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Amid tech industry woes, are other companies likely to take the same path as PayPal and eliminate Irish jobs?

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At 10 am on Tuesday on Tuesday, staff from PayPal’s headquarters located in Blanchardstown and Dundalk were summoned at the last minute to attend an emergency meeting.

Then they received the news that nearly 300 would lose their jobs on July 12th.

Naturally, it was an unexpected shock since there was no warning or signals from the local area warning of anything amiss.

Certain PayPal staff members only heard about the cuts via the media. One employee said they were “confused and nervous.”

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It is understandable that even though many industries have suffered massive damage over the last two years due to the Covid-19 virus, technology has shown incredible resilience and has pushed ahead.

All that changed was recent months as the grip of Covid-19 diminished and consumers were able to return to actual-world experiences like shopping.

PayPal is only one of many tech companies affected by that realignment and reassessment.

Informally, the company claimed that the decision to reduce its operations in this area was the outcome of a “review of the needs of its operations” and was taken in conjunction with changes to help expand its operations “to satisfy the ever-changing demands of its customers, and be and ready for the next chapter of expansion.”

In another way, it’s cutting costs to improve efficiency.

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As with most tech companies, the payment provider online witnessed a rise in business amid Covid restrictions across the globe when many people were shopping from their homes, using their disposable income, which was accruing as they didn’t travel or have a social gatherings.

In 2020, the price of its shares soared 111% and increased by 25% more during the first half of the year.

Then it exploded, and, with inflation taking a toll on consumers’ spending, supply chains being disrupted because of the Ukraine conflict, and businesses losing at a faster than anticipated from its previous owner and its largest eBay customer, the fortunes of PayPal is now in reverse.

The shares hit their highest in July of the previous year. Its shares have dropped 73 percent of their value. They are now back to their December 2018 levels.

In an analyst conference call in April, the chief executive officer of the company, Dan Schulman, said that the company was pulling its medium-term perspective.

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Mr. Schulman stated that 2022 is an unpredictably difficult year to project and said, “forecasting regular consumer e-commerce spending after we have gotten from the pandemic extremely complicated.”

PayPal is not the only company that has this problem.

Although the difficulties faced by PayPal have been extremely severe, their troubles aren’t unique to the tech industry, and the story has been repeated by a variety of other companies at different levels.

The tech-focused Nasdaq 100 index has been down by a quarter up to now, reflecting the deterioration of sentiment towards tech stocks that are widely believed to have been overvalued after they reached their highest point this year.

The downturn of the last few months has led experts to believe that we may be in danger of a tech-driven market crash like the one that exploded during the dot-com bubble in the late 1990s and the early noughties.

“US technology stocks have been vastly undervalued,” stated Peter Brown from Baggot Investment Partners.

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“What you’re looking at is a twelve-year trend in purchasing everything that doesn’t have to earn money. It’s all about growth and momentum strategies and investors pouring into these stocks, and it has been a very profitable strategy for a long time. Even with Tesla being unable to make profits, and even with Amazon not earning any money, that mattered was.”

“You buy them because they’re always going up. The strategy was the case until December. Now, we’re seeing a major shift away from this strategy and into value. Some are saying, “This technology thing is done.”

“And it’s not just over for a moment. It’s all already. It is over. ever again.”

Tech stocks are also seen as particularly vulnerable to increases in interest rates used by central banks to deal with the rising inflation.

They are also dealing with other common problems that are more common, such as tightening of the labor market supply-chain shocks, higher costs, the loss of market share in the Russian market, fierce market competition, and fears of a recession.

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The impact has been evident throughout those so-called FAANG companies: Facebook (now Meta), Amazon, Apple, Netflix, and Google.

Netflix had lost 2/3 of its value this year due to now losing subscribers after an enthralling few years when viewers stuck in their homes due to Covid restrictions joined in droves.

Amazon is also suffering but to a lesser degree. The price of its shares is down by a third following the losses of $3.8 billion in the first quarter, and its growth rates have slowed down to levels that were last seen in 2001.

Apple has survived the storm better than many and beat Wall Street’s expectations for its most recent quarterly earnings.

Even its share price has been pulled down by 20 percent this year due to the negative outlook, with the manufacturing supply chain problems in China impacting growth.

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Google’s parent company Alphabet has suffered a loss of a part of its worth in the past year, following a less than the revenue forecast in the first quarter, with YouTube’s performance particularly disappointing.

The parent company of Facebook also beat analysts’ expectations during the initial quarter, despite gaining new users. Additionally, it was recently reported that it had implemented the hiring freeze for specific segments of its business even though its CEO Mark Zuckerberg has said that cutting jobs isn’t scheduled.

It will be an enormous relief for the three hundred Meta employees in Ireland and the 6,000 other Meta employees in the country who help support the company’s activities.

Are other tech companies able to cut jobs in this area?

However, the PayPal situation raises questions as to whether we may continue to see more lay-offs throughout the tech industry, in particular among the huge multinationals on which the economy is now dependent.

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In different parts of the US and Europe, certain tech companies have also started to trim their workforces across the globe, including recent job losses at companies like Robinhood, Hopin, Klarna, Peloton, Netflix, and Fast Checkout, which closed down.

In this case, 162,000 workers were working within the Information and Communication Technology sector during the first three months this year, as per the Labour Force Survey released by the CSO this week. However, it was down by 4,000 compared to the prior quarter.

There is plenty to lose from any decline in technology.

However, those in direct foreign investment (FDI) aren’t concerned.

The IDA will be due to announce its mid-year numbers in July and has enjoyed solid first-half results, including a series of announcements of jobs, mainly in the technology sector.

Apple’s pledge last week to construct a new office building on the campus of Cork capable of accommodating up to 1,300 people is the latest instance of this.

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The PayPal announcement is not considered yet to be the keystone in the coal mine, although that’s not entirely ruled out despite Ireland’s current status as a European technology hub.

Financial analysts agree that, despite the downward pressures on their stock prices, the core values of many tech companies are solid, and, if they are affected in any way, the employment rate in the tech sector could be the most likely one to get impacted by the slowdown in global economic growth as opposed to the end in the current tech share market rally.

“A number of these famous names did…spend an enormous amount and took on an astonishing amount of staff during Covid and the epidemic due to the demands they witnessed,” said Suzie Berkery, who is a senior stockbroker for Cantor Fitzgerald

“We’ve always believed that what’s happening in technology over the past few years is similar to the industrial revolution. We all know that everything is going in that direction. We’re buying these products, and we’re all using the same technology.”

“And it’s not changing. The pandemic hit us. Now we are on the verge of paying back that, and that supply chain problem is now a huge issue. However, is this a reason to be concerned or witnessing employees being fired? No.”

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Business

Apple Plans To Double Its Digital Advertising Business Workforce.

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The move raises industry concerns following the launch of privacy guidelines which make it impossible to create ads that are tailored to iPhone users

Apple plans to more than double its workforce within its rapidly growing digital advertising business in less than 18 months after it enacted radical privacy rules that crippled its larger competitors in the lucrative business.

The iPhone maker has about 250 employees per LinkedIn advertising platforms team. On the Apple careers website, it’s looking to fill additional 216 positions, which is quadruple the 56 positions that it had hired in the latter half of 2020. Apple denied the claims. However, it declined to provide any further details.

The digital advertising industry has been apprehensive over Apple’s plans for advertising since the company introduced privacy regulations this year, which have shaken up the market for digital ads worth $400 billion and made it more challenging to customize ads for Apple’s one billion+ iusers Phone .

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Since the new policy was implemented, Facebook parent Meta, Snap and Twitter have lost billions of dollars in revenue and a significant amount in market valuations, even though other contributory factors exist.

“It was almost like a global panic,” Jade Arenstein, global service director at Incubate, a South African-based marketing performance firm, was quoted as saying about the impact of Apple’s recent changes.

The once-flourishing advertising business is “incredibly fast-growing”, according to an ad for jobs. The business has grown from a mere few hundred million dollars in revenue in the last quarter of 2010 to an estimated $5bn in the current year, according to research firm Evercore ISI, which expects Apple to be able to grow its $30 billion advertising revenue within four years.

Compared with Google and Facebook and their 2021 revenue from advertising was $115bn and $209bn. For instance, Apple’s business in advertising is small. The digital advertising industry is worried that it will increase due to establishing rules that critics and rivals believe provide it with an advantage.

“Building new ad systems to effectively compete with incumbents with tens of thousands of employees and 10 to 20 years of maturity would normally be an impossible task,” said Alex Austin, chief executive of the ad tech group Branch. “Unless,” he added, “you were somehow able to disadvantage those competitors on your platform.”

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Apple has been for a long time the most prominent Big Tech outlier for not taking part in “surveillance capitalism” — the practice of offering customers free services but making money on their data through targeting ads on them.

“We could make a tonne of money if we monetized our customers — if our customers were our product,” chief executive Tim Cook said in 2018. “We’ve elected not to do that.”

However, with Apple having twice the number of developers who can purchase ads on the App Store over the last two years and preparing plans to expand, the critics are seeing Cook taking a significant turn.

David Steinberg, chief executive of Zeta Global, a marketing technology firm, said Apple had been “Machiavellian” and “brilliant” in implementing privacy regulations that required rivals to revamp their advertising infrastructure while creating an opening to fill the gap.

“They could build out (their advertising business) dramatically (and) the ‘air cover’ is they are protecting the consumer’s privacy,” said the researcher. Added.

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Apple did not comment on its long-term plans. The job advertisements tell prospective employees that the company’s goals are nothing more than “redefining advertising” for a “privacy-centric” world.

The 216 positions Apple wants to fill are managers and designers of products, in addition to data engineers and sales experts.

An advertisement for an engineer, released on August 24, is a reference to “Apple’s most confidential and strategic plans” and explains how the company plans to “build the most secure technology-driven, technologically sophisticated . . . Supply (Marketplace) Platform and Demand Side Platform”.

These are the core aspects of an ad tech company that allows advertisers to purchase and sell ads across multiple exchanges, possibly advertising in mobile applications downloaded through the App Store. Apple may be able to consider apps for mobile “first-party” data because all activities take place on the iPhone, which is in line with its privacy regulations which ban third-party apps’ contentful monitoring of users.

The positions are predominantly located in the US. However, there are at least 27 roles in Europe and 12 in China and 12 in India and four located in Japan, as well as two positions in Singapore.

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“That’s a giant team — that’s bigger than most small companies,” Arenstein said. Arenstein. “Wherever there is smoke, there is fire, and that’s some smoke.”

Apple has never been averse to advertising by itself. Its CEO Steve Jobs even tried to create an in-app advertising business in 2010, so that iPhone apps would remain completely free. Cook is against how personal information is purchased and traded by opaque third parties without iPhone users’ consent.

Yet, Apple set the rules regarding how advertisements should function and later expanding into this very subject is seen by many as unsatisfactory.

At the moment, it’s more secure — in terms of the economy of surveillance using an Apple phone over one that is a Google phone, as Google has designed its products to support surveillance, while Apple isn’t, in its essence, an advertising firm,” said Claire Atkin co-founder at Check My Ads, a surveillance agency. “But if Apple suddenly delves into that realm, they won’t have a that competitive advantage.”

Apple might be putting its image at risk if regulators and consumers oppose its privacy claims which have been a significant part of the recent iPhone campaigns. If the argument prevails, Apple would have an unobstructed runway.

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Margo Kahnrose, Chief Marketing Officer at Skai, an omnichannel advertising platform, has said that she believes it “makes absolute logical sense” for Apple to develop its advertising network, following the lead of Google, Facebook and Amazon.

Adtech’s power has, she explained, for a long time been flowing from the decentralized “open web” to “walled gardens” run by one company that can control how ads are purchased and served, as well as how they are measured and tracked.

“The world has been unnerved by Apple’s ambitions for a long time,” she said. “There are a few companies that have vast quantities of power, and Apple is the one that is sleeping.

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Six Ways To Maintain A Growth Mindset While Running A Business.

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To be successful as an entrepreneur, starting your business with the appropriate mentality is essential. A growth-oriented mindset implies always striving to improve the product or service you offer or the ability to communicate with people in your industry. Many companies start as small, but they expand in time to become massive businesses that impact people’s lives in the millions. However, this kind of growth isn’t a quick process – it requires a lot of time and effort, and it’s all with constant improvement.

Six Ways to Maintain a Growth Mindset While Running a Business.

1.) Change your outlook

If you’re in the business of managing, it’s easy to become caught up in the day-to-day and forget about the bigger perspective. However, if you’d like your business to flourish, keeping an attitude of growth is essential. Being able to open your mind to be fully engaged in the things you believe are the best for you is crucial.

2) Are you in your comfort zone?

One of the difficulties of managing a business is it’s easy to get into a routine. Once you’ve discovered a method that works, it might be tempting to stick to it. However, staying with the same formula with different outcomes isn’t intelligent. If you’re looking for your business to expand, make sure you alter things with slight adjustments to ensure that your business feels fresh and exciting.

3.) Be prepared to take the risk

Nobody said creating and running a company was easy, regardless of whether you’re putting together an exercise calendar or an entirely new line of clothing. It’s one of the most challenging tasks you’ll ever have to do. If you want to succeed, you must have a mindset of improvement. Create a staff around you. Find people who can assist your company in its growth. It’s not necessary to shoulder all the responsibility for your company. After all. Make sure you take sensible risks. There is undoubtedly a danger involved in taking risks, but when you take calculated risks, you reap a calculated reward. The most successful entrepreneurs realize that sometimes it takes a long time to bring an idea to fruition. Therefore, they remain in the game and push forward.

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4.) Connect with others who are adamant about your abilities

One of the most effective methods to keep a positive mental attitude is to surround yourself with people who are confident in your abilities. If you’re always around optimistic people who believe in your ambitions, It’s easier to stay inspired and push ahead.

5) Discuss your concerns

If you’re in charge of an enterprise, it’s simple to become distracted by the day-to-day and forget about the bigger overall picture. It’s possible to worry about how to make ends meet and meet deadlines or having to deal with demanding customers. Discussing these concerns with the rest of your entrepreneurial friends and colleagues is essential to ensure that things stay on the right track.

6) Be focused on progress, not perfect

When you’re an entrepreneur is effortless to be caught in the pursuit of perfection. You’d like your service or product to look flawless before launching it, but the reality is that it’s impossible to be perfect. It is essential to keep in mind that the pace of progress will always be better than perfect. Start by taking it one day at a. The advantage of keeping a single day in mind at a time is that even should things not go as scheduled. It doesn’t matter since tomorrow is another day to start from scratch. Create workable goals. After creating some feasible goals, please keep track of them and assess how they performed based on outcomes rather than the amount of time and effort poured into them.

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What Is Good Debt and Bad Debt for a Small Business?

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There are two kinds of loans for small companies. Find out which one is best and which one is not.

For many people, the term “debt” has negative connotations. However, when setting up a small-sized company, it is not necessary to stay clear of debt completely. There’s “good debt” that is essential for growth when you start an enterprise, but there’s “bad” debt that could cause long-term harm to your financial situation.

The difference between good and bad debt and how to manage your company’s finances to keep them in check.

Good debt in contrast to. Credit card debt What’s the distinction?

Lyle Solomon, principal attorney for Oak View Law Group, states, “good debt returns money to your pocket, but bad debt takes money from your pocket.”

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“Debt that increases your future net worth is considered good debt, and debt that reduces your future net value is referred to as bad debt,” Solomon added.

Good debt

Kenneth Hearn, fund manager and director of research for Swiss One Capital AG, describes good small-sized business loans as the money borrowed to finance things that contribute to the development and growth of their company.

“This could be for anything from paying for improvements to meet new safety regulations or expanding your human resources team,” the man explained. “A general rule of ‘good debt’ is debt that is low-interest, or will increase the overall net worth of your business.”

Paying off your debts shows you have a good payment history, which your credit rating can show. The more debt types you can manage responsibly and pay off, the more favourable. This means that more lenders will permit you to get in the future.

Bad debt

When a lender takes out money to purchase an item that doesn’t increase in value or produce revenue, it is often regarded as bad credit. Any loan or borrowed funds that could lower the value of your company’s net future must be avoided. The signs of bad debt are the high-interest cost, fees, and strict loan repayment conditions.

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Examples of lousy credit include cash advances and payday loans, usually called “predatory loans.”

“These loans . Target people with bad credit or low income with few options to consider,” Solomon added. Solomon. “[They often] come with exorbitant interest rates and unethical terms.”

Things to think about when making a “good debt an investment

If you are considering getting a loan, entrepreneurs in small businesses should consider the type of debt they’ll be taking on. If the lender takes out a loan for an asset that isn’t going to depreciate, for example, real estate, education, or their own company, on favourable terms, it’s considered to be a good debt.

“Healthy debt entails borrowing money for investing in items that do not depreciate over time,” Solomon explained. Solomon. “Keep the above in mind when you borrow money to run your business. Use the funds to minimize the chance of a catastrophe or loss.”

One approach small business owners may employ when borrowing money is to commit to the lowest rate of interest possible.

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“Your interest payments are tax-deductible,” Hearn said. Hearn. “These tax deductions could help you get over the red line and into the realm of profitability. If you manage your cards correctly, interest rates can benefit you rather than against you.”

Strategies to get out of credit

If a small-sized business owner is trying to escape the burden of bad debt, There are options to overcome the situation. First, examine the company’s budget and financial statements.

“Financial management software has come a long way over the past couple of decades, and having proper procedures for data entry and its use from the start of your business is crucial to managing good or bad debt,” Hearn said. Hearn.

For business owners who are in “bad debt,” Solomon advised consolidating debts to one loan.

“Debt consolidation is an intelligent debt management approach to ensure you’re paying the lowest rates and on the most optimal or flexible terms available,” said the expert to CO–. “Such a move would benefit your business, as you can avoid worries regarding payments.”

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Companies must ensure they have the funds to repay this consolidating loan, or it could negatively affect their business credit and financial situation. However, if used properly in the right way, consolidating or restructuring multiple debts is an innovative method of managing the finances of small businesses.

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