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  • Mastering Maintenance With Parts Inventory Management Software

    When a critical machine breaks down, the first question most maintenance teams ask is, “Do we have a spare?” If the response is negative, it leads to delays, downtime, and disgruntled customers. Parts inventory is more than just storage in sectors where uptime equates to revenue; it’s also about cost control, customer satisfaction, and operational efficiency.

    This is where parts inventory management software makes all the difference. Instead of relying on spreadsheets or manual counts, teams can use digital tools to track stock in real time, reduce waste, and ensure the right parts are available when needed. 

    Why Parts Inventory Management Matters

    Spare part management is frequently more difficult than it first appears. Maintenance parts don’t always move in predictable ways like regular inventory does. Some items receive daily use, while others may remain idle for months. Businesses run the risk of having too much inventory, which can tie up capital, or running out of essential parts when they’re most needed if proper oversight isn’t in place.

    According to Deloitte, poor spare parts availability is a major contributor to the estimated $50 billion in annual costs incurred by industrial manufacturers due to unplanned downtime. Protecting the bottom line is more important than convenience when it comes to inventory management.

    Top Benefits of Using Parts Inventory Management Software

    Suppose a hotel’s maintenance crew is preparing for the busiest season of the year. Without proper inventory control, they risk running out of essential HVAC parts during a heatwave—a dire situation that could frustrate guests and damage the hotel’s reputation. With parts inventory management software, the team can monitor stock levels, receive low-stock alerts, and order parts proactively. This not only prevents costly emergencies but also ensures uninterrupted comfort and service for guests.

    The same idea holds true for all industries. Having the appropriate parts at the right time guarantees efficient operations and happy clients. Modern software tools are designed to solve the challenges that manual systems create. Here are a few of the biggest benefits:

    1. Real-Time Visibility: Managers can view quantities, locations, and usage history instantly, eliminating the need to guess what’s in stock. This guarantees that technicians always know where to find what they need and gets rid of duplicate orders.

    2. Smarter Purchasing Decisions: Finding out which parts are most commonly used, which are outdated, and which should be ordered ahead of time is made simpler by data-driven insights. This aids businesses in finding the ideal balance between price and availability.

    3. Streamlined Workflows: Work orders can be automatically associated with parts through software integration. The system reduces manual paperwork and errors by updating inventory in real time when a technician creates a request.

    4. Reduced Downtime: Keeping essential spare parts on hand reduces the expense of downtime and speeds up repair times. Moreover, automated alerts for low stock levels ensure that teams are never unprepared.

    5. Improved Compliance and Reporting: Software offers a trustworthy audit trail for sectors with stringent regulatory requirements. From purchase to use, every transaction is tracked and readily available when required.

    Best Practices for Implementing Inventory Management Software

    To optimize your investment, consider these proven strategies:

    • Audit Current Inventory: Start by understanding what you have, where it is, and how it’s being used.
    • Set Reorder Points: Use historical data to define when parts should be reordered before stockouts occur.
    • Integrate with Work Orders: Ensure that parts automatically update when linked to maintenance requests.
    • Train Your Team: For adoption to be successful, the system must be regularly used by all users, from technicians to managers.
    • Review and Optimize Regularly: Periodic checks will highlight inefficiencies and opportunities for improvement.

    Turning Spare Parts into a Strategic Advantage

    Effective spare part management is now wanted by businesses that depend on sophisticated machinery. Digital solutions offer accuracy, efficiency, and peace of mind, whereas manual systems allow for too much error.

    Businesses can reduce downtime, enhance cost control, and maintain seamless operations by implementing parts inventory management software. The correct system can make the difference between responding to issues and preventing them completely in a world where every minute of uptime matters.

  • From Startup to Scale-Up: Critical Shifts for Year-Two Business Owners

    Most advice given to startups and other growing businesses is often focused on the first year of operations as this is the most critical for ensuring that the business can survive into the future. However, many second-year considerations aren’t as widely discussed, even though they’re just as important for businesses that want to continue the growth they enjoyed in year one. Let’s look at a few important shifts that take place during the second year of operations, how best to navigate them, and a few steps to ensure your growth and success continue.

    Changes in Personnel and Human Resources Management

    The biggest shift in year two often comes down to people. In year one, your team is small, and HR feels manageable. But as you grow, you’ll need more employees to serve clients and scale operations. Along with new hires comes expanded HR needs like benefits, compliance, payroll, and policies.

    One of the best ways to accomplish this is through Human Resources outsourcing, where a company uses PEO, or a Professional Employer Organization. These organizations handle back-office administrative tasks and human resource needs, allowing company leadership to focus on the revenue-generating activities that drive the company forward. HR outsourcing via a PEO for small businesses can also help you manage compliance, benefits administration, and more.

    The biggest benefit for most growing businesses is that owners can refocus their time and efforts. Instead of spending hours filling out paperwork to make sure that your business is in compliance with state and federal laws, you can focus on your areas of passion. Most people don’t start businesses because they love filling out HR paperwork.

    Source: NAPEO September 2024

    Using a PEO for small business HR can significantly increase a company’s bottom line over time by redirecting time and money previously earmarked for HR concerns. Because PEOs handle companies across the country with thousands or even millions of employees, they can offer better benefits at lower rates for both you and your employees. In fact, the average ROI of working with a PEO is just over 27% according to NAPEO research.

    According to a 2024 Gartner study, HR costs the average company 1.47% of its annual budget, excluding wages. If you’re spending more than 1.47% of your time handling HR-related concerns, it may be a good idea to hire a PEO so you can focus on other aspects of your growing business.

    Examine Spending and Update the Company’s Financial Outlook

    Year two is a great time to review last year’s expenditures against your budget and identify ways to optimize. For example, imagine a company has a budget line item of $300 every month for marketing and advertising costs. Every month, the actual spending is between $295 and $299. On one hand, it’s good budgeting because the company set a goal and managed to get within 2% every month.

    However, the company would also be remiss if it didn’t look at the analytics behind the spending to find out whether or not that $300 is being spent optimally. If the money is being used to boost advertisements on all forms of social media, the metrics should be analyzed to make sure that the spending is worth it.

    One-hundred dollars a month for boosted Instagram advertisements isn’t a lot of money, but if those impressions don’t result in conversions (i.e., people laugh and like the post but then move on and don’t become paying customers), the money isn’t being used efficiently. That money could be reallocated to another department or used to boost successful posts on Facebook or another platform that has a higher conversion rate.

    You’ll also want to monitor your company’s cash flow and make sure everything’s in order. According to Forbes, 82% of businesses fail due to insufficient cash flow, and 20% have no budget at all. By making a budget, changing it as necessary, and ensuring that your company still has enough revenue to stay in business, you’ll end up far ahead of your competition.

    After the budgetary review, you can reallocate funds as needed to ensure that all of your spending helps the business grow and is used to its full potential. This will help you set up and achieve your goals for year two and beyond.

    Additional Points to Consider for Year-Two Business Ownership

    After considering using payroll services for small businesses and reanalyzing your budget to ensure proper usage and focusing on achieving goals, here are a few more things to consider.

    First, add a little extra focus to the existing clients in your portfolio. They’ll take notice and potentially add extra services to their contracts, which is even better for your company’s bottom line.

    Second, set new attainable goals and milestones for your company. You’ve overseen a full year of success, and now it’s time to think about growth. Can you add 10% more clients to your roster by year’s end? Perhaps you can increase sales to existing clients or increase the conversion rate on your digital advertising.

    Finally, consider increasing your market research. Sales are good, but could they be better? Is there a new demographic you could be reaching? By constantly looking for new clients and revenue streams, you can avoid unexpected shifts in the market that could be disastrous.

    Critical Shifts in Year-Two Recap and Final Thoughts

    The second year of a business should be primarily focused on growth and expansion. You’ve successfully achieved your goals of running a successful business on your own terms. Now the time has come to make sure that business continues to thrive in the years to come.

    By outsourcing basic functions like HR, thoroughly analyzing the budgets, focusing on existing clients to ensure their continued loyalty (and perhaps even the expansion of their contracts), and increasing your market research, your business can continue to be successful.

  • JLR’s Road to Recovery: After a £540 Million Cyberattack, Production Gears up Again

    Jaguar Land Rover (JLR) suffered a massive cyberattack on August 31, 2025. Ever since that happened, the production has come to a big halt. Due to this, the company may lose £540 million (INR 6,300 crore). Not just that, Tata Motors, which owns JLR, had to take the hit on its stock price (it fell by 4% on September 25 when it disclosed the attack). Well, here’s an update on that: the company is slowly resuming production and is hoping to get back to normal by January 2026. So, how are things going for JLR now? Learn more. 

    Jaguar Land Rover Cyber Attack in a Nutshell

    • The cyber attack on Jaguar Land Rover Cyber happened on August 31, 2025.
    • Later, the production at its factories was stopped for over a month.
    • In late September, JLR’s systems were back online.
    • And slowly, the operations at JLR’s factories have resumed.
    • Full-fledged operation will start from January 2026.

    The list of factories affected includes:

    • UK plants: Solihull, Halewood, Wolverhampton. 
    • Other international plants: Pune, India, and Nitra, Slovakia.

    Financial Impact on JLR and Tata Motors

    • Several reports suggest that the company would lose £540 million (~INR 6,300 crore).
    • Those numbers are roughly one-third of its 2024-25 profit.
    • These losses were the impact of fixed costs (like the expenses from the production stop) and lost profit.
    • Tata Motors, who own JLR, may see about a fourth of its ₹28,149 crore FY25 profit wiped out.
    • The 5-week shutdown resulted in a production loss (notably in the UK) of 5,000 cars per week, costing the company £108 million per week.

    Revenue Context of JLR

    • JLR made up over 71% (₹4.4 trillion) of Tata Motors’ revenue in 2024-25.
    • The company made a profit of £1.8 billion in the last fiscal year.
    • According to the Financial Times, the losses due to the attack could be over £2 billion as the company didn’t have insurance for cyberattacks.Tata Consultancy Services was all in helping JLR to contain the cyberattack. 
    • N. Chandrasekaran, Tata Group Chairperson, is taking weekly updates on the same.

    Extra challenges:

    • Along with the shutdown, JLR is also taking the heat from the U.S. export tariff uncertainties.
    • Getting back to normal isn’t just turning machines back on. It’s the IT, supply chain and many others that will require time till January 2026 for JLR. 

    Investors’ Reaction

    • Several studies suggest that every hour of shutdown in the car industry can cost between $1.5 million and $ 2 million.
    • And investors are concerned about the effect of cyberattacks, tariffs and the production halt. 
    • However, thanks to JLR’s efforts to bring down the tariff-related losses from £1.6 billion to £600 million.

    Shares Fall 4% as JLR Cyberattack Threatens Tata Motors
    The cyberattack halted JLR production, resulting in weekly losses and an overall loss of £2 billion, which indirectly impacted Tata Motors’ share price by…
    StartupTalky- Business News, Insights and StoriesAdepu Bindu

  • Tata Tech Shifts Focus to US Local Hiring as Trump Tightens Immigration Policies

    In response to US President Donald Trump’s extensive immigration crackdown, Tata Technologies, an Indian provider of engineering services, announced that it will hire more locals in the US.

    In an effort to protect Americans from wage competition from overseas, the Trump administration intends to impose a high cost on companies applying for H1-B visas, which are utilised by internet giants like Amazon.com and Meta Platforms. Warren Harris, the CEO and Managing Director of Tata Technologies, told Reuters on 23 October that the company will be hiring more local citizens in the US as it responds to the changes in the laws pertaining to visas.

    Tata has 12000 Employees Across the Globe

    With more than 12,000 workers worldwide, including in the US, Tata Technologies offers engineering and technology services to manufacturers of cars, aeroplanes, and heavy machinery in at least two dozen nations. According to official data, over three-fourths of those who received H-1B visas last year were from India.

    North America accounted for over a fifth of Tata Technologies’ INR 5,168 crore ($587.97 million) sales in 2024–2025; however, the Pune, India-based company does not reveal its revenue or staff count by nation. More than 70% of Tata Technologies’ employees are local citizens in China, Sweden, the United Kingdom, and the United States. The company’s clients include Jaguar Land Rover, Boeing, and the Vietnamese electric vehicle manufacturer VinFast.

    Tata Tech Under Immense Pressure Due to US Tariff Cuts

    Automotive companies suffering from the effects of US tariffs have been cutting back, putting pressure on Indian technical service providers that mostly rely on outsourcing work from corporate America. However, the CEO of Tata Technologies remains optimistic about the US.

    According to Harris, the market is still quite significant and lively. Now that its customers have adjusted to the new tariff structure, Tata does anticipate a pickup in the US during the next six to nine months. Harris added that other “targeted” acquisitions will be made by Tata Technologies in the upcoming years. Last month, the company announced plans to pay 75 million euros ($87.47 million) to acquire German peer ES-Tec Group.

    Quick Shots

    •Tata
    Technologies to hire more US locals amid President Trump’s renewed
    immigration crackdown.

    •Trump
    administration plans to increase H1-B visa costs to protect American workers,
    impacting Indian IT firms.

    •Tata
    Tech CEO & MD Warren Harris confirmed the company’s plan to boost US
    local hiring in response to new visa rules.

    •North
    America accounts for over 20% of Tata Tech’s INR 5,168 crore revenue in
    FY2024–25.

    •Over
    70% of Tata Tech’s employees in the US, UK, China, and Sweden are local
    citizens.

    •US
    tariff cuts have slowed outsourcing demand, adding pressure on Indian tech
    service firms.

  • New IT Rules Amendments Aim to Simplify Content Takedown Process in India

    To expedite the process of content removal by digital intermediaries, the IT ministry (MeitY) announced changes to the IT Rules, 2021 on 22 October. The new regulations, known as the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2025, establish senior-level accountability and provide detailed guidelines for removing “illegal” content.

    The revised regulations will take effect on November 15. According to the new regulations, which only apply to Section 3(1)(d) of the IT Rules, only specific high-level officials are now authorised to notify intermediaries to remove illegal content. This covers a senior official who holds a position higher than joint secretary. “Adequate government or its agency” was all that was mentioned in the prior version of the IT Rules. A takedown request may be made by a director or an officer of comparable rank acting through a single corresponding officer in the event that there is no joint secretary.

    New IT Rules Put Bigger Scanner on Online Content

    The new guidelines also provide police officers the authority to order takedowns. Social media platforms may receive such notifications from law enforcement agencies through a specifically authorised person who is not less than the rank of Deputy Inspector General of Police (DIG).

    Additionally, an officer at least as high as the secretary of the relevant department will now periodically evaluate all such removal orders. According to the notification, this procedure was put in place to make sure that these notifications are appropriate, necessary, and compliant with Section 79(3)(b) of the IT Act. All such takedown requests must “clearly” state the nature of the illegal act, the particular identification (URL) or other electronic location of the information, and the legal foundation and statutory provision invoked, according to the new standards.

    Weeks after social media site X’s appeal against the Center’s use of Section 79(3)(b) of the IT Act to prohibit content was purportedly rejected by Karnataka’s high court (HC), the revisions were made. The Centre seems to be simplifying the structure to avoid any legal problems, as the Elon Musk-led platform now intends to contest the decision.

    New Rules Segregate Real from AI Content

    The notification was sent out on the same day that the IT ministry requested public input on changes to the IT Rules, 2021, that would be made to combat deepfakes. The Centre intends to require all online platforms to identify all deepfakes and AI-produced content as “synthetically generated information” in accordance with the draft rules.

    The government also intends to increase the pressure on big social media companies to ask users to confirm whether the stuff they publish is artificially created. Technical mechanisms, such as automated tools, must subsequently be put in place by these platforms to confirm that user assertions about AI-generated material are accurate. Legal repercussions and the loss of safe harbour protections will follow noncompliance with these suggested standards.

    Quick Shots

    •MeitY
    notifies changes to the IT Rules, 2021 to streamline content takedown by
    digital intermediaries.

    •New
    rules take effect from 15 November 2025.

    •Police
    officers, via designated authorities of DIG rank or higher, can also order
    content removal.

    •Department secretaries or
    equivalent will review all takedown orders for appropriateness and
    compliance.

  • Microsoft Softens Return-To-Office: Certain Teams Get More Flexible Work Options

    Good news for Microsoft employees. The company is easing its return to office policies to help employees balance work and life. In September 2025, the company announced to its employees a mandate to return to the office at least 3 days a week. But now, Microsoft has asked its employees to return to the office in a more relaxed manner. Workers in sales and client-facing roles are offered flexible work options (including remote work). So, how is Microsoft doing this? How are the other companies dealing with the in-office and remote work for their employees? For all that, learn more. 

    Why Is Microsoft Doing This?

    According to Microsoft, roles like commercial sales and solution engineering have unique needs. These roles require employees to travel extensively and attend client meetings, making the in-office work rules seem unnecessary. That’s the reason why these roles are offered the flexibility to work remotely.

    Plus, Microsoft wants to balance employee freedom with business needs. And don’t want to force or pressure its employees to be back in the office. 

    The Bigger Picture of Work-Life in Tech Now

    Unlike Microsoft, many tech companies are getting stricter with their rules about in-office work:

    • Dell: The company mandated its employees to work from the office on March 3, 2025. Even its sales teams started working 5 days a week in the office.
    • Amazon: The company asked its employees to work from the office 5 days a week, starting January 2, 2025.

    These companies believe that working in person enhances their teamwork, creativity, and productivity.

    Microsoft’s Approach

    • The company is taking more of a softer, flexible stance compared to the other tech giants in the market right now.
    • The details of who will return to the office and who’ll have the liberty to work from home are still not officially confirmed. However, an internal memo provided insight into the future of work at Microsoft.
    • But several reports suggest that sales roles are exempt from the in-office rules. 

    Industry Trend

    • Post-pandemic companies have slowly started going back to offices. However, many still worked from home. Early this year, several companies sent memos to return to offices 3 – 5 days a week.
    • About half of Fortune 500 desk jobs are now back in the office completely. Additionally, many companies have fired thousands of employees to make their teams leaner and more productive.
    • So, asking to return to offices has become a more convenient scenario for tech giants. However, Microsoft has found a middle ground. Not too strict and not fully remote. 

  • Meta Lays Off 600 Employees from its AI Unit as Wang Strengthens Leadership

    A spokeswoman confirmed to CNBC on 22 October that Meta will lay off some 600 workers in its artificial intelligence division as part of its efforts to streamline operations and cut layers. Alexandr Wang, the company’s chief AI officer, who was brought on board in June as part of Meta’s $14.3 billion investment in Scale AI, wrote a memo outlining the cuts.

    Employees at the Fundamental Artificial Intelligence Research unit (FAIR), Meta’s AI infrastructure units, and other roles involving products will be affected. According to those familiar with the situation, TBD Labs staff members, including many of the top-tier AI hires recruited into the social network company last summer, were unaffected by the layoffs, CNBC said.

    According to the people, those workers under Wang’s supervision were exempt from the layoffs, highlighting Mark Zuckerberg’s wager on his pricey hires rather than the company’s long-standing staff.

    Why Meta is Opting for Layoffs?

    According to CNBC’s report, teams like FAIR and more product-focused units frequently competed for computing resources, making Meta’s AI section appear fat. They claimed that the company’s enormous Meta AI unit was passed down to the new hires as they joined to establish Superintelligence Labs. The layoffs are part of Meta’s ongoing effort to reduce the department and strengthen Wang’s position as the company’s AI leader.

    In an effort to stay ahead of competitors like OpenAI and Google, Meta has been drastically changing its approach to AI in recent months. The company has been investing billions of dollars in hiring and infrastructure projects. According to the persons, Meta’s Superintelligence Labs now employs just under 3,000 people after the layoffs. On 22 October, Meta informed at least a few workers that they would be terminated on November 21 and that they would be placed in a “non-working notice period” until then.

    The note, which CNBC saw, stated, “Your internal access will be removed during this time, and you do not need to do any additional work for Meta.” “You can look for another position at Meta during this time.” Additionally, the corporation stated that it will give 16 weeks of severance pay plus an additional two weeks for each year of service that has been completed, “minus your notice period.” CEO Mark Zuckerberg had become dissatisfied with Meta’s AI advancements, particularly after developers responded ambivalently to the company’s April release of its Llama 4 models.

    Meta Cutting Down on its Expanses

    Meta raised the low end of its prior estimate during its July second-quarter results call, stating that it anticipates its total expenses for 2025 to fall between $114 billion and $118 billion. Since Meta said that its AI activities will lead to a 2026 year-over-year expense growth rate that is higher than the 2025 expense growth, that number is only anticipated to rise. 

    Zuckerberg announced a new division dubbed Meta Superintelligence Labs, which is composed of leading AI researchers and engineers, after Meta made a significant investment in Scale AI. Wang and former GitHub CEO Nat Friedman are in charge of the organisation. Meta and Blue Owl Capital announced a $27 billion agreement on October 21 to finance and build the gigantic Hyperion data centre in rural Louisiana. In a July post, Zuckerberg stated that the data centre would likely be big enough to occupy a “significant part of the footprint of Manhattan”.

    Quick Shots

    •Meta
    to cut 600 employees from its AI division to streamline operations and reduce
    redundancies.

    •Alexandr
    Wang, Meta’s Chief AI Officer, strengthens leadership as layoffs exempt his
    direct teams.

    •Cuts
    impact FAIR, AI infrastructure teams, and product-focused roles; TBD Labs
    staff largely unaffected.

    •Meta’s
    Superintelligence Labs now employs just under 3,000 people after layoffs.

  • ChatGPT Not Ready, Warns Airbnb CEO Amid AI Integration Talks

    Brian Chesky, the Chief Executive of Airbnb Inc., stated that the company’s online travel app was not yet integrated with OpenAI’s ChatGPT due to the startup’s connective tools not being “quite ready”. In an interview, Chesky stated that Airbnb will keep an eye on the progress of ChatGPT’s app integrations and might eventually think about a partnership akin to those of its rivals Booking Holdings Inc. and Expedia Group Inc.

    Regarding ChatGPT’s integration capabilities, he stated, “I didn’t think it was quite ready.” According to Chesky, OpenAI will need to create a platform that is so strong that Airbnb’s app can function within the ChatGPT chatbot in a way that is “almost self-contained” because Airbnb is a community with verified members.

    Why Chesky Opting to not to go with AI Integration?

    Chesky, who is good friends with OpenAI CEO Sam Altman, claimed to have given the AI business advice regarding its new feature that allows outside developers to publish their apps within the ChatGPT chatbot. These functionalities were revealed this month by the AI startup. The well-known chatbot didn’t launch with Airbnb as one of its apps.

    While refusing to comment on Chesky’s comments, an OpenAI representative pointed to the company’s blog post from this month, which characterised the app integration technology as a developer preview with further features on the horizon. In October, T21 claimed that it had enhanced its in-app artificial intelligence features to allow users to conduct additional activities without a live operator, despite Airbnb setting aside a potential integration with ChatGPT. 

    The company’s AI customer support representative, which it made available to all English-speaking users in the United States in May, now shows links and action buttons that can assist users in completing tasks like changing or cancelling reservations. As a result, 15% fewer users now require a live agent, and the average resolution time has decreased from over three hours to six seconds, according to Airbnb.

    The business intends to offer 56 other languages in the upcoming year in addition to Spanish and French this autumn. According to Chesky, the agent is based on 13 distinct AI models, including those from OpenAI, Alibaba Group Holding Ltd., Google, a division of Alphabet Inc., and open-source providers.

    Airbnb Adding new Features to Attract More Customers

    In an effort to foster user relationships and ultimately improve its travel recommendations within the app, Airbnb, which this year branched out from lodging into tours and personal services, is also implementing new social elements.

    After booking an experience, the firm introduced a feature that allows visitors to share their Airbnb profile with other travellers. Additionally, users who have taken the same tours can now communicate with each other directly. According to Airbnb, privacy precautions are in place, and the communication can only proceed if the recipient approves the message request.

    Next year will see the addition of more social capabilities, which Chesky said might eventually encourage user-generated content on the app, allowing users to find inspiration for trips without ever leaving the Airbnb website.

    Quick Shots

    •Brian
    Chesky says Airbnb hasn’t integrated ChatGPT because the AI’s app
    connectivity isn’t “quite ready.”

    •Airbnb
    is monitoring ChatGPT’s progress and may explore partnerships similar to
    Booking.com or Expedia.

    •OpenAI
    labels the app integration feature as a developer preview, with more updates
    expected.

    •Airbnb plans to expand AI support
    to 56 additional languages next year.

  • Netflix’s Stock Is Down by 6.5%: What Went Wrong?

    According to stock market data and reports for October 2025, Netflix shares dropped eleven times so far. Netflix’s stock price dropped significantly again on October 21, 2025. The stock closed at $1,160 per share, which was 6.5% lower than the previous session. The primary reason for this dip is that the company missed its profit expectations for the July-September quarter (Q3). Does this mean the investors have something to worry about? Do tax changes by the Brazilian government have something to do with it? For all that, learn more. 

    What Caused Netflix to Miss Its Earnings Target?

    The tax dispute in Brazil was an unexpected scenario for Netflix. Right now, the company is dealing with it. What exactly happened?

    • Back in 2022, Netflix settled the tax issue with the Brazilian government, paying $619 million, and it’s still an ongoing issue.
    • This payment was recorded as an expense, reducing the company’s Q3 profits by $400 million that year.
    • Netflix stated that without the tax payment, its profits would have been significantly higher.

    Netflix’s Recent Financial Performance

    Netflix’s profits may be hit by the tax, but the company is doing well in other areas:

    • The company earned $3.24 billion in operating income (meaning the profits before taxes and interest payments).
    • It earned $2.66 billion in free cash flow (meaning the extra cash after all the expenses). This number beat Wall Street’s expectations.
    • It also forecasted its full-year free cash flow as $9 billion. 

    What Helped Netflix This Quarter

    Netflix’s strong lineup of shows and movies has attracted record levels of viewership. The list includes shows like:

    • KPop Demon Hunters (it’s the most popular movie this quarter on Netflix),
    • Wednesday – Season 2.
    • A sequel to the comedy “Happy Gilmore.”
    • The boxing match between Canelo Álvarez and Terence Crawford.

    And there are more shows lined up for the future, like:

    • Final season of “Stranger Things.”
    • A sequel to “Knives Out.”
    • New movies by Guillermo del Toro and Kathryn Bigelow.

    Investors’ Concerns

    Despite such a good viewership and business numbers, the investors are still worried about two main things:

    • Viewer time – Although Netflix users have come close to 1 billion, the declining viewer time is concerning. This means that the users are spending less time than before.
    • AI-created content – Not at the moment, but they fear the AI-generated videos could become bigger than Netflix.

    Plus, the demand for free streaming platforms like YouTube, Roku, and Tubi is seeing faster growth. 

    What’s Next for Netflix

    For a better clash flow, Netflix is planning to:

    • Buy back its shares.
    • It wants to invest more in new shows and movies.
    • Showing interest in acquiring certain assets from Warner Bros. Discovery Inc.

    Why Netflix Shares Dropped? | Where Netflix Went Wrong?
    The biggest streaming platform, Netflix lost 200k subscribers and 37% of their shares dropped in a day. Find out the reasons and where Netflix went wrong?
    StartupTalky- Business News, Insights and StoriesDamini Bhandary

  • Jio Confirms No Immediate Tariff Hike, Users to Enjoy Current Plans

    The biggest telecom provider in India by market share, Jio Infocomm Ltd., has no imminent plans to raise mobile phone rates, defying market predictions. Instead, it wants to increase revenue by encouraging users to use more data. Contrary to market predictions, Reliance Jio Infocomm Ltd, the largest telecom provider in India by market share, has no imminent plans to raise mobile phone rates. Instead, it intends to enhance income by encouraging users to use more data.

    In order to boost their average revenue per user (or ARPU, a crucial performance indicator for telecom operators), Jio and its closest rival, Bharti Airtel Ltd., recently scrapped their entry-level plans. The decision raised expectations that the telecom operators would raise tariffs by the end of the year or the beginning of 2026.

    Jio’s Monthly ARPU Rose to 1.2%

    Jio claims that its monthly average income per subscriber increased 1.2% to INR 211.4 in the September quarter from INR 208.8 at the end of June, with growth slowing as a result of promotional 5G deals. Analysts had predicted that Jio would increase tariffs and concentrate on premium services after removing its entry-level pack in order to catch up to Bharti Airtel, which leads the sector in ARPU (INR 250 at the end of June).

    Airtel has not yet released its earnings for the September quarter. In an earnings call with investors, Reliance Jio Infocomm’s head of strategy, Anshuman Thakur, said the company is encouraging customers to spend more and be happy to pay more, but it has no imminent plans to raise tariffs.

    Jio Added 8.3 Million Subscribers in September

    Jio Net now has 506.4 million mobile subscribers after adding 8.3 million during the September quarter. Jio had 234 million 5G users at the end of September, compared to 213 million during the previous quarter in June. Fifty percent of Jio’s wireless traffic now comes from 5G.

    After more than two years, telecom companies finally hiked tariffs in July 2024, with Reliance Jio leading the way with a 12–25% pricing increase. However, Jio has not publicly discussed raising rates, despite Airtel and Vodafone Idea Ltd. being outspoken about the necessity of doing so in order to boost the return on capital employed (RoCE), a metric used to assess profitability and efficiency.

    Earlier this month, Gopal Vittal, the managing director and vice chairman of Bharti Airtel, stated at an industry gathering that the company is using the lowest ARPUs and the lowest charge per gigabyte. But it must turn a profit. Actually, Vittal has previously demanded that the telecom price structure be changed in order to charge for more data and reduce the data allotment on certain telecom packs.

    Quick Shots

    •Reliance
    Jio Infocomm Ltd. has no immediate plans to raise mobile phone tariffs
    despite market expectations.

    •The
    company aims to boost revenue by encouraging higher data consumption among
    users.

    •ARPU
    growth slowed due to promotional 5G offers.

    •Jio’s
    5G users reached 234 million, accounting for 50% of total wireless traffic.