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Tech Companies Face Scrutiny Over Layoffs, Data Practices, and Safety Concerns
Several technology companies faced scrutiny this week over issues ranging from layoffs and data handling to product safety. Pinterest sacked two engineers for tracking which workers lost their jobs in a recent round of layoffs, while Elon Musk's X offices in France were raided as part of an investigation into suspected offenses, including unlawful data extraction and complicity in the possession of child pornography. Separately, China banned hidden car door handles on electric vehicles (EVs) due to safety concerns.
Pinterest recently announced job cuts, impacting approximately 15% of its workforce, or roughly 700 roles, as it "doubled down on an AI-forward approach," according to an employee who posted a memo from CEO Bill Ready on LinkedIn. However, two engineers were terminated after they "wrote custom scripts improperly accessing confidential company information to identify the locations and names of all dismissed employees," according to Reuters.
Meanwhile, in France, the Paris prosecutor's cyber-crime unit raided the offices of X, formerly known as Twitter, as part of an investigation into suspected offences including unlawful data extraction and complicity in the possession of child pornography, according to BBC Technology. The prosecutor's office also said that both Musk and former X chief executive Linda Yaccarino had been summoned to appear at hearings in April. Musk responded on X, calling the raid a "political attack." The company issued a statement regarding the raid.
Adding to Musk's challenges, the UK's Information Commissioner's Office (ICO) announced a probe into Musk's AI tool, Grok, over its "potential to produce harmful sexualised image and video content," according to BBC Technology.
In China, regulators banned hidden door handles on electric vehicles (EVs), making it the first country to stop the use of the controversial designs, according to BBC Technology. The new regulations come as EVs face increasing scrutiny from safety watchdogs worldwide following several deadly incidents. State media reported that under the new rules, cars can only be sold if they have a mechanical release both on the inside and outside of their doors. The new rules are due to take effect on 1 January 2027. The decision follows deadly incidents, including two fatal crashes in China involving Xiaomi EVs in which power failures were suspected to have prevented doors from being opened.
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