This is what the Flux.
I'm justin and I'm harsh Deep and it's Wednesday, the twenty second of May G.
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Three bar these stories today, HG.
Let's get into it.
For our first Telstra will cut over nine percent of its workforce, or two thousand, eight hundred jobs by the end of twenty twenty four in order to stay competitive in the market.
Interesting, I feel like this might actually hurt its service. What's going on here?
The big t Telstra is the largest telco network in Australia. We're talking over twenty two million retail mobile services.
And it's got over thirty one thousand employees, or.
At least they did prior to the CEO's announcement yesterday where she warned that they will be cutting two thousand, eight hundred jobs from their workforce.
In particular, the cuts will come from Telstra's enterprise unit, which works for Australia's biggest company.
Jog a Agal Energy Machas, the Government of South Australia and.
In twenty twenty one, Telstra planned a cost cutting activity that would cut five hundred million dollars in costs by the end of the twenty twenty five financial year.
But in February this year, Telstra warned they were behind the eight ball on those goals.
So now those major job cuts are expected to save Telstra nearly three hundred and fifty million dollars and get closer to their cost cutting goals for FY twenty five.
But Itch, you've got to wonder what this means for the quality of the enterprise business where a large number of these job cuts will happen.
So tell me, Jars, what is the key learning.
If the knife's too sharp, one cut can wound the entire business.
You see, Telstra's enterprise business was already hurt hard over the past twelve months.
It Cha, you need to stay out for this one. Telster's enterprise business saw its first half earnings dropped sixty seven percent.
That means in the first half of the year it generated just seventy one million dollars in earning.
Think about how small that is as a fraction of Telstre's four billion dollars in overall earnings.
Part of this is due to landlines becoming obsolete, not just in homes but in offices too.
Hellu zoom, but HD. By reducing the workforce, particularly in the service oriented industry like the telco industry, it can have serious consequences.
For example, by reducing its enterprise unit, Telster risks deteriorating relationships with its major corporate clients.
We rely on a personalized and a pretty prompt service.
For our second story casino giants. Star Entertainment has revealed that it's received interest from potential buyers, but hard Rock International definitely isn't one of them.
It sounds like a bit of beef going on there. So what is the story.
Well, Star Entertainment is the Aussie gambling and entertainment company that owns major casinos in Brisbane, Gold Coast and Sydney.
Since twenty twenty one, Star Entertainment has been in bigger crisis mode than the Royal Family YEP.
Star was exposed for its lack of compliance with anti money laundering laws and.
This led to the Star copping major fines, the Sydney and Brisbane casinho's losing their licenses and.
Just last month the chair of Star resigning too.
Now a cheet, Star reveild that it's received interest for a potential takeover and I was just one party. Apparently quite a few.
And when it was rumored that hard Rock International, the US hospitality giant, was one of those interested parties, Stars share price jumped twenty percent.
But hard Rock was quickly shut down those rumors and make it very clear they have nothing and probably never one to have anything to do with Star Entertainment.
Talk about rejection, but that doesn't mean there aren't others eyeing Star as a potential takeovers.
Especially given Star's net tangible asset value is currently higher than its market value.
So tell me what is the key learning here.
Net tangible assets is the value of all the physical or tangible assets of a company minus all of its liabilities.
So Jazz. Technically, a company's market capitalization should be the sum of its tangible assets plus any non tangible assets.
But in Star's case, its net tangible assets we're sitting at eighty nine cents per share in its twenty twenty three results, but right now its share price is sitting at fifty cents, So.
The market's value of Star is less than that of its net tangible assets.
And a she This just highlights that the share market isn't always a rational beats for our third and final story, Microsoft has released a new line of laptops, using AI chips to run the software and taking a few shots at Apple during the announcement as well.
Of course, we love nothing more than two of the biggest companies in the world trading bobs like school yard kids spill the TKHG. Well.
Microsoft, which was founded all the way back in nineteen seventy five, is the largest company in the whole wide world based on its three trillion US dollar market cap.
In front of its big rival Apple in the number two spot.
But actually now Microsoft announced have released a new line of laptops called co Pilot Plus PC.
And it ain't just any PC. It's pretty much an AI driven machine.
For example, you could search blue car in the search bar and will treat any document with a blue car.
That's pretty standard, but also.
Any photo with a blue car that you've saved, any video with a blue car, or even any search that you've made with a bluecar in it.
Essentially, they want it to be like your business and personal assistant.
Plus they claim to have a longer battery life than the latest Max shots fire.
Oh and this is Microsoft's way of combining its hardware roots with its new wish pivot towards artificial intelligence.
Got to keep reinventing h So what is the key learning here?
If you don't reinvent yourself over and over again, you risk losing your relevance for good.
Gotta hand it to Microsoft. They've shown a pretty skillful art of transformation throughout its forty year lifespan.
YEP, It's continuously adapted its business model to stay ahead of the tech curve.
Think back to nineteen seventy five h G. When the movie Draws came out and Microsoft had started selling computers.
But by nineteen eighty it had already pivoted its way into operating systems.
By nineteen ninety, it had transformed into the productivity beheamoth that we know today as Word, PowerPoint, and Excel.
And just as Microsoft's relevance began to decline around twenty fourteen, it pulled a cloud computing out of its magical hat.
And now impossibly its grandest pivot of all time, It's focused deeply on OI with its new partnership with open Ai, and it's already started to bear fruit for them. A she I love seeing in the Fox Academy this month. The difference between the Snowball method and the Avalanche method some of the best ways to pay down your debt fast and keep motivated as well to Fox down. If you want to learn how to pay down your debts fast and download the Fox app and check out the Academy this month.
Thanks for listening, and we'll see you on Friday.