Pinterest Sacks Engineers for Tracking Layoffs; Amazon to Spend Billions on AI; Bitcoin Price Dips
London, UK - Several significant developments have emerged from the technology and financial sectors, including Pinterest's decision to fire engineers, Amazon's massive investment in artificial intelligence, and a drop in the price of Bitcoin.
Pinterest dismissed two engineers for improperly accessing confidential company information to identify employees affected by recent job cuts, according to a report by BBC Technology. The social media company announced layoffs impacting approximately 15% of its workforce, or roughly 700 roles, as stated by the company to investors. Chief Executive Bill Ready indicated the company was "doubling down on an AI-forward approach," according to an employee who posted a memo on LinkedIn.
Meanwhile, Amazon announced a substantial increase in spending on artificial intelligence projects and infrastructure. The company expects to spend $200 billion this year on building out its business, with a significant portion allocated to AI, as reported by BBC Business. This represents a considerable increase from the $125 billion spent last year. However, investors did not appear to welcome the announcement, as Amazon shares fell by over 11% in after-hours trading. Amazon's spending plans are the most aggressive among the Big Tech companies, which collectively expect to spend around $650 billion on AI and related projects.
In the cryptocurrency market, the price of Bitcoin fell to its lowest level in 15 months, despite public support from former US President Donald Trump, according to BBC Business. A single Bitcoin is now worth $66,000, its lowest value since October 2024, representing a 24% decrease since the beginning of the year. The drop followed months of rising Bitcoin prices, which saw the cryptocurrency reach an all-time high of $122,200 in October. Trump's involvement in the sector and his support for cryptocurrencies had previously encouraged investors.
In other financial news, the Bank of England kept interest rates unchanged but hinted at potential cuts in the future, as reported by BBC Business. However, the bank cautioned that mortgage rates are unlikely to return to the low levels seen during the COVID-19 pandemic. The Bank's primary goal is to bring inflation down to its 2% target, which it expects to achieve soon and maintain over the next couple of years.
Additionally, Canada unveiled a plan to bolster its car industry and support its electric vehicle transition, as the sector faces challenges from US tariffs, according to BBC Business. Prime Minister Mark Carney announced new measures, including financial incentives for carmakers to invest in Canada and the reintroduction of rebates for EVs. This initiative represents Canada's latest effort to reduce its reliance on the US, amid President Donald Trump's push for more domestic car production. Trump last year imposed a 25% tariff on Canadian cars and car parts.
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