Latest / What the Flux / Telstra cuts 2,800 jobs | Star Entertainment's new sparkle | Microsoft's revolutionary PC

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Telstra cuts 2,800 jobs | Star Entertainment's new sparkle | Microsoft's revolutionary PC · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm justin and I'm harsh Deep and it's Wednesday, the
• 0:09
  Speaker 2: twenty second of May G.
• 0:10
  Speaker 1: I never thought we'd be talking about a battle between Scarlett.
• 0:13
  Speaker 1: You're Hansen and chet gbt's found as Sam Algman? Who
• 0:17
  Speaker 1: are Sam Algman? Asked the scar Joe to voice the
• 0:19
  Speaker 1: new chat GPT voice Sky Interesting, Yeah, she rejected, But
• 0:23
  Speaker 1: fast forward to now and Sky sounds you really similar
• 0:27
  Speaker 1: to Scargo. Apparently Altwound was so desperate to have a
• 0:30
  Speaker 1: voice sound like Scarjrow's character in the movie Her and
• 0:33
  Speaker 1: tried to replicate it.
• 0:34
  Speaker 2: Oh my god, get this Jazz. The average Australian has
• 0:37
  Speaker 2: one point three credit cards according to the Reserve Bank
• 0:40
  Speaker 2: of Australia FLUXPAM. If you're stuck on the credit card
• 0:43
  Speaker 2: hamster wheel, we got you covered in the Flux Academy
• 0:46
  Speaker 2: this month. In this course, we break down all the
• 0:48
  Speaker 2: different types of debt, the good, the bad, and the ugly.
• 0:51
  Speaker 2: We also guide you through the best ways to pay
• 0:53
  Speaker 2: down those debts and get on top of your money.
• 0:55
  Speaker 2: So download the Flux app and check at the Academy
• 0:57
  Speaker 2: to learn more.
• 0:58
  Speaker 1: Three bar these stories today, HG.
• 1:02
  Speaker 2: Let's get into it.
• 1:02
  Speaker 1: For our first Telstra will cut over nine percent of
• 1:05
  Speaker 1: its workforce, or two thousand, eight hundred jobs by the
• 1:08
  Speaker 1: end of twenty twenty four in order to stay competitive
• 1:11
  Speaker 1: in the market.
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  Speaker 2: Interesting, I feel like this might actually hurt its service.
• 1:16
  Speaker 2: What's going on here?
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  Speaker 1: The big t Telstra is the largest telco network in Australia.
• 1:20
  Speaker 1: We're talking over twenty two million retail mobile services.
• 1:23
  Speaker 2: And it's got over thirty one thousand employees, or.
• 1:26
  Speaker 1: At least they did prior to the CEO's announcement yesterday
• 1:29
  Speaker 1: where she warned that they will be cutting two thousand,
• 1:31
  Speaker 1: eight hundred jobs from their workforce.
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  Speaker 2: In particular, the cuts will come from Telstra's enterprise unit,
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  Speaker 2: which works for Australia's biggest company.
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  Speaker 1: Jog a Agal Energy Machas, the Government of South Australia and.
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  Speaker 2: In twenty twenty one, Telstra planned a cost cutting activity
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  Speaker 2: that would cut five hundred million dollars in costs by
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  Speaker 2: the end of the twenty twenty five financial year.
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  Speaker 1: But in February this year, Telstra warned they were behind
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  Speaker 1: the eight ball on those goals.
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  Speaker 2: So now those major job cuts are expected to save
• 1:58
  Speaker 2: Telstra nearly three hundred and fifty million dollars and get
• 2:02
  Speaker 2: closer to their cost cutting goals for FY twenty five.
• 2:04
  Speaker 1: But Itch, you've got to wonder what this means for
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  Speaker 1: the quality of the enterprise business where a large number
• 2:09
  Speaker 1: of these job cuts will happen.
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  Speaker 2: So tell me, Jars, what is the key learning.
• 2:13
  Speaker 1: If the knife's too sharp, one cut can wound the
• 2:16
  Speaker 1: entire business.
• 2:17
  Speaker 2: You see, Telstra's enterprise business was already hurt hard over
• 2:20
  Speaker 2: the past twelve months.
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  Speaker 1: It Cha, you need to stay out for this one.
• 2:24
  Speaker 1: Telster's enterprise business saw its first half earnings dropped sixty
• 2:27
  Speaker 1: seven percent.
• 2:28
  Speaker 2: That means in the first half of the year it
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  Speaker 2: generated just seventy one million dollars in earning.
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  Speaker 1: Think about how small that is as a fraction of
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  Speaker 1: Telstre's four billion dollars in overall earnings.
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  Speaker 2: Part of this is due to landlines becoming obsolete, not
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  Speaker 2: just in homes but in offices too.
• 2:42
  Speaker 1: Hellu zoom, but HD. By reducing the workforce, particularly in
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  Speaker 1: the service oriented industry like the telco industry, it can
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  Speaker 1: have serious consequences.
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  Speaker 2: For example, by reducing its enterprise unit, Telster risks deteriorating
• 2:55
  Speaker 2: relationships with its major corporate clients.
• 2:57
  Speaker 1: We rely on a personalized and a pretty prompt service.
• 3:01
  Speaker 2: For our second story casino giants. Star Entertainment has revealed
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  Speaker 2: that it's received interest from potential buyers, but hard Rock
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  Speaker 2: International definitely isn't one of them.
• 3:10
  Speaker 1: It sounds like a bit of beef going on there.
• 3:12
  Speaker 1: So what is the story.
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  Speaker 2: Well, Star Entertainment is the Aussie gambling and entertainment company
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  Speaker 2: that owns major casinos in Brisbane, Gold Coast and Sydney.
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  Speaker 1: Since twenty twenty one, Star Entertainment has been in bigger
• 3:24
  Speaker 1: crisis mode than the Royal Family YEP.
• 3:27
  Speaker 2: Star was exposed for its lack of compliance with anti
• 3:29
  Speaker 2: money laundering laws and.
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  Speaker 1: This led to the Star copping major fines, the Sydney
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  Speaker 1: and Brisbane casinho's losing their licenses and.
• 3:35
  Speaker 2: Just last month the chair of Star resigning too.
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  Speaker 1: Now a cheet, Star reveild that it's received interest for
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  Speaker 1: a potential takeover and I was just one party. Apparently
• 3:43
  Speaker 1: quite a few.
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  Speaker 2: And when it was rumored that hard Rock International, the
• 3:47
  Speaker 2: US hospitality giant, was one of those interested parties, Stars
• 3:50
  Speaker 2: share price jumped twenty percent.
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  Speaker 1: But hard Rock was quickly shut down those rumors and
• 3:55
  Speaker 1: make it very clear they have nothing and probably never
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  Speaker 1: one to have anything to do with Star Entertainment.
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  Speaker 2: Talk about rejection, but that doesn't mean there aren't others
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  Speaker 2: eyeing Star as a potential takeovers.
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  Speaker 1: Especially given Star's net tangible asset value is currently higher
• 4:09
  Speaker 1: than its market value.
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  Speaker 2: So tell me what is the key learning here.
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  Speaker 1: Net tangible assets is the value of all the physical
• 4:16
  Speaker 1: or tangible assets of a company minus all of its liabilities.
• 4:20
  Speaker 2: So Jazz. Technically, a company's market capitalization should be the
• 4:24
  Speaker 2: sum of its tangible assets plus any non tangible assets.
• 4:27
  Speaker 1: But in Star's case, its net tangible assets we're sitting
• 4:30
  Speaker 1: at eighty nine cents per share in its twenty twenty
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  Speaker 1: three results, but right now its share price is sitting
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  Speaker 1: at fifty cents, So.
• 4:37
  Speaker 2: The market's value of Star is less than that of
• 4:39
  Speaker 2: its net tangible assets.
• 4:41
  Speaker 1: And a she This just highlights that the share market
• 4:43
  Speaker 1: isn't always a rational beats for our third and final story,
• 4:47
  Speaker 1: Microsoft has released a new line of laptops, using AI
• 4:51
  Speaker 1: chips to run the software and taking a few shots
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  Speaker 1: at Apple during the announcement as well.
• 4:55
  Speaker 2: Of course, we love nothing more than two of the
• 4:58
  Speaker 2: biggest companies in the world trading bobs like school yard
• 5:01
  Speaker 2: kids spill the TKHG. Well.
• 5:03
  Speaker 1: Microsoft, which was founded all the way back in nineteen
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  Speaker 1: seventy five, is the largest company in the whole wide
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  Speaker 1: world based on its three trillion US dollar market cap.
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  Speaker 2: In front of its big rival Apple in the number
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  Speaker 2: two spot.
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  Speaker 1: But actually now Microsoft announced have released a new line
• 5:17
  Speaker 1: of laptops called co Pilot Plus PC.
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  Speaker 2: And it ain't just any PC. It's pretty much an
• 5:22
  Speaker 2: AI driven machine.
• 5:23
  Speaker 1: For example, you could search blue car in the search
• 5:26
  Speaker 1: bar and will treat any document with a blue car.
• 5:29
  Speaker 2: That's pretty standard, but also.
• 5:30
  Speaker 1: Any photo with a blue car that you've saved, any
• 5:32
  Speaker 1: video with a blue car, or even any search that
• 5:34
  Speaker 1: you've made with a bluecar in it.
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  Speaker 2: Essentially, they want it to be like your business and
• 5:39
  Speaker 2: personal assistant.
• 5:40
  Speaker 1: Plus they claim to have a longer battery life than
• 5:41
  Speaker 1: the latest Max shots fire.
• 5:43
  Speaker 2: Oh and this is Microsoft's way of combining its hardware
• 5:47
  Speaker 2: roots with its new wish pivot towards artificial intelligence.
• 5:50
  Speaker 1: Got to keep reinventing h So what is the key
• 5:53
  Speaker 1: learning here?
• 5:53
  Speaker 2: If you don't reinvent yourself over and over again, you
• 5:57
  Speaker 2: risk losing your relevance for good.
• 5:59
  Speaker 1: Gotta hand it to Microsoft. They've shown a pretty skillful
• 6:01
  Speaker 1: art of transformation throughout its forty year lifespan.
• 6:04
  Speaker 2: YEP, It's continuously adapted its business model to stay ahead
• 6:07
  Speaker 2: of the tech curve.
• 6:08
  Speaker 1: Think back to nineteen seventy five h G. When the
• 6:10
  Speaker 1: movie Draws came out and Microsoft had started selling computers.
• 6:14
  Speaker 2: But by nineteen eighty it had already pivoted its way
• 6:16
  Speaker 2: into operating systems.
• 6:17
  Speaker 1: By nineteen ninety, it had transformed into the productivity beheamoth
• 6:20
  Speaker 1: that we know today as Word, PowerPoint, and Excel.
• 6:23
  Speaker 2: And just as Microsoft's relevance began to decline around twenty fourteen,
• 6:27
  Speaker 2: it pulled a cloud computing out of its magical hat.
• 6:30
  Speaker 1: And now impossibly its grandest pivot of all time, It's
• 6:33
  Speaker 1: focused deeply on OI with its new partnership with open Ai,
• 6:36
  Speaker 1: and it's already started to bear fruit for them. A
• 6:39
  Speaker 1: she I love seeing in the Fox Academy this month.
• 6:41
  Speaker 1: The difference between the Snowball method and the Avalanche method
• 6:43
  Speaker 1: some of the best ways to pay down your debt
• 6:45
  Speaker 1: fast and keep motivated as well to Fox down. If
• 6:48
  Speaker 1: you want to learn how to pay down your debts
• 6:49
  Speaker 1: fast and download the Fox app and check out the
• 6:51
  Speaker 1: Academy this month.
• 6:52
  Speaker 2: Thanks for listening, and we'll see you on Friday.