it is cutting jobs at its Alexa voice assistant unit as it shifts its business priorities to focus more on generative artificial intelligence (AI). While the exact number of affected employees was not disclosed, the cuts reportedly impact several hundred workers. Amazon has been reducing its presence in various divisions recently, including music, gaming, and certain human resources roles.

The decision to discontinue some initiatives and allocate resources to generative AI aligns with the company’s efforts to maximize resources and meet customer demands. The move comes as Amazon strives to make Alexa more competitive in the era of generative AI. Despite the job cuts, the company remains optimistic about the future of Alexa and its potential for growth.

Private space company Sierra Space has laid off several hundred employees and contractors this week, with around 165 employees and an unspecified number of contractors affected. The company, recently valued at over $5 billion, shipped its first Dream Chaser spaceplane for testing at NASA’s Armstrong facility in Ohio before the layoffs began. Sierra Space will now focus on the operations phase of Dream Chaser’s first mission and classified national security work, including adding nearly 150 employees with security clearances. The layoffs come after Sierra Space raised almost $300 million in funding two months ago.