>> I'M ED IN SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. >> TENS OF THOUSANDS TECH EMPLOYEES ARE OUT OF JOBS. AS EMPLOYEES REDUCE HEADCOUNT IS WORKER EMPOWERMENT OVER? >> AND UNIVERSITIES IN TEXAS ARE TAKING ACTION AGAINST TIKTOK WITH TEXAS UNIVERSITY AND A&M BLOCKING THE APP FROM WI-FI NETWORKS AS PART OF THE GOVERNMENT'S ORDERS. COULD THIS BE THE START OF A GREATER TREND? >> AND YOU KNOW THE OFFICES NEON SIGNS TWITTER HAS RESORTED TO AUCTIONING OFFICE ITEMS. WE WILL SHOW YOU WHAT WAS UP FOR GRABS. BUT FIRST WHAT WAS UP FOR GRABS IN THE MARKET BECAUSE THEY ARE COMING IN AT A DISCOUNT TODAY.
THEY GAINS COMING OFF BY 1.25%. WE ARE SEEING THE U.S. GET A KNOCK IN TERMS OF STOCK PRICES TODAY. RETAIL SALES DECLINING FROM THE MONTH OF DECEMBER. PRICES FALLING AT A MARKED NOTE. WHAT IS THIS SAYING ABOUT THE ULTIMATE RESILIENCE OF THE U.S. ECONOMY RIGHT NOW? PEOPLE ARE BACKTRACKING SYMPATHY ENTHUSIASM AROUND CERTAIN ASSETS SUCH AS BITCOIN. 14 DAYS OF GAINS FOR BITCOIN
AND NOW IT COMES TO AN ABRUPT END. STARTING TO CHANGE OUR NAVIGATION YOU REMEMBER AT 5:00 P.M. EASTERN RESTRICTOR RETUNE IN THE DIRECTION OF BIT COIN. TO SEE WHAT IS HAPPENING OVERALL IN TERMS OF THE JAPANESE YEN. THIS ONE GIVEN A LITTLE BIT OF
AN OPTIMISTIC NOTE EARLIER IN TRADE. JAPAN STILL SAYING THEY ARE STICKING BY STIMULUS. JAPANESE CURRENCY REALLY WEEKEND AT THE U.S. DOLLAR AT CERTAIN TIME PERIODS TODAY. IT SEEMS AS THOUGH WHEN THE BEND MARKET -- ONTO MARKET STILL THINKS THE FEDERAL RESERVE COULD BE THERE IN TERMS OF HIKING BUT OVERALL THE BOND MARKET WILL YIELD STRONG.
WE SAW THE U.S. DOLLAR STRENGTHENED SOMEWHAT. >> I AM PAYING REALLY CLOSE ATTENTION TO THIS TECH HEADLINE. AMAZON AND MICROSOFT, IT'S INTERESTING BECAUSE IN SESSION THESE ARE TWO STOCKS THAT HAD BEEN MARKET HIGHER.
INVESTMENT STUDENT TEND TO CHEER THE FINANCIAL PRUDENCE OR DISCIPLINE OF COST-CUTTING MEASURES BUT AS THE MARKET MOOD TURNED UGLY AS HE SAID KIND OF THOSE CAPS GOT TAKEN. YOU HAVE TO DIG INTO THE NUMBERS, MICROSOFT THE BIGGEST SURPRISE. AT 10% OF THE WORKFORCE IS GOING TO TAKE A $1.2 BILLION
CHARGE WAS -- WHICH TRANSLATES IN THE SECOND QUARTER. ALL THE CUTS TO BE WRAPPED UP BY THE THIRD QUARTER. AMAZON, WE KIND OF KNEW ABOUT. THE JOB CUTS WERE ANNOUNCED
EARLIER THIS MONTH BUT WE GOT SOME MORE FLESH AND WHERE THEY ARE TAKING PLACE. WHICH TEAMS HAVE BEEN IMPACTED. THIS CHART IS REALLY KEEN BECAUSE IT SHOWS CURRENT HEADCOUNT. 18,000 IS ABOUT 1% OF AMAZON'S TOTAL WORKFORCE GLOBALLY. IF YOU TAKE A STEP BACK, AND THINK ABOUT IN THE CONTEXT OF PROPORTION 6% OF CORPORATE JOBS AND IT'S INTERESTING AS WELL TO KIND OF HERE HOW THIS CAME ABOUT. BLOOMBERG REPORTING ON THIS ISSUE BUT A MEMO FROM THE RETAIL CHIEF A SICKLY EXPLAINED THAT BY THE END OF THE DAY THE TEAMS IMPACTED WOULD BE NOTIFIED.
CONTEXT IS KIND OF KEEN. THE QUESTION WE ASK OURSELVES, IS THIS PART OF TECH FOR THE WORLD TO COME IN 2023? >> AND WHERE WILL THEY BE REDUCING AND WHERE WE WILL SEE TECHNOLOGY COMPANIES INVESTING? FOR WE DIG INTO THOSE SORT OF NUANCES, WE WANT TO TALK ABOUT ONE OF THE KEY ISSUES THAT LAYOFFS SOMETIMES BRING FOR PLENTY OF CHIEF SECURITY OFFICERS. THERE ARE SECURITY CONCERNS AROUND ALL OF THIS. DISGRUNTLED WORKERS FOR EXAMPLE, MAYBE THEY TAKE CORPORATE SECRETS WITH THEM OR MAYBE THEY GET A BIT CAN US ABOUT THEM.
HOW COMPANIES ARE STARTING TO PREPARE THEMSELVES AS THEY KNOW THEY ARE GOING TO MAKE LAYOFFS, HOW DO THEY ENSURE THAT THE DATA THEY HAVE REMAINS SECURE? >> IT'S A REAL PROBLEM BECAUSE AROUND THE TIME TO LAYOFFS ARE HAPPENING EVERYONE IS TRYING TO TIGHTEN THEIR BELT AND THAT IS WHEN SECURITY BUDGETS MIGHT CUT. THE COMPANIES ARE LOOKING AT THINGS LIKE NEW SOFTWARE THAT IS AROUND TO TRACK WHETHER EMPLOYEES ARE USING DATA EXFILTRATION METHODS. THEY ARE ALSO TRYING HARD TO GIVE UP THE MESSAGING AND REMIND PEOPLE THE THINGS THAT ARE WORKING ON BELONG TO THE COMPANY AND NOT TO THEMSELVES. I MENTION DATA EXFILTRATION AND
THAT IS WHEN PEOPLE HOARD EMAILS -- FORWARD EMAILS TO THEIR PERSONAL ACCOUNTS OR COPY AND PASTE SPREADSHEETS WITH CONTACT DETAILS. THAT PUTS COMPANIES AT RISK OF LOSING BUSINESS. ALSO CONFIDENTIALITY ISSUES AS WELL. >> WE HAVE TO AS COVER SELLS WHY WE ARE DISCUSSING THE STORY. FANTASTIC WORK IN BUSINESSWEEK AN ANALYSIS OF WHAT HAPPENS WHEN WE HEAR ABOUT JOBS BEING CUT, LAYOFFS IN THE TECHNOLOGY INDUSTRY BY THE THOUSANDS. THE ANECDOTE YOU GUYS USE IS
COIN BASED. BRIAN ARMSTRONG BASICALLY EXPLAINING THAT BY THE END OF THE DAY, EMPLOYEES WOULD RECEIVE NOTIFICATIONS THAT PERSONAL ML ADDRESSES AND IT WAS VERY ABRUPT. OUR CUSTOMER INFORMATION IS KEY. WE HAVE TO PROTECT THE CUSTOMER DATA.
WHAT KIND OF SERIOUS STEPS HAVE YOU REPORTED ON THE COMPANY'S TAKING TO SAFEGUARD THEMSELVES AND CUSTOMERS WHEN THEY GO THROUGH LAYOFFS LIKE THIS? >> AS YOU MENTIONED, THE CASE WITH COINBASE, EMPLOYEES OR WAKING UP TO ALREADY HAVING THEIR EMAILS SHUT OFF. MORE AND MORE COMPANIES ARE HAVING TO DO THIS BECAUSE THE RISK IS JUST SO HIGH. IT'S SO EASY FOR EMPLOYEES TO HOARD AND -- FORWARD IN EMAIL IF THEY HAVE A FEW HOURS LEFT IT WILL BE KIND OF STINGY STUFF TO THEIR OWN PERSONAL GMAIL’'S.
YOU HAVE SOME PEOPLE THAT MAY BE WANT TO DO SOMETHING REALLY KIND OF BAD WITH THAT. OFTEN PEOPLE DON'T EVEN REALIZE THAT WHAT THEY ARE DOING IS AGAINST THEIR EMPLOYMENT CONTRACT AND THEY SIMPLY WANT TO BETTER THEMSELVES AND IN THEIR NEXT EMPLOYMENT THEY HAVE BEEN LET GO. LARGELY WE ARE SEEING COMPANIES REALLY CRACKED DOWN AND SHUT DOWN FROM THE MINUTE PEOPLE ARE BEING LAID OFF. THEY ARE BEING VERY COLD, I GUESS, BUT EXTREMELY SECURE. JUST BECAUSE THE RISKS ARE SO HIGH WE HAVE SEEN ISSUES WITH COINBASE. AN EMPLOYEE WAS ACCUSED OF INSIDER TRADING, THE FAMOUS CASE WITH WHO HE FAMOUSLY WENT TO UBER DEFECTED. HE TOOK COMPANY SECRETS WITH
HIM AND IT WAS AN EXTREMELY LONG COURT CASE IT HAD SERIOUS RAMIFICATIONS FOR GOOGLE. SO THE STAKES ARE REALLY HIGH. >> RJ MURPHY, TERRIFIC REPORTING. CHECK OUT THAT STORY ON BLOOMBERG.COM AS WE HAVE BEEN DISCUSSING, AMAZON AND MICROSOFT ARE LAYING OFF SOME OF THEIR WORKFORCE THIS IS PART OF A WIDER WAVE HITTING THE TECH INDUSTRY RIGHT NOW. FACING THE CHANCE OF RECESSION GLOBALLY HERE IS WHAT SOME OF OUR GUESTS HAVE BEEN TALKING ABOUT.
>> WE HAVE NOT BEEN POSITIVE FOR A YEAR, A YEAR AND A HALF. >> WE DO BELIEVE THERE IS STILL SOME DEFLATION TO COME OUT OF THIS MARKET AFTER THE RECIPIENTS OF 2021. >> I THINK THE TECH SECTOR IS ONE OF THE FEW THAT IS DISCOUNTING OF RECESSION IN ITS OUTLOOK. >> THE LONGER THE VOLATILITY PROCESS THE MORE WE START TO SEE THE CRUNCH THAT THE LATE STAGES ARE SEEING RIGHT NOW.
>> THERE IS GOING TO BE SOME AMOUNT OF NORMALIZATION. WE WOULD ALSO HAVE TO GET IT'S NOT ABOUT EVERYONE ELSE MORE WITH LESS WE WOULD ALSO HAVE TO DO MORE WITH LESS. >> LET'S BRING IN ALSTOM CAR. -- AUSTIN CAR.
WHY WE ARE SEEING THESE LAYOFFS IN THE TECHNOLOGY INDUSTRY. REP ALL OF THIS TOGETHER BECAUSE YOU HAVE BEEN WRITING ABOUT THIS ALSO IN BUSINESSWEEK. >> WHAT WE SAW OVER THE LAST YEAR OR TWO AS ONE OF THOSE ANALYSTS NOTICED WAS THE EXUBERANCE COMING OUT OF THE COVID PANDEMIC. THE TECH SECTOR REALLY BET BIG ON THIS NEW REVENUE ACCELERATION BEING PERMANENT. WE'VE SEEN THAT COURSE
CORRECTION HAPPEN QUITE HARSHLY IN MORE RECENT DAYS AND MONTHS WITH AMAZON AND MICROSOFT ANNOUNCING SORT OF HEADLINE GRABBING LAYOFFS IN THE 10, 18,000 RANGE AND WAS TOTALLY REMARKABLE ABOUT THAT IS HOW WE COMPARE IT TO THE REST OF THE U.S. ECONOMY. JUNKETS IN 2022 AND THE TECH SECTOR 649% COMPARED TO THE PREVIOUS YEAR OR AS THE REST OF THE ECONOMY LAYOFFS WERE ONLY UP 13%. WHAT YOU SAW IS ALL THESE COMPANIES BETTING HUGE ON THE COVID ERA GROWTH REMAINING AND WE ARE NOW SEEING A COURSE CORRECTION FROM ALL THE BIG TECH COMPANIES. >> FIRSTLY WHETHER IT'S A BELLWETHER BUT ALSO WHY IT'S NOT SHOWING UP IN THE BIG DANGER MANY HYPOTHESIZE THESE PEOPLE ARE HIGHLY TALENTED AND PEOPLE STILL WANT THEM IN OTHER INDUSTRIES RATHER THAN SHOWING UP IN THE BLS DATA. GO TO WHERE THEY MIGHT ADD JOBS I THOUGHT THAT WAS INTERESTING.
AMAZON AND MICROSOFT AT LARGE, THEY ARE STILL GOING TO BE HIRING IN SOME SPACES, RIGHT? >> THAT IS THE NARRATIVE THEY SOLD WALL STREET ON. THIS BIG RETURN ON INVESTMENT SO THEY CAN JUST STOP ALL THOSE MEN SHUTS THEY HAVE BEEN INVESTING IN FOR THE LAST COUPLE OF YEARS AND LET GO OF THE HIGH-CALIBER EXPENSIVE ENGINEERING TALENT. YOU ARE SEEING THIS BALANCE BETWEEN TECH COMPANIES TRYING TO GIVE OFF SOME SIGNAL THAT THEY ARE GOING TO BE A LITTLE MORE FINANCIALLY PRUDENT AND CONSERVATIVE. WITH MICROSOFT, FOR EXAMPLE, WE
ARE GOING TO DOUBLE JOHN THE CORE BUSINESSES BUT WE ARE GOING TO CONTINUE TO INVEST IN HIGH-GROWTH AREAS LIKE AI OR AT AMAZON LAYOFFS AIN THE RETAIL DIVISION. AT THE SAME TIME HE IS ALSO SAYING WE ARE GOING TO INVEST IN HIGH-GROWTH AREAS LIKE GROCERIES THIRD-PARTY SELLER MARKETS. THEY ARE REALLY TRYING TO BALANCE THAT SORT OF RISK AND REWARD RIGHT NOW.
>> I WANT TO BRING UP THIS TERMINAL CHART AGAIN WHICH WE SHOWED EARLIER IN THE SHOW. AMAZON'S TOTAL GLOBAL HEADCOUNT, SO 18,000 JOBS, IT'S A STRIKING HEADLINE BUT IT'S 1% OF ITS GLOBAL WORKFORCE. I THINK THERE IS DISCUSSION ABOUT THIS IN OUR REPORTING. WHAT DOES THAT TELL US?
THE DIFFERENCE BETWEEN THE HEADLINES AND THE REALITY AND HOW THIS ECONOMY OF 2023 MIGHT BE DIFFERENT TO THE DOT-COM BUBBLE FINANCIAL CRISIS. >> IT INDICATES JUST HOW WIRED BIG TECH'S INTO THE REST OF THE GLOBAL ECONOMY IT'S A LOT DIFFERENT THAN IT WAS DURING THE.COM CRASH. ALL THESE COMPANIES ARE MUCH MORE DEPENDENT ON SILICON VALLEY SOFTWARE, HARDWARE, CHIPS, CLOUD COMPUTING SERVICES, ENTERPRISE SERVICES AS WELL. IT'S NOT THE CASE THAT IS MUCH AS THESE HEADLINE GRABBING NUMBERS ARE PRETTY MASSIVE, THERE IS STILL A SMALL PERCENTAGE OF THE WORKFORCE. SO FOR MICROSOFT THE 10,000 CUTS THAT IS ONLY 5% OF THEIR WORKFORCE SO IT'S A LOT SMALLER AND IT IS SPECIFIC AREAS AT LEAST WE ARE HEARING FROM HR AND RECRUITING.
RATHER THAN HIGH-CALIBER EXPENSIVE TALENT AND ENGINEERING THAT CAN DOUBLE DOWN FURTHER CORE BUSINESSES THAT THEY WANT TO CONTINUE TO INVEST IN. THERE IS ALWAYS THAT BALANCE, MARK ZUCKERBERG SAID WE ARE GOING TO INVEST MORE AND REPRIORITIZE THAT WE POST ON MAKE THE BET IN ENGINEERING TALENT WHICH IS THE LONGER TERM BIT. >> IT'S NUANCED.
MEANWHILE ONE SECTOR IN TECHNOLOGY THAT'S REALLY BEEN LETTING GO OF A LOT OF STUFF IS CRYPTO. IT'S ALSO SAID IT'S PREPARING FOR BANKRUPTCY FILING. THE LENDING UNIT FOR DIGITAL CURRENCY GROUP GENESIS IS IN CONFIDENTIAL NEGOTIATIONS WITH VARIOUS CREDITOR GROUPS. GENESIS SUSPENDED WITHDRAWALS IN NOVEMBER AFTER FTX MIGHT BANKRUPT. DIGITAL CURRENCY GROUP SAID IT IS SUSPENDING QUARTERLY DIVIDENDS IN AN EFFORT TO CONSERVE CASH. COMING UP, NO MORE ACCESS TO TIKTOK AT UNIVERSITIES IN TEXAS.
WE WILL DISCUSS. THIS IS BLOOMBERG. >> I THINK NATIONAL SECURITY OF OUR TIME IS THE TECHNOLOGY COMPETITION FROM CHINA. WE HAVE ALREADY SEEN THAT AROUND THINGS LIKE 5G, SEMICONDUCTORS, WE ARE NOT LOOKING AT ISSUES LIKE ENERGY. IN CHINA WE HAVE A COMPETITOR THAT IS INVESTING AT A RATE THAT IS COMMENCEMENT WITH WHAT WE ARE INVESTING. I AM ALL FOR INNOVATION, BUT I HAVE BEEN PARTICULARLY CONCERNED ABOUT TIKTOK. MY FEAR IS, ONE FOR INFORMATION ABOUT YOU THE USER THEN VIRTUALLY ANY OTHER SITE AROUND. YOUR KEYSTROKES, FACIAL
EXPRESSIONS, AND I AM AFRAID THAT IS BEING STORED SOMEWHERE IN BEIJING. I'M ALSO AFRAID OF IT BEING ABLE TO MIMIC THE FLOW OF INFORMATION TO YOU. >> SPEAKING OF TIKTOK, SOME UNIVERSITIES IN TEXAS LIKE UNIVERSITY OF NORTH TEXAS ARE SAID TO BE PLUCKING ACCESS ON ITS WI-FI NETWORKS. TO COMPLY WITH, QUOTE, GOVERNOR ABBOTT'S DIRECTIVES BANNING EMPLOYEES TO USING OR DOWNLOADING TIKTOK ON ALL STATE ISSUED OR MANAGED DEVICES. BLOOMBERG'S ALEX BROKER IS JOINING US. >> I THINK WE HAVE A TECHNICAL GLITCH.
FIRST LET'S BRING IN WHAT OUR AUDIENCE SAID. IT LOOKS SICK WE ARE SEEING A FRONT REVVING -- FRONT RUNNING. OUR AUDIENCE IS ASKING WHETHER IT'S GOING TO MAKE ANY DIFFERENCE. >> THERE'S TWO SIDES TO THIS DEBATE. IN TEXAS WHAT YOU SEE IS UNIVERSITIES PUBLIC ENTITIES ENACTING THE DIRECTIVE FROM THE GOVERNOR AND PUTTING THAT INTO PRACTICE AND THAT MANIFESTS ITSELF BY UNIVERSITIES NOT ALLOWING STUDENTS OR ANYONE ON CAMPUS TO ALLOW THE APP THROUGH THE WI-FI NETWORK. THEY CAN PROBABLY ACCESS IT IF THEY TURN OFF WI-FI AND USE THEIR 5G NETWORK BUT IT'S THE DEBATE AROUND WHO SHOULD BE ACTING ON THIS BECAUSE THE BIDEN ADMINISTRATION AND THE FEDERAL GOVERNMENT HAS BEEN LEADING A REVIEW OF TIKTOK AND OTHER SITES FOR SOME TIME. 48% OF THE RESPONDENTS SAID
THIS ISN'T GOING TO FIX ANYTHING SPECIFICS OF NOT ALLOWING TIKTOK ACCESS ON CAMPUS IN TEXAS UNIVERSITIES BUT THEY ARE FOLLOWING THROUGH ON THE GOVERNOR'S DIRECTIVE. >> LET'S GET TO ALEX NOW. TELL US, ARE YOU SURPRISED THAT SOME OF THESE INSTITUTIONS ARE GOING HEADLONG INTO THESE SORT OF BANDS? >> IT IS INTERESTING HOW THEY ARE INTERPRETING THIS. UNIVERSITY OF TEXAS AT AUSTIN DOESN'T HAVE A SPECIFIC DIRECTIVE IN THIS WAY. TEXAS TECH IS WAITING UNTIL THEY GET MORE GUIDANCE FROM THE STATE SO IT'S INTERESTING TO SEE TEXAS, GEORGIA, ALABAMA REALLY BEING FRONT FITTED HERE AND FOLLOWING ALONG WHAT WE HEARD AT THE TOP FROM SENATOR WARNER BASICALLY SAYING WE ARE WORRIED ABOUT DATA SHARING AND POTENTIAL DATA SHARING WITH THE CHINESE GOVERNMENT.
AND WE ARE GOING TO LOCK THIS DOWN. WHAT YOU SAID, ABOUT STUDENTS POTENTIALLY LOOKING FOR WORKAROUNDS ACCESSING TIKTOK ON THEIR CELLULAR DATA AND NOT ON THE WI-FI THAT IS EXACTLY WHAT'S HAPPENING. I'VE BEEN CHATTING TO FOLKS ON THE GROUND AT UT ALSTOM IN PARTICULAR WHO SAID WE HAVE OTHER WAYS WE ARE GOING TO ACCESS THIS. I USE IT FOR AN EDUCATIONAL CONTENT, AND FOR ENTERTAINMENT. THEY ARE ON TIKTOK ANYWAY EVEN IF IT'S NOT ON WI-FI AT THE END UNIVERSITY. >> I THINK IT'S ALSO AN EDUCATIONAL ISSUE UNDERSTANDING WHY IT'S A SECURITY RISK AND CONVEYING THAT TO USERS OF ALL SOCIAL MEDIA PLATFORMS. THAT SEEMS TO BE WHAT WE'RE HEARING
FROM USERS OF THAT PARTICULAR PLATFORM. BLOOMBERG'S ALEX BARINKA REPORTING. WHAT SOFTWARE SPENDING LOOKS LIKE IN 2023. WE WILL HEAR FROM CHUCK ROBBINS NEXT, THIS IS BLOOMBERG. ♪ >> CHUCK ROBBINS SPOKE TO DAVID WESTIN ABOUT TECH LAYOFFS, THE IMPACT OF COVID-19 ON THE TECH SECTOR BUT FIRST ABOUT THEIR INVESTMENT INTO SOFTWARE, HAVE A LISTEN. >> THERE'S A FEW THINGS WE'VE DONE. WE'VE ADDED A LOT OF
CYBERSECURITY TECHNOLOGY, IT'S PURE SOFTWARE. THAT IS THE NATURE OF THE INDUSTRY AND HOW WE ARE DEFENDING AGAINST THREATS. COLLABORATION IS A LOT OF SOFTWARE. SO THOSE ARE JUST NATURAL SOFTWARE PRODUCTS.
WE THEN ALSO BEGIN TO SELL SUBSCRIPTIONS ON OUR HARDWARE PLATFORMS AND THAT'S BEEN A TRANSITION WE STARTED BACK IN 2017 OR 18. LAST QUARTER, RECURRING REVENUE INCLUDING CELL PHONE SERVICES IS 43% OF OUR BUSINESS. >> YOU MENTIONED THE PANDEMIC AND WHAT THAT DID TO TECH, HOW DID IT CHANGE YOUR BUSINESS AND MAY BE IN THE LONGER TERM NOT JUST THE SHORT TERM BUT WERE THERE FUNDAMENTAL SHIFTS IN THE USE OF TECHNOLOGY? >> I THINK IT BECAME CLEAR, I BELIEVE PRIOR TO THE PANDEMIC EVERY EXECUTIVE BELIEVED TECHNOLOGY WAS STRATEGIC. WE MOVED FROM IT BEING A PARTICULARLY DRIVER TO BEING A DIFFERENTIATOR FOR OUR CUSTOMERS. THE PANDEMIC ELEVATED IT. EVERYONE'S EYES WERE OPENED.
WE KEPT THE WORLD RUNNING. WHEN EVERYONE WAS AT HOME, WE KEPT EVERYONE PRODUCTIVE. I DON'T THINK EVERYONE BELIEVED THAT WAS POSSIBLE. WE NEVER TRIED IT BEFORE SUBDUING IT AT THAT SCALE, I THINK WHAT IT DID WAS GAVE, I THINK IT GAVE OUR CUSTOMERS INCREDIBLE CONFIDENCE IN INVESTING IN TECHNOLOGY AND LISTENING TO TEAMS BRINGING THEM THESE NEW CREATIVE PROJECTS AROUND WHAT THEY WANT TO DO WITH TECHNOLOGY. I'VE SEEN AT WORK HERE SO I'M GOING TO TRUST YOU AND BELIEVE YOU.
I THINK THAT'S ONE PIECE OF IT AND FROM A CULTURE PERSPECTIVE, EVERY COMPANY'S CULTURE WAS MAGNIFIED DURING THE PANDEMIC. I THINK WE WILL NEVER GO BACK TO THE WAY WE WERE. I THINK WERE GOING TO OPERATE IN ENVIRONMENTS WHERE EMPLOYEES WON'T HAVE HUMAN ONSET AUTHENTIC CONVERSATIONS. SO I THINK IT CHANGED HOW WE ENGAGE WITH OUR EMPLOYEES AS WELL. >> THERE IS A LOT OF TALK AROUND HERE ABOUT ARTIFICIAL INTELLIGENCE AND BY THE WAY QUANTUM COMPUTING.
I'M NOT SURE WHAT IT MEANS BUT THERE IS A LOT TO TALK ABOUT. IS THAT GOING TO CHANGE YOUR BUSINESS? >> WE ARE WORKING ON QUANTUM NETWORKING TODAY. YOU HAVE TO DEAL WITH CONNECTIVITY AND MOVE THE BITS AT RATES THAT ARE COMMITS ARE IT WITH THE COMPUTERS. THERE IS A LOT OF RESEARCH WE ARE ENGAGED IN. WE HAVE A TEAM OF PEOPLE DOING RESEARCH ON QUANTUM NETWORKING. THAT WILL BE A PART OF OUR BUSINESS.
THAT'S SOMETHING THAT I ACTUALLY HAD A CONVERSATION WITH MY TEAM ABOUT. IT'S AMAZING HOW FAST IT WENT FROM BEING EXPOSED TO ALL OF A SUDDEN MY GUESS IS MY NEXT BOARD MEETING WE WILL HAVE A DISCUSSION ABOUT OPEN AI. THERE'S A LOT OF PROBABLY SOME UNDERSTOOD AND NOT -- SOME NOT UNDERSTOOD UNINTENDED CONSEQUENCES. >> MORE COMING UP, TWITTER CLOSING OFFICES NOW AUCTIONING OFF WHAT IS LEFT INSIDE. THIS IS BLOOMBERG. >> WANT TO OWN A PIECE OF SILICON VALLEY HISTORY? TWITTER WAS AUCTIONING OFF ITS OLD OFFICE SUPPLIES. SOME OF THEM WENT FOR TENS OF THOUSANDS OF DOLLARS.
FOR EXAMPLE, A LIGHT, ALL OF THESE GOING FOR BIG BUCKS. THE AUCTION HAS BEHIND IT SAYS THIS IS TO SECURE THE FINANCING OF TWITTER IS SELF ALTHOUGH WE DO KNOW THIS IS A PRECARIOUS SITUATION. ELON MUSK HIMSELF IS NOT PAYING SOME OF THE RENT OVER IN SAN FRANCISCO SO FOR NOW THE AUCTION IS DONE AND MAYBE YOU KNOW HAVE A PIECE OF CORPORATE HISTORY. >> I CHECKED IT OUT BECAUSE I THINK IT STOPPED. 27 HOURS LONG. 32,000 FOR THAT NEON SIGN. THIS IS KIND OF TROPHY STUFF. PARTICULARLY IF YOU WORKED THERE.
>> I'M GLAD YOU FOCUSED ON THE GLITZY ITEMS I LOVED THE ENDLESS THUMBNAILS SHOWING TABLES AND CHAIRS AND YOU COULD FIND A FULL OFFICE SET TO FURNISH HER OFFICE FROM TWITTER. YOU ACTUALLY KNOW A GUY WHO HAS BEEN IN THAT BUILDING A FEW TIMES. KURT WAGNER WHO JOINS US NOW BECAUSE ON TOP OF THAT NEWS REPORT BY THE INFORMATION THAT TWITTER REVENUE DROPPED AS MUCH IS PERCENT LAST QUARTER.
UNI, WE HAD A ROUGH 2022. NAVIGATING THIS LET'S START WITH THE FINANCIALS AND WE WILL GET TO THE FURNITURE. >> A DROP IN REVENUE AS REPORTED BY INFORMATION, WHAT'S HAPPENING? >> WE HAVE BEEN TALKING ABOUT THIS FOR A WHILE WHICH IS 90% OF TWITTERS REVENUE COMES FROM ADVERTISING.
IF YOU ARE AN ADVERTISER TWITTER IS A SCARY PLACE. IT'S NOT COMFORTABLE, A SAFE ENVIRONMENT TO BE SPENDING YOUR MONEY SO I DON'T THINK ANY OF US ARE SHOCKED. WE HAVE SEEN THE HEADLINES ABOUT THESE BIG ADVERTISERS THAT STEPPED BACK. THE REALITY IS THAT THIS AT
THEM REALLY HARD. A LOT OF THE MARKETING BUDGETS USUALLY COME ABOUT, IT WAS NOT A BIG SURPRISE TO ME. >> HOW IS TWEETER IN CHIEF DEALING WITH THIS? MANY SAYING THE TWEETS COMING FROM ELON MUSK HAVE GOTTEN LESS CONTROVERSIAL. HOW WAS HE TRYING TO ENSURE PEOPLE COME BACK TO THE PLATFORM AND WANTING TO ADVERTISE WITH THEM? >> IT LOOKS LIKE HE HAS SORT OF JUST -- MR. -- REDIRECTED HIS
ATTENTION. THERE WAS A LOT OF FRUSTRATION FROM TESLA INVESTORS THAT HE WAS NOT PAYING CLOSER ATTENTION TO THE COMPANY. THIS MAY BE SOMETHING THAT HE GOT THERE, HE DID A LOT OF THE BUDGET BECAUSE -- CUTS THAT HE PLANNED AND HE CAN REDIRECT ATTENTION ELSEWHERE. I THINK BRING ON PEOPLE BACK TAKES TRUST IF YOU ARE AN ADVERTISER I'M NOT SURE TWITTER HAS EARNED THE TRUST BACK FROM THOSE BIG BRAND MARKETERS AND IT'S PROBABLY THE KIND OF THING THAT WILL TAKE A WHILE. IS HE TAKING A COUPLE OF WEEKS OFF OF TWEETING CONTROVERSIAL THINGS OR IS THIS THE NEW NORMAL FOR HIM MOVING FORWARD? I DON'T THINK WE CAN SAY THAT JUST YET.
>> I WANT TO DIG DEEP INTO FINANCIALS. I WANT TO TALK ABOUT THE WORLD'S SECOND RICHEST MAN AND HE'S GOING TO BRING ADVERTISERS BACK BUT I'M NOT GOING TO ASK YOU ABOUT THAT. I WANT TO KNOW ABOUT ABSORPTION -- THIS AUCTION. >> I DIDN'T BUY ANYTHING. MAYBE A HIGHTOP TABLE.
IT SAID. >> THERE IS A SERIOUS POINT BEHIND THIS MANY PEOPLE LOST THEIR JOBS. >> IT MAKES SENSE FROM A LOGISTICS TEMPLE STANDPOINT.
YOU USED TO HAVE CLOSE TO HUNDREDS OF THOUSANDS OF EMPLOYEES YOU DON'T NEED ALL THIS OFFICE SPACE. YOU DON'T NEED ALL THIS OFFICE FURNITURE. YOU DON'T NEED 500 WHITEBOARDS WERE STANDING DESKS. IT MAKES SENSE THAT THEY WOULD GET RID OF THIS BUT I THINK WHAT A LOT OF PEOPLE ARE SEEING IS SORT OF LIKE A YARD SALE FROM THIS COMPANY THAT HAD FOR A LONG TIME LIKE A VERY VISIBLE CULTURE, PROBABLY MORE THAN MOST TECH COMPANIES. THE BIG NEON BIRD, THESE ARE THINGS WE WOULD SEE PICTURES OF AT THE HOLIDAY OFFICE PARTY. MAYBE THERE IS A LITTLE BIT MORE KIND OF CONNECTION THROUGH TWITTERS CULTURE THEN MOST COMPANIES BECAUSE SO MUCH OF IT PLAYS OUT ON THE SURFACE ITSELF.
>> LOOKING AT THE STATS, THE BIRD STATUE WENT FOR 100,000 BUT GLOBAL PARTNERS SAID THIS IS IN FOR THE FINANCES. WHY DO IT THEN AND WHY DO IT SO PUBLICLY? >> I THINK TO DO IT IS AGAIN SORT OF LIKE A PATE -- SPACE THING. IF YOU ARE GETTING RID OF OFFICES I THINK THERE WAS A SINGAPORE OFFICE THEY CLOSED LAST WEEK AS WELL. YOU HAVE TO DO SOMETHING WITH ALL THE STUFF IN THOSE OFFICES. THERE IS A LOGISTICS PART OF THIS WHERE THEY NO LONGER HAVE THE SPACE TO HOLD IT. I THINK THAT'S PROBABLY PART OF IT. NOT DOING IT PUBLICLY, HOW ARE
YOU GOING TO GET THE MOST BANG FOR YOUR BUCK? I'M SORTA SPECULATING HERE BECAUSE WE HAVEN'T HEARD ELON SAY THIS IS THE STRATEGY BEHIND THE AUCTION THAT MY GUESS WOULD BE THAT'S WHAT THEY DID AT THE WAY THEY DID IT. >> KURT WAGNER COVERING EVERY TWIST AND TURN INSIDE AND OUTSIDE OF TWITTER. THANK YOU SO MUCH. I WANT TO TURN TO THE LATEST ON APPLE BECAUSE ANOTHER DAY, AND OTHER SKIP READ IT'S TAKING ON AMAZON AND GOOGLE ACCORDING TO SOURCES BY EXPANDING THEIR IN-HOME PRODUCT LINE. APPLE STILL PLANNING TO UNVEIL ITS FIRST MIXED REALITY HEADSET THIS YEAR BUT THE PLANS FOR A LIGHTWEIGHT AUGMENTED REALITY GLASSES HAVE BEEN POSTPONED. SOURCES SAY DUE TO TECHNICAL CHALLENGES. BOTH STORIES BROKE WITHIN THE SPAN OF A WORKING DAY. LET'S START WITH THE IN-HOME
DEVICES. THAT WAS A BIG THING FOR MANY OF THE CONSUMER ELECTRONICS COMPANIES WHAT ARE THE DETAILS YOU REPORTED? >> ACTUALLY THIS MORNING APPLE ROLLED OUT A NEW HOME AUDIT IT'S THE RETURN OF THE ORIGINAL HOME POD. IT'S A BIT LOWER COSTS BECAUSE THEY ROLLED IT OUT AT $300 INSTEAD OF 350. THERE IS A FEW, THERE ARE FEWER MICROPHONES. NOT AS POWERFUL AS THE PREVIOUS ONE AND IT USES AN APPLE WATCH PROCESSOR INSTEAD OF AN IPHONE PROCESSOR. YOU HAVE A LITTLE BIT OF A SHIFT THERE BUT FOR AUDIO FANS YOU ARE REALLY NOT GETTING BETTER THAN AN APPLE HOME POD. SO I KNOW A LOT OF PEOPLE ARE
LOOKING FORWARD TO THAT. NOW THEY ARE WORKING ON A FEW OTHER DEVICES. THEY ARE WORKING ON A FASTER APPLE TV FOR NEXT YEAR. THEY ARE ALSO WORKING ON A NEW LOW END IPAD FOR THE HOME, SMART HOME APPLIANCES, USING IT TO FACE TIME, AND WATCH VIDEOS. THAT IS THE SMART HOME STRATEGY FOR APPLE MOVING FORWARD.
>> AWAY FROM SMART HOME TO A RVR TELL US A LITTLE BIT ABOUT THE STRATEGY THERE BECAUSE IT LOOKS AS THOUGH THEY ARE STRUGGLING WITH THE GLASSES AT LEAST. >> APPLE HAS BEEN DEVELOPING THE STRATEGY FOR NORTH OF SIX YEARS, SEVEN YEARS AT THIS POINT FOR A LONG TIME THE STRATEGY WAS TWOFOLD. FIRST ROLLOUT THIS HIGH-END HALO DEVICE WHICH IS GOING TO BE A MIXED REALITY HEADSET MERGING AUGMENTED REALITY AND VIRTUAL REALITY. IT WILL CAST A SHADOW OVER THE A RVR MARKET. AS EARLY AS A YEAR LATER WE WOULD RULE OUT GLASSES. THESE ARE LIGHTWEIGHT AR ONLY CLASSES. THE MIXED REALITY HEADSET, THE
HIGH-END ONE, THAT IS STILL COMING THIS YEAR BUT INSTEAD OF A FOLLOW-UP PRODUCT THIS EXCESSIVE PRODUCT IS GOING TO BE A LOW-END VERSION SO ONE THAT IS PROBABLY ABOUT HALF THE PRICE. SOMEWHERE CLOSER TO $1500. THE SAME PRICE AS THE HIGH-PRICED ONE. THE BIGGER NEWS THOSE AR GLASSES, THOSE ARE NOT COMING ANYTIME SOON. THOSE HAVE BEEN PUSHED BACK
INDEFINITELY. LOTS OF TECHNICAL CHALLENGES, LOTS OF DIFFICULTY. THE BIG HEADSET IS GOING TO HAVE ABOUT TWO HOURS OF BATTERY LIFE. IT IS SOMETHING YOU NEED TO WEAR ALL DAY WITHOUT NEEDING TO RECHARGE. IF THE HIGH END DEVICES GETTING TWO HOURS HOW GOOD OF A DEVICE WITH EVEN LESS SPACE BE WORN ALL DAY? THERE ARE CHALLENGES RELATED TO THE DISPLAYS. IT'S CALLED A WAVEGUIDE
TECHNOLOGY TO BE ABLE TO SEE THINGS IN FRONT OF YOU WHILE ALSO BE ABLE TO GLEAN INFORMATION OFF DISPLAYS AND BE CONNECTED TO CELLULAR RADIOS, WI-FI, AND BLUETOOTH AT ALL TIMES. IT'S GOING TO BE MANY YEARS BEFORE WE SEE AUGMENTED REALITY GLASSES FROM APPLE. >> EXPERTLY ANALYZED, THANK YOU AS ALWAYS. NETFLIX PICKS UP STEAM AHEAD OF ITS EARNINGS. ALL IMPORTANT FOR TOMORROW. THIS IS BLOOMBERG.
♪ >> NETFLIX EARNINGS AS USUAL WILL FOCUS ON THE COMPANY'S NEW SUBSCRIBER ACCOUNT. INVESTORS ALWAYS THINKING SUBSCRIBER GROWTH, DID IT GO UP, DID IT GO DOWN? THEY WILL ALSO BE LOOKING TO INITIATIVES TO INCREASE REVENUE AND OF COURSE ALL THE RAGE IS SUPPORTED TEARS WHICH NETFLIX LAUNCHED IN NOVEMBER. TRANS UNION JOINS US IS THERE INTERESTING DYNAMIC, WE ARE OBSESSED WITH SUBSCRIBER GROWTH. AT ALL STREAMING PLATFORMS BUT PARTICULARLY NETFLIX. THIS QUARTER, WE ARE GOING TO ASK OURSELVES HOW SUCCESSFUL HAS IT BEEN IN ATTRACTING U.S.
CUSTOMERS IN PARTICULAR TO AN AD SUPPORTED TIER. >> THANKS FOR HAVING ME. I THINK IT'S GOING TO BE A CHALLENGE THAT THAT'S ULTIMATELY BECAUSE THEY ARE A VICTIM OF THEIR OWN SUCCESS. YOU LOOK AT HOW BIG IT NETFLIX IS IN THE U.S. THEY HAVE MORE SUBSCRIBERS THAN ANY OF THE STREAMING PLAYERS IN THE COUNTRY.
REALLY THE HARD PART IS HOW DO YOU GET THAT PENETRATION TO SHIFT TO AD DOLLARS? MOST OF US WHO HAVE ACCOUNTS AREN'T GOING TO DO THAT. MY GUESS IS OVER THE SHORT TERM IT'S GOING TO TAKE A LITTLE WHILE FOR THEM TO GET TO THE NUMBERS THEY EXPECT ON THE AD MODEL. I THINK IN THE LONG TERM THEY WILL BE FINE BUT IF I MAKE A PREDICTION, MY GUESS IS LESS AD USERS THAN THEY HOPED FOR. WE WILL BUILD -- IT WILL BUILD OVER TIME. >> I HAVE SOME SYMPATHY TO NETFLIX SO I HAVE FRUSTRATIONS ABOUT HOW MICRO-FOCUSED WE ARE FOR NEW SUBSCRIBER ADDITIONS AROUND 4.5 MILLION. WE TALKED ABOUT THIS IN THE PAST THERE IS A WHOLE GENERATION OF USER OUT THERE, WHO HAVE NEVER SEEN ADS. THEY GREW UP WHERE THEY COULD
STREAM WHATEVER THEY WANTED, WHENEVER THEY WANTED AD FREE AND I WONDER IF THAT IS A BIG FACTOR HERE NOT JUST FOR NETFLIX, FOR DISNEY. THE ATTRACTIVENESS OF A AD SUPPORTED PRODUCTS. MANY PEOPLE DON'T WANT IT. >> CERTAINLY NO CONSUMER SAYS THEY WANT ADS BUT IF YOU LOOK AT WHAT HAPPENS, THERE IS ALWAYS A BALANCE THERE. THE PRACTICAL REALITY IS WE CAN ONLY SPEND MONEY ON SO MANY THINGS TO SUBSCRIBE TO AND WE ARE REALLY WILLING TO ACTUALLY EXCHANGE OUR TIME IN EXCHANGE FOR REALLY SUBSIDIZING THAT EXPERIENCE. THINK ABOUT THE CABLE EXPERIENCE WHILE MUCH LESS A PROBLEM THEN IT WAS THERE ARE TIMES WHERE WE DO THAT. I DON'T THINK WE HAVE A
QUESTION OF WHETHER ADVERTISING IS PART OF AN ECOSYSTEM. YOU HAVE PREMIUM CONTENT CREATORS, NETFLIX BEING ONE OF THEM, LOOKING TO MAKE ADDITIONAL REVENUE. THAT BALANCE BETWEEN SUBSCRIBERS AND ADVERTISING, I DON'T THINK IT'S GOING ANYWHERE AND SURE MANY CONSUMERS WON'T ALWAYS WANT ADVERTISING BUT MY GUESS IS YOU WILL ALWAYS FIND A MARKET SOMEWHERE. >> THE ONLY TIME I WANT ADVERTISING IS WHEN I'M WATCHING THE SUPER BOWL. TO THAT END, WHAT ABOUT SPORT, LIVE EVENTS, HOW ARE WE GOING TO SEE THE ACTUAL PRODUCT AND SOME OF THE CONTENT THEY PROVIDE? >> WHAT WE ARE REALLY TALKING ABOUT IS NETFLIX BECOMING A MEDIA COMPANY JUST LIKE MANY OTHERS. IT WAS ALL ABOUT SUBS KNOW YOU'RE TALKING ABOUT HAVING TO ATTRACT THE TYPE OF EYEBALLS AT ONE TIME IN SCALE TO BALANCE THAT AD MODEL AND YOU'RE RIGHT YOU ARE SEEING THE INVESTING OPPORTUNITY. I THINK THAT WILL BE SOMETHING
THEY WILL CONTINUE TO DO. YOU HAVE SEEN THAT WORK WELL WITH AN AMAZON PRIME. ULTIMATELY IF YOU WANT TO BE IN THE MEDIA BUSINESS YOU NEED TO HAVE THE WATER COOLER MOMENTS. IT'S NOT ONLY SPORTS BUT IT IS CLEARLY HEAVILY DOMINATED BY SPORTS THESE DAYS. THE LIFE MOMENTS REALLY DO MATTER AND THAT'S REALLY WHAT ALL THE MEDIA COMPANIES ARE FINDING THAT RIGHT BALANCE. THE LINEAR MODEL IS SHIFTING.
IT'S NOT GOING TO DIE FOR A WILD. STREAMING WILL BE THE DOMINANT FORM. BUT THAT CAN BE ON DEMAND, IT CAN STILL BE WHAT FEELS LIKE THE LINEAR TV AD BUSINESS. IT'S THINGS LIKE LIVE SPORTS AND ALAN FINKEL ALL THOSE THINGS IS GOING TO BE WHAT COMPANIES LIKE NETFLIX HAS TO DO TO COMPETE.
THEY ARE IN COMPETITION AGAINST DISNEY AND WARNER BROS. OF THE WORLD THAT'S PART OF THE ECOSYSTEM. >> I WONDER WHAT SETS THEM APART FROM THEIR COMPETITORS, THEY HAVE TECHNOLOGY IN THEIR BONES. THEY ARE A GROUP OF ENGINEERS, NEEDY A PLAYER AND I'M INTERESTED WHETHER THAT SETS THEM APART. CAN THEY WHEN THE PERSONALIZATION RATE? >> I THINK THAT'S GOING TO HAVE TO BE PART OF IT. THERE ARE OTHER COMPANIES THAT HAVE GOOD TECHNOLOGY AS WELL.
NETFLIX, TO YOUR POINT, HAS THAT IN THEIR BONES. ALSO THERE AD STRATEGY YOU HAVE TO GIVE THEM CREDIT FOR HOW THEY HAVE APPROACHED IT SO FAR. SEEING HIRES IN THAT TEAM, IT MAKES A TON OF SENSE. WHILE WE ARE GOING TO, AS I SAID IN THE SHORT TERM IT'S GOING TO BE HARDER TO HAVE NETFLIX GET TO WHERE THE POINT WHERE IT IS AS SKILLED AS THEY HOPED THAT HAVING THAT DNA WHICH IS PART CONTENT, PART TECHNOLOGY, I AGREE IT CAN ONLY HELP. THE AD BUSINESS IS ONE WHERE THE MIX OF SCALE AND POSITION MATTERS. ADVERTISERS ARE ABSOLUTELY LOOKING FOR THE BALANCE AND NETFLIX YOU CAN HOPEFULLY INVENT IN THE RIGHT WAYS TO PROVIDE A SKILLED AUDIENCE BUT DOING THAT IN A REAL TARGETED WEIGHT WITH INTERESTING AT CREATING. IT WILL BE AN EVOLUTIONARY
PROCESS. THERE IS A LOT TO BE EXCITED ABOUT OVER THE LONG-TERM. >> MATT SPIEGEL, GREAT TO HAVE YOU ON.
MEANWHILE, LET'S PIVOT BACK TO SWITZERLAND. HCL TECH THE SOFTWARE GIANT BASED IN INDIA IS COMING OVER TO TALK ABOUT HOW THEY ARE FOCUSING ON ESG IN THE LONG TERM. DISCUSSING THE COMPANY'S PRIORITIES. THE HCL TECH PERSON LET'S WATCH. >> I THINK WE'VE GOT A COUPLE OF FIVE STRATEGIC OBJECTIVES. THE FIRST ONE BEING WE ARE A
SERVICES GROUP. WE COVER DIGITAL ENGINEERING, CLOUD, AS WELL AS SOFTWARE. WE WANT TO BE ABLE TO LEAD WITH DIFFERENTIATED PRODUCTS. WE WANT TO BE ABLE TO DEFER FOR GLOBAL 2000 COMPANIES IN PREFERRED GEOGRAPHIES. I THINK WEAVING ESG INTO THE
LOT OF BUSINESS STRATEGIES IS CRITICAL FOR US. HCL TECHNOLOGIES HAS 220 5000 PEOPLE ACROSS THE WORLD AND THE AVERAGE IS 27. I THINK THE STRATEGIC PRIORITY HAS TO BE TO BE A PREFERRED EMPLOYER. LASTLY, I THINK WE ARE ABLE TO MEET THESE OBJECTIVES THAN DELIVERING THE HIGHEST SHAREHOLDER RETURN AND MEDIUM TO TERM. IT SHOULD BE THE ULTIMATE STRATEGIC DIRECTION.
>> SUCH UNCERTAINTY. THERE IS SO MUCH DISRUPTION. WHAT IS YOUR STRATEGY TO STAY? >> I THINK, LIKE I SAID, ONE PART OF IT IS TECHNOLOGY. >> WHAT IS THE GROWTH STRATEGY? >> I THINK IT IS INVESTING IN OUR PEOPLE AND INVESTING IN SKILLS. LIKE I SAID, WE HAVE 220 5000 PEOPLE ALL OVER THE WORLD. TECHNOLOGY IS MOVING.
WE DO ABOUT 2 MILLION, 3 MILLION HOURS OF TRAINING A QUARTER AND THAT IS ONLY GOING TO GROW. WE ALSO HAVE TO FIND NONLINEAR WAYS OF GROWTH SO IF YOU LOOK AT OUR SOFTWARE PORTFOLIO WHICH IS QUITE UNIQUE TO HCL TECHNOLOGY IT IS ABOUT 2 BILLION OF OUR REVENUE IT'S MUCH MORE NONLINEAR. THE BALANCE, 10 BILLION WOULD HAVE MORE THAN 150,000 PEOPLE WORKING ON IT.
OUR 2 BILLION WOULD HAVE ABOUT 5000. >> HOW DO YOU TAKE IT TO 30, HOW DO YOU TAKE IT TO 50, WHEN CAN YOU GET THERE? >> I DON'T KNOW WHEN WERE GOING TO GET THERE. I CAN ONLY TALK ABOUT THE NEXT 5-7 YEARS. THE INVESTMENT THAT WE MADE IN HCL SOFTWARE WHICH IS THE 2 BILLION THAT WE GET FROM 5000 ENGINEERS IS A NONLINEAR GROUP.
I THINK AS WE GO FORWARD WE ARE GOING TO WANT TO GO THAT BUSINESS AS WELL. >> I.T. EXECUTIVES LAMENT CLOSING THE GAP BETWEEN ENGINEERING, EDUCATION AND WHAT THE INDUSTRY ACTUALLY NEEDS. HOW DO YOU BRIDGE THE GAP ESPECIALLY NOW THAT MIT'S DEAN -- >> THE GLOBAL ADVISORY.
>> THANK YOU. >> THERE ARE A COUPLE OF EXPERIMENTS WE ARE DOING. WE TALKED ABOUT INVESTING IN A LOT OF TRAINING WHICH CLOSES THE GAP BETWEEN JUNIORS AND WHAT THEY NEED TO DO TO DELIVER TO CUSTOMERS AROUND THE WORLD. WE ARE ALSO DOING SOMETHING INTERESTING WHICH IS WE'VE GOT 8000 FRESH GRADUATES IN THE HCL SYSTEM. WE HAVE PARTNERED WITH UNIVERSITIES SO THEY CAN PURSUE AN UNDERGRADUATE EDUCATION. MONDAY THROUGH FRIDAY, THESE ARE 18-YEAR-OLDS. THEY ARE DIGITAL NATIVES.
WE GOT THEM FROM GRADE 12. IF WE HAVE 50% OF -- AS PART OF THIS COHORT. 8-9 MENSA TRAINING THEY ARE READY TO DELIVER. AS YOU GO FORWARD IN THE WORLD YOU'RE GOING TO REALIZE THERE ARE MORE PEOPLE WHO DON'T PURSUE HIGHER EDUCATION THEN THOSE WHO ACTUALLY DO BECAUSE HIGHER EDUCATION IS BECOMING PROHIBITIVELY EXPENSIVE. SO HOW DO WE TAP INTO DIFFERENT TALENT POOLS? I THINK THAT IS QUITE UNIQUE TO HCL TECH. >> COMING UP, IF YOU HAVE TROUBLE WITH CELL TODAY YOU ARE NOT ALONE. WE WILL TALK ABOUT THAT NEXT.
THIS IS BLOOMBERG. ♪ >> GOING VIRAL TODAY WHAT WAS THE FEAR OF OPENING YOUR BANK ACCOUNT TO SEE A NEGATIVE BALANCE? DOZENS OF BANK OF AMERICA CUSTOMERS WERE TWEETING ABOUT HOW THEIR FUNDS SUDDENLY DISAPPEARED OVERNIGHT. THEY HAD TROUBLE TO LOGIN TO THE BANK ACCOUNT. THERE WERE HUNDREDS OF REPORTS ISSUES WITH ZELLE. THOSE REPORTS DIE DONE BY WEDNESDAY AFTERNOON. ZELLE RUNS MORE THAN 1.6 BILLION DOLLARS IN TRANSACTIONS
DAILY. THIS IS HEAVILY LENT UPON I KNOW I USE IT, MANY PEOPLE USE IT. TO LOG ON AND SEE NEGATIVE, MUST HAVE FREAKED OUT. >> THEN SAYING, PSA, 3:00 P.M. EASTERN THIS WAS RESOLVED BUT
IF INSTAGRAM GOES DOWN, YOUR BANK ACCOUNT GOES DOWN AND SHOWS ME THINK FUNDS THAT IS DIFFERENT. SEEING SOCIAL MEDIA RESPONSE, SAVAGE. >> SOME OF THE MEANS ARE PRETTY GREAT. GO CHECK THEM OUT. THAT DOES IT FOR TECHNOLOGY FIRST.
2023-01-19