Major layoffs at Amazon reflect tech sector shift toward AI-driven growth

Amazon is implementing a major round of job cuts while investing more heavily in AI and cloud infrastructure. The latest announcement brings planned reductions to roughly 30,000 roles across corporate teams worldwide.

Senior vice president Beth Galetti said the layoffs aim to reduce management layers, speed up decision-making, and remove organisational bureaucracy. Media reports suggest the cuts represent close to 10 percent of Amazon’s global office workforce, while warehouse and logistics roles remain unaffected.

No specific divisions were named, with the company stating that each team will continue reviewing capacity and operational efficiency. Amazon previously reported spending $1.8 billion on severance linked to restructuring efforts, with full-year financial results due in early February.

The reductions mirror a broader trend across big tech, with Microsoft, Meta, ASML, HP, and Oracle also trimming white-collar management roles. Executives across the sector have framed the changes as cultural and structural rather than budget-driven.

At the same time, Amazon is boosting AI, cloud, and chip investments through AWS, including over $35 billion in data centre expansion in India amid rising competition.

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SoundCloud breach exposes nearly 30 million users

SoundCloud disclosed a major data breach in December 2025, confirming that around 29.8 million global user accounts were affected. The incident represents one of the largest security failures involving a global music streaming platform.

The privacy breach exposed email addresses alongside public profile information, including usernames, display names and follower data. SoundCloud said passwords and payment details were not accessed, but the combined data increases the risk of phishing.

SoundCloud detected unauthorised activity in December 2025 and launched an internal investigation. Attackers reportedly exploited a flaw that linked public profile data with private email addresses at scale.

After SoundCloud refused an extortion demand, the stolen dataset was released publicly. SoundCloud has urged users worldwide to monitor accounts closely and enable stronger security protections.

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Class-action claims challenge WhatsApp end-to-end encryption practices

WhatsApp rejected a class-action lawsuit accusing Meta of accessing encrypted messages, calling such claims false. The company reaffirmed that chats remain protected by device-based Signal protocol encryption.

Filed in a US federal court in California, the complaint alleges Meta misleads more than two billion users by promoting unbreakable encryption while internally storing and analysing message content. Plaintiffs from several countries claim employees can access chats through internal requests.

WhatsApp said no technical evidence accompanies the accusations and stressed that encryption occurs on users’ devices before messages are sent. According to the company, only recipients hold the keys required to decrypt content, which are never accessible to Meta.

The firm described the lawsuit as frivolous and said it will seek sanctions against the legal teams involved. Meta spokespersons reiterated that WhatsApp has relied on independently audited encryption standards for over a decade.

The case highlights ongoing debates about encryption and security, but so far, no evidence has shown that message content has been exposed.

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W debuts as Europe seeks social media independence

Swiss technology and privacy expert Anna Zeiter is leading the development of W Social, a new European-built social media network designed as an alternative to X. The project aims to reduce reliance on US tech and strengthen European digital sovereignty.

W Social will require users to verify their identity and provide a photo to ensure genuine human accounts, tackling fake profiles and bot driven disinformation that critics link to existing platforms. Zeiter said the name W stands for ‘We’ as well as values and verification.

The platform’s infrastructure will be hosted in Europe under strict EU data protection laws, with decentralised storage and offices planned in Berlin and Paris. Early support comes from European political and tech figures, signalling interest beyond Silicon Valley.

W Social could launch a beta version as early as February, with broader public access planned by year-end. Backers hope the network will foster more positive dialogue and provide a European alternative to US based social media influence.

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EU–US data privacy certification strengthens StackAdapt compliance

StackAdapt has secured EU–US Data Privacy Framework certification, strengthening GDPR compliance and enabling cross-border data transfers between the EU and the US.

The certification allows the advertising technology firm to manage personal data without relying on additional transfer mechanisms.

The framework, adopted in 2023, provides a legal basis for EU-to-US data flows while strengthening oversight and accountability. Certification requires organisations to meet strict standards on data minimisation, security, transparency, and individual rights.

By joining the framework, StackAdapt enhances its ability to support advertisers, publishers, and partners through seamless international data processing.

The move also reduces regulatory complexity for European customers while reinforcing the company’s broader commitment to privacy-by-design and responsible data use.

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Council presidency launches talks on AI deepfakes and cyberattacks

EU member states are preparing to open formal discussions on the risks posed by AI-powered deepfakes and their use in cyberattacks, following an initiative by the current Council presidency.

The talks are intended to assess how synthetic media may undermine democratic processes and public trust across the bloc.

According to sources, capitals will also begin coordinated exchanges on the proposed Democracy Shield, a framework aimed at strengthening resilience against foreign interference and digitally enabled manipulation.

Deepfakes are increasingly viewed as a cross-cutting threat, combining disinformation, cyber operations and influence campaigns.

The timeline set out by the presidency foresees structured discussions among national experts before escalating the issue to the ministerial level. The approach reflects growing concern that existing cyber and media rules are insufficient to address rapidly advancing AI-generated content.

An initiative that signals a broader shift within the Council towards treating deepfakes not only as a content moderation challenge, but as a security risk with implications for elections, governance and institutional stability.

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Experts debate when quantum computers could break modern encryption

Scientists are divided over when quantum computers will become powerful enough to break today’s digital encryption, a moment widely referred to as ‘Q–Day’.

While predictions range from just two years to several decades, experts agree that governments and companies must begin preparing urgently for a future where conventional security systems may fail.

Quantum computing uses subatomic behaviour to process data far faster than classical machines, enabling rapid decryption of information once considered secure.

Financial systems, healthcare data, government communications, and military networks could all become vulnerable as advanced quantum machines emerge.

Major technology firms have already made breakthroughs, accelerating concerns that encryption safeguards could be overwhelmed sooner than expected.

Several cybersecurity specialists warn that sensitive data is already being harvested and stored for future decryption, a strategy known as ‘harvest now, decrypt later’.

Regulators in the UK and the US have set timelines for shifting to post-quantum cryptography, aiming for full migration by 2030-2035. However, engineering challenges and unresolved technical barriers continue to cast uncertainty over the pace of progress.

Despite scepticism over timelines, experts agree that early preparation remains the safest approach. Experts stress that education, infrastructure upgrades, and global cooperation are vital to prevent disruption as quantum technology advances.

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AI-driven semiconductor expansion continues despite market doubts

The pace of the AI infrastructure boom continues to accelerate, with semiconductor supply chains signalling sustained long-term demand.

NVIDIA remains the most visible beneficiary as data centre investment drives record GPU purchases, yet supplier activity further upstream suggests confidence extends well beyond a single company.

ASML, the Dutch firm that exclusively supplies extreme ultraviolet lithography equipment, has emerged as a critical indicator of future chip production.

Its machines are essential for advanced semiconductor manufacturing, meaning strong performance reflects expectations of high chip volumes across the industry rather than short-term speculation. Quarterly earnings underline that momentum.

ASML reported €32.7 billion in net sales, while new bookings reached a record €13 billion, more than double the previous quarter.

New orders reflect how much capacity manufacturers expect to need, pointing to sustained expansion driven by anticipated AI workloads.

Company leadership attributed the surge directly to AI-related demand, with customers expressing growing confidence in the durability of data centre investment.

While order fulfilment will take years and some plans may change, industry signals suggest a slowdown in AI infrastructure spending is not imminent.

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Google faces new UK rules over AI summaries and publisher rights

The UK competition watchdog has proposed new rules that would force Google to give publishers greater control over how their content is used in search and AI tools.

The Competition and Markets Authority (CMA) plans to require opt-outs for AI-generated summaries and model training, marking the first major intervention under Britain’s new digital markets regime.

Publishers argue that generative AI threatens traffic and revenue by answering queries directly instead of sending users to the original sources.

The CMA proposal would also require clearer attribution of publisher content in AI results and stronger transparency around search rankings, including AI Overviews and conversational search features.

Additional measures under consultation include search engine choice screens on Android and Chrome, alongside stricter data portability obligations. The regulator says tailored obligations would give businesses and users more choice while supporting innovation in digital markets.

Google has warned that overly rigid controls could damage the user experience, describing the relationship between AI and search as complex.

The consultation runs until late February, with the outcome expected to shape how AI-powered search operates in the UK.

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AI surge ‘bigger than the internet’ but with risk of major shake-out

In a commentary highlighted by a BBC article, Cisco’s chief executive, Chuck Robbins, reportedly compared the current AI boom to the early dot-com bubble, suggesting that while AI’s long-term impact could be transformative, the market may also face a period of significant turbulence and ‘wreckage’ before durable winners emerge.

Robbins warned that massive capital flows into AI companies, many of which lack clear revenue paths, resemble past speculative cycles and could lead to sharp contractions or failures among weaker players in the tech ecosystem.

He also noted that productivity gains from AI may be real but come with job reshaping, security risks and economic disruptions along the way.

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