Big Tech is going to regret all these layoffs

Plus: South Africa's power struggle. [Bloomberg]( Follow Us [Get the newsletter]( This is Bloomberg Opinion Today, a public punching bag of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - Salesforce gets another [activist investor](. - South Africa [is in the dark](. - Gun policies [actually work](. - Shop at your mall and [ski in it too](. Tech Regrets It feels like Big Tech is going through a [midlife crisis](. We’re seeing all the telltale signs: Frequent changes in mood. Impulse decisions. Feelings of regret worse than when Kylie Jenner [incorrectly named her son](. Just today, Spotify dropped [6% of its workforce](, Microsoft invested [$10 billion in OpenAI](, and Salesforce [cozied up with activist investor Elliott](. Some of these crises are worse than others. Just as not everybody gets divorced and buys a convertible halfway through life, we [shouldn’t expect all of Big Tech to succumb to shareholder activism](, write Parmy Olson and Chris Hughes. Technocrats such as Tim Cook, Satya Nadella and [Sundar Pichai]( still run some of the most profitable cash kingdoms on Earth and are happy to show employees the door without the encouragement of [hedge funds](. Marc Benioff, on the other hand, may have [bitten off more than he can chew]( with his $26 billion purchase of Slack. Salesforce is hurting, and [Elliott spotted its pain]( a mile away: Adding to Benioff’s headache is buyer's remorse from his pandemic hiring spree (and [this ludicrously bright sign in Chicago](, probably). To combat the bad economic vibes Jonathan Levin [charts here](, Salesforce had to [cut about 10% of its staff](. In this, at least, he has much more in common with those Big Technocrats. Many have been [shedding]( workers lately, a tactic Sarah Green Carmichael [argues is unwise]( for the companies. “Having too few workers is almost always worse than having too many,” she writes. With [1,600 tech employees]( being laid off every day, the potential for regret keeps growing. Bonus Big Tech Reading: - [AI is evolving]( faster than humans can compute. — Tyler Cowen - A lighter dose of FANG stocks helped [active fund managers topple their passive counterparts](. — John Authers These Are [Dark Times]( If you’re in South Africa, there’s a solid chance you’re sitting in the dark right now. Unless, of course, you’re a [cabinet minister](. Chart by Elaine He Africa’s most industrialized economy is in the wrong kind of [power struggle](, with blackouts hitting homes for at least six hours every. Single. Day. The shortages are a result of “[load-shedding](” to reduce power demand — a phenomenon that keeps South Africans from doing everything from laundry to [opening their refrigerator](. Javier Blas writes [the country could be in the dark]( for half a day during the winter season of June to August. If Google searches for the word “candle”[1](#footnote-1)and “[generator](” are any indication, things are getting dire: The repercussions for South Africa’s economy are all over the internet, with one dairy farmer tossing [12,000 liters of sour milk down the drain](. And let’s not mention [the chickens](. People are losing their jobs [right]( and [left](, and the [remote work sector]( is all but dead. At the heart of the nightmare is Eskom, the nation’s utility company. It needs a new CEO, but any [job listing]( for that would be a joke. Must love: being a [public]( [punching]( [bag](, opposing criminal gangs and risking assassination. Real fixes, including shedding the company’s mountain of debt, will be even more difficult. Bonus Energy Reading: - Fossil-fuel companies would like you to believe green energy is a farce, and [your Facebook timeline is proof](. — Mark Gongloff - Lumping climate change into [the term “polycrisis”]( is not a solution, it’s a distraction. — Andreas Kluth Proof Is in the Policy [The mass shooting in Monterey Park, California](, this weekend is a reminder of America’s dark ritual of responding to gun violence. Tweets offer thoughts and prayers. Instagram stories cry out against the use of harmful weapons. Facebook posts point to a systemic failure of our legislative bodies. It’s a cycle as routine as wash, rinse and repeat. Maybe real data on gun violence can finally bring real change. A recent Rand study found that keeping children from guns and reforming concealed-carry and stand-your-ground laws [can help prevent carnage](. As Frank Wilkinson writes, this study offers [proof that sensible gun regulation works](. None of the findings should be shocking, but maybe hard numbers could help us finally end this bleak cycle. Telltale Charts Once upon a time, the most fun you could have at the local mall was to sit in one of those big massage chairs. Today much more exciting adventures await: indoor mini golf, axe-throwing bars, cycling studios, trampoline parks and even indoor ski slopes. Leticia Miranda digs into why [mall owners are placing expensive bets on “experiential retail](” to save their vacated storefronts from financial ruin. We’re not even one month into 2023 and the “subpoenas are flying” in cryptoland, Lionel Laurent writes. And regulators are watching banks closely to make sure their crypto habits aren’t veering into unhealthy territory. The collapse of FTX was just the start of the [Great Crypto Cleanse](. Further Reading Both President Joe Biden and Donald Trump should have done a better job of [protecting American secrets](. — Bloomberg’s editorial board Biden’s new chief of staff has [a gap on his resume](. — Jonathan Bernstein Democrats [are in shocking array]( for a change. — David A. Hopkins Millennials: Are you ready to have [“the talk”]( with your Boomer parents? — Erin Lowry A tiff between hedge funds reveals [the truth about factor investing](. — Aaron Brown A pause in Yemen’s civil war is a welcome reprieve, but [actual aid is desperately needed](. — Bobby Ghosh Has Germany [dropped the ball]( on Ukraine? — Hal Brands ICYMI Elon Musk [went to court](. Earth’s core no longer [has the spins](. America is obsessed with [pickup trucks](. Kickers [Don't be a lawyer]( if you care about being happy. I went to [Beyoncé's concert in Dubai]( so you didn't have to. A $5 parlay bet on the NFL [turned into $73,000](. Egg smuggling is [a thing now](. Do my grandkids [only care about my Beanie Babies](? Notes:  Please send Beanie Babies and feedback to Jessica Karl at jkarl9@bloomberg.net. [Sign up here]( and follow us on [Instagram](, [TikTok](, [Twitter]( and [Facebook](. [1] Ironically, the candle emoji represents manifestation — as seen in the [summoning circle meme](. South Africans are waking up to the fact that they might have been manifesting the wrong kind of energy this entire time: Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Bloomberg Opinion Today newsletter. 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