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TalkTalk to Cut Hundreds of Jobs in £120m Cost-Saving Overhaul

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Broadband provider TalkTalk is set to slash hundreds of jobs as part of a major cost-cutting strategy aimed at saving £120 million and stabilizing its financial position. The company, burdened by significant debt, announced the restructuring plan last week in a bid to address mounting losses and operational inefficiencies.

Initial redundancies are already under consultation, with approximately 130 roles expected to be cut from its Salford-based consumer division. Additional reductions in its wholesale arm, known internally as Platform X, are anticipated to bring total job losses into the hundreds.

The cuts will primarily affect central head office positions, with TalkTalk citing inefficiencies from overlapping business units and management layers. As of February, the company employed 1,857 people, two-thirds of whom were in administrative roles.

The job reductions are part of a broader cost-saving agenda, with TalkTalk aiming to achieve 60% of the targeted £120 million savings within the next 12 months. Beyond layoffs, the company’s plan includes selling non-core businesses, closing offices, and tightening budgets for marketing, travel, and catering.

TalkTalk also intends to leverage automation and artificial intelligence to streamline operations and is exploring outsourcing and offshoring options.

The restructuring comes after TalkTalk narrowly avoided collapse this summer. Founder Sir Charles Dunstone and key shareholders provided a critical cash injection to prevent a default on its £1.2 billion debt. Despite the bailout, the company’s financial struggles persist, with servicing costs on the debt remaining a significant burden.

For the six months ending in August, TalkTalk reported losses of £72 million, while its customer base declined from 3.6 million in February to 3.4 million by August.

Industry analysts remain cautious about TalkTalk’s prospects. James Ratzer of New Street Research noted that even if the cost-cutting measures succeed, generating the anticipated £70 million in free cash flow would fall short of covering the company’s interest obligations.

In an effort to raise funds, TalkTalk last year broke up its business and has since explored the sale of parts of the company. However, negotiations with Australian investor Macquarie over a potential £500 million investment in Platform X ended without a deal earlier this year.

A TalkTalk spokesperson described the restructuring as a “multi-year transformation” designed to simplify operations and maintain competitive connectivity services for millions of customers. They acknowledged the difficulty of the job cuts, stating, “We are consulting on the future of some roles at TalkTalk’s consumer business as part of this transformation.”

This sweeping overhaul marks a critical juncture for the company as it seeks to overcome financial challenges and remain competitive in the U.K.’s broadband market.

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TikTok Appeals to US Supreme Court to Delay Potential Ban

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TikTok has made a final appeal to the US Supreme Court in an attempt to delay a law that could force its Chinese parent company, ByteDance, to either sell the platform or face a nationwide ban. The companies filed an emergency injunction request on Monday, seeking to prevent the law from taking effect on January 19. Without this delay, they warn that TikTok’s US operations may be shut down, affecting approximately 170 million American users.

The law, passed by Congress in April, cites national security concerns over TikTok’s Chinese ownership. US officials argue that the platform’s access to vast amounts of American user data, including location and private messages, along with its influence over content recommendations, could be exploited by foreign adversaries. The law requires ByteDance to divest TikTok or face severe operational restrictions in the US.

In response, TikTok and ByteDance have denied these allegations, insisting that no imminent threat exists. They argue that the law infringes on free speech, as it singles out TikTok and violates the First Amendment. Earlier this month, a Washington DC court rejected these claims, prompting the companies to file their appeal with the Supreme Court.

The companies also warn that even a temporary shutdown of TikTok in the US would have serious consequences, potentially causing a loss of one-third of its US user base. They say such an abrupt closure would significantly undermine TikTok’s value to advertisers, content creators, and employees.

President-elect Donald Trump, who once attempted to ban TikTok during his first term, has now reversed his stance. Trump, who is set to take office on January 20—just one day after the law’s deadline—has pledged to preserve the platform. His position could potentially lead to policy changes or new negotiations surrounding TikTok’s future in the US.

The law’s potential impact comes amid broader US-China trade tensions. TikTok and ByteDance argue that a ban could set a precedent for further crackdowns on other foreign-owned apps. A similar attempt by Trump to ban Tencent’s WeChat in 2020 was blocked by US courts.

In addition to TikTok’s appeal, a group of US users has filed their own emergency plea with the Supreme Court, emphasizing the platform’s importance as a speech forum and calling for strict legal scrutiny of any action that restricts access to it.

Michael Hughes, a TikTok spokesperson, stressed the importance of First Amendment protections, asserting that a hasty ban would harm Americans’ freedom of expression. The US Department of Justice, however, maintains that the law is crucial for safeguarding national security and protecting personal data from foreign influence.

As the January deadline approaches, TikTok and ByteDance are hoping for a Supreme Court decision by January 6 to allow time for a potential shutdown and coordination with service providers. The outcome now rests in the hands of the justices.

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Sakana.AI Unveils AI Model Capable of Automating Scientific Research

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Researchers at Sakana.AI have introduced a groundbreaking artificial intelligence (AI) model that could revolutionize the scientific research process by automating tasks typically handled by human researchers. Dubbed the “AI Scientist,” the model can independently identify research problems, develop hypotheses, execute experiments, analyze data, and generate reports. Additionally, a secondary AI model has been designed to peer-review these reports, ensuring the quality and accuracy of the findings.

Robert Lange, a research scientist and founding member at Sakana.AI, compared this development to the early stages of AI in other fields, such as generative models like GPT. Speaking to Euronews Next, Lange described the project as a potential turning point for AI’s integration into scientific discovery. “We think of this as a type of GPT-1 moment for generative scientific discovery,” he said, noting that its full potential is still being realized.

Expanding AI’s Role in Scientific Research
While AI has already made inroads into scientific research, its integration has been limited by the field’s complexity and challenges related to AI tools, such as inaccuracies, or “hallucinations,” and issues concerning intellectual property. However, AI’s use may be more common than realized, with an estimated 60,000 academic papers potentially enhanced by AI tools like ChatGPT since its release.

The European Commission has recognized AI’s potential to drive scientific breakthroughs, but its use also raises ethical concerns. If implemented carefully, AI could become a powerful tool in advancing science. Sakana.AI’s “AI Scientist” is still in its early stages, with researchers acknowledging some limitations in the system. These include incorrect implementation of ideas, errors in evaluation, and unfair comparisons to standard research practices. However, Lange views these challenges as natural growing pains in the development of AI models.

“When you look at the evolution of machine learning models, from early image generation to chatbots, they often start with flaws but become more powerful as resources and community efforts grow,” Lange explained. He expects the AI Scientist to follow a similar trajectory.

AI as a Collaborative Tool for Researchers
Despite its autonomy, the AI Scientist is not intended to replace human researchers but to complement them. During tests, the model displayed behaviors mimicking human researchers, such as adjusting its settings to extend time for experiments rather than just optimizing performance. Still, human oversight remains crucial for tasks like peer review and research direction, ensuring the reliability of AI-generated findings.

Lange emphasized the need for ethical guidelines in using AI for scientific research, advocating for transparency through measures like watermarks on AI-generated papers. “We believe in developing these tools collectively and iteratively to ensure they are safely deployed,” he said, adding that open-source AI models could democratize scientific research and foster collaboration.

Sakana.AI hopes the AI Scientist project will ignite a larger conversation about the future of scientific research and how AI can reshape it. “We want this project to spark a dialogue about the future of science and what a true scientific contribution looks like,” Lange concluded.

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Amazon Web Services Announces £8 Billion Investment to Boost UK Digital Infrastructure

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Amazon Web Services (AWS) has unveiled an ambitious £8 billion investment aimed at strengthening the UK’s digital infrastructure and creating over 14,000 full-time equivalent jobs annually within the AWS data centre supply chain. This comprehensive initiative encompasses roles in construction, facility maintenance, engineering, telecommunications, and more.

Since its entry into the UK market in December 2016, AWS has significantly expanded its footprint, establishing three Availability Zones, two WaveLength Zones, two Edge Locations, and a Regional Edge Cache. This new £8 billion investment will elevate AWS’s total UK investment from 2020 to 2028 to over £11 billion, building on the £3 billion already invested since 2020, which has supported more than 6,000 jobs per year.

The investment aligns with AWS’s broader objective to enhance the UK’s digital economy, which experienced a £42 billion boost from cloud computing in 2023, contributing 1.6% to the country’s GDP. By expanding its UK operations, AWS aims to broaden access to cloud computing and artificial intelligence, helping businesses improve their global competitiveness.

Chancellor of the Exchequer, Rachel Reeves, praised the announcement, stating, “This £8 billion Amazon Web Services investment marks the start of the economic revival and shows Britain is a place to do business. I welcome the announcement as part of the Government’s mission to boost growth, unlock investment and make every part of Britain better off.”

Technology Secretary, Peter Kyle, emphasized the significance of AWS’s expansion, noting, “Today’s announcement reflects the growing strength of the UK’s digital economy with a key player like Amazon Web Services committing to growing and expanding on our shores.”

AWS’s UK clientele includes prominent organizations such as AstraZeneca, Cancer Research UK, Deliveroo, easyJet, and Sainsbury’s. These entities utilize AWS to cut costs, enhance agility, and foster innovation. Independent research commissioned by AWS reveals that 84% of AWS customers report cost savings and quicker deployment times, with many also benefiting from increased global reach and competitiveness.

In addition to its investment, AWS has committed to providing free cloud computing skills training to 29 million people worldwide by the end of 2025. AWS surpassed this goal in July 2024 by reaching over 31 million learners, including many in the UK. The company is also dedicated to advancing AI education, aiming to offer free AI skills training to two million individuals by 2025.

Since 2010, Amazon’s total direct investment in the UK has exceeded £56 billion, encompassing substantial capital and operational expenditures. AWS’s ongoing commitment to enhancing the UK’s digital landscape promises to drive growth, innovation, and job creation across the nation.

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