An update on organizational changes

Hi everyone, it’s Ellen in San Francisco. The seemingly unending wave of layoffs in Silicon Valley keeps reminding me of another way tech co [View in browser]( [Bloomberg]( Hi everyone, it’s Ellen in San Francisco. The seemingly unending wave of layoffs in Silicon Valley keeps reminding me of another way tech companies imitate each other. But first… Three things you need to know today: • Tesla’s stock is [on a record run]( • There appear to be [early signs of hope for IPOs]( • Okta argued it’s [“too soon” for AI regulation]( Time for a 1:1 Getting laid off sucks. But for tens of thousands of tech workers who have lost their jobs in the last six months, the experience also comes with an infuriating memo that sometimes doesn’t even mention the word “layoffs.” Those now-jobless workers are suddenly known as “among those impacted.” Spotify Technology SA followed the script when it [cut]( 200 jobs last week. “We know news like this is never easy, especially for those impacted,” according to the memo. The term has even seeped into the Twitter and LinkedIn posts of the employees themselves, who share that they were “among those impacted” by the day’s news. (For the language pedants out there, put down your pitchforks — [it’s OK]( to use “impact” as a verb, though you can always choose to abstain if you hate it.) Tech leaders pontificate about innovation, but when it comes to delivering bad news, they quickly become parrots. Reading these memos all together will make your eyes go numb: - “If you are among those impacted, you will receive a notification email within the next 15 minutes” (Stripe) - “If you are among those impacted, you will receive a calendar invite to a 1:1 meeting with a manager in your department within the next 10 minutes” (Clubhouse) - “If you’ve been impacted, you’ll be sent a calendar invitation within the next 30 minutes for a 1:1 with a leader on your team” (Dropbox) - “Those impacted by this change have already received an invite for a 1:1 conversation today with a member of our HR team” (Spotify) The memos bear titles such as “A message from our CEO” or “An update on organizational changes.” If a title is memorable, it’s not in a good way: “Update on Meta’s Year of Efficiency.” This is called euphemistic labeling, said Sandra Sucher, a professor at Harvard Business School who studies how companies lay off workers. It’s an example of “moral disengagement,” in which our brains try to restructure morally difficult actions that we’re about to take in order to make them more palatable. In a layoff, that discomfort shows up in language. (It should be noted that “layoffs” itself was introduced as a euphemism — now broadly accepted — for mass firings.) “If you were to be really explicit, it’s an involuntary termination that causes someone to not be able to pay their bills,” Sucher said. “But, of course, we don’t use language like that.” Instead, she’s observed a “curious mimicking” going on in these memos. Even though the phrase “those impacted” is annoying and unspecific, Sucher said she appreciates that it gestures at the often-devastating emotions that can come with getting laid off. “At least it acknowledges that this action has a personal effect on individuals,” she said. Sucher said it’s better than blathering about “strategic realignments” or “right-sizing” a workforce. But to be clear, a bunch of tech companies have done that, too. —[Ellen Huet](mailto:ehuet4@bloomberg.net) The big story Humans are biased. Generative AI is worse. Stable Diffusion’s text-to-image model [amplifies stereotypes about race and gender](, a Bloomberg investigation found. One to watch [Watch the Bloomberg Technology TV interview]( with Wesley Chan, co-founder and managing partner at FPV Ventures. Get fully charged French President Emmanuel Macron met with AI experts from Meta and Google, among others, to discuss [France’s role in AI research and regulation](. UAE-based fintech startup Optasia is weighing strategic options, including a [sale or IPO in the Middle East](. Netflix saw a big bump in new subscribers in the US after it began warning customers that it will [limit account sharing](, according to new research. The University of Manchester, one of the UK’s largest universities, said it’s [investigating a cybersecurity incident]( after it detected unauthorized activity on its network. Whether you’re worried about being replaced by a robot, or just intrigued by the possibilities, here are some [frequently used AI buzzwords]( and what they mean. More from Bloomberg Get Bloomberg Tech newsletters in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Hyperdrive]( for expert insight into the future of cars Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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