Wednesday, January 18, 2023

Lightspeed to lay off 300 employees; take $12M-$14M charge

LIGHTSPEED COMMERCE INC (LSPD:CT)

22.55 0.35 (1.67%)
As of: 01/18/23 11:15:27 am
REAL-TIME QUOTE. Prices update every five seconds for TSX-listed stocks
Apr '22Jul '22Oct '22Jan '231020304050
Chart Type - 1year
See Full Stock Page »

Lightspeed Commerce Inc. announced it is cutting hundreds of jobs as part of a newly unveiled reorganization plan.

The Montreal-based company said in a press release on Tuesday that the changes will result in the loss of 300 positions, or 10 per cent of its workforce, with half of the cost reductions to be made in management layers. However, the company noted it will continue to hire go-to-market and development roles that support profitable growth.

Lightspeed – whose e-commerce platforms are used by restaurants, retailers and golf courses -- said the changes have come as a result of the company looking to streamline its operating model while focusing on profitable growth.

It estimates the restructuring efforts will cost $12 million to $14 million in severance payments and employee benefits, among other related costs.

"We have done outstanding work to complete our goal of integrating each brand and rolling out our flagship products to market," Lightspeed Chief Executive Officer, JP Chauvet said in a statement.

"This represents three years of hard, foundational work that is setting us up for long-term success. The launch of these flagship products, coupled with our new, leaner structure, will allow us to be more agile and responsive to our customers as we invest in innovations that will fuel our long-term growth," he said. 

The charges will be reflected primality in Lightspeed’s fourth-quarter results.

On Sale: Twitter auctions coffee makers, neon logo as Musk struggles to pay rent

Fancy an espresso machine once used by Twitter Inc. employees? Or a neon display of its logo? Fans of the social media company have a chance to get their hands on them in a fire sale of items from its San Francisco headquarters starting Tuesday.

The 27-hour online auction, organized by Heritage Global Partners Inc., is the latest sign of upheaval at the company, which billionaire Elon Musk acquired for US$44 billion last year.

The 631 lots of “surplus corporate office assets” range from the mundane — industrial-scale kitchenware and typical office furniture like whiteboards and desks — to less typical fare for office auctions, such as quirky signage and more than 100 boxes of KN95 masks. Also in the mix are a range of designer chairs, coffee machines, iMacs and stationary bike stations capable of charging appliances.

Most of the items, including company memorabilia like a large Twitter bird statue and an “@” symbol sculpture planter, had starting bids of US$25. With about 20 hours left in the auction, the neon logo had received 64 bids valuing it at US$17,500 — the highest current bid of the lot. The bird statue had 55 bids, pushing the price to US$16,000, while the “@” sculpture had 52 bids for a US$4,100 value.

Organizers have said teh sale isn’t intended to shore up Twitter’s finances. A representative of Heritage Global Partners told Fortune magazine last month that “this auction has nothing to do with their financial position.” The auction house was not immediately able to respond to queries sent outside normal business hours.


Still, more cash is likely welcome for Musk, who is trying to cut costs radically at the company, and has failed to pay rent for another San Francisco address, attracting a lawsuit. Other offices, including its Asia-Pacific base in Singapore, have also not been spared, with staff there being asked to clear out and work from home.

Twitter, which no longer has a media relations team, did not respond to emailed queries from Bloomberg News.


Trust essential in work-from-home era, experts say, after 'time theft' ruling

Employers and work-from-home staff must tread a fine line between trust, monitoring and micromanaging, experts say, in the new age of remote employment.

Their comments come days after British Columbia's Civil Resolution Tribunal ordered an accountant to pay her former employer more than $2,600 after tracking software showed she engaged in "time theft" while working at home.

The worker had gone to the tribunal claiming she was fired without cause.

Sandra Robinson, an organizational psychologist and professor in the Sauder School of Business at the University of British Columbia, says that offering flexibility to ensure a happy workforce is a key reason employers continue with remote or hybrid work arrangements, long after pandemic restrictions have lifted.

Yet Robinson warns some tools that allow employers to monitor how their employees spend their time while working from home, such as software that continuously tracks a worker's computer activity, could "backfire" by eroding trust.

"One of the things I tell managers is, you know, one of the best ways to build trust is by being trusting, that trust gets reciprocated," she says.

She says research suggests the less trusted an employee feels, the lower their sense of responsibility may be to their work.

Adults tend not to like being constantly monitored, so computer tracking software could cause unnecessary stressors or resistance among employees, Robinson adds.

The monitoring of people working from home could also create unrealistic standards that aren't even upheld in many office environments.

"You don't typically have someone who's micromanaging what you're doing, right? People talk at the water cooler, they go to the bathroom, they get lost in thought."

Research shows people in many professions aren't always "on," delivering measurable work for eight or more hours straight, even at the office, Robinson says. 

"Our brains can only function so much, so do we actually end up maybe raising the standards that don't even exist in the live workplace, because we want people to work like robots and only pay them when they're 'really' delivering work?" 

There are many other signals that someone isn't keeping up with their work, says Robinson, who suggests monitoring software could be used as a last resort.

The B.C. tribunal decision, issued on Wednesday, shows the accountant initiated a claim of $5,000 for unpaid wages and severance pay, arguing she had been fired without cause last March.  

But the employer, Reach CPA Inc., submitted a counterclaim for wages and a portion of an advance it had paid, saying the software data showed a 50-hour discrepancy between her timesheets and computer activity over one month.

"Time theft in the employment context is viewed as a very serious form of misconduct," tribunal member Megan Stewart writes in the decision.

Trust and honesty are essential, especially in a remote-work environment, it says.

The woman's misconduct led to "an irreparable breakdown in her employment relationship with Reach," Stewart says, finding her dismissal was proportionate.

Vancouver lawyer Shafik Bhalloo, who specializes in labour and employment law, likewise says the case is serious because submitting false hours amounts to fraud.

"The act itself was serious enough to breach that duty of honesty an employee has in their relationship with the employer, and trust was broken. There's a fracture of that relationship, and it's not … really mendable in this particular case," says Bhalloo, an associate professor at Simon Fraser University's Beedie School of Business.

Yet Bhalloo doesn't believe the case will open a "floodgate" of employers suing employees over time theft.

The woman's fabrication sets her case apart from other activities, such as taking a personal call during working hours, he says.

"I'm working from home, I may have a pet, who may need my attention for a moment or two. I may get a personal call that comes in on the home line. I may have a gardener who needs instructions, or a postman who comes to the door and I take time off that I wouldn't be doing otherwise, if I were in the office," he says.

Such activities do not amount to just cause for firing, he says, unless they become habitual and the employee does not heed warnings to rectify their conduct.

Canadian law is still in its "developmental stages" when it comes to handling disputes over working from home, he says, and context will be key in court.

This report by The Canadian Press was first published Jan. 15, 2023.

How technology used by NASA on Mars could reduce emissions from Canada's oilsands

The same technology used to search for signs of ancient life on Mars could be key to reducing greenhouse gas emissions from the Canadian oilsands.

At least that's what members of the Pathways Alliance -- an industry consortium of this country's six largest oilsands companies -- appear to believe. On Thursday, the group announced Impossible Sensing Energy, the Calgary-based affiliate of U.S. space exploration company Impossible Sensing, as the winner in an industry-sponsored global competition aimed at helping to accelerate the widescale use of steam-reducing technologies in oilsands operations.

The company won with a proposal to use optical imaging technology, adapted from its Sherloc system currently installed on the Mars Rover, in an oilsands application.

Just as optical imaging can be used to search for faint traces of potential carbon-based past life on Mars, it can also detect precise amounts of carbon-based solvents in the oil production stream, said Ariel Torre, co-founder and CEO of Impossible Sensing Energy.

He added space exploration is not unlike the oilsands in that both operate in extremely remote environments under harsh climate conditions.

Any technology that is used must be extremely sensitive, but also be able to essentially work on its own, without an operator.

"A lot of the constraints that NASA has are extremely similar to the constraints oil and gas has," Torre said.

Oilsands companies currently use massive amounts of natural gas to produce steam for in situ (deep below the surface) oilsands mining. The steam loosens up the viscous bitumen enough to allow it to be pumped to the surface.

Wes Jickling -- vice-president of technology development with COSIA, the innovation arm of Pathways Alliance -- said the industry has long known that solvents, such as propane and butane, can act similarly to steam in bitumen production. If solvents could be used to replace steam in oilsands production, the amount of natural gas consumed by the industry would decline dramatically.

"We're looking at a 20 per cent reduction in greenhouse gas emissions, all the way up to 90 per cent reduction in greenhouse gas emissions in some cases, by using these solvents. So the potential is huge," Jickling said.

Another potential benefit is that solvents injected with or instead of steam into oilsands reservoirs can later be recovered from the pumped bitumen and recycled to be used all over again.

However, a report released last year by green energy think-tank the Pembina Institute said that solvent use in the oilsands is "promising on paper" but comes with technical and cost limitations.

"The economics of using solvent with steam can be challenging in low crude price cycles when the costs of deploying and recovering solvents is higher than revenues from the incremental production," the report said.

That's why Pathways sponsored the global contest, Jickling said -- to try to find technology that can accurately measure, in real-time, the amount of solvents recovered in oilsands production. Effectively and affordably measuring and identifying solvents for recycling, without having to deploy personnel or stop production, could be a game-changer.

The ultimate goal is for Impossible Sensing Energy to install its technology as a pilot project at a Pathways Alliance member company's oilsands site.

"This whole piece of work started because of a tough question that we needed answers to," Jickling said. "This is one of the big science questions we need to solve to get this (solvent use) out and widely used across the industry."

Solvent use is just one of the technologies the six member companies of the Pathways group are exploring as part of their pledge to reduce their collective greenhouse gas emissions from production by 22 million tonnes by 2030 and to reach net-zero by 2050.

The key plank in the Pathways plan is a proposed carbon capture and storage network in northern Alberta, which could see member companies invest $16.5 billion before 2030, but the group is also planning an additional $7.6 billion in spending on other initiatives such as energy efficiency, electrification of engines and more.

Environmental groups have previously criticized Pathways for not moving fast enough with some of its proposed projects, particularly in light of last year's record-high oil prices.

Saudi Aramco To Partner With Car Giants On Engine Business

French Renault and Chinese Geely are putting the finishing touches on a deal that will add Aramco to their partnership for the development and marketing of gasoline engines and hybrid automotive technology.

This is according to unnamed sources who spoke to Reuters, saying the Saudi state oil company is negotiating the acquisition of a 20-percent stake in the partnership between the carmakers. The partnership focuses on the development of a new powertrain technology.

Plans are for the development of an annual production capacity of more than 5 million "low-emission and hybrid engines and transmissions", according to a document seen by Reuters.

Renault and Geely announced their tie-up in November last year, saying its purpose was “to create a new global leader to develop, manufacture and supply best-in-class hybrid powertrains and highly efficient ICE powertrains.”


The Renault press release from the time also said the new venture would be a standalone company with equal ownership shares for the partners. It also said it expected to supply its products for all brands of the two carmakers.

The chief executive of Renault commented that internal combustion engines would remain “a critical part of the automotive supply chain for decades to come.” The chairman of Geely, for his part, focused on the sustainability aspect of the venture.

Aramco is already active in internal combustion engine efficiency technology, so the venture between Renault and Geely would be a good fit for the state major, which, like Renault, believes internal combustion engines will survive well into the future.

Although the Reuters sources did not disclose any financial details about the Aramco deal, they did say that the Saudi company’s contribution would target the decarbonization of gasoline engines and research and development of powertrain technologies, including hydrogen technologies.

Development of synthetic fuels is also on the agenda—another area where Aramco is already active.

By Charles Kennedy for Oilprice.com

 

The Nord Stream Pipeline Could Be Repaired Within A Year

The Nord Stream pipeline can be repaired within a year, but it’s unclear whether Germany would want to receive Russian natural gas at all, said Klaus-Dieter Maubach, the outgoing CEO at German energy giant Uniper, which was Russia’s top gas customer before Moscow cut off supply via Nord Stream.

“The first question that needs answering: what’s the political will on a European level and in Berlin to bring Russian gas to Germany?” Maubach said at the annual Handelsblatt Energy summit on Tuesday, as carried by Reuters.

Last summer, the German government bailed out Uniper as losses at the German company continued to mount after Russia slashed gas deliveries via Nord Stream in June, before cutting off supply in early September.

At the end of December, it was Uniper, the operator of the Wilhelmshaven import terminal, that welcomed the first tanker carrying liquefied natural gas (LNG) at the newly opened LNG terminal, with the cargo arriving from the Calcasieu Pass export facility in the United States.

Meanwhile, the investigation into the Nord Stream explosions at the end of September continues amid accusations from Russia that some Western intelligence services are “hiding something.”

Sweden’s refusal to share information about the sabotage of the Nord Stream pipelines is “puzzling,” and withholding the results of the investigation means that “Swedish authorities are hiding something,” Russia’s Foreign Ministry spokeswoman Maria Zakharova said last week.

Traces of explosives were found near the sites of the explosions at the Nord Stream 1 and Nord Stream 2 gas pipelines in the Baltic Sea, Sweden said in November, noting that the incident is “gross sabotage.”

Nord Stream 2 was never put into operation after Germany axed the certification process following the Russian invasion of Ukraine. Russia, for its part, shut down Nord Stream 1 indefinitely in early September, claiming an inability to repair gas turbines because of the Western sanctions.   

 Oilprice.com

European And Indian Firms Show Interest In Guyana’s Oil Boom

European and Indian oil companies are reviewing the terms of Guyana’s first-ever licensing round as they consider bidding in the process that will award 14 shallow and deepwater offshore blocks in May 2023, Reuters reports, quoting sources with knowledge of the matter.

Last month, Guyana launched its first licensing round for offshore oil and gas exploration and production, which is expected to offer a different model of production sharing agreements than the ones in place with U.S. supermajor ExxonMobil, the first and biggest oil producer operating in Guyana. 

The government of Guyana says it is developing a new model to “reflect the indicative terms and guidelines for the licensing round as well as introduce comprehensive provisions reflective of the developments in the oil and gas industry and international best practices observed in other jurisdictions.”

Despite the still unfinished job with the new PSAs, companies from India and Europe are considering bidding in the round, hoping to obtain acreage in the world’s newest oil hotspot.

ONGC Videsh, the overseas investment arm of Indian state-run Oil and Natural Gas Corporation (ONGC), is considering a bid for some of the blocks up for grabs, while refiner Indian Oil Corporation evaluates working in Guyana in collaboration with ONGC Videsh, according to Reuters’ sources.

Guyana has become a hotspot for exploration and development in recent years after Exxon and its partners found more than 11 billion barrels of oil equivalent offshore the South American country.

Exxon helped make Guyana the latest oil-producing and oil-exporting nation in late 2019. Since 2015, when it first discovered oil offshore Guyana, Exxon has made more than 20 discoveries offshore Guyana.

By 2027, Exxon plans to produce more than 850,000 bpd of crude oil from Guyana’s offshore, the U.S. supermajor said in a presentation on its investor day in March 2022. Guyana is a strategically important development for Exxon this decade, together with the U.S. Permian Basin, Brazil, and LNG projects around the world, Exxon said last month.

 Oilprice.com

 

Central Asia’s Glaciers Are Melting At Astonishing Rates

After Central Asians were walloped by winter last week, many may find it hard to worry about too little snow. But that is a problem facing the region’s farmers and dam builders of the near future. Snow is an essential ingredient in the delicate annual cycle shaping seasonal river flows and thus food and electricity production.

While warming winters and shrinking glaciers have been obvious, and easy to measure, in Central Asia for decades, new data paint a fuller picture of what the future holds for these frozen reservoirs in the mountains. They are not only melting due to higher temperatures. Glaciers today are also being starved of replenishing snowfall each winter. Instead, precipitation is increasingly falling as rain, which further speeds melting as it flows across the ice and down into the valleys.

By the year 2100 the snowfall season in the Tian Shan mountains could be two months shorter, down from around five months today, modeling by Chinese scholars shows.

The Tian Shan range stretches from Uzbekistan, covering most of Kyrgyzstan, and into Kazakhstan and China, where it is the main source of fresh water in Xinjiang province.

Led by Xuemei Li of Lanzhou Jiaotong University, the researchers looked at temperature and precipitation data from 26 weather stations on the Chinese side of the Tian Shan between 1961 and 2020. With these figures they chart when the beginning of the snowfall season starts and ends, and how the dates are moving closer together, measuring what they call “snowfall phenology” – the rain-snow threshold, the potential snowfall season, and the observed snowfall season.

Already spring rain is replacing winter snow as much as 9.6 days earlier than in 1961; in the autumn, rain is turning to snow 6.6 days later. So, the snow season shrank by more than two weeks in the last six decades (2.8 days per decade).

Like most studies on the climate future, the authors model their predictions around four global warming scenarios (known as SSP126, SSP245, SSP370 and SSP585) designed by the Intergovernmental Panel on Climate Change. These range from optimistic (i.e., even if all countries keep their commitments to slash greenhouse gas emissions, which is vanishingly unlikely) to most devastating.

Under all scenarios, the season shrinks: “The potential snowfall season will start much later, end earlier, and last less time,” Li and her colleagues write in their December preprint article for The Cryosphere, a publication of the European Geosciences Union.

Were global mean temperatures to rise only 2 degrees Celsius (the SSP126 scenario), by the year 2100 the season would likely shorten by only another week. That figure rises steeply, however, with the increasingly dire scenarios: Under the most extreme (SSP585), it drops another six and a half days per decade – another two months shorter than today.

Thus, snow could stop falling before Valentine’s Day in 2100. Li and her colleagues estimate annual snow volume under this scenario to decrease by 26.5 percent.

While snow is one ingredient for glaciers, the other is cold – sorely lacking as human activity warms the planet.

A comprehensive study of glaciers published this month in Science found melting in Central Asia will peak between 2035 and 2055 – well within the lifetime of giant hydropower projects currently in the planning stages. After that, the amount of water the glaciers give off each summer – historically, a predictable pattern important for hydropower and farming – will dwindle steadily.

The Science paper confirms Central Asia’s glaciers are melting faster than the global average and could lose up to 75 percent of their 2015 mass by the year 2100.

Together, the two papers are yet more evidence that future water patterns in Central Asia will change significantly, impacting agriculture, electricity generation and all those who consume the fruit of both.