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US tech sector lost jobs in March, stalling growth
The US tech sector lost 15,000 jobs in March even though the overall US economy saw 178,000 jobs gained across all sectors, according to data from multiple sources, including the US Department of Labor.
CompTIA, which analyzed the Friday jobs data released by Labor Department’s Bureau of Labor Statistics (BLS), pegged the unemployment rate for tech workers at 3.9%. That’s still below the national unemployment rate of 4.3%.
The March losses reflect a downward trend compared to the 7,100 jobs gained in February.
Most of the jobs lost were in the custom software services and systems design occupation category, which shed 13,200 positions. Overall, about 118,000 tech jobs were lost across IT and non-IT sectors..
According to Challenger, Gray & Christmas, employers cut 60,620 jobs in March. That’s up 25% from the number of cuts in February, but not as high as a year ago.
“Removing the wave of federal layoffs announced in February and March of last year, job cut announcements in 2026 are closely following the pattern of 2025,” ,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas. “Last year it was government, retail, and technology. This year, it’s technology, transportation, and healthcare.”
Tech firm cuts mounted in MarchThe tech sector lost 18,720 jobs last month, including cuts from Dell, Oracle, and Meta, which is restructuring its Reality Labs division.
So far, the tech sector has lost 52,050 jobs in 2026, higher than the 37,097 lost in the first three months of 2025. And more layoffs are coming as AI’s influence drives personnel decisions this year, Challenger, Gray & Christmas said in the research note.
AI was cited as a reason for 15,341 job cuts in March, the research firm said. Notably, Block cut 4,000 jobs in a shift it portrayed as moving toward the automation of work using AI. But many criticized Block for “AI-washing,” where companies use AI to justify downsizing.
AI has been cited as a reason for 54,836 layoffs so far in 2026, accounting for 5% of all jobs cut, higher than 3% in February, according to Challenger, Gray & Christmas.
AI is forcing a shift in workforce skillsCompanies are investing in AI instead of human labor, and functions like AI coding are replacing human developers. “Other industries are testing the limits of this new technology, and while it can’t replace jobs completely, it is costing jobs,” Challenger Gray and Christmas said.
Multiple studies noted the emergence of a new AI-savvy workforce, with tech job listings reflecting that shift as companies gradually implement AI strategies.
“More organizations are seeking talent with the technical depth to support automation, data integrity, and scalable systems,” said Kye Mitchell, head of Experis North America.
The appetite for AI is also creating positions needed to build out digital and physical infrastructure, Mitchell said.
The BLS data shows the labor market is regaining its footing, though the job numbers may be telling only a partial story, said Ger Doyle, Regional President, North America, at ManpowerGroup.
The ongoing Middle East conflict could also affect jobs in non-tech sectors. “Deepening geopolitical risk and higher energy prices create real uncertainty about what comes next,” Doyle said.
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US Issues Grand Challenge: The First Fault-Tolerant Quantum Computer by 2028
Today’s error-prone quantum computers are still far from practical. But a bold deadline could galvanize the field.
As the race to harness quantum computing accelerates, governments are throwing their hats in the ring. The US Department of Energy is now aiming to build a fully functional, fault-tolerant quantum computer within the next three years.
Despite plenty of breathless headlines about the coming quantum revolution, today’s machines remain a long way from being practically useful. It’s widely expected that we will need much larger, more reliable quantum computers before they can tackle real-world problems.
That’s largely due to the fact that qubits are incredibly error-prone, which means future machines will need to run algorithms to detect and correct those errors faster than they occur. It’s estimated that the overhead for these algorithms could be as high as 1,000 physical qubits to create a single, error-corrected “logical” qubit that can actually take part in calculations.
Given that most current devices feature at best a few hundred physical qubits, more sober heads in the industry have suggested that we may be waiting well into the next decade to see a practical fault-tolerant quantum computer. But last week, Darío Gil, the Department of Energy’s undersecretary for science, announced the agency thinks it can hit that milestone in three years.
“By 2028 we will deliver the first generation of fault-tolerant quantum computers capable of scientifically relevant quantum calculations,” he told the Office of Science Advisory Committee, according to Science.
The agency doesn’t actually plan to build the system itself; it wants quantum computing companies to provide a ready-made solution. It has set out performance criteria it expects the future device to meet but is leaving the details up to providers. In particular, the agency has not picked a favorite between leading quantum computing designs, such as superconducting qubits, trapped ions, or neutral atoms.
“You can build it however you want, so long as you meet that objective and demonstrate scientific relevance,” Gil explained.
The proposed system would likely be housed at one of the department’s national laboratories where researchers can apply to use it for free, with projects selected based on scientific merit.
The announcement is the latest example of the agency’s growing focus on quantum technology. In November 2025, it announced $625 million to renew its National Quantum Information Science Research Centers, which are designed to accelerate research in quantum computing, simulation, networking, and sensing.
The goal is undeniably ambitious though. There has been significant progress in error-correction technology in recent years, which has renewed optimism in the industry. In particular, Google’s demonstration of its Willow chip in December 2024 proved quantum error correction works in practice, not just in theory. But massive technical hurdles remain, primarily in scaling up the hardware.
“It’s a very optimistic but worthy goal,” Yale physicist Steven Girvin told Science. Researchers are making “tremendous progress” in error correction, he said, but they’re still far from true fault-tolerance.
Solving that challenge has become an urgent priority for the industry, according to a recent report from quantum computing company Riverlane, but a severe talent shortage may limit how fast the field can move. There are only an estimated 600 to 700 professionals specializing in quantum error correction worldwide, but the industry will need up to 16,000 by the turn of the decade. And training error-correction experts can take up to 10 years.
It’s possible that the kind of grand challenge laid out by DoE can help galvanize both the attention and funding needed to shift the needle. But it’s an open question whether it will be able to deliver on the incredibly bold timeline outlined this week.
The post US Issues Grand Challenge: The First Fault-Tolerant Quantum Computer by 2028 appeared first on SingularityHub.
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