April 19 2023 - I want the Saurk. Give me the Saurk.

👋Happy Wednesday everyone. Lots to get through today, but first– any and all McCann Germany and Thomy employees: the fate of my taste buds rests in your hands. Please send Saurk immediately. Okay, let's get into it –

Joe's Quick Take

• Layoffs aren't over yet, Meta still has 10,000 roles to eliminate in the coming months, we're going to have a few more of these
• Apple MR headset seems all but likely now, leaning into fitness and human collaboration (i.e. - freeform app/mixed reality white-boarding in real time, plus'd up Fitness+ service, etc...) – feels like the right narrative. More about human connection, in the real world. Seems like it will be limited in apps (but not surprising).
• Foldable Google phone, I don't know? Sure. Let's see. Someone needs to sell me on the foldable phone concept.
• Spotify post-layoffs has had a string of executive departures and shift in strategy (which is probably what's needed). Watching.
• Fascinating stat in the Peace Hard Tea article: "Hard tea is growing faster than any other beer alternative segment, and the global hard tea market is expected to reach $19bn in 2032 from $2bn a year ago."
• Didn't have Pepsi logo redesign on my bingo card of "things that would bring to life the conversation around agency/studio/artists being properly credited on projects that can impact their business and careers", but hey – I'm here for it – we need at least have a conversation.

Meta will announce details about job cuts on Wednesday as part of a restructuring and downsizing effort that will result in 10,000 job losses in the coming months. The social media giant has been laying off employees in waves, and the latest cuts will primarily impact teams working on Facebook, WhatsApp, Messenger, Instagram, and Reality Labs, among others. The company is expected to lay off thousands of highly skilled employees, such as engineers and other technical staff, who have previously enjoyed job security and high salaries. The company is expected to reveal newly reorganized teams and management hierarchies as it seeks to become leaner and more efficient.

Netflix missed Q1 subscriber estimates with 1.75 million new global subscribers compared to an expected 2.3 million, resulting in a 12% drop in the stock price during after-market trading. However, the 1.75 million new subscribers marked a big reversal from the 200,000 net loss in subscribers in the year-ago quarter. They also announced it would end its DVD-by-mail business in September of this year and will roll out new password-sharing limitations by the end of June, as it seeks to increase profitability. Netflix's ad-supported tier of service hasn't cannibalized the premium ad-free plan, with little switching between the two.

Apple has opened its first retail store in India, located in Mumbai, with a second location set to open in New Delhi on Thursday. Apple aims to boost sales and diversify its supply chain in the world's second-largest smartphone market. It's hoping to produce 40% to 45% of its iPhones in India in the long term. Apple has encountered problems with expanding its iPhone manufacturing in India, where top-down governmental coordination is not as prevalent as in China. Apple has been using financing options and trade-ins to make its products more affordable compared to cheaper alternatives from China.

Google is set to launch its first foldable smartphone, the Pixel Fold, in June, according to leaked internal documents. Codenamed "Felix," the device will have a 5.8-inch screen on the front and a 7.6-inch screen on the inside, and the most durable hinge on a foldable, according to Google. The Pixel Fold will be slightly heavier than Samsung's Fold but will come with a bigger battery that should last for 24 hours of use. The Pixel Fold is expected to be priced at $1,700+ and will be launched at Google I/O 2023.

Google Design Studio has unveiled an immersive exhibition called "Shaped by Water" at Salone del Mobile in Milan. The installation was created by the studio's vice president of hardware design, Ivy Ross, in collaboration with artist Lachlan Turczan, and aims to encourage conversations about thoughtful design through exploring humanity's connection to water and how it can be a source of inspiration for design.

• Pepsi's recent logo redesign has sparked a debate about who gets credit for brand work. While Pepsi credited an in-house team for the new logo, it initially neglected to mention any external design firms or agencies that had a hand in crafting the logo, including creative agency Mrs&Mr, which had a heavy hand in designing the logo but did not receive credit when Pepsi first announced it. The design community has criticized the beverage giant for not giving proper recognition to the agencies that helped with the redesign. Lack of credit for outside agencies is a larger issue in the industry, as it can impact their ability to attract new clients and grow their businesses.

• Elon Musk has announced his desire to develop his own AI chatbot, TruthGPT, which he claims will be a "maximum truth-seeking AI." Musk aims to create this AI as a third option to Google and OpenAI to "create more good than harm." He criticized OpenAI in the past for becoming "closed sourced" and "effectively controlled by Microsoft" and for training AI models to be politically correct.
• Apple is reportedly set to reveal its mixed-reality headset at the WWDC conference in June. According to Bloomberg's Mark Gurman, Apple is targeting fitness and collaborative experiences with the product, and is building a suite of applications spanning categories such as productivity, meditation, gaming, and sports. The headset is expected to retail at $3,000, and will have cameras that allow users to take pictures and videos, as well as hand gestures and eye movements for navigation. Apple CEO Tim Cook is reportedly fixated on launching the mixed-reality headset this year, despite internal concerns that it may not be ready.

• Omnicom Group CEO John Wren announced during the first-quarter earnings call that the holding company’s 70,000-plus employees are required to return to the office at least three days a week, adding that the "great resignation is over." The announcement came as the company exited over 1.6 million square feet of office space worldwide, part of a massive consolidation plan. Omnicom will open satellite offices in suburban areas for employees who can’t frequently make it into a major city office. The holding company took a $119.2 million charge for real estate repositioning costs. Omnicom's organic revenue grew by 5.2% in the first quarter of 2023.
• Apple and Alphabet have raised concerns with Amazon after Reuters reported that sexually explicit photographs, including pornography, could be accessed on Amazon's Kindle e-book app by children. The images, which can be accessed via Amazon's Kindle Unlimited subscription service or through the Kindle online store, have prompted calls from Apple and Alphabet for Amazon to strengthen its content moderation. Amazon said it was reviewing the matter and taking action where necessary
• Molson Coors and Coca-Cola are launching a new hard tea beverage called Peace Hard Tea in September of this year. The companies are tapping into the brand equity of Peace Tea, a regional fruit-forward tea brand, to target legal-age Gen Z consumers in the Southeastern US. Hard tea is growing faster than any other beer alternative segment, and the global hard tea market is expected to reach $19bn in 2032 from $2bn a year ago.

• Spotify's audiobooks executive Nir Zicherman will be leaving the company in October to pursue a new startup project. Zicherman co-founded podcasting platform Anchor, which was acquired by Spotify in 2019, and was later tasked with overseeing the audio giant's expansion into audiobooks. Zicherman is the latest in a series of podcast-adjacent executives to depart from Spotify.
• Niantic and Capcom are releasing a new AR action-RPG game, Monster Hunter Now, in September. The game will have a closed beta starting on April 25th. Monster Hunter Now will use a similar format to Pokémon Go where players can encounter monsters, battle them with different weapons, and obtain resources to upgrade their hunting gear. Niantic has been developing several new free-to-play games, including Marvel World of Heroes and NBA All-World.

• MOCEAN has launched a new design and branding studio called +MODE and hired Kevin Lau as Executive Creative Director and Allyson Nevil as Executive Producer to lead the new practice.
• THOMY has launched the Thomy Saurk, a fork that sauces while you eat, created by McCann Germany to provide an unnecessarily efficient way to sauce and eat, and spread joy with the experience of using the fork.

• Disney’s film 'Strange World' was the biggest box office flop of 2022, losing nearly $200 million for the company, according to a report by Deadline. The movie was made with a budget of $180 million and a marketing budget of another $90 million, while it grossed just $73.6 million at the global box office and another $55 million from TV and streaming. 'Lightyear' also made Deadline's list of flops, losing $106 million.

Andi Owen, the CEO of furniture company MillerKnoll

ManvsMachine doing ManvsMachine things for for Tuft & Needle

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