Britain Joins France in €1.5 Billion Capital Boost for Starlink Rival Eutelsat

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Britain will invest €163.3 million ($191 million) in satellite operator Eutelsat, adding to a larger funding injection from France designed to help the company compete with SpaceX’s Starlink, Eutelsat announced on Thursday. This joint recapitalization effort highlights Europe’s drive to enhance its sovereign capabilities in key areas like satellite communications and defense, particularly in light of Russia’s invasion of Ukraine and the U.S.’s “America First” policies.

During a three-day state visit to Britain, French President Emmanuel Macron publicly thanked London for the investment in a post on X. Following the announcement, Eutelsat shares jumped as much as 10% in early trading on the Paris stock exchange.

France’s state shareholding agency plans to inject €750 million later this year, becoming Eutelsat’s largest shareholder with a 29.65% stake. Meanwhile, Britain’s new investment will allow it to maintain its 10.89% stake, preventing dilution from France’s recapitalization, and preserve influence in European space policy post-Brexit.

Britain will also keep its “golden share,” which grants veto powers over OneWeb, the London-based subsidiary of Eutelsat, according to a source familiar with the matter. The total recapitalization now reaches €1.5 billion following the UK’s participation.

Peter Kyle, the British science and technology minister, emphasized the importance of resilient satellite connectivity for European national security in an increasingly contested space environment. He also stated that the investment demonstrates the UK’s commitment to developing these technologies and maintaining a significant position in the global satellite communications market.

This deal could pave the way for Britain’s involvement in the EU’s IRIS² satellite constellation project, for which Eutelsat is a key contractor, according to French newspaper Les Echos, which first reported on the UK’s investment.

Britain initially became a shareholder in OneWeb in 2020 through a $1 billion bailout, before OneWeb merged with Eutelsat in 2023. Eutelsat currently manages 34 geostationary satellites and over 600 low Earth orbit satellites, making it the world’s second-largest constellation after Starlink.

Eutelsat’s stock has surged 64% this year, boosted by France’s financial backing and investor confidence in its satellites as a viable alternative to Starlink.

Indeed, Glassdoor to Cut 1,300 Jobs Amid AI Shift, Memo Reveals

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Recruit Holdings, the Japanese parent company of job sites Indeed and Glassdoor, plans to reduce its workforce by approximately 1,300 employees as part of a strategic shift toward artificial intelligence, according to a memo reviewed by Reuters on Thursday. This reduction amounts to around 6% of its HR technology segment staff and primarily affects the U.S. market, targeting roles in research and development, growth, and people and sustainability teams. However, the layoffs will impact multiple functions across several countries.

While the company did not state a specific reason for the job cuts, CEO Hisayuki “Deko” Idekoba emphasized the transformative impact of AI, saying, “AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers.”

This move aligns with a broader trend among U.S. technology companies, including Meta and Microsoft, which have recently announced workforce reductions to focus on AI initiatives while managing slower economic growth.

In addition, Recruit plans to merge Glassdoor’s operations into Indeed. As part of this restructuring, Glassdoor CEO Christian Sutherland-Wong will step down effective October 1. LaFawn Davis, Indeed’s chief people and sustainability officer, will also leave on September 1, with Ayano Senaha, Recruit’s chief operating officer, succeeding her.

Recruit acquired Indeed in 2012 and Glassdoor in 2018 and currently employs around 20,000 people in its HR technology division. Earlier in 2024, Indeed revealed plans to cut 1,000 positions, following a previous reduction of approximately 2,200 jobs announced a year prior, which represented 15% of its staff.

Study Finds AI Tools Slow Down Experienced Software Developers in Familiar Codebases

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A new study challenges the common assumption that artificial intelligence always speeds up software development. Conducted by AI research nonprofit METR, the study focused on seasoned developers working with Cursor, a popular AI coding assistant, within open-source projects they knew well. Contrary to their expectations, these experienced developers took 19% longer to complete tasks when using AI compared to working without it.

Before the study, developers predicted AI would speed up their work by about 20-24%, but the actual results showed the opposite. The study’s lead authors, Joel Becker and Nate Rush, expressed surprise at the findings, with Rush originally anticipating a potential twofold productivity increase.

These findings complicate the popular narrative that AI tools dramatically boost the productivity of highly skilled engineers—a claim that has helped fuel heavy investment in AI-powered software development products. While AI is often touted as a way to replace entry-level coding jobs, the METR study reveals that its benefits may not extend to all developers or coding scenarios.

Previous research has shown significant AI-driven productivity gains, with some studies citing up to 56% faster coding speeds or 26% more tasks completed in a given time. However, METR’s work highlights that these improvements might be more relevant to junior developers or those unfamiliar with complex codebases. Experienced developers, intimately aware of the nuances of mature open-source projects, tended to slow down because they spent extra time reviewing and fixing AI suggestions.

Becker noted that while AI-generated code was often on the right track, it frequently required careful correction to meet precise needs. The study authors emphasized that the slowdown was specific to the context of experienced developers working in familiar environments and might not occur in other development settings.

Despite the slower task completion times, most participants, including the study authors, continue to use Cursor, finding that AI makes coding less effortful and more enjoyable—comparable to editing an essay rather than starting from scratch. Becker explained, “Developers have goals other than completing the task as soon as possible. So they’re going with this less effortful route.”