bookmark_borderAmazon CEO Jassie sends internal letter: admits to losing two highest-level African-American executives

According to reports, on Tuesday evening local time, Amazon CEO Andy Jassy (Andy Jassy) sent an internal email admitting that the company lost two African-American executives, who were responsible for warehouse operations and logistics operations.

Jassy thanked the two executives, saying they left a very important contribution to Amazon, and he was very saddened by their departure.

Earlier, Amazon officially announced that two African-American executives will leave, namely Alicia Boler-Davis, senior vice president responsible for global customer order delivery, and Amazon shipping. David Bozeman, vice president of services.

Over the past two years, Amazon has made improvements in talent acquisition, hiring more black senior executives at the eighth and tenth levels (internal levels), Jassy said in the email.

Earlier this month, Amazon also announced that Dave Clark, the head of global consumer business, will leave on July 1. On Tuesday, Amazon announced that executive Doug Herrington would take over Clark’s consumer business as head of “Amazon’s global store business.” It is reported that Davis, the above-mentioned resigned African-American executive, was also one of the candidates to replace Clark.

There are not many African-American executives at Amazon, Davis and Bozeman are two of them. In addition, Amazon has a top decision-making level, called the “S team,” Davis is the only African-American member of this team.

Amazon has made progress in the (racial) diversity of its senior executives over the past few years, but as of the end of last year, blacks made up only 5.5 percent of all senior executives, according to data released by the company.

“We still have a lot of work to do,” Jassy said in an email.

The following is the content of Jassy’s email:

You may have seen the company’s high-level personnel announcement today, and it should be pointed out that two executives, Davis and Bozeman, have decided to leave Amazon. Both of them have made significant contributions to the company, and I am saddened by their departure.

Davis joined Amazon at a time when the company was going through a frantic period of growth with the launch of next-day Prime (free shipping),
Mobile Accessories Manufacturers and in the past two years, the company has faced even greater challenges because of the COVID-19 pandemic.

We could not have nearly doubled our order delivery network (warehousing network) in the past two years without Davis’ tenacious leadership. Davis has brought a lot to the company over the past three years, and she is also an important member of the company’s S team, and I am very grateful for her contribution and work.

Likewise, Bozeman, who has been with Amazon for more than five years, has built our “middle mile logistics network,” which is an important part of Amazon’s logistics business.

Without Bozeman’s leadership and guidance, Amazon wouldn’t have the logistics network it has today.

I have a lot of respect for both Davis and Bozeman, we will miss them both, and I know they will be very fortunate for the company they both work for next.

Over the past two years, Amazon has made progress in hiring black executives at the eighth and tenth levels, but it is clear that Amazon has lost two of its highest-ranking black executives this time around.

Some company adjustments tend to bring other changes, and balancing these changes is challenging, but myself and the rest of the S team will continue to recruit African-American senior executives, as well as other currently underrepresented ethnic groups. executives.

At Amazon, we have many important leadership positions, and we are doing everything we can to be more diverse and inclusive. We still have a lot of work to do. We will be cautious on the one hand, and make the right decisions that benefit consumers and the company on the other.

Please share the contents of this letter with the rest of the team.

Andy

bookmark_borderMeta Zuckerberg: The Metaverse Will Have 1 Billion Users

Meta Platforms CEO Mark Zuckerberg reportedly said in an interview with CNBC that the Metaverse will become an important business for the social networking company in the second half of this decade.

“Our vision is to attract about a billion people to spend a few hundred dollars in the metaverse, and they’ll buy digital goods, digital content, digital things to express themselves, whether it’s clothing for an avatar, a virtual home or a mobile phone,” he said. The thing that comes to decorate the virtual meeting room, it can also be the thing that increases productivity in virtual or augmented reality and the metaverse as a whole.”

The company’s market value has shrunk by roughly half this year as Meta’s growth slows and daily active users fall for the first time in two decades. Zuckerberg has been guiding the company toward what he sees as the next generation of virtual worlds, where people can buy and sell digital clothing and other goods for avatars and communicate with each other through them. The company’s ticker also changed from FB to META this month, signaling they are no longer a pure-play social media provider.

But Facebook’s investments in augmented and virtual reality date back to 2014, when the company bought Oculus VR, a maker of headsets, for $2 billion. While headset shipments haven’t surpassed PCs or smartphones, Zuckerberg remains optimistic about the performance of the Meta Quest 2, which starts at $299.

“Quest 2 has been a huge hit,” he said. “I’m happy with the progress. It’s actually exceeded my expectations. But I still think it will take some time for the Metaverse to reach hundreds of millions or even billions of users. , it takes time after all. So it’s like the North Star that guides the way. I think we’ll get there sooner or later. But the other services we run are a little bit bigger these days.”

Zuckerberg said that the main content carriers of Facebook and Instagram are text, photos or videos, but the experience of using the Metaverse is more immersive, so this will be a major theme for Meta in the next 10 years.

Zuckerberg meets with the CNBC host in the Metaverse. The Facebook co-founder said the experience can create a sense of intimacy even when the two parties are thousands of miles apart. He says people can make eye contact, which is difficult to achieve on video calls, and use spatial audio for quiet conversations.

The technology, he says, “is really superimposed to create this real sense of presence.”

Creating that feeling over the next few years will require Meta to release a series of hardware, software and user experiences.

“At this stage, we can afford to make some long-term research investments, which is a big focus for us,” he said.

He expects the Metaverse to spawn a huge economy of scale.

The Meta Platforms portfolio of apps had 3.64 billion monthly active users in the first quarter of this year, up 6 percent year-over-year. WhatsApp will reach 2 billion users in 2020, which is also a potential growth point that Zuckerberg is optimistic about.

“Our previous model was to build services, then serve as many people as possible — 1 billion, 2 billion, 3 billion, and then scale it up commercially,” Zuckerberg said. “It’s the same with Facebook and Instagram. .WhatsApp will open a new chapter where business messaging and commerce will play an important role.”

Develop artificial intelligence recommendation algorithms
Zuckerberg said that in addition to investing in the Metaverse, Meta is also working hard to develop artificial intelligence technology that can boost its advertising business (which accounts for roughly 97% of the company’s revenue) and existing applications.

“Most of the content you see on Facebook and Instagram is from friends or people you follow, and now we are gradually increasing the proportion of content recommended by artificial intelligence.” Zuckerberg said, “With the recommendation of artificial intelligence It gets better and better, and you can see not only what you care about, but also the content of the whole world outside of your attention.”

That’s actually the model of TikTok, which has attracted 1 billion monthly active users with this technology. Meta launched its Reels feature on Instagram in 2020, hoping to follow this model. Zuckerberg said on Meta’s first-quarter earnings call in April that more than a fifth of Instagram users’ time was devoted to Reels. He now expects the addition of artificial intelligence to further boost the appeal of Reels.

“Our AI system can filter content based on what it knows about you and your personal interests and concerns or thoughts,” he said, “so as we get better at this, our The engineers will make improvements to the model every week. When we see that the correlation has increased by a few percentage points, we will repeat this step, and again next week. I have always been concerned about speed in the operation process, so that we can continue to improve Improve quickly.”

bookmark_borderProfitability trails Toyota, Tesla is taking more money to invest quickly

According to reports, the latest financial data shows that Tesla is accelerating the rate at which cash is converted into products and sales, leaving more resources to invest in the future.

Tesla’s strategy appears to be paying off. In the January-March quarter, Tesla’s net profit jumped more than sevenfold from a year earlier to $3.3 billion, not far off industry leader Toyota’s $3.93 billion.

In fiscal 2021, Tesla’s cash conversion cycle fell to -15 days. This is the first time the cycle has turned negative since the company started mass production in 2012. This is very rare for an automaker. The cash conversion cycle refers to how long it takes a company to convert inventory investments and other resources into sales revenue.

Automakers often need large working capital on hand to stay afloat. However, a negative cash conversion cycle means that the need for working capital no longer exists, and companies can instead use those funds for investment. That compares to a 31-day cash conversion cycle for Toyota and 74 days for Volkswagen, before accounting for financial operations.

Tesla has been very efficient in generating revenue. Ryosuke Izumida, an analyst at financial services provider Monicle, said: “Tesla operates like a build-to-order. The company has received cash before production starts.”

Previously, Tesla managed to slash its inventory turnover rate from a peak of 152 days to 45 days. This achievement is achieved by aggressively simplifying component requirements and assembly processes. In fiscal 2021, Tesla Motors’ gross profit margin was 26.5%, beating Toyota’s 16.7% and Volkswagen’s 18.7%.

Tesla’s popular Model 3 has a minimalist interior and replaces the usual gauges and buttons with a unified touchscreen. Currently, the Model 3 and Model Y account for 95% of Tesla’s total production.

These Tesla models require only a small number of electronic control units (ECUs) to control functions such as steering and braking, reducing the need for wiring in the vehicle. In the past, ordinary cars needed to use 50 to 70 ECUs, while the number of ECUs in luxury cars could reach about 100. Tesla also uses large casting equipment to make complex parts in one shot, eliminating the need to assemble based on smaller parts. Typically, an electric car requires about 20,000 parts, compared with 30,000 for a gasoline car. It is reported that Tesla has further reduced the total number of parts to about 10,000.

These simplifications allow Tesla to lessen the impact of a global chip shortage. Between January and March, Tesla’s inventory valued at $20,000 per vehicle it produced, about 20% less than VW’s.

Also, Tesla’s lead times are short. Elon Musk, the company’s chief executive, sees a localized supply chain and quick turnaround from sourcing to delivery as the key to generating more revenue quickly. Tesla’s newest Gigafactory in Texas opened in April with a complete line from battery manufacturing to vehicle assembly. At the same time, Tesla sells cars through the Internet, without the need for a physical store.

The extra cash allows Tesla to make big investments and get a return on it. Tesla has built several new factories in China, Europe and elsewhere, and developed new electric vehicle batteries. Its benefit-to-cost ratio (FY21 operating cash flow divided by FY2020 investing cash flow) is 3.7, well above Toyota and Volkswagen’s 0.9 and 1.5.

Still, Tesla’s stock is down about 40% from the start of the year. Tesla’s revenue has doubled almost every year since it went public. Recently, Tesla also announced product price increases, signaling optimism about the business. It’s unclear, however, whether Tesla can sustain such growth amid growing concerns about slowing economic growth. Tesla’s future depends on whether the company can explore a new growth path while maintaining its ability to generate cash.