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Tech giants are embracing remote work. Others may follow – CP24 Toronto's Breaking News

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Barbara Ortutay, The Associated Press


Published Thursday, May 21, 2020 5:03PM EDT

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OAKLAND, Calif. – For a preview of the future of office work, watch how the biggest tech companies are preparing for a post-pandemic world.

Silicon Valley and Seattle giants – Facebook, Microsoft, Apple, Twitter – were the first to send their employees home as the virus spread to the U.S. Now they’re among the last to return them to the office. Some of their employees might never go back.

The companies are studying what their highly-paid, highly-valued employees want, using their own technology to make remote work easier and looking to hire new workers outside of big city hubs. It’s a potentially huge turnaround after years in which companies like Amazon and Google chased scarce tech talent by opening or expanding offices in hip urban locations such as San Francisco and New York.

Such a shift might also amount to a repudiation of the notion that creative work demands corporate campuses reminiscent of college, with free food, ping pong tables and open office plans designed to encourage unplanned interactions.

The result could re-imagine not just Silicon Valley but other cities as the companies expand hiring in places like Atlanta, Dallas and Denver, where Facebook plans to open new “hubs” for its new, mostly remote hires.

Change won’t happen quickly, though. “We want to make sure we move forward in a measured way,” said Facebook CEO Mark Zuckerberg during an employee town hall Thursday that was broadcast live on his Facebook page.

Facebook, which has nearly 45,000 employees, is looking five to 10 years down the line as it plans for more remote work, even when COVID-19 is no longer a threat that requires most of its employees to work from home. Since the coronavirus has upended work and office life, even companies with fewer resources and slower-moving cultures are likely to follow.

“Many companies are learning that their workers are just as or even more productive working from home,” said Andy Challenger, senior vice-president of staffing firm Challenger, Gray & Christmas.

Zuckerberg said a Facebook employee survey found that about 20% of workers were “extremely or very interested” in moving to full-time remote work after virus-related restrictions are lifted. Another 20% were “somewhat” interested and the largest group wanted flexibility, with some remote and some in-office work. Eventually, Zuckerberg said, as many as half of Facebook’s workers could be working remotely. But he cautioned that this is years, perhaps even a decade, away.

Twitter went even further, announcing last week that it will allow some employees to work from home on a permanent basis, a plan CEO Jack Dorsey hatched before the coronavirus. His other company, Square, which like Twitter is based in San Francisco, is doing the same. Some new U.S.-based job listings for Twitter give the option for hires to work in cities like San Francisco, New York and Washington D.C. but also remotely full time anywhere in the country.

It’s too early to know whether remote work options will mean an exodus of highly-paid tech workers from San Francisco and Silicon Valley, where they’ve contributed to skyrocketing rents and housing prices. But Facebook’s employee survey suggests that at least some of its employees would leave the San Francisco Bay Area if given the option.

For companies that have built their empires on letting people communicate with far-flung friends and colleagues, moving toward remote work is not too hard of a sell. But there are many challenges. Collaboration, spontaneity, face-to-face interactions that aren’t on a scheduled call – all look different when people are working alone from their homes.

There are also some jobs – in Facebook’s case, the toughest content reviewing that deals with suicides, child abuse and other traumatizing material; sales; building, upgrading and maintaining data centres; lawyers who have to be in court and so on – that can’t be done remotely.

Newer employees, especially recent college grads or those with little experience and lower performers might also fall into this group, Zuckerberg said. At Facebook, the CEO said employees will have to meet certain criteria to be considered for permanent remote work. This includes a level of seniority, strong performance and, naturally, being part of a team that supports remote work.

For now, workers at Facebook, Google, Twitter and elsewhere can work remotely through 2020. At Microsoft, employees can work from home until October. But the company’s work-from-home flexibility has fit with the software giant’s broader effort to capitalize on what CEO Satya Nadella calls a shift to “remote everything.”

“Every organization will increasingly need the ability at a moment’s notice to remote everything from manufacturing to sales, to customer support,” Nadella said this week at the company’s Build developer conference.

The company’s chief technology officer, Kevin Scott, had already been working a lot from home, in part because he is based in Silicon Valley and most of the rest of the leadership team is in Redmond, Washington.

“We are all on this accelerated timeline figuring out how to work from home…. It’s learning the culture and the rhythms of interacting with your colleagues by video conference and doing your work remotely,” he said, speaking not just of Microsoft but workplaces in general. “That is getting so much better so quickly that I don’t think I’m going to be commuting nearly as frequently as I was before.”

AP Technology Writer Matt O’Brien contributed to this story from Providence, Rhode Island.

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Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin's Fourth Halving Arrives – Investor's Business Daily

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[unable to retrieve full-text content]

  1. Dow Jones Rises But S&P, Nasdaq Fall; Nvidia, SMCI Flash Sell Signals As Bitcoin’s Fourth Halving Arrives  Investor’s Business Daily
  2. Iran fires at apparent Israeli attack drones: Mideast tensions  The Associated Press
  3. S&P 500 extends losing streak to sixth day, Dow up 210 points  Yahoo Canada Finance
  4. Stock Market Today: Dow, S&P Live Updates for April 19  Bloomberg
  5. Stock market today: Wall Street limps toward its longest weekly losing streak since September  CityNews Kitchener

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Netflix stock sinks on disappointing revenue forecast, move to scrap membership metrics – Yahoo Canada Finance

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Netflix (NFLX) stock slid as much as 9.6% Friday after the company gave a second quarter revenue forecast that missed estimates and announced it would stop reporting quarterly subscriber metrics closely watched by Wall Street.

On Thursday, Netflix guided to second quarter revenue of $9.49 billion, a miss compared to consensus estimates of $9.51 billion.

The company said it will stop reporting quarterly membership numbers starting next year, along with average revenue per member, or ARM.

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“As we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact,” the company said.

Netflix reported first quarter earnings that beat across the board on Thursday, with another 9 million-plus subscribers added in the quarter.

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Subscriber additions of 9.3 million beat expectations of 4.8 million and followed the 13 million net additions the streamer added in the fourth quarter. The company added 1.7 million paying users in Q1 2023.

Revenue beat Bloomberg consensus estimates of $9.27 billion to hit $9.37 billion in the quarter, an increase of 14.8% compared to the same period last year as the streamer leaned on revenue initiatives like its crackdown on password-sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans.

Netflix’s stock has been on a tear in recent months, with shares currently trading near the high end of its 52-week range. Wall Street analysts had warned that high expectations heading into the print could serve as an inherent risk to the stock price.

Earnings per share (EPS) beat estimates in the quarter, with the company reporting EPS of $5.28, well above consensus expectations of $4.52 and nearly double the $2.88 EPS figure it reported in the year-ago period. Netflix guided to second quarter EPS of $4.68, ahead of consensus calls for $4.54.

Profitability metrics also came in strong, with operating margins sitting at 28.1% for the first quarter compared to 21% in the same period last year.

The company previously guided to full-year 2024 operating margins of 24% after the metric grew to 21% from 18% in 2023. Netflix expects margins to tick down slightly in Q2 to 26.6%.

Free cash flow came in at $2.14 billion in the quarter, above consensus calls of $1.9 billion.

Meanwhile, ARM ticked up 1% year over year — matching the fourth quarter results. Wall Street analysts expect ARM to pick up later this year as both the ad-tier impact and price hike effects take hold.

On the ads front, ad-tier memberships increased 65% quarter over quarter after rising nearly 70% sequentially in Q3 2023 and Q4 2023. The ads plan now accounts for over 40% of all Netflix sign-ups in the markets it’s offered in.

FILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File PhotoFILE PHOTO: Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo

Netflix reported first quarter earnings after the bell on Thursday. REUTERS/Dado Ruvic/File Photo (REUTERS / Reuters)

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.

For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here

Read the latest financial and business news from Yahoo Finance

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack – OilPrice.com

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Oil Prices Erase Gains as Iran Downplays Reports of Israeli Missile Attack | OilPrice.com



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Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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  • Oil prices initially spiked on Friday due to unconfirmed reports of an Israeli missile strike on Iran.
  • Prices briefly reached above $90 per barrel before falling back as Iran denied the attack.
  • Iranian media reported activating their air defense systems, not an Israeli strike.

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Oil prices gave up nearly all of early Friday’s gains after an Iranian official told Reuters that there hadn’t been a missile attack against Iran.

Oil surged by as much as $3 per barrel in Asian trade early on Friday after a U.S. official told ABC News today that Israel launched missile strikes against Iran in the early morning hours today. After briefly spiking to above $90 per barrel early on Friday in Asian trade, Brent fell back to $87.10 per barrel in the morning in Europe.

The news was later confirmed by Iranian media, which said the country’s air defense system took down three drones over the city of Isfahan, according to Al Jazeera. Flights to three cities including Tehran and Isfahan were suspended, Iranian media also reported.

Israel’s retaliation for Iran’s missile strikes last week was seen by most as a guarantee of escalation of the Middle East conflict since Iran had warned Tel Aviv that if it retaliates, so will Tehran in its turn and that retaliation would be on a greater scale than the missile strikes from last week. These developments were naturally seen as strongly bullish for oil prices.

However, hours after unconfirmed reports of an Israeli attack first emerged, Reuters quoted an Iranian official as saying that there was no missile strike carried out against Iran. The explosions that were heard in the large Iranian city of Isfahan were the result of the activation of the air defense systems of Iran, the official told Reuters.

Overall, Iran appears to downplay the event, with most official comments and news reports not mentioning Israel, Reuters notes.

The International Atomic Energy Agency (IAEA) said that “there is no damage to Iran’s nuclear sites,” confirming Iranian reports on the matter.

The Isfahan province is home to Iran’s nuclear site for uranium enrichment.

“Brent briefly soared back above $90 before reversing lower after Iranian media downplayed a retaliatory strike by Israel,” Saxo Bank said in a Friday note.

The $5 a barrel trading range in oil prices over the past week has been driven by traders attempting to “quantify the level of risk premium needed to reflect heightened tensions but with no impact on supply,” the bank said, adding “Expect prices to bid ahead of the weekend.”

At the time of writing Brent was trading at $87.34 and WTI at $83.14.

By Tsvetana Paraskova for Oilprice.com

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