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Middle East Edition
24th April 2024
 
THE HOT STORY
Google fires at least 20 more workers who protested its $1.2bn contract with Israel
Google has fired at least 20 more workers in the aftermath of protests over the company's supply of technology to the Israeli government. The total number of terminated staff now exceeds 50, according to the group representing the workers. The protests were centred on Project Nimbus, a $1.2bn contract signed in 2021 for Google and Amazon to provide cloud computing and AI services to the Israeli government. The contract has faced backlash from employees and activists since it was signed, but the objections have grown amid Israel’s ongoing military campaign in Gaza. Dozens of employees occupied company offices in New York City and Sunnyvale, California. The group organising the protests, No Tech For Apartheid, accused Google of attempting to quash dissent and silence its workers. The company disputed the group's claims and stated that every terminated employee was personally involved in disruptive activity.
STRATEGY
Israel launches new fund to boost investments in high-tech companies
Israel's government has launched a new fund, called Yozma 2.0, to encourage institutional investors to boost investments in high-tech companies. The fund aims to diversify the sources of funding for the tech sector, which is a key driver of Israel's economy. Traditionally, most investment in high-tech has come from venture capital funds, but the new fund seeks to attract insurance companies, pension funds, and other institutional investors. The Israel Innovation Authority will contribute 30 cents for every dollar of institutional investment and waive its share of returns to enhance returns for the institutions involved. The fund will direct $160m in public money to venture capital funds supporting Israeli tech companies, particularly those in deep technology sectors. The move is designed to ensure a robust funding environment for Israeli startups in the coming years. "We are in a period where we need to plan a strategy for transitioning from war to growth, and smart investment in Israeli high-tech is one of the first steps we are advancing," said Finance Minister Bezalel Smotrich.
UBS layoffs to begin in June as part of cost-cutting program
Layoffs under UBS's cost-cutting program, following its takeover of Credit Suisse, will occur in five waves starting in June. The plan aims to eliminate around one in 12 of UBS's Swiss jobs and cut costs by over $10bn. Analysts estimate that between 30,000 and 35,000 jobs could be lost globally. A source described as an insider predicts that 50%-60% of former Credit Suisse staff will be laid off over the five rounds. The subsequent rounds are scheduled for August, September, October, and November, with planned savings of 12 billion Swiss francs ($13.2bn). UBS was not immediately available for comment.
RISK
BlackRock triples spending on home security for Larry Fink
BlackRock, the world's largest asset manager, has spent nearly $800,000 on security for its CEO, Larry Fink. The company has faced a backlash over its ESG investment push but also for its perceived lack of action on decarbonisation, prompting the increased security measures. The expenses included $564,000 for upgrading security systems at Fink's home and $217,000 for bodyguards.
HIRING
Randstad reports disappointing Q1 earnings
Randstad, the world's largest employment agency, reported first-quarter core earnings of €177m ($188.5m), falling 33% year-on-year and below analysts' expectations of €181m. The decline in earnings was attributed to challenging market conditions. 
CORPORATE
Saudi Arabia's PIF to acquire majority stake in TAWAL
Saudi Arabia's sovereign wealth fund, PIF, has agreed to acquire a 51% stake in Telecommunication Towers Company Limited (TAWAL) from STC Group. This deal will pave the way for the creation of the region's largest telecom tower company. PIF and STC will combine TAWAL and Golden Lattice Investment Company (GLIC) to establish a newly-formed company with approximately 30,000 mobile tower sites and estimated annual revenues of around $1.3bn. The new entity will be owned 54% by PIF and 43.1% by STC, with GLIC minority shareholders holding the remaining share capital. The completion of the deals is expected in the second half of the year.
INTERNATIONAL
UK air traffic boss defends engineers who work from home
Martin Rolfe, the CEO of the UK's air traffic services provider, has defended engineers who work from home, telling MPs the ability to problem solve remotely when called upon was "a bonus." NATS - formerly National Air Traffic Services – came under fire last year when an IT systems failure led to air traffic chaos and grounded flights, with Ryanair boss Michael O'Leary accusing engineers of "sitting at home in their pyjamas." Mr Rolfe has defended NATS’ staffing arrangements, telling the Transport Committee his organisation operated a "very similar model to almost all of the rest of critical national infrastructure." He insisted that there were always engineers on site to solve problems but noted that expert "design engineers" were needed for particularly complex issues. Remote working technology, he argued, enables these engineers to look into issues immediately.
European Parliament bans sale of goods made with forced labour
The European Parliament has approved rules to ban the sale, import, and export of goods made using forced labour in the EU. The move was driven by concerns about human rights in China's Xinjiang province. The United States enacted a similar law in 2021 to protect its market from products potentially tainted by human rights abuses in Xinjiang. National authorities in the EU will be able to investigate suspicious goods, supply chains, and manufacturers. If a product is found to have been made using forced labour, it will no longer be allowed to be sold in the EU market.
Korean company abandons English names for employees
Kakao Games, the gaming subsidiary of Korean tech giant Kakao, is abandoning its tradition of using English names for employees. CEO Han Sang-woo announced the change, stating that employees will now be addressed by their Korean names. The company said it aims to create a more unified and respectful corporate culture by using job titles and the honorific "nim" to address employees. The decision comes after complaints from workers about the confusion caused by using both English and Korean names. The change in naming system is part of Kakao's efforts to undergo a corporate makeover following scandals and internal friction. Kakao Games will also introduce a new compensation system based on performance, and the company is also planning to eliminate managing director positions to foster better internal communication.
Dutch cities divided over work from home plan for sex workers
Cities in the Netherlands are divided on whether sex workers should be allowed to work from home. Sex work has been legal in the Netherlands since 2000, and a few regions have allowed sex workers to operate independently from home. The government is now seeking to regulate the sector to reflect the increase in home-based and online work. Sex workers would be required to meet strict conditions to receive a permit from their local authority. But many Dutch regions are not happy with the prospect of working from home in the industry. A poll of 150 municipalities by Nos, the Netherlands' largest news organisation, found many thought it would be a "nuisance" for local residents. "If sex work takes place in the private sphere, it is difficult to gain insight into possible abuses," a representative for the municipality of Kaag en Braassem in South Holland told Nos. The city of Tilburg told Nos: "Unlicensed sex workers actually become more vulnerable to coercion, violence and blackmail."
OTHER
Chipotle to open first Middle East location in Kuwait City
Chipotle Mexican Grill will open its first Middle East location in Kuwait City. The new location will be at The Avenues, Kuwait's largest shopping mall. Chipotle is also planning to open a restaurant in Dubai later this year, with four new locations in the region by 2024. Fast-food giants in the Middle East have reported weaker sales due to consumer boycotts over their perceived approach to Israel's offensive in Gaza.
 


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