While America's largest corporations are riding a wave of surging profits and AI-fueled stock market enthusiasm to record highs, small businesses across the country are cutting staff and scaling back operations as years of high inflation, cautious consumers and tariff confusion take their toll.

Private firms with fewer than 50 workers have steadily shed jobs over the past six months, according to payroll processor ADP, cutting 120,000 positions in November alone. Midsize and large firms continued adding jobs during the same period. The divergence mirrors what's happening among American consumers.

The Federal Reserve's latest beige book noted that overall consumer spending declined further even as higher-end retail spending remained resilient. Workers at small businesses tend to earn less than those at large companies, and stock market gains from large public company shares flow mostly to wealthier Americans. Small businesses -- those with up to 500 workers -- employ nearly half the American workforce and represent more than 40% of GDP, according to the U.S. Chamber of Commerce. But their profits are slightly lower than a year ago, per a Bank of America Institute analysis. Net income at S&P 500 companies rose 12.9% from a year earlier in the third quarter.

Western carmakers retreating from electric vehicles amid softening government mandates could find themselves in a precarious position as Chinese rivals continue gaining ground in the EV market they're choosing to de-prioritize. The EU on December 16th dropped its earlier plan to ban petrol car sales outright from 2035, instead requiring carmakers to cut emissions from new vehicles by 90% from 2021 levels. The day before, Ford announced a $19.5 billion asset writedown as it rethinks its EV strategy and ends sales of the all-electric F-150 pickup.

In the U.S., the Trump administration has rolled back incentives and other measures that supported EVs. But Chinese brands controlled 10.7% of the all-electric car market in western Europe in the first ten months of 2025, up a percentage point from a year earlier, despite EU tariffs on Chinese EVs imposed in October 2024. Sales of Chinese hybrids, which aren't subject to those tariffs, have surged. EVs will eventually become the cheaper option as production expands and costs fall, meaning Western carmakers that slow down now risk giving competitors an unassailable lead.

The global smartphone and PC markets face potential contractions of up to 5.2% and 8.9% respectively in 2026, according to downside risk scenarios from IDC that trace the problem to memory chip manufacturers shifting production capacity away from consumer electronics toward AI data centers. Samsung Electronics, SK Hynix and Micron Technology have pivoted their limited cleanroom space toward high-bandwidth memory for AI servers, restricting supply of the conventional DRAM and NAND used in phones and laptops.

IDC expects 2026 DRAM supply growth to hit 16% year-on-year, below historical norms. The smartphone industry's decade-long trend of bringing flagship features to affordable devices is reversing. Memory represents 15-20% of the bill of materials for mid-range phones, and thin-margin vendors like Xiaomi, Realme and Transsion will bear the brunt. Apple and Samsung have long-term supply agreements securing components up to 24 months ahead. PC vendors including Lenovo, Dell, HP, Acer and ASUS have warned clients of 15-20% price increases heading into the second half of 2026.

An anonymous reader shares a report: China on Friday launched three venture capital funds to invest in "hard technology" areas, state broadcaster CCTV reported. The capital contribution plans for the funds have been finalised, each with more than 50 billion yuan ($7.14 billion), according to the report. The funds will primarily invest in early-stage startups and the targets should be valued at less than 500 million yuan, an official said on Friday, adding that no single investment would amount to more than 50 million yuan.

The relentless climb in memory prices driven by the AI boom's insatiable demand for datacenter hardware has renewed an old debate about whether modern software has grown inexcusably fat, a column by the Register argues. The piece points to Windows Task Manager as a case study: the current executable occupies 6MB on disk and demands nearly 70MB of RAM just to display system information, compared to the original's 85KB footprint.

"Its successor is not orders of magnitude more functional," the column notes. The author draws a parallel to the 1970s fuel crisis, when energy shortages spurred efficiency gains, and argues that today's memory crunch could force similar discipline. "Developers should consider precisely how much of a framework they really need and devote effort to efficiency," the column adds. "Managers must ensure they also have the space to do so."

The article acknowledges that "reversing decades of application growth will not happen overnight" but calls for toolchains to be rethought and rewards given "for compactness, both at rest and in operation."

Michael Truell, the 25-year-old CEO and cofounder of Cursor, is drawing a sharp distinction between careful AI-assisted development and the more hands-off approach commonly known as "vibe coding." Speaking at a conference, Truell described vibe coding as a method where users "close your eyes and you don't look at the code at all and you just ask the AI to go build the thing for you." He compared it to constructing a house by putting up four walls and a roof without understanding the underlying wiring or floorboards. The approach might work for quickly mocking up a game or website, but more advanced projects face real risks.

"If you close your eyes and you don't look at the code and you have AIs build things with shaky foundations as you add another floor, and another floor, and another floor, and another floor, things start to kind of crumble," Truell said. Truell and three fellow MIT graduates created Cursor in 2022. The tool embeds AI directly into the integrated development environment and uses the context of existing code to predict the next line, generate functions, and debug errors. The difference, as Truell frames it, is that programmers stay engaged with what's happening under the hood rather than flying blind.

Apple's Developer Academy in Detroit has spent roughly $30 million over four years training hundreds of people to build iPhone apps, but not everyone lands coding jobs right away, according to a WIRED story published this week.

The program launched in 2021 as part of Apple's $200 million response to the Black Lives Matter protests and costs an estimated $20,000 per student -- nearly twice what state and local governments budget for community colleges. About 600 students have completed the 10-month course at Michigan State University. Academy officials say 71% of graduates from the past two years found full-time jobs across various industries.

The program provides iPhones, MacBooks and stipends ranging from $800 to $1,500 per month, though one former student said many participants relied on food stamps. Apple contributed $11.6 million to the academy. Michigan taxpayers and the university's regular students covered about $8.6 million -- nearly 30% of total funding. Two graduates said their lack of proficiency in Android hurt their job prospects. Apple's own US tech workforce went from 6% Black before the academy opened to about 3% this year.

Google appears to be testing a feature that would let users change their @gmail.com address for the first time, according to an official support document. The support page exists only in Hindi, suggesting an India-first rollout, and Google notes that users will "gradually begin to see this option."

The feature would let users switch to a new @gmail address while retaining full access to their old one, effectively giving a single account two working email addresses. Emails sent to either address would arrive in the same inbox, and existing data in Drive and Photos would remain unaffected. Users who switch cannot register another new address for 12 months. Google has not officially announced the feature.

Apple has agreed to a settlement with Brazil's antitrust regulator that will require the company to allow third-party app stores on iPhones and permit developers to direct users to external payment options, marking another country where Apple's tightly controlled App Store model is being pried open by government action.

Brazil's Administrative Council of Economic Defense approved the settlement this week, resolving an investigation that began in 2022 into whether Apple's restrictions on app distribution and payments limited competition. Under the new rules, developers can offer third-party payment methods within their apps alongside Apple's own system. The fee structure varies: purchases through Apple's system remain subject to a 10% or 25% commission plus a 5% transaction fee. Apps that include a clickable link to external payment will face a 15% fee, while static text directing users elsewhere incurs no charge. Third-party app stores will pay a 5% Core Technology Commission.

An anonymous reader shares a report: A typosquatted domain impersonating the Microsoft Activation Scripts (MAS) tool was used to distribute malicious PowerShell scripts that infect Windows systems with the 'Cosmali Loader'. BleepingComputer has found that multiple MAS users began reporting on Reddit yesterday that they received pop-up warnings on their systems about a Cosmali Loader infection.

Based on the reports, attackers have set up a look-alike domain, "get[dot]activate[dot]win," which closely resembles the legitimate one listed in the official MAS activation instructions, "get[dot]activated[dot]win." Given that the difference between the two is a single character ("d"), the attackers bet on users mistyping the domain.

Goldman Sachs analysts have identified a notable shift in how investors respond to corporate layoff announcements, finding that even job cuts attributed to automation and AI-driven restructuring are now causing stock prices to fall rather than rise. The investment bank linked recent layoff announcements to public companies' earnings reports and stock market data, concluding that stocks dropped by an average of 2% following such announcements, and companies citing restructurings faced even harsher punishment.

The traditional Wall Street playbook held that layoffs tied to strategic restructuring would boost stock prices, while cuts driven by declining sales would hurt them. That distinction appears to have collapsed.

Goldman's analysts suggest investors simply don't believe what companies are saying -- firms announcing layoffs have experienced higher capex, debt and interest expense growth alongside lower profit growth compared to industry peers this year. The real driver, analysts suspect, may be cost reduction to offset rising interest expenses and declining profitability rather than any forward-looking efficiency play.

Goldman expects layoffs to keep rising, motivated in part by companies' stated desire to use AI to reduce labor costs.

An anonymous reader shares a report: Chinese social media users criticized two key government policies, rare signs of public dissent in the country where the internet is heavily censored. The death of the former head of China's one-child policy agency -- which for decades forced women to carry out abortions and sterilizations -- sparked criticism of the demographic effort, with one netizen lamenting the "children who were lost."

Others, meanwhile, criticized Beijing's leadership over its ongoing row with Tokyo, sparked by Japanese Prime Minister Sanae Takaichi saying her country could intervene to defend Taiwan in a potential Chinese attack on the self-ruled island, which Beijing claims as its own.

Framework has announced yet another price increase for memory modules, the second in roughly a month, and the company is now actively encouraging customers to source their own RAM elsewhere if they can find better deals. The laptop maker cited "extreme memory shortages and price volatility" as the reason for the hike, noting that 32GB modules and smaller currently cost around $10 per gigabyte while 48GB modules run approximately $13 per gigabyte.

Framework said it expects to raise prices again by January as its suppliers continue increasing costs, a trend analysts predict will persist through 2026. Framework plans to add a direct link to PCPartPicker in its configurators so DIY Edition buyers can compare prices and find cheaper alternatives. The company said its pricing still compares favorably to Apple's roughly $25 per gigabyte and pledged to stay as close as possible to acquisition costs. Storage price increases are also on the horizon, Framework warned.

Waymo's fleet of autonomous robotaxis can navigate city streets and compete with human taxi drivers, but they become stranded when a passenger leaves a door ajar -- prompting the company to pay tow truck operators around $20 to $24 through an app called Honk just to push a door shut. The owner of a towing company in Inglewood, California, completes up to three such jobs a week for Waymo, sometimes freeing vehicles by removing seat belts caught in doors. Another Los Angeles tow operator said locating stuck robotaxis can take 10 minutes to an hour because the precise location isn't always provided, forcing workers to search on foot through narrow streets too narrow for flatbed rigs.

Tow operators also retrieve Waymos that run out of battery before reaching charging stations, earning $60 to $80 per tow -- rates that aren't always profitable after factoring in fuel and labor. During a San Francisco power outage last weekend, multiple operators received a flurry of retrieval requests as robotaxis blocked intersections across the city. One San Francisco tow company manager declined because Waymo's offered rate fell below his standard $250 flatbed fee.

Waymo said in a blog post that the outage caused a "backlog" in requests to remote human workers who help vehicles navigate defunct traffic signals. San Francisco Supervisor Bilal Mahmood called for a hearing into Waymo's operations, saying the traffic disruptions were "dangerous and unacceptable." A retired Carnegie Mellon engineering professor who studied autonomous vehicles for nearly 30 years said paying humans to close doors and retrieve stalled cars is expensive and will need to be minimized as Waymo scales up. The company is testing next-generation Zeekr vehicles in San Francisco that feature automatic sliding doors.

Nvidia has agreed to buy assets from Groq, a designer of high-performance artificial intelligence accelerator chips, for $20 billion in cash, according to Alex Davis, CEO of Disruptive, which led the startup's latest financing round in September. From a report: Davis, whose firm has invested more than half a billion dollars in Groq since the company was founded in 2016, said the deal came together quickly.

Groq raised $750 million at a valuation of about $6.9 billion three months ago. Investors in the round included Blackrock and Neuberger Berman, as well as Samsung, Cisco, Altimeter and 1789 Capital, where Donald Trump Jr. is a partner. Groq said in a blog post on Wednesday that it's "entered into a non-exclusive licensing agreement with Nvidia for Groq's inference technology," without disclosing a price. With the deal, Groq founder and CEO Jonathan Ross along with Sunny Madra, the company's president, and other senior leaders "will join Nvidia to help advance and scale the licensed technology," the post said.