Snap is laying off about 1,000 employees, or 16% of its workforce, while closing 300 open roles as it tries to cut costs and push toward profitability with more AI-driven efficiency. "While these changes are necessary to realize Snap's long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers," CEO Evan Spiegel wrote in a memo, which was included in the company's 8-K filing (PDF). "We have already witnessed small squads leveraging AI tools to drive meaningful progress across several important initiatives." The Verge reports: The changes are expected to save Snap $500 million by the second half of 2026. Snap had about 5,261 full-time employees as of December 2025, and now joins the growing list of tech companies that have already announced significant layoffs this year, including Meta, Amazon, Oracle, GoPro, and Jack Dorsey's Block. "Last fall, I described Snap as facing a crucible moment, requiring a new way of working that is faster and more efficient, while pivoting towards profitable growth," Spiegel wrote. "Over the past several months, we have carefully reviewed the work required to best serve our community and partners, and made tough choices to prioritize the investments we believe are most likely to create long-term value."

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Allbirds made a surprise announcement this morning: it's pivoting from sustainable shoes to AI compute infrastructure, rebranding as NewBird AI after selling its brand assets and closing its U.S. full-price stores. The move sent shares soaring more than 700%. CNBC reports: The move boosted shares of the miniscule market cap company -- it was valued at about $21 million at Tuesday's close -- by more than 700%. The shares, which were under $3 a day ago, jumped to above $17. [...] The new company, which expects to be called NewBird AI, announced a deal to raise up to $50 million in funding, expected to close in the second quarter of 2026. Allbirds announced a deal with American Exchange Group to sell its intellectual property and other assets for $39 million last month. "The Company will initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service," the company said in the announcement.

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Amazon is buying satellite communications company Globalstar for $10.8 billion to expand its Leo satellite-internet network and compete more directly with SpaceX's Starlink. The deal also includes a partnership with Apple to support satellite connectivity for iPhones and Apple Watches, with Amazon planning voice, data, and messaging services starting in 2028. The New York Times reports: Leo was Amazon's move to enter the market for beaming high-speed internet to the ground from orbit. That is an arena dominated by Elon Musk's SpaceX, which operates the Starlink satellite-internet service. Starlink, which has thousands of satellites in orbit, already serves several million customers around the world. This month, SpaceX filed to go public in what is shaping up to be one of the largest-ever initial public offerings. Mr. Musk has valued SpaceX -- which has landed contracts with federal agencies such as NASA and the Department of Defense -- at more than $1 trillion. Other companies are racing to catch up to what Mr. Musk has built for space. Globalstar, founded in 1991, is a Louisiana-based global telecommunications company. It operates networks of low-Earth orbiting satellites to provide internet connectivity to customers. Paul Jacobs, Globalstar's chief executive, said in a statement that together, the two companies "will advance innovations in digital connectivity."

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