Layoffs at Amazon, Meta takes a fine of R$ 2.2 billion and what matters in the market

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The biggest cut among techs

Amazon plans to lay off more than 18 thousand employees, up from the 10,000 the retailer had initially planned, the Wall Street Journal reported on Wednesday.

A cut of that size would be the biggest in the current wave of layoffs at US tech giants.

Amazon is the second largest employer in the US, and the layoffs would be concentrated in the devices units, such as Alexa, recruiting and retail.

• At first, they should not reach workers in distribution centers, an area that was greatly expanded during the pandemic.

wave of layoffs until then, the biggest cut had happened at Meta, which said last year that it would lay off 13% of its team, more than 11 thousand employees. Twitter and Microsoft are also on the list.

Salesforce said on Wednesday it plans to lay off 10% of its staff — that would represent 7,000 employees.

• In common, technology companies are suffering from the rise in interest rates in the US and the global slowdown that should follow.

EU x Goal

A determination by a regulatory body of the European Union (EU) to Meta (owner of Facebook) could hit the main source of revenue for the American company and also spill over the entire digital ad market.

For allegedly violating European data protection rules, Meta was fined 390 million of euros (R$ 2.2 billion) by Ireland, the country responsible for applying the sanction as it is where the company is headquartered on the continent.

Understand: the EU considered that Meta cannot use users’ browsing data on Facebook and Instagram to target ads according to their online activity.

• In practice, the company would have to ask for express authorization from the user to suggest advertisements based on their interactions, such as the videos they watch or the publications they like and comment on.

Other side: Meta says that its current contractual model with users respects the block’s privacy rules and that it will appeal the determination and the fine.

Why it matters: the model of targeting ads based on user activity is central to Meta’s main source of revenue, and banning it would reduce Instagram and Facebook’s attractiveness to advertising companies, analysts told the Wall Street Journal.

• Other big techs that adopt similar practices on their platforms would also be affected.

• The decision would deal a second blow to Meta’s advertising business. The first came in 2021, when Apple started asking users for permission for apps to monitor their activity, which also hurt targeted ads.

EU x Goal: since 2022, the block’s regulatory body has already fined the American company just over 1 billion euros in relation to user data. Big Tech denies the allegations.

Petrobras rises with Prates speech

After two negative days, this Wednesday (4) the speeches of government authorities found a positive reaction in the market. The result appeared mainly on the Stock Exchange and in Petrobras shares.

In numbers: the Ibovespa closed at a high of 1.12%at 105,334 points, and Petrobras shares rose 3.17% even on a day with a 5% drop in oil prices.

Which explains: Petrobras rose 5% during the day, shortly after PT senator Jean Paul Prates, chosen to head the company, told the Bloomberg agency that there would be no intervention in the company’s prices.

• “The fact of saying that it is going to end the PPI does not mean disassociating it from international oscillations”, he stated.

also got well the statement by the Minister of Civil Affairs, Rui Costa (PT) on the market. He denied that the government is preparing proposals to review reforms, disavowing the Minister of Social Security, Carlos Lupi (PDT).

More about investments:

Vale’s share is the most recommended by brokers for investors to start the year 2023. See other featured shares.

Minister wants to ban birthday withdrawal

The Minister of Labor, Luiz Marinho (PT), is going to propose to President Lula a ban on the FGTS birthday withdrawal.

The idea, according to the folder, is “to preserve the worker’s savings and guarantee the real purpose of the FGTS”. The information was initially given by Marinho in an interview with the newspaper O Globo.

Understand: the anniversary withdrawal was launched in 2019 as a measure to stimulate consumption in the country. The resource allows the worker to withdraw part of the guarantee fund during a period of the year – from the month of the worker’s birthday until three months later.

• The amount that can be withdrawn varies from 5% to 50% of the amount. The lower the balance, the higher the allowed withdrawal percentage.

• The modality is optional —the worker must expressly sign up.

Counterpart: if the worker is dismissed during the validity of the birthday withdrawal, he loses the right to withdraw the balance and only receives a termination fine of 40%.

• Adherence to the modality can be done through the FGTS application, as well as the return to the old version. Migration, however, takes effect only two years after the return request.

Did you opt for the withdrawal and were you born in January? Your money was released on Monday and is available until March 31st.

• This month, withdrawals for birthdays from November and December 2022 are still available. See the calendar for 2023 here.