Issue #51

Meta cuts 5% of workforce based on performance, pension funds dabble in crypto, Americans suddenly learning Chinese, and more.

News from January 9 - January 16, 2025

Meta Cuts 5% of Workforce Based on Performance

Meta plans to cut approximately 5% of its workforce (around 3,600 employees) through performance-based terminations, with notifications going out by February 10. CEO Mark Zuckerberg announced in an internal memo that the company will "raise the bar on performance management" and accelerate the removal of low-performing employees. 

The company intends to hire new people to fill these positions. This reduction follows Meta's recent pattern of workforce cuts, including layoffs in October 2023 and the termination of 10,000 workers earlier in 2023. In 2022, the company had laid off 11,000 employees.

‍Source 

UK AI Startup Valued at $2.1 Billion

Synthesia, a London-based AI video platform that creates multilingual human avatar clips, has secured $180 million in funding, valuing the company at $2.1 billion - more than double its 2023 valuation. The round was led by NEA, with participation from Atlassian Ventures, World Innovation Lab, and PSP Growth. 

Victor Riparbell, Synthesia CEO: “Of course, the hype cycle is beneficial to us [but] what’s important is building an actually good business.”

The company, which employs over 400 people globally and recently appointed former Amazon executive Peter Hill as CTO, generates more than half its revenue from U.S. customers.

Source 

Pension Funds Dabble in Crypto

Pension giants are entering the bitcoin market as the cryptocurrency reaches $100,000, marking a significant shift in traditional finance. Major U.S. state funds Wisconsin and Michigan now rank among the largest holders of cryptocurrency investment funds, while pension managers in the UK and Australia have started buying bitcoin.

The move comes as Trump's expected pro-crypto presidency promises to make the U.S. "the bitcoin superpower of the world." Pension consultants report increasing demand from trustees, despite previous disasters when Canadian pension funds lost hundreds of millions in the collapses of crypto companies FTX and Celsius.

While some funds see bitcoin as a way to increase returns, most pension managers remain cautious. Government regulators continue to warn about cryptocurrency's extreme price changes, suggesting this bold experiment in retirement investing is far from settled.

Source 

Bulletin Board

• Luxury Market Beats Expectations. European luxury stocks surged, led by Richemont's 16% jump to a record high after strong third-quarter sales beat expectations. The Swiss company's success, particularly in jewelry and watches, sparked a sector-wide rally with LVMH, Kering, Moncler, and Burberry all rising around 7%. The gains suggest possible stabilization in luxury spending, especially during the Christmas season, despite recent concerns about Chinese market weakness. Source 
• Obesity Gets Reframed. Global medical experts propose dividing obesity into two categories: "clinical obesity" for patients with weight-related medical conditions, and "pre-clinical obesity" for those healthy despite higher weight. The change challenges BMI-based diagnosis, which experts say ignores individual health factors and body composition. The recommendation comes as obesity affects over a billion people worldwide and weight-loss drug demand rises. Source 
• Amazon Makes Big EV Truck Order. Amazon is launching its largest-ever UK electric truck fleet, ordering 148 heavy goods vehicles from Mercedes-Benz and Volvo. The company is also expanding its green delivery methods by transporting 20 million packages annually by train and introducing postal-style cart deliveries in London. This £300m investment in sustainable transport aims to help Amazon reach net-zero carbon emissions by 2040, despite industry-wide challenges in electric vehicle infrastructure. Source 
• Americans Suddenly Learning Chinese. A mass migration of TikTok users to Chinese social platform RedNote ahead of the January 19 U.S. ban has triggered a surge in Americans learning Mandarin Chinese on Duolingo. The language app reports a 216% increase in new U.S. users studying Mandarin compared to last year, and has risen to No. 20 in app rankings. The shift signals U.S. users' preference for Chinese social media experiences, despite data privacy concerns that sparked TikTok's ban. Source 
• OpenAI Urges China Strategy. OpenAI has released an "Economic Blueprint" urging increased U.S. investment and regulation in AI to counter China's growing influence. The report warns that $175 billion could shift to Chinese projects without strategic policies. The Microsoft-backed company, which raised $6.6 billion last year, is strengthening ties with the incoming Trump administration while planning to become a for-profit entity. Source 

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