Insider Today: A historic outage
In Sunday's edition of Insider Today, we're talking about a historic IT outage, and the big business of selling men's insecurities.
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Welcome back to our Sunday edition, a roundup of some of our top stories. It's been a tumultuous eight days. Last week, this newsletter delivered the latest news from the aftermath of an assassination attempt on former President Donald Trump. Since then:
- Trump made a triumphant return to the public eye at the RNC.
- Former VC and "Hillbilly Elegy" author JD Vance was named his VP.
- Some of Silicon Valley's loudest investors came out for Trump.
- Pressure again ratcheted up on President Joe Biden to withdraw from the race.
You can get the latest on what the political turmoil might mean for businesses, the economy, and markets right here or by downloading the Business Insider app.
On the agenda today:
- Amazon is cracking down on "coffee badging" employees.
- Online health providers are preying on young men's biggest fears.
- It's official: Gen Z's love affair with tech jobs is over.
- Disney is losing its monopoly on kids.
But first: A single IT update gone wrong sparked chaos around the world.
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This week's dispatch
Master/Getty, Yevgeniy Sambulov/Getty, Tyler Le/BI
A historic outage
Computers at Australian retailer Woolworths froze with the blue screen of death. Cash register issues closed scores of McDonald's branches in Japan. Tesla halted some production lines. 911 call centers in Alaska couldn't operate. Airline passengers around the world faced chaos and uncertainty.
All because of a single IT update.
The update, delivered by cybersecurity company Crowdstrike to Microsoft Windows desktop and laptop computers, tipped the digital world into delays and closures. There were no remote or automatic fixes: Instead, each computer required a manual reboot, in some cases more than 15 times.
Crowdstrike saw its stock price finish down more than 11% on Friday, a clear sign of the damage done to its business.
For those impacted, Crowdstrike's terms and conditions limit liability to "fees paid," leaving customers eligible for a refund and nothing more. Those with cyber insurance will likely be checking the fine print of their policies to see what's covered.
The chaos is a stark illustration of the vulnerability of global IT systems. An update gone wrong from a single company many hadn't heard of before Friday morning brought retailers, banks, hospitals, production lines, and airlines to a halt. It's a pressing reminder of how reliant we are on just a few companies.
Getty Images; Jenny Chang-Rodriguez/BI
No more "coffee badging"
Amazon's return-to-office mandate is getting serious. In recent months, the company has told several teams they must stay a minimum of two to six hours per office visit.
The new rule is meant to crack down on "coffee badging," or employees who badge in, get coffee, and leave shortly after to satisfy their RTO requirements. Workers aren't taking the new rule well — many took to Slack to air their complaints about the policy.
Inside Amazon's RTO crackdown.
Getty Images; Jenny Chang-Rodriguez/BI
Big fears = big money
Men, are you worried about your receding hairline? Your fertility? What about your weight? Direct-to-consumer health companies, like Hims & Hers Health, can help you skip the doctor's office and deliver a "healthy, handsome you" right to your door.
The DTC health industry has exploded in recent years, with investor dollars flowing in. Offering an array of products, their business proposition is targeted specifically at young men — and more specifically, their insecurities.
Edmon de Haro for BI
Tech jobs give Gen Z the ick
The tech sector enjoyed a near-monopoly on the brightest young talent for more than a decade. But in the wake of brutal layoffs and high-exposure issues, tech's allure is fading for the younger members of Gen Z.
Today's high-achieving high schoolers are turned off by the ethical issues associated with Big Tech, like spreading misinformation and worsening the youth mental health crisis. And with tech on the outs, bright Gen Zers are turning to one surprising sector instead.
iStock; Rebecca Zisser/BI
Disney's kid problem
If a show airs on Disney Channel but there are no kids to watch it, did it really air at all?
Kids used to grow up watching Mickey Mouse (or Lizzie McGuire or Hannah Montana, depending on the age group). But now, they're all on YouTube. That's a huge problem for Disney, which is losing its once-iron grip on the kids-entertainment market.
This week's quote:
"Our D&I commitments remain unchanged."
— Microsoft spokesperson after the company laid off a diversity, equity, and inclusion team, citing "changing business needs."
More of this week's top reads:
- A founding father of Utah's VC industry is stepping back as accusations of sexual harassment surface.
- Goldman Sachs thinks the merger machine is revving up.
- JD Vance could be the first tech guy in the White House. It's way too early to say what that means.
- Blackstone just raised the stakes on its AI gamble.
- The top reasons job applicants ghost prospective employers.
- Goldman's global head of equity syndicate reflects on her days as a junior banker.
- Wall Street "bake offs" are back. Here's what that means for dealmaking.
Netflix had another blowout quarter.
The Insider Today team: Matt Turner, deputy editor-in-chief, in New York. Jordan Parker Erb, editor, in New York. Dan DeFrancesco, deputy editor and anchor, in New York. Lisa Ryan, executive editor, in New York. Amanda Yen, fellow, in New York.