Salesforce is cutting 10% of its personnel, more than 7,000 employees

Signage on a Saleforce office building in San Francisco, California, U.S., on Tuesday, Feb. 23, 2021.

David Paul Morris | Bloomberg | Getty Images

Salesforce is cutting 10% of its personnel and reducing some office space as part of a restructuring plan, the company announced Wednesday. The company employed more than 79,000 workers as of December.

In a letter to employees, co-CEO Marc Benioff said customers have been more “measured” in their purchasing decisions given the challenging macroeconomic environment, which led Salesforce to make the “very difficult decision” to lay off workers.

“I’ve been thinking a lot about how we came to this moment,” he said. “As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.”

Salesforce will record charges of $1.0 billion to $1.4 billion related to the headcount reductions, and $450 million to $650 million related to the office space reductions, the company said.

Shares of Salesforce closed up more than 3% on Wednesday.

Jim Cramer: Investors are waiting for Silicon Valley to 'own up' and cut workforce

Analysts led by Brent Bracelin at Piper Sandler, who have the equivalent of a buy rating on Salesforce stock, estimated in a note to clients that the cuts could lower operating expenses by $1.5 billion or more each year and widen the company’s operating margin to 26% from 21%. That calculation assumes that “demand drivers remain intact,” which is unlikely, the analysts wrote.

The company is eager to become more profitable through more efficient spending. In September Salesforce management called for a 25% adjusted operating margin in the 2026 fiscal year, compared with 22.7% in the quarter that ended on Oct. 31.

The cuts mark the latest round of departures at the cloud-based software company, the largest private employer in San Francisco. The company let go of fewer than 1,000 employees in November. Later that month, Bret Taylor announced his plan to step down as co-CEO on Jan. 31, leaving Marc Benioff alone again at the top of the company he co-founded in 1999.

In the three trading days after the Taylor news landed alongside Salesforce’s third-quarter earnings report, the stock had two of its three worst days of 2022, plunging 8.3% and 7.4%, respectively. 

Days later, the company announced the departure of Slack CEO Stewart Butterfield, who joined Salesforce as part of its biggest acquisition ever.

Salesforce hired aggressively during the pandemic. It said in a December filing that headcount had risen 32% since October 2021 “to meet the higher demand for services from our customers.”

Now, like many other major tech companies, Salesforce is looking to cut costs as it contends with slowing revenue growth and a weakening economy. Days after Twitter’s new boss, Elon Musk, slashed half his company’s workforce, Facebook parent Meta announced its most significant round of layoffs ever, eliminating 13% of its staff. AmazonLyftHP and DoorDash also announced significant cuts to their workforces.

Salesforce said it expects its employee restructuring to be complete by the end of the 2024 fiscal year and real estate restructuring to finish in the 2026 fiscal year.

— CNBC’s Jordan Novet contributed to this report.

source

[World] William Singer: US college admissions architect will go to jail

BBC News world 

Image source, Boston Globe via Getty Images

Image caption,

William Singer admitted in 2019 that he helped facilitate the US college admissions scandal

The man known as the architect of the notorious US college admissions scandal has been sentenced to three and a half years in prison.

William “Rick” Singer funnelled money to university coaches from wealthy parents to secure the admission of their children to elite colleges.

More than 50 people have been convicted for their role in the scandal.

Among those convicted are actors Lori Loughlin and Felicity Huffman, who were clients of Singer.

Singer’s sentence, delivered on Wednesday, marks the longest of any parent, coach or others who were convicted in the scandal.

US District Judge Rya W. Zobel also ordered Singer to pay $10m (£8.29m) in restitution to the federal government.

Prosecutors had sought a six-year prison term for Singer and a payment of $10.6m (£8.79m) to the US Internal Revenue Service as he did not pay taxes on the money he received as part of the scheme.

His lawyers, however, argued Singer’s sentence should be 12 months of home confinement, or six months in prison, due to his cooperation in the investigation into the scandal dubbed “Operation Varsity Blues”.

Singer, a consultant, admitted in 2019 that he helped facilitate the US college admissions scandal by transferring money from parents to coaches, who would then fraudulently register non-athletic students as recruits, thereby admitting them to college.

He also helped facilitate cheating on college entrance exams.

The scandal attracted global media attention, as some of the parents were revealed to be celebrities or CEOs of major companies.

This includes Ms Loughlin and her husband, designer Mossimo Giannulli, who were accused of paying $500,000 in bribes with the help of Singer to have their two daughters admitted into the University of Southern California (USC) as fake rowing-team recruits.

Ms Loughlin served two months in prison in 2020 for her role in the scandal, while her husband served five months.

Overall, prosecutors said Singer took home more than $25m from his clients, and paid out more than $7m in bribes to coaches at elite US colleges, including USC, Yale University and Stanford University.

Singer expressed shame for his actions on Wednesday, telling the court his moral compass had been “warped by the lessons my father taught me about competition. I embraced his belief that embellishing or even lying to win was acceptable as long as there was victory.”

According to a November court filing, Singer said he had “lost everything”, including all his assets, and that he now lives in a trailer park where he taught seniors and autistic children how to paddleboard.

“I have been (rightly) judged by family, friends, and professional community, I will be permanently notorious as the ‘mastermind of Varsity Blues,'” he said.

 

Read More 

Prince Harry says William ‘knocked me to the floor’ during argument about Meghan: report

Just In | The Hill 

Prince Harry wrote in his soon-to-be-released autobiography, “Spare,” obtained by The Guardian, that his brother, Prince William, “knocked [him] to the floor” while in an argument about Harry’s wife, American actress Meghan Markle.

Harry said that the argument, which Harry said resulted in visible injury on his back, took place in his home in London in 2019, according to The Guardian, in which Harry describes that William called Markle “difficult”, “rude” and “abrasive.”

Harry said that William’s words were a “parrot[ing of] the press narrative” about the Duchess of Sussex, The Guardian reports.

According to The Guardian, Harry then described the altercation, writing that William “grabbed me by the collar, ripping my necklace, and … knocked me to the floor”.

Harry said that his brother egged him on to fight back after their argument escalated to a physical altercation, but that Harry refused, leaving his brother “regretful” and eventually lead to him apologizing, according to The Guardian.

William urged Harry not to tell his wife, and Harry said that he did not immediately do so, but that Markle noticed the marks on his back and when she found out she wasn’t surprised or angry, but “sad.”

The theme of Harry’s autobiography, according to The Guardian, is that Harry is the”spare” prince: If anything happens to the heir, Harry would be “the spare”.

Harry wrote about a story in his autobiography, The Guardian reports, of how his father, King Charles, said to his wife, Princess Diana, Harry’s mother, on the day of his son’s birth, “Wonderful! Now you’ve given me an heir and a spare – my work is done.”

The memoir by Prince Harry is expected to be released in full on January 10.

​In The Know, King Charles III, Meghan Markle, Prince Harry, Prince William, Princess Diana, Royal Family Read More 

Study may explain why too much of a good smell can stink

New research reveals an added layer of nuance in our sense of smell.

The delicate fragrance of jasmine is a delight to the senses. The sweet scent is popular in teas, perfumes and potpourri. But take a whiff of the concentrated essential oil, and the pleasant aroma becomes almost cloying.

Part of the flower’s smell actually comes from the compound skatole, a prominent component of fecal odor.

“Consider for instance the smell of a ripe banana from a distance (sweet and fruity) versus up-close (overpowering and artificial).”

Our sense of smell is clearly a complex process; it involves hundreds of different odorant receptors working in concert. The more an odor stimulates a particular neuron, the more electrical signals that neuron sends to the brain.

But the new research reveals that these neurons actually fall silent when an odor rises above a certain threshold. Remarkably, this was integral to how the brain recognized each smell.

“It’s a feature; it’s not a bug,” says Matthieu Louis, an associate professor in the department of molecular, cellular, and developmental biology at the University of California, Santa Barbara.

The paradoxical finding, published in Science Advances, shakes up our understanding of olfaction.

“The same odor can be represented by very different patterns of active olfactory sensory neurons at different concentrations,” Louis says. “This might explain why some odors can be perceived as very different to us at low, medium, and very high concentrations. Consider for instance the smell of a ripe banana from a distance (sweet and fruity) versus up-close (overpowering and artificial).”

Humans have several million sensory neurons in our noses, and each of these has one type of odorant receptor. Altogether, we have about 400 different types of receptors with overlapping sensitivity. Each chemical compound is like a different shoe that the receptor is trying on. Some shoes fit snugly, some fit well, while others don’t fit at all. A better fit produces a stronger response from the receptor. Increasing an odor’s concentration recruits neurons with receptors that have are less sensitive to that substance. Our brain uses the combination of activated neurons to distinguish between odors.

Scientists thought that neurons would effectively max out above certain odor concentrations, at which point their activity would plateau. But the team led by Louis’ graduate student, David Tadres, found the exact opposite: Neurons actually fall silent above a certain level, with the most sensitive ones dropping off first.

Looking at flies

Fruit fly larvae make an ideal model for studying olfaction. They have as many types of odorant receptors as the number of sensory neurons—namely, 21. This one-to-one correspondence makes it simple to test what each neuron is doing.

For the study, Tadres examined larvae with a mutation that entirely eliminated their sense of smell. He then selectively turned that sense back on in a single sensory neuron, enabling the larvae to detect only odors that activated that specific receptor. He placed them next to an odor source and watched.

Even with a single functioning olfactory channel, the larvae could still move toward the stronger smell. But remarkably, they stopped a certain distance away from the source, and just circled it in a fixed orbit. Tadres repeated the experiment with a neuron slightly less sensitive to the odor he was testing, and found that the larvae got closer to the source before stopping.

Puzzled by this behavior, Tadres used electrodes to measure the activity of the sensory neuron. As expected, signaling increased as the odor became more concentrated. But rather than plateau above a certain level, the activity crashed to zero. That’s why the mutant larvae circled the odor source; above a certain concentration, the smell simply disappeared.

“The silencing of the olfactory sensory neuron could easily explain the circling behavior, which was mysterious before,” Tadres says. “From there it wasn’t hard to extrapolate that the current view of how odors are encoded at different concentrations needed to be updated.”

Researchers knew that excessive stimulation can cause nerves to go silent, an effect called “depolarization block.” However, the consensus was that this sort of overload doesn’t occur under natural, healthy conditions. Indeed, this response is associated with issues like epilepsy when it occurs in the central brain. But when Tadres observed it affecting the larvae’s behavior, he suspected that it wasn’t merely an artifact of the experiment.

Digging deeper

Tadres and Louis began investigating the cause of the depolarization block. For assistance, they reached out to Professor Jeff Moehlis, chair of the mechanical engineering department, and Louis’ doctoral student Philip Wong (co-advised by Moehlis), who started constructing a mathematical model of the system.

The voltage across a neuron’s membrane can be described by a system of equations. This model was a breakthrough finding in 1952, and earned a Nobel Prize for its discoverers, Alan Hodgkin and Andrew Huxley. For this case study, Wong added a mathematical representation of the odorant receptor, the “trigger” that initiates the rest of the model. He also included a modification from the field of epilepsy research wherein high stimulation turns off certain ion channels in the cell membrane, preventing a neuron from firing.

Wong’s model was able to fit and predict Tadres’ measurements of the neuron’s electrical activity. “This was quite useful because the electrophysiology data was difficult to collect and very time consuming to analyze,” Wong says.

In addition to corroborating the experimental results, the model is guiding the team as they continue investigating this effect. “This model may tell us exactly how each neuron is responding to different odors,” Wong says.

The model’s success points to a possible source of the depolarization block: a specific ion channel present in neurons across the animal kingdom. If true, this suggests that most sensory neurons might fall silent following strong and sustained stimulation. The team hopes to validate this hypothesis in an upcoming study.

What’s more, the model predicted that the system would behave differently going up from low odor concentrations versus coming down from high concentrations. Measuring the voltage of the larvae’s neurons confirmed this. When going down, the neuron did not reactivate below the threshold where it had fallen silent. In fact, it largely remained silent until the odor concentration came back down to zero before returning to normal activity.

Our complex sense of smell

This study demonstrated that high odor concentrations can silence the most sensitive receptors. This counterintuitive result marks a fundamental shift in our understanding of smell.

“As you increase the concentration of an odor, you’ll start recruiting more and more odorant receptors that aren’t as sensitive to that compound,” Louis explains. “And so, the common view until our work was that you just kept adding active odorant receptors to the picture.”

This makes sense, until you consider the system as a whole. If this were the case, then a compound should activate pretty much all of the receptors above a certain level. “So it would be impossible for you to distinguish between two different odors at very high concentrations,” Tadres says. “And that’s clearly not the case.”

Having certain sensory neurons drop out as others join in might help preserve the distinction between odors at high concentrations. And this could prove important for survival. It might prevent poisons and nutrients that share certain compounds from smelling alike when you take a big whiff of them.

It could also have consequences for how we perceive odors. “We speculate that removing successive high-sensitivity olfactory sensory neurons is like removing the root of a musical chord,” Louis says. “This omission of the root is going to alter the way your brain perceives the chord associated with a set of notes. It’s going to give it a different meaning.”

A subtle floral note suggests an orchard may be in bloom nearby, useful information for a hungry animal. Meanwhile, the same compounds in higher concentrations could produce the pungent ripeness of decaying fruit or even sewage: something best avoided. Studies like this reveal ever more complexities to our sense of smell, which evolved to help us navigate an equally complex chemical landscape.

Source: UC Santa Barbara

source

McCarthy-backed PAC agrees to not spend in safe GOP open-seat primaries in Speakership concession

Just In | The Hill 

Allies of Rep. Kevin McCarthy (R-Calif.) made a big concession on Wednesday night, as the Congressional Leadership Fund (CLF), a PAC that helps fund Republican House candidates, will not spend in any open-seat primaries in safe GOP districts, opening the door for a key conservative group to back him for Speaker. 

The CLF, which is endorsed by McCarthy, struck the deal with the Club for Growth, which is expected to support McCarthy for the top job assuming an agreeable rules package is struck including provisions the Club for Growth asked for originally. Included is a call for “open rules” on all major rules bills, such as appropriations, that would allow rank-and-file lawmakers to have amendments brought to the floor. 

“This agreement on super PAC’s fulfills a major concern we have pressed for. We understand that Leader McCarthy and Members are working on a rules agreement that will meet the principles we have set out previously.” David McIntosh, the head of the Club for Growth, said in a statement. “Assuming these principles are met, Club for Growth will support Kevin McCarthy for Speaker.”

The move could prove crucial in McCarthy’s quest to win the gavel. 

His opponents had called for the group to not back primary candidates in open but safe GOP districts, and the demand had become a point of contention in the Speakership race. 

“Kevin McCarthy has effectively led House Republicans from the Minority to the Majority and we want to see him continue to lead the party so we can pick up seats for the third cycle in a row. CLF will not spend in any open-seat primaries in safe Republican districts and CLF will not grant resources to other super PAC’s to do so,” said Dan Conston, CLF’s president, in a statement.

“CLF has never spent a dollar against a Republican incumbent before and obviously will continue that policy in the future. CLF will continue to support incumbents in primaries as well as challengers in districts that affect the Majority, which proved to be critical to winning the Majority in 2022,” Conston continued.

Such open and GOP-safe primaries are rare, but they can become high-profile. In the 2022 cycle, Rep.-elect Morgan Luttrell (R-Texas), who was backed by McCarthy, bested several other candidates for the nomination in Texas’s deep-red 8th Congressional District outside Houston.

According to the CLF, no lawmaker or member’s staff pushed the PAC to make the move, which could help assuage conservatives to back McCarthy’s bid — but how many remains unclear. Twenty conservatives voted on three separate ballots for Rep. Byron Donalds (R-Fla.). McCarthy cannot lose more than four votes in order to win the Speakership. 

The CLF spent more than $259 million during the 2022 cycle. 

​House, News, Byron Donalds, Dan Conston, David McIntosh, House Speaker votes, Kevin McCarthy Read More 

CNN hires just-retired GOP Rep. Adam Kinzinger

Just In | The Hill 

CNN has hired former Republican Rep. Adam Kinzinger (Ill.) to serve as a senior political commentator, the network announced Wednesday.

Kinzinger, a leading critic of former President Trump, served on the House select committee investigating the Jan. 6, 2021, attack on the U.S. Capitol.

He famously gave a tearful speech during one of the committee’s early hearings as he reflected on the events of Jan. 6, saying there’s a “difference” between “a crime — even grave crimes — and a coup.”

Kinzinger’s hiring at CNN comes on the heels of a time of tremendous change at the network, which, under new President Chris Licht, has made several programming and personnel moves that have garnered headlines and some criticism from liberals.

Licht has said he would like CNN’s programs and political coverage to take a more sober tone and represent a wider array of viewpoints.

Kinzinger served six terms in the House and served in the Air Force prior to that. He remains in the Air National Guard.

Just days ago, he blamed Rep. Kevin McCarthy (R-Calif.) for what he called the “crazy elements” in Congress. McCarthy is currently locked in a battle for the Speakership of the House.

He has also thrown cold water on suggestions he would run for president in 2024 but said it “would be fun” to run against Trump, who has already declared his candidacy.

​Media, News, Adam Kinzinger, CNN Read More 

Rivian stock hits new 52-week low after the automaker misses 2022 production target

Employees work on an assembly line at startup Rivian Automotive’s electric vehicle factory in Normal, Illinois, April 11, 2022.

Kamil Krzaczynski | Reuters

Shares of Rivian Automotive notched a new 52-week low on Wednesday after the company missed its 25,000-unit production target for last year.

The EV startup late Tuesday said it produced 24,337 vehicles in 2022, including 10,020 in the fourth quarter. Of those, 20,332 vehicles were delivered to customers during the year, including more than 8,000 from October through December.

related investing news

Pro Picks: Watch all of Tuesday's big stock calls on CNBC

CNBC Pro

The missed target caps off a difficult year for the company as well as Rivian investors. Shares of the automaker declined by more than 80% during 2022 amid production, parts and supply chain problems.

Rivian said during its IPO roadshow in 2021 that it expected to build 50,000 vehicles in 2022. But it cut that guidance by half in March due to production and global supply chain issues.

Shares of Rivian during early trading Wednesday dipped by as much as 4.5% to $16.56 a share before reversing course and gaining more than 2% to close at $17.71 a share. A year ago the stock traded for $106.80 a share.

Shares of Rivian have fallen more than 80% in the last 12 months.

source

Where to keep your cash amid high inflation and rising interest rates: It's 'a little tricky,' says expert

dowell | Moment | Getty Images

Investors have many options when saving for short-term goals, and those choices have become more complicated amid high inflation and rising interest rates.

While there have been signs of slowing inflation, the Federal Reserve is expecting higher interest rates to continue.

“It looks like this year might be a little tricky,” said Ken Tumin, founder and editor of DepositAccounts.com, a website that tracks the most competitive options for savings.  

More from Personal Finance:
Strategies that can help you dig out of holiday debt
Why your savings account interest may be behind the Fed
Experts say it’s time to boost 401(k) contributions for 2023

Although the Fed’s federal funds rate has reached the highest level in 15 years, savings account interest rates haven’t matched these hikes, Tumin explained. 

As of Jan. 4, online high-yield savings accounts were paying an average of 3.48%, according to DepositAccounts, with some smaller banks reaching 4%. 

Still, if you’re keeping money in a savings account, Tumin said it’s better to stick with established banks.

Key takeaways from the CNBC Workforce Survey

He cautioned savers to be “real careful” with financial technology companies partnering with banks for checking and savings accounts and other cash products. “You should go directly to FDIC-insured banks, rather than through fintechs,” Tumin said. 

It’s a ‘strange environment’ for certificates of deposit

Another option for savings, certificates of deposit, or CDs, may present opportunities for short-term savers, Tumin said. 

“It’s kind of a strange environment where we actually can get a higher rate for short-term CDs than long-term CDs,” he said.

It’s kind of a strange environment where we actually can get a higher rate for short-term CDs than long-term CDs.

Ken Tumin

Founder and editor of DepositAccounts.com

While Tumin expects savings account interest to rise, these rates may not match one-year CDs, which have more closely followed the Fed, and were offering an average of 4.81% as of Jan. 4, according to DepositAccounts.

“From that point of view, you might be better off with a one-year CD than an online savings account over the next year,” he said.

Series I bonds are still a ‘great consideration’ for short-term investors

As inflation has soared, Series I bonds, an inflation-protected and nearly risk-free asset, have also become a popular choice for short-term savings.

I bonds are currently paying 6.89% annual interest on new purchases through April, down from the 9.62% yearly rate offered from May through October 2022.

“These have become very popular among our clients as the rates have skyrocketed,” said certified financial planner Eric Roberge, founder of Beyond Your Hammock in Boston. “This makes them great considerations for shorter-term investors.”

I bonds earn monthly interest with two parts: a fixed rate, which may change every six months for new purchases but stays the same after buying, and a variable rate, which changes every six months based on inflation.

While the current 6.89% annual rate may be appealing, the yield may change in May, based on six months of inflation data. Since you can’t access the money for one year, there’s the potential to lock in a lower rate after the first six months. 

Still, if you need your money in one to five years, this could be a choice to consider, Roberge said.

source

[World] The Somali gold rush endangering frankincense and myrrh

BBC News world 

Image source, Getty Images

The three kings of the biblical nativity carried three precious gifts to mark the birth of Jesus – but a modern-day gold rush in Somaliland is putting the ancient perfume trade in frankincense and myrrh at risk.

“The gold, frankincense and myrrh brought by the three wise men to baby Jesus definitely came from here,” said the old man sitting in the dust under a tree.

I met Aden Hassan Salah on Daallo Mountain, part of the Golis range that straddles the self-declared republic of Somaliland and Puntland State in Somalia. Both territories claim the area.

“The routes of the camel caravans that for centuries transported them from here to the Middle East can be seen from space,” he said.

The Bible refers to how these animals carried the gifts to Bethlehem where it is believed that Jesus was born.

A younger man, dressed in a sarong and Manchester United football top, sprang up from the ground. His name was Mohamed Said Awid Arale.

Image caption,

Many of the gold-diggers who started arriving in Daallo Mountain in 2017 are former nomads

“As I’m sure you know, ‘Puntland’ means the ‘land of exquisite aromas,'” he said.

“One thousand, five hundred years before Jesus was born, Egypt’s most powerful female pharaoh, Hatshepsut, made a famous expedition here. She ordered the construction of five boats for the journey, filled them with the three precious substances, and sailed back home.

“Gold was used to adorn Hatshepsut’s body, frankincense was burned in her temples and myrrh was used to mummify her after she died.”

Gold, frankincense and myrrh have been exported from the region for thousands of years. Much of the world’s frankincense comes from the Horn of Africa.

Today, one of the gifts brought to baby Jesus, gold, is sowing the seeds of destruction of the other two.

The men on Daallo Mountain are part of the problem.

Image source, Getty Images

Image caption,

The famous trees of this region of the Horn of Africa are depicted on the walls of the Temple of Hatshepsut

They spearheaded a gold rush which began around five years ago and has led to the uprooting of frankincense and myrrh trees, some centuries old.

“Gold-miners have swarmed into the mountains,” says Hassan Ali Dirie who works for the Candlelight environmental organisation.

“They cut down all the plants when they clear areas for mining. They damage the roots of the trees when they dig for gold. They block crucial waterways with their plastic bottles and other rubbish,” he said.

“Day by day, they are ensuring the slow death of these ancient trees. The first to go are the myrrh trees, which are uprooted when the diggers clear the land for surface mining.

“Frankincense trees last a bit longer as they grow on rocks and are destroyed once the miners dig deep into the earth.”

Woody perfume

A little further up the hill is a frankincense village where the trees have been passed down from generation to generation.

A woman sat on a turquoise plastic chair in her porch surrounded by children, their mothers and baby goats.

BBC
We burn frankincense to chase away flies and mosquitoes. We inhale it to clear colds and we consume it to cure inflammation”

Racwi Mohamed Mahamud
Owner of frankincense trees

“I have no idea what you’re talking about,” said Racwi Mohamed Mahamud when I asked her about the story of the Magi bearing gifts.

“All I know is that my family has owned these trees for hundreds of years. They are passed from great-great-grandfather to great-grandfather to grandfather to father to son.”

She ordered a young man to fetch some frankincense recently tapped from a tree. He came out carrying a cloth bundle, set it on the ground and opened it. The air was filled with a delicious woody perfume.

We sifted through the sticky substance to find nuggets of frankincense. These are cleaned, dried and graded before being sold to middlemen who export them across the world to burn in churches, mosques and synagogues and to create medicine, essential oils, expensive cosmetics and fine perfumes, including Chanel No 5.

Ms Mahamud looked at me blankly when I asked her what she thought about her frankincense eventually ending up in fancy department stores promising miracle anti-ageing properties and mysterious, seductive aromas.

“That sounds like nonsense to me,” she said.

“We burn frankincense to chase away flies and mosquitoes. We inhale it to clear colds and we consume it to cure inflammation. That’s it.”

Image caption,

This frankincense tree has been over-harvested

The tappers and graders get very little of the money made from frankincense, with a kilogram selling for between $5 (£4.15) and $9. There have been scandals involving ruthless middlemen and greedy foreign companies.

They get slightly more for myrrh which currently sells for $10/kg. Like frankincense, it is a resin tapped from small, thorny trees. It is used to embalm dead bodies and to make perfume, incense and medicine.

It is believed to have antiseptic, analgesic and anti-inflammatory qualities and is used in toothpaste, mouthwash and skin salves.

The villagers explain how the goldminers came to their area with their shovels and pickaxes.

“We stood firm against them,” says Ms Mahamud shaking her fist.

“We said: ‘You have come here for your crude, yellow gold. We have our green gold and nobody can take it away from us.'”

Image caption,

Frankincense resin, used in perfumes like Chanel No 5, fetches between $5 and $9 pr kg

The miners ran away and never came back.

The atmosphere in the frankincense village was completely different from that in the goldminers’ settlement.

It was basic, but there was a sense of community.

People young and old strolled about, chatting, drinking tea and complaining about how low frankincense prices made it difficult to make ends meet, especially during this time of high inflation and severe drought.

Drugs and jihadist taxes

It took a while to work out what was so strange about the goldminers’ place.

Eventually I realised there were no women or children there.

Image caption,

The Golis range, that borders disputed territory between Somaliland and Puntland, has long been a source of riches

“We don’t really know what has happened to our families,” said Mr Salah, the old man I met sitting under the tree.

“We used to be nomads but endless failed rainy seasons and droughts meant we had to give up our traditional way of life.”

He explained how they came to the mountains in 2017 to look for gold.

“There was nothing here when we arrived. It was just a dry river bed. This was the first place where gold was found. We have built it up into a kind of village,” he said pointing at some shacks built from sticks.

I asked Mr Salah and the few dozen other men sitting with him whether they preferred the gold-digger’s life to that of a nomad. They shook their heads and shouted out in rage.

“As nomads we had dignity. We depended on nobody. We lived with our families, our camels, goats and sheep. We lacked for nothing,” he said.

“The camels carried our shelters and cooking pots. The livestock provided our food and milk. We cannot eat or drink the gold we find. It cannot carry our shelters and belongings.”

Image source, Hassan Ali Dirie

Image caption,

The area around the mines is bare of vegetation – and targeted by khat dealers and jihadist tax collectors

The miners explained how they sold the mineral to traders who smuggled it by sea to Dubai.

Gold-mining is not only destroying the environment. It is wrecking their lives.

“We have become drug addicts,” said Mr Arale, the man in the red Manchester United shirt

“We are hostages to khat dealers,” he said, referring to a narcotic leaf chewed by many Somalis.

“They control our lives. We spend all our money on khat instead of our families, which are lost to us.”

As they spoke, a land cruiser drove into the village. Two well-dressed men emerged from the vehicle. The miners said they were the khat dealers.

“Gold has ruined our lives in other ways too,” said Mr Salah. “It has driven some of us mad, like our friend who found $50,000 worth of gold and lost his mind.”

Candlelight’s Mr Dirie explained how gold was destroying the local community.

“Some schools have closed because all the teachers have left to join the gold rush. Students are leaving too.”

He said Somalis from other regions were coming into the mountains leading to deadly clan clashes.

“Many of the miners are armed,” he said. “We must turn around and leave now. It is not safe to stay here for a long time.”

The Islamist groups, al-Shabab and the Somali branch of Islamic State, have started to demand taxes from the gold-diggers.

As we drove out of the mountains on the long dusty road, I wondered if those who buy expensive perfumes, cosmetics and jewellery have any idea where the substances used to make them come from, how many hands they pass through and how much destruction they have caused.

 

Read More