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  • Another education fight over DEI emerges, this time at a conservative campus in Texas | CNN

    Another education fight over DEI emerges, this time at a conservative campus in Texas | CNN


    Lubbock, Texas
    CNN
     — 

    One of the largest universities in Texas is now reviewing its hiring procedures after one department closely scrutinized candidates over their knowledge of diversity, equity and inclusion, more commonly known as DEI.

    “We could see that this could be viewed as possibly exclusionary,” Texas Tech President Lawrence Schovanec said in an interview with CNN. “And so we wanted to step back and review the whole process.”

    The biology department at Texas Tech University – set in deeply conservative West Texas – asked faculty candidates in 2021 to submit statements on their commitment to DEI. Some candidates received negative notes if their answers were deemed insufficient, such as not knowing the difference between “equality” and “equity.”

    The process, which came to light earlier this month, prompted swift conservative backlash against the storied institution, with critics decrying such DEI screenings as litmus tests that discriminate based on ideology. The term DEI has become the latest target among conservative politicians in the recent era of racial reckoning, echoing the heated debates over critical race theory in schools.

    DEI programs have become commonplace in the worlds of business, government, and education to promote multiculturalism and to encourage success for people of all races and backgrounds. But they’ve also become a focal point of those who describe them as another example of extreme political correctness.

    In Florida, Republican Gov. Ron DeSantis said earlier this month he intends to ban state universities from spending money on DEI initiatives. “We want education, not indoctrination,” he said at an event in Jacksonville.

    And in Texas, Republican Gov. Greg Abbott this month issued a memo to state agencies and universities asserting that using DEI as a screening tool is illegal. “When a state agency adjusts its employment practices based on factors other than merit, it is not following the law. Rebranding this employment discrimination as ‘DEI’ does not make the practice any less illegal,” the memo said.

    Schovanec said the school’s lawyers insist the biology department’s actions were not illegal, but the university is ending efforts that use DEI as a screening tool for faculty while it undergoes a review of its hiring practices campuswide.

    A group called the National Association of Scholars first uncovered the situation at Texas Tech by obtaining DEI-specific notes and documents from the biology department’s hiring process through open records requests. The group published the roughly 100 documents online, along with an op-ed for the Wall Street Journal, called “How ‘Diversity’ Policing Fails Science.”

    The DEI portion was just one component of screening candidates in the biology department, according to the university. Each applicant was asked to submit a curriculum vitae, three representative publications, separate statements of research and teaching interests, three potential referees, and “a diversity statement that addresses any past contributions to diversity, equity, and inclusion and outlines plans and actions for advancing DEI” at Texas Tech. Finalists were also interviewed by a DEI committee.

    According to the documents, candidates were flagged for being “reluctant” to answer questions about DEI or not having a “good grasp” of the concept. Under the “weaknesses” for one candidate, it was noted the candidate repeatedly used the pronoun “he” when talking about professors. The same candidate was “red-flagged” and hiring committee members wrote they had “reservations about sending him into a large, diverse undergrad classroom with his current understanding and strategies.”

    Another candidate’s weakness was listed as: “Mentioned that DEI is not an issue because he respects his students and treats them equally.”

    While the names of the candidates in the documents were redacted, Texas Tech University confirmed to CNN that some of the candidates featured in the documents were hired and not all of the positions have been filled yet.

    Steve Balch is a former Texas Tech professor and founder of the National Association of Scholars, which has done considerable research on DEI efforts in universities to illustrate what it sees as an impediment to academic freedom.

    “My quarrel isn’t with people who think diversity, equity and inclusion are good things,” he told CNN. “My argument and the argument of the NAS is turning them into dogma and then using them to vet faculty members, graduate students, undergraduate students – creating aversive environment in which you feel you have to swear fealty to a particular creed. I think that’s wrong.”

    The issue at Texas Tech also came up in a state Senate hearing on February 8. Sen. Joan Huffman questioned Texas Tech’s chancellor Tedd Mitchell, saying she was “concerned and confused” over the incident.

    “I do not believe in litmus tests of any type,” Mitchell said. “It’s no more appropriate to ask somebody about their position on DEI than it is to ask them if they’re a Christian or a Muslim. When we find out something like that has occurred, we stop it.”

    Schovanec recognizes that Tech is in conservative part of a conservative state with many key conservative stakeholders, donors, and legislators involved in school funding.

    “We have to be pragmatic in acknowledging issues that are being raised,” he said. “Our legislators are responding to their constituents. And in this country right now, education has many challenges.”

    He stressed the importance of diversity at the school, which has its own DEI division. According to Texas Tech, 46% of this year’s incoming class are students of color, and 30% of faculty are faculty of color.

    “So we’re totally committed to a diverse campus community, but those hiring practices could present the perception that certain candidates would be excluded based on their ideological views, as opposed to the real excellence related to that discipline and the ability to address the priorities of our mission here,” he said.

    Schovanec said the school needs more diverse faculty, and he acknowledged that some prospective candidates might see the school’s recent move to end DEI screenings and question Tech’s commitment to diversity.

    “Faculty and students have to judge us by our actions. Do we support them? Do we create an environment here where they feel they belong and this is a place where they can thrive? That’s a much bigger issue than certain elements of a hiring process,” he said “But that is a challenge that we have.”

    Paulette Granberry Russell, president of the National Association of Diversity Officers in Higher Education, said the political firestorm over the incident at Texas Tech is simply an “attempt to fuel the base” among those who don’t agree with longstanding efforts to increase diversity.

    She’s concerned that DEI will follow the same path as critical race theory, or CRT, and become a term that’s twisted and misrepresented for political purposes.

    “It’s demonizing efforts, not only within higher education, but I think within this country to create a more equitable, just United States,” she said. “On some levels it’s misappropriating the work that is being done and using it as a basis for saying we’re discriminating against others.”

    Granberry Russell said she wants people to understand the nuance of DEI and that it’s designed to increase opportunities for people who have been historically marginalized or not well represented in higher education or the workforce.

    “My hope would be that as we begin to think more broadly about inclusion, that people will better understand this is not a situation where some are intending to take access away, but to expand access,” she said.

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  • You’ve been laid off. Here’s what to post on social media, and what to leave out | CNN Business

    You’ve been laid off. Here’s what to post on social media, and what to leave out | CNN Business


    New York
    CNN
     — 

    If ever you’ve been swept up in a mass layoff, among the many unwelcome tasks on your new to-do list is how and when to tell people you lost your job.

    Often, the go-to place to alert your professional network has been social media like LinkedIn, Twitter, Instagram, Facebook and others.

    But the way you deliver the message matters if your goal is to set yourself up well for new opportunities.

    Take a little time before posting: You don’t need to go public right away.

    “Take time to digest the fact that you no longer have a job,” said career coach Aneri Desai, who works primarily with immigrants. “Take your time to understand your situation.”

    If you’re upset, tell your partner, your friend or your pillow. Just don’t post your fury or bitterness online.

    Consider a “soft” announcement first: If you’re not sure yet what you’re going to do — or even whether you want to stay in the same career — you can put up an initial “soft” post just to let people know your job was eliminated, Desai noted. It’s okay to say “Not sure yet what my next move will be, but stay tuned. I will reach out when I’m clearer on next steps.”

    This can be an especially useful move if your company’s layoffs are making headlines and you’re being bombarded with messages from friends and colleagues asking if you were affected.

    Keep it short: Whether you’ve worked at a place for five years or 25 years, you could probably write a book about your experiences.

    But please don’t. Shorter is best — a few paragraphs at most. “Don’t use all the characters you can. You want people to read it,” said career coach Marlo Lyons, author of “Wanted: A New Career.”

    Gratitude is good, but also focus on your accomplishments: If genuine, express appreciation for your mentors and colleagues, and the opportunities you had at your job. But don’t spend most of your post thanking people, Desai said.

    “So many people put the spotlight on ‘how lucky I was to work with this team’ but they miss out on giving credit to themselves,” Desai said. “Toot your horn.”

    By that, she means it’s important to note some of the big ways you added value to your company: for example, how you automated and expedited the claims process at your employer, making the experience easier and faster for the 50,000 clients the company served last year.

    Be specific about what you want and your skills: When you are ready to look for a new job and receive help from your network or hear from recruiters, your post should be “very explicit,” Lyons said.

    Detail the hard and soft skills you will bring to a new employer. Specify which field or set of related fields you want to be in ( like sales, account management, business development); what role titles you’re interested in (e.g., vice president-level positions, senior manager); whether you’d prefer to work remotely or hybrid; and any other details that will help people help you.

    Extend the reach of your post: You want as many people to see your post as possible.

    So you might tag it #openforwork, a hashtag often used on LinkedIn, Desai suggested.

    You also might tag people whom you are thanking in your post. But this may not be the right move for everyone. If there’s a risk you’ll leave out someone who has been especially helpful to you — or conversely, if you’re intentionally not tagging your current boss — “that may leave a negative impression,” Lyons said. In that case, better to reach out privately to the individuals you want to thank and instead invite anyone reading your post to “please comment for reach,” she suggested.

    Keep it upbeat: If you’re financially freaked out, don’t say so, Lyons said.

    You don’t want to give the impression that you’ll take the first job that comes alone.

    “Companies want you to want them — not just for you to take the job because you have to,” Lyons said. “It’s okay to say you’d like a job sooner rather than later. But be careful not to appear desperate.”

    Be consistent across platforms: Chances are you may announce your layoff on more than one social platform. So be consistent in your message. You don’t want to put out a very professional post on, say, LinkedIn but then launch an angry tweetstorm on Twitter.

    “[Before] someone goes to hire you,” Lyons said, “they will read your posts.”

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  • ‘A recipe for disaster.’ Deadly encounter in Memphis comes at a critical time in American policing | CNN

    ‘A recipe for disaster.’ Deadly encounter in Memphis comes at a critical time in American policing | CNN



    CNN
     — 

    Since the night Tyre Nichols was kicked, pepper-sprayed, punched and struck with a baton by Memphis police officers, six cops have been fired and five of them charged with murder. Seven others face internal disciplinary charges.

    Nichols died three days after the January 7 traffic stop and subsequent fatal encounter captured on video and principally involving five officers with two to six years on the job.

    The death of the 29-year-old Black man comes at a critical juncture in American law enforcement, as departments across the country – including the Memphis PD – struggle to recruit qualified officers and fill shifts, lure candidates with signing bonuses worth thousands of dollars, and at times curtail standards and training in a desperate bid to strengthen patrols amid rising gun violence, according to law enforcement experts.

    “That is a recipe for disaster,” said Kenneth Corey, a retired NYPD chief who once ran the training division. “We’ve seen it happen before. You couldn’t fill seats. You lowered standards. And now you’ve got scandal and use of force. And when you look at the individuals involved you say, we never would have hired this guy once upon a time.”

    In the weeks since authorities released video of Nichols’ brutal beating, little information has come out about the recruitment and training of the five former officers facing murder charges – Tadarrius Bean, Demetrius Haley, Justin Smith, Emmitt Martin III and Desmond Mills Jr.

    The five men were part of a now disbanded specialized street crime unit formed just over a year ago as part of the city’s strategy to combat rising violence. The SCORPION unit focused on homicides, robberies, assaults and other felonies.

    Chuck Wexler, the executive director of the Police Executive Research Forum, said Nichols’ killing raises questions about “how those officers were trained and supervised and selected.”

    “Over time you always want to look at the backgrounds of those officers – that will be important. The hiring process – that will be important,” he said. “In this case we don’t know enough yet.”

    Bean, 24, was commissioned as an officer in January 2021, personnel records show. His attorney has not responded to CNN’s requests for comment.

    Haley, 30, was commissioned as an officer in January 2021, the records show. He is a former correctional officer. His attorney has not respond to requests for comment.

    Martin, 30, joined the department in 2018, according to the records. He will plead not guilty, according to his attorney, William Massey, who said: “No one out there that night intended for Tyre Nichols to die.”

    Mills, 32, a former jailer in Mississippi and Tennessee, joined the department as a recruit in March 2017, the records show. He, too, plans to plea not guilty, said Blake Ballin, his attorney, who described Mills as “devastated” and “remorseful.”

    Memphis Police Chief Cerelyn “CJ” Davis told CNN last month that Nichols’ death was indicative of “a gap somewhere” in the specialized street crime unit.

    “We train and we retrain these officers, just like specialized units around the country,” she said. “These officers working in specialized units, you always need to make sure that the supervision is there and present.”

    On January 28, one day after the release of the video, Memphis PD announced that it had permanently disbanded the unit.

    Davis said the department was unaware of any evidence the unit had previously engaged in misconduct but added that an investigation is ongoing.

    The five former Memphis officers charged in Nichols’ death also are accused of assaulting another young Black man just three days before the fatal police encounter, according to a federal lawsuit filed Tuesday.

    The suit accuses the city of failing to prevent or address an alleged pattern of policing abuses by the SCORPION unit, which it claims operated like a “gang of vigilantes” without adequate training or supervision. Police declined to comment on the lawsuit, citing ongoing litigation.

    The Shelby County District Attorney’s office in Memphis said it will review all cases involving the five officers charged with Nichols’ death.

    Davis, speaking at a Memphis city council meeting Tuesday, said training was not an issue with the unit. Instead, she said, “egos” and a “wolf pack mentality” contributed to the killing.

    “Culture is not something that changes overnight. You know, there is a saying in law enforcement that ‘culture eats policy for lunch.’ We don’t want to just have good policies because policies can be navigated around,” she said. “We want to ensure that we have the right people in place to ensure our culture is evolving.”

    Memphis Police Chief Cerelyn

    In this still from video released by the City of Memphis, officers from the Memphis Police Department beat Tyre Nichols on a street corner.

    These are the moments that led to Tyre Nichols’ death

    Nichols’ death comes as many police departments in the US have been reeling from an exodus of officers due to resignations and retirements and scrambling to attract new recruits. The staffing crisis has been exacerbated by high-profile cases such as the 2020 murder of George Floyd that have put policing under scrutiny and made it a frequent target of protests and moves to decrease funding.

    “The pandemic impacted recruiting and then George Floyd’s murder really was a moment in time that made prospective police applicants think twice – Is this a job for me?” Wexler said.

    “And now, unfortunately, with the Tyre Nichols killing you simply compounded what was already arguably a challenging environment to hire a police officer.”

    Wexler’s group, in a 2021 survey, found that retirements had risen 45% that year since 2019. Resignations had jumped 18% in that two-year period.

    The number of officers on the Memphis Police Department dropped by more than 22% since 2011 – from 2,449 in September 2011 to a low of 1,895 officers last December, according to the Memphis Data Hub website.

    The department was budgeted for 2,300 officers last year, CNN affiliate WMC reported. In 2015, nearly 200 Memphis police officers resigned over changes to pension and benefit plans, according to WMC.

    “It had gotten to the point that we were having sergeants as acting lieutenants,” said Alvin Davis, a former Memphis police lieutenant and recruiter who retired last year. “Hundreds of people did it over a period of time because we didn’t have enough supervisors. So many people were running out the door.”

    In this still from video released by the City of Memphis, officers stand around as Tyre Nichols leans up against a car after being detained and beaten on January 7.

    Like other departments around the country, the Memphis PD in 2021 began offering $15,000 signing bonuses and $10,000 in relocation assistance. Additionally, requirements on college credits, military experience and employment history have been loosened, WMC reported.

    “Departments around the country … are offering between $25,000 and $30,000 signing bonuses,” Wexler said. “You’ve got a national shortage of applicants which has forced police departments to do unprecedented things like offering signing bonuses and, in some cases, modifying the standards for hiring.”

    Greg Umbach, associate professor at John Jay College of Criminal Justice, said there is a direct correlation between higher standards for new recruits and lower incidents of bad behavior.

    “We know from decades of research that the number of cops meeting higher qualifications, most notably a college degree, matters far more than anything else, for the number of civilian complaints a department gets,” Umbach said.

    And if the pipeline of good officers is low, Umbach said, then so is the quality of supervision – a reality that has plagued the Memphis Police Department and other agencies nationwide.

    “Any police sergeant watching that video, their first thought is, ‘My God, where was the supervision and why did they think this was okay,’” Umbach said.

    The Memphis Police Department urges recruits to

    Davis, the former lieutenant and recruiter, asked a similar question about supervision.

    “If you pepper-spray someone or you tase someone, you’re supposed to call a supervisor,” said Davis, who spent 22 years on the job. “That’s just policy. Why they didn’t, I can’t say.”

    But, Davis said, the behavior of the former officers who beat Nichols did not entirely surprise him – given the curtailed training and standards, shortage of skilled supervisors and growing number of officers lured by monetary incentives and without the requisite experience being deployed on the city’s streets.

    “The standards kept dropping and dropping to bring people in,” said Davis, who was in charge of recruiting. “And then they start throwing money out to lure people in and this is what you got.”

    He added, “Just about everybody who came, the first thing they asked us was about was the money. How long did they have to stay on the job? Do I have to do a year? Two years? Nobody is trying to make a career out of it. It was the money.”

    The Memphis PD did not immediately respond to a request for comment on training, recruitment and staffing issues.

    “It’s not the job that it used to be, when you felt like you’re the ‘best in blue’ and you have your head up because you really feel like you accomplished something,” said Davis, referring to the Memphis Police Department’s longtime “Join the best in blue” recruitment campaign. “It’s not that kind of job anymore.”

    It’s too early to tell exactly what factors contributed to the behavior of the former officers who beat Nichols to death on January 7, law enforcement experts said.

    Wexler and others pointed to previous policing scandals that were preceded by periods of hiring under lax standards and curtailed training.

    In the late 1980s, nearly 10% of the officers in the Miami Police Department were suspended or fired after a corruption scandal involving rogue officers who became known as the “River Cops.” Nearly 20 former officers were convicted on various state and federal charges, including using their police powers as a racketeering enterprise to commit murder.

    Atlanta police officers keep an eye on marchers during a rally on January 28 protesting the fatal police assault of Tyre Nichols.

    In 1990, an investigation into the hiring and training of police officers in Washington, DC by the General Accounting Office found that a hiring rush during the previous decade – prompted by a wave of drug and gun violence – led to cutting corners on recruiting, background checks and training.

    Eight years later, another report by the GOA, the investigative arm of Congress, examined drug-related police corruption and said “rapid recruitment initiatives” coupled with loosening education requirements and inadequate training and supervision “might have permitted the hiring of recruits who might not otherwise have been hired.”

    “These are all lessons of history,” said Corey, the former NYPD chief. “You have to make the profession attractive to the type of people you want to recruit. It’s not that people have lost interest in policing. They just don’t see it as a viable occupation.”

    He added, “What we ask of our cops is that they think like lawyers, speak like psychologists, and perform like athletes but we pay them as common laborers. A starting officer in New York City makes $42,000 a year, which means about $20 dollars an hour. It also means that at McDonald’s they could be making $15 dollars an hour with none of the stress, trauma or risk.”

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  • Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Federal Reserve Chairman Jerome Powell threw markets into a tizzy on Tuesday as he spoke about the economy alongside his former boss, Carlyle Group co-founder David Rubenstein, at the Economic Club of Washington.

    Stocks struggled for direction as investors tried to get a read on Powell’s economic outlook, attitude towards inflation and on future interest rate hikes. Wall Street cheered as the Fed chair said the disinflationary process has begun, then soured when he said the road to reaching 2% inflation will be “bumpy” and “long” with more rate hikes ahead.

    Markets soared to new highs, before quickly falling to session lows and then recovering to close the day in the green.

    “Powell doesn’t want to play games with financial markets,” said EY Parthenon chief economist Gregory Daco after the conversation. But at the same time, he said Powell wanted to communicate that the Fed’s “base case was not for inflation to come down as quickly and painlessly as some market participants appear to expect.”

    Here’s why Powell thinks bringing down prices will be more difficult than investors anticipate.

    Structural changes in the labor market: The US economy added an astonishing 517,000 jobs in January, blowing economists’ expectations out of the water. The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969.

    The current labor market imbalance is a reflection of the pandemic’s lasting effect on the US economy and on labor supply, said Powell on Tuesday in answer to a question about the report. “The labor market is extraordinarily strong,” he said. Demand exceeds supply by 5 million people, and the labor force participation rate has declined. “It feels almost more structural than cyclical.”

    “If we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more,” he said.

    Core services inflation: Powell noted that he’s seeing disinflation in the goods sector and expects to soon see declining inflation in housing. But prices remain stubborn for services. Service-sector inflation, which is more sensitive to a strong labor market, is up 7.5% from the year prior through the end of 2022, and has not abated, he said.

    “That sector is not showing any disinflation yet,” Powell said. “There has been an expectation that [higher prices] will go away quickly and painlessly and I don’t think that’s at all guaranteed.”

    Geopolitical uncertainties: Powell also cited concerns that the reopening of China’s economy after the sudden end of Covid-Zero restrictions, plus uncertainty about Russia’s war on Ukraine could also affect the inflation path in ways that remain unclear.

    ▸ The labor market is strong, but tech layoffs keep coming. There were around  50,000 tech jobs cut in January, and the trend has continued into February.

    Video conferencing service Zoom is one of the latest to announce layoffs. The company said Tuesday that it’s cutting 1,300 jobs or 15% of its workforce. 

    Zoom CEO Eric Yuan said in a blog post on Tuesday that Zoom ramped up employment  quickly due to increased demand during the pandemic. The company grew three times in size within 24 months, he said and now it must  adapt to changing demand for its services.

    “The uncertainty of the global economy, and its effect on our customers, means we need to take a hard — yet important — look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he wrote.

    Yuan added that he plans to lower his own salary by 98% and forgo his 2023 bonus. Shares of Zoom closed nearly 10% higher on Tuesday. 

    The announcement comes just one day after Dell said it would lay off more than 6,500 employees.

    Amazon

    (AMZN)    , Microsoft

    (MSFT)    , Google and other tech giants have also recently announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.

    ▸ Neel Kashkari, president of the Federal Reserve Bank of Minneapolis told CNN that he is starting to think that the US economy could avoid a recession and achieve a so-called soft landing.

    It’s hard to have a recession when the job market is still so robust, he told CNN’s Poppy Harlow on Tuesday on CNN This Morning.

    Still, “we have more work to do,” Kashkari told Harlow, adding that the labor market is “too hot” and that is a key reason why it is “harder to bring inflation back down.”

    Although many investors are starting to think the Fed may pause after just two more similarly small hikes, to a level of around 5%, Kashkari said he believes the Fed may have to raise rates further. Kashkari has a vote this year on the Federal Open Market Committee, the Fed’s interest-rate setting group.

    ▸ It’s a good time to be in the oil business. BP’s annual profit more than doubled last year to an all-time high of nearly $28 billion.

    The British energy company said in a statement that underlying replacement cost profit rose to $27.7 billion in 2022 from $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)     also unveiled a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    BP’s shares rose 6% in Tuesday trading following the news. Over the past 12 months, its shares have soared 24%.

    The earnings are the latest in a string of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of skyrocketing oil and gas prices.

    Last week, another energy major Shell reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices jumped following Russia’s invasion of Ukraine.

    On Wednesday it was TotalEnergie

    (TTFNF)    s turn. The French company posted annual profit of $36.2 billion for 2022, double the previous year’s earnings.

    Disney has found itself in the middle of a culture war battle that could end up transferring Disney World’s governance to a board appointed by Florida Gov. Ron DeSantis. And that may be the least of Disney’s problems, writes my colleague Chris Isidore.

    The company faces a media industry in turmoil, plunging cable subscriptions, a still-recovering box office, massive streaming losses, activist shareholders, possible reorganization and layoffs and growing labor disputes with employees. That’s a lot for CEO Bob Iger to handle.

    Iger, who retired as CEO in 2020 only to be brought back in November, has been mostly quiet about his plans for the company since his return. That ends at 4:30 p.m. ET Wednesday when he is set to begin an earnings call with Wall Street investors.

    Click here to read more about what to look for on what is certain to be a closely-followed call.

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  • EV maker Rivian to cut 6% of jobs amid price war | CNN Business

    EV maker Rivian to cut 6% of jobs amid price war | CNN Business



    Reuters
     — 

    Rivian Automotive is laying off 6% of its workforce in an effort to cut costs as the EV maker, already grappling with falling cash reserves and a weak economy, braces for an industry-wide price war.

    The company is focusing resources on ramping up vehicle production and reaching profitability, Chief Executive R.J. Scaringe said in an email to employees on Wednesday announcing the job cuts. Reuters obtained a copy of the email.

    Layoffs at Rivian come amid falling EV prices kicked off by cuts made recently by Elon Musk-led Tesla

    (TSLA)     and Ford Motor Co.

    The price cuts by Tesla and Ford are expected to hurt EV upstarts such as Rivian, Lucid Group and British startup Arrival, which Monday said it would lay off half its staff.

    Despite a blockbuster initial public offering in November 2021, Rivian’s shares have fallen nearly 90% from their peak that month to Tuesday’s close. Rivian’s stock was trading down 4% on Nasdaq on Wednesday, paring some losses after news of the job cuts.

    “We must focus our resources on ramp and our path to profitability,” Scaringe said in the email, in which he apologized to employees for the necessity of the cuts.

    A Rivian spokesman confirmed the email was sent, but declined further comment.

    “They’re bleeding cash and would like to grow at a much faster rate, but they continue to struggle with their EV production ramp and have been unable to meaningfully drive down unit costs,” CFRA Research analyst Garrett Nelson said. “We think that is what’s behind this decision.”

    Rivian is focusing on ramping up production of its R1 trucks and EDV delivery vans for top shareholder Amazon.com and launching its R2 platform, he said. “The changes we are announcing today reflect this focused roadmap.”

    Irvine, California-based Rivian, which has about 14,000 employees, will let go of about 840 staff in a move that will not affect manufacturing operations at its plant in Normal, Illinois.

    Rivian, which has been losing money on every vehicle it builds, narrowly missed its full-year production target of 25,000 vehicles last year as it dealt with supply-chain disruptions caused by the COVID-19 pandemic. It had previously halved that target.

    To further conserve its cash, Rivian late last year shelved plans to build delivery vans in Europe with Mercedes. Rivian had earlier pushed back by a year to 2026 the planned launch of a smaller R2 vehicle family at the $5 billion plant it is building in Georgia.

    Last July, Rivian, which is scheduled to report fourth-quarter results on Feb. 28, laid off staff and suspended some programs as part of a broader restructuring.

    The company has a market valuation of $17.8 billion. Its cash and cash equivalents stood at $13.27 billion as of Sept. 30, 2022, down from over $18 billion a year earlier.

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  • Apple is the only US tech giant to have avoided significant layoffs. Will it last? | CNN Business

    Apple is the only US tech giant to have avoided significant layoffs. Will it last? | CNN Business



    CNN
     — 

    In less than three months, four of the big five US tech companies have cut tens of thousands of employees combined, shattering myths about the industry’s seemingly unstoppable growth in the process.

    But there has been one notable exception: Apple.

    To date, Apple

    (AAPL)     has not announced any substantial cuts, thanks in part to slower headcount growth than some of its peers during the pandemic and continued demand for its core products. Some analysts think more modest cost cuts could be coming, however.

    The iPhone maker is set to report earnings results for the final three months of 2022 on Thursday after the bell. It is expected to post a rare year-over-year decline in revenue.

    While these expectations show the strain Apple’s business is under, Wedbush Securities’ Dan Ives said in a note this week that pent-up demand for upgrading iPhones remains strong. “Apple will likely cut some costs around the edges, but we do not expect mass layoffs from Cupertino this week,” Ives wrote.

    Tom Forte, a senior research analyst at DA Davison, agreed there will be staff reductions, but likely not as drastic as those at other large tech companies. “Apple will cut headcount,” he said in a recent interview on Bloomberg TV, but suggested the cuts would come through attrition or reductions at the retail level.

    “While they haven’t done so yet, like everyone else, they will adjust their headcount for the current level of demand,” he said.

    Fueled by a surge in demand for digital products earlier in the pandemic, Big Tech went on a massive hiring spree.

    Amazon

    (AMZN)     and Meta each doubled their headcount between the third quarter in 2019 and the third quarter 2022, according to data shared in the companies’ securities filings. Alphabet, meanwhile, grew its headcount 64% during that time, and Microsoft grew its staff by more than 50% over approximately the same period.

    Apple, by comparison, grew its headcount by a more modest 20%. As of September 2022, Apple said it had approximately 164,000 full-time employees.

    Many tech CEOs, with varying degrees of remorse, have blamed over-hiring in the early days of the pandemic for the mass layoffs now. As pandemic restrictions eased last year, the demand for digital services shifted back toward pre-pandemic levels. Inflation pinched consumer and business spending, and rising interest rates evaporated the easy money tech companies had tapped into. And one-by-one, amid the whiplash, household names in Silicon Valley began announcing widespread layoffs to adjust to the new environment.

    While Apple has not announced layoffs, its business has been strained in other ways. Like other Big Tech companies, it has faced threats of antitrust action in the United States and EU. Earlier this month, Apple also said CEO Tim Cook had agreed to a massive pay cut this year, following a shareholder vote on his compensation package after its stock fell about 27% in 2022.

    As consumer spending tightened, global smartphone shipments plunged 18% in the fourth quarter of 2022, according to market research firm Canalys. Apple’s business also faced supply chain hurdles linked to China’s Covid lockdowns and unrest that hit a key production site in Zhengzhou, China late last year.

    Still, Apple’s business is weathering the downturn better than some of its fellow tech giants. In its most-recent earnings report, the company reported sales grew 8% year-over-year and that the company hit a September quarter revenue record for iPhone.

    Thursday’s earnings results will show whether Apple can keep defying gravity.

    “Apple continues to innovate with high-quality, industry-leading products supported by a powerful digital platform,” analysts at Monness, Crespi and Hardt wrote in an investor note Tuesday. “However, regulatory headwinds persist and we believe the darkest days of this downturn are ahead of us.”

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  • What to look for in Friday’s jobs report | CNN Business

    What to look for in Friday’s jobs report | CNN Business


    Minneapolis
    CNN
     — 

    A week that has been chock-full of economic data will be capped off Friday with the first US jobs report of 2023.

    Economists estimate that 185,000 positions were likely added in January, according to Refinitiv.

    That would be a considerable drop from the 504,000 jobs added in January 2022 and the 520,000 added in January 2021. It also would nearly match the 183,000 monthly average between 2010 and 2019, Bureau of Labor Statistics data shows.

    And yet, while the Federal Reserve’s aggressive rate hikes have helped make a dent in inflation and resulted in slower economic activity without stark rises in unemployment, the full effects have yet to come, Fed Chair Jerome Powell warned Wednesday.

    “I would say it is a good thing the disinflation we have seen so far has not come at the expense of a weaker labor market,” Powell said in a news conference following the Fed’s first monetary policymaking meeting of the year. “But I would also say the inflationary process you see under way is really at an early stage.”

    America’s unemployment rate dipped back down in December to 3.5%, once again matching a 50-year low. It’s expected to tick up to 3.6% come Friday.

    Layoff announcements — led by large tech firms — are picking up steam: The 43,651 job cuts announced in December jumped to 102,943 in January, according to a new data released Thursday morning by Challenger, Gray & Christmas.

    Still, those spikes in cutbacks haven’t become widespread. New data released Thursday by the Labor Department showed weekly initial jobless claims fell for the fourth time in five weeks, landing at 183,000, which is the lowest weekly total since April.

    “It’s a very interesting time where it’s really not clear whether what we’re seeing is a welcome, healthy rebalancing of the labor market — or a more worrying stall,” said Julia Pollak, senior economist with ZipRecruiter.

    Beyond the key headline indicators of payroll gains, unemployment and average hourly earnings, here are some other areas of the jobs report that Pollak and other economists will scrutinize when the January jobs report is released Friday morning.

    In December, the average working week for employees — including part-time workers — was 34.3 hours, according to BLS data.

    That’s down from the January 2021 high of 35 hours when the average workweek ballooned as workers were scarce and other employees were forced to pick up the slack and the extra shifts, Pollak said.

    “Typically, in good times, the workweek tends to be somewhere between 34.3 and 34.6 hours on average, and somehow it’s slowed all the way down to the bottom end of that range,” she said. “If it continues to deteriorate, that would suggest weakening demand for labor.”

    And usually, when demand gets weak, hiring stalls and layoffs and job losses follow, she said.

    As businesses recovered from the pandemic, they’ve increasingly relied on staffing agencies and contract employees. That sector started the pandemic with 2.9 million employees, plummeted to 1.9 million during the April 2020 trough, hit a record high of 3.56 million in July 2022 and has declined in each month since.

    “The recent decline in temp staffing is mostly the result of a healthy recovery in full-time, in-house hiring,” Pollak said. “But if it falls much below 3 million, I think that would be a warning sign as well.”

    Temporary and contract hiring can show where businesses expand and reduce their workforce at the margins, said Sarah House, senior economist at Wells Fargo.

    “The fact that we see that paring down suggests that the demand backdrop is starting to soften, and maybe they just don’t see the reason to hire and expand as much as they had previously,” House said.

    The imbalance of labor demand and worker supply has been consistently highlighted by the Fed as a potential sticking point in its efforts to lower inflation. While Fed officials have noted that wages don’t appear to be driving inflation, they have expressed concern that a a low participation rate and the imbalance of worker supply and demand could cause pay to rise and, in turn, cause higher prices.

    The labor force participation rate inched up two-tenths of a percentage point in December to 62.3%. Although that came following three consecutive months of declines, the percentage of people working or actively looking for work hovered between 62.1% and 62.4% throughout 2022.

    Based on Wednesday’s labor turnover data, that gap grew wider in December: There were 11.01 million job openings, or 1.9 available jobs for every unemployed person that month.

    “Long Covid is pretty real, and there’s a sizable share of the population who continue to suffer health effects related to Covid that are preventing them from being able to work,” said John Leer, chief economist with Morning Consult. “Then there’s ongoing child care challenges; we’ve got a lot of folks who retired early; we’ve got limited immigration not where it was pre-pandemic.”

    Beyond that and the ongoing demographic shifts of Baby Boomers aging out of the workforce, there’s also possibly some “information asymmetry” that’s occurring, he said.

    “There are people outside of the labor market who aren’t working, and they just simply don’t know how needed they are right now,” he said. “And I think that’s a function of being a little removed. The world has changed pretty dramatically over the last two to three years, and it’s going to be difficult to show people that the skills they possess are needed right now.”

    The government’s monthly jobs report is scheduled to be released at 8:30 a.m. ET on Friday.

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  • Tech CEO apologizes for quoting Martin Luther King Jr. in layoff announcement | CNN Business

    Tech CEO apologizes for quoting Martin Luther King Jr. in layoff announcement | CNN Business


    New York
    CNN
     — 

    A tech CEO is apologizing after quoting Martin Luther King Jr. in a layoffs announcement.

    On January 24, PagerDuty CEO Jennifer Tejada sent a letter to employees announcing the digital operations management company would eliminate about 7% of its workforce.

    Tejada quoted King at the end of that letter.

    “I am reminded in moments like this, of something Martin Luther King said, that ‘the ultimate measure of a [leader] is not where [they] stand in the moments of comfort and convenience, but where [they] stand in times of challenge and controversy,’” she wrote. “PagerDuty is a leader that stands behind its customers, its values, and our vision — for an equitable world where we transform critical work so all teams can delight their customers and build trust.”

    On Friday, Tejada apologized for quoting King.

    “The quote I included from Dr. Martin Luther King, Jr. was inappropriate and insensitive,” she said in the memo. “I should have been more upfront about the layoffs in the email, more thoughtful about my tone, and more concise. I am sorry.”

    When asked for additional comment, a representative for PagerDuty pointed to the blog post updated with Tejada’s apology.

    The tech industry has seen a spate of layoffs in recent weeks. Amazon announced in early January that it would lay off more than 18,000 workers. And Salesforce said it plans to cut about 10% of its staff. Microsoft, meanwhile, is laying off 10,000 employees.

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  • A 6th Memphis officer is off the force, and 3 fire department workers are fired as new details emerge from the deadly police beating of Tyre Nichols | CNN

    A 6th Memphis officer is off the force, and 3 fire department workers are fired as new details emerge from the deadly police beating of Tyre Nichols | CNN

    Editor’s Note: This article contains graphic videos and descriptions of violence.



    CNN
     — 

    [Breaking news update, published at 5:55 p.m. ET]

    Three Memphis Fire Department personnel who responded to the Tyre Nichols beating have been fired, according to the department.

    [Previous story, published at 5:04 p.m. ET]

    Fallout from the deadly police beating of Tyre Nichols now includes a sixth Memphis officer removed from duties, demands for more criminal charges against officers and calls for nationwide police reform.

    Officer Preston Hemphill “was relieved of duty with the other officers” involved in the January 7 encounter with Nichols, Memphis police Maj. Karen Rudolph said Monday.

    Hemphill has actually been on administrative leave since the beginning of the investigation, Memphis police spokesperson Kimberly Elder told CNN. Elder declined to say whether Hemphill is being paid or whether any other officers were put on leave.

    Body cam footage reveals Hemphill fired a Taser at Nichols and saying, “One of them prongs hit the bastard.”

    Later, Hemphill says to another officer: “I hope they stomp his ass.”

    Five other Memphis officers have been fired and face charges of second-degree murder in connection with the beating death of Nichols.

    Hemphill has not been charged. “He was never present at the second scene” that escalated to the beating, and Hemphill has been cooperating with the investigation, his attorney Lee Gerald said.

    Attorneys for Nichols’ family wonder why authorities were quick to fire five Black police officers and charge them with murder – while staying relatively quiet about Hemphill role in the encounter.

    “The news today from Memphis officials that Officer Preston Hemphill was reportedly relieved of duty weeks ago, but not yet terminated or charged, is extremely disappointing. Why is his identity and the role he played in Tyre’s death just now coming to light?” attorneys Ben Crump and Antonio Romanucci said in a statement Monday.

    “It certainly begs the question why the White officer involved in this brutal attack was shielded and protected from the public eye.”

    But officials knew releasing video footage of Nichols’ beating without filing charges against officers could be “incendiary,” Shelby County District Attorney Steve Mulroy said Sunday. “The best solution was to expedite the investigation and to expedite the consideration of charges so that the charges could come first and then the release of the video,” he said.

    Video of the gruesome beating “outraged” the Memphis police chief. The footage showed “acts that defy humanity,” Chief Cerelyn “CJ” Davis said.

    The attack has fueled broader public scrutiny of how US police use force, especially against people of color. And weeks after Nichols’ death, many questions remain. Among them:

    • Whether more officers will face charges or other: Memphis City Council member Frank Colvett said he wanted to know why more officers at the scene of Nichols’ beating scene had not been disciplined or suspended.

    It’s also not clear whether Hemphill or others will face criminal charges. “We are looking at all of the officers and first responders at the scene,” Shelby County District Attorney’s Office spokesperson Erica Williams said Monday. “They could face charges, or they could not, but we are looking at everyone.”

    It was “unprecedented” for indictment charges against the officers to come within weeks, said Mulroy, the Shelby County district attorney.

    • How Memphis’ police chief will fare: While some have praised Chief Davis’ swift action in the case, she also created the controversial SCORPION unit that the charged officers were linked to. “There is a reckoning coming for the police department and for the leadership,” Colvett said. “She’s going to have to answer not just to the council but to the citizens – and really the world.”

    • What happens to fire and sheriff’s personnel: Two Memphis Fire Department employees who were part of Nichols’ initial care were relieved of duty, pending the outcome of an internal investigation.

    And two deputies with the Shelby County Sheriff’s Office have been put on leave pending an investigation.

    • If Nichols’ death spurs national-level police reform: The Congressional Black Caucus has asked for a meeting with President Joe Biden this week to push for negotiations on police reform.

    Video of the fatal encounter is difficult to watch. It starts with a traffic stop and later shows officers repeatedly beating Nichols with batons, punching him and kicking him – even as his hands are restrained behind his back at one point.

    Nichols is heard calling for his mother as he was kicked and pepper-sprayed.

    He was left slumped to the ground in handcuffs. Another 23 minutes passed before a stretcher arrived at the scene. Nichols was hospitalized and died three days later.

    “All of these officers failed their oath,” said Crump, one of the attorneys representing the Nichols family, “They failed their oath to protect and serve.”

    At the residential street corner where Nichols was beaten, mourners created a makeshift memorial. Across the country, protesters marched in cities including New York, Atlanta, Boston and Los Angeles.

    Nichols’ family remembered him as a good son and father who enjoyed skateboarding, photography and sunsets. They recalled his smile and hugs and mourned the moments they’ll never have again.

    Family members promised to “keep saying his name until justice is served.”

    Protesters gather Saturday in New York to denounce the police beating of Tyre Nichols in Memphis.

    The five fired officers charged in connection with Nichols’ beating – Tadarrius Bean, Demetrius Haley, Justin Smith, Emmitt Martin and Desmond Mills Jr. – are expected to be arraigned February 17.

    From top left: Emmitt Martin III, Desmond Mills, Demetrius Haley. From bottom left: Justin Smith and Tadarrius Bean.

    Mills Jr. didn’t cross lines “that others crossed” during the confrontation with Nichols and instead was a “victim” of the system he worked within, his attorney, Blake Ballin, told CNN.

    Martin’s attorney, William Massey, said “no one out there that night intended for Tyre Nichols to die.”

    Attorneys for the other former officers did not immediately respond to requests for comment.

    The Memphis Police Association declined to comment on the terminations beyond saying the city of Memphis and Nichols’ family “deserve to know the complete account of the events leading up to his death and what may have contributed to it,” the union said in a statement.

    The Shelby County district attorney’s office said each of the five fired officers face seven counts, including: second-degree murder, aggravated assault, aggravated kidnapping with bodily injury, aggravated kidnapping in possession of a deadly weapon, official misconduct and official oppression.

    But a second-degree murder charge – which requires intent to kill – might be harder to prove than a first-degree felony murder charge, said Alexis Hoag-Fordjour, assistant professor of law and co-director of the Center for Criminal Justice at Brooklyn Law School.

    “For first-degree felony murder, it means that a murder happened in conjunction with an underlying felony,” said Hoag-Fordjour, noting she practiced law in Tennessee.

    “Here, every single charge that the Memphis district attorney charged these five individuals with were felonies. And the underlying felony that would support a first-degree murder charge – felony murder – is kidnapping.”

    The kidnapping counts against officers may seem unusual because “we obviously deputize law enforcement officials to make seizures, to make arrests,” Hoag-Fordjour told “CNN This Morning” on Monday.

    “But at this point … what would have been legitimate behavior crossed the line into illegitimacy.”

    While first-degree felony murder might be easier to prove, Hoag-Fordjour said, second-degree murder convictions are still possible.

    Under Tennessee law, a person can be convicted of second-degree murder if they could be reasonably certain their actions would result in somebody’s death, Hoag-Fordjour said.

    And some of the blows dealt to Nichols – including kicks to the head and strikes with a baton while he was subdued on the ground – could be deemed deadly, she said.

    The five fired officers charged in Nichols’ beating were members of the now-scrapped SCORPION (Street Crimes Operation to Restore Peace in Our Neighborhoods) unit, Memphis police spokesperson Maj. Karen Rudolph said Saturday.

    Hemphill, the officer placed on administrative leave, was also a member of the SCORPION unit, a source familiar with his assignment confirmed to CNN.

    The unit, launched in 2021, put officers into areas where police were tracking upticks in violent crime.

    “That reprehensible conduct we saw in that video, we think this was part of the culture of the SCORPION unit,” Crump said.

    “We demanded that they disbanded immediately before we see anything like this happen again,” he said. “It was the culture that was just as guilty for killing Tyre Nichols as those officers.”

    Memphis police will permanently deactivate the unit. “While the heinous actions of a few casts a cloud of dishonor on the title SCORPION, it is imperative that we, the Memphis Police Department take proactive steps in the healing process for all impacted,” the department said.

    Colvett supported the dismantling of the SCORPION unit.

    “I think the smart move and the mayor is correct in shutting it down,” the council member said. “These kinds of actions are not representative of the Memphis Police Department.”

    The case should give the city a chance to “dig deeper” into community and police relations, City Council member Michalyn Easter-Thomas said.

    “We saw a very peaceful and direct sense of protest in the city of Memphis, and I think it’s because maybe we do have faith and hope that the system is going to get it right this time,” Easter-Thomas said.

    Crump called on Congress to pass the George Floyd Justice in Policing Act, which passed the Democratic-controlled House in 2021 but t.

    “The brutal beating of Tyre Nichols was murder and is a grim reminder that we still have a long way to go in solving systemic police violence in America,” Congressional Black Caucus chair Rep. Steven Horsford said Sunday in a statement.

    The Tennessee State Conference NAACP president applauded Davis for “doing the right thing” by not waiting six months to a year to fire the officers who beat Tyre Nichols.

    But she had had harsher words for Congress: “By failing to craft and pass bills to stop police brutality, you’re writing another Black man’s obituary,” said Gloria Sweet-Love. “The blood of Black America is on your hands. So, stand up and do something.”

    On the state level, two Democratic lawmakers said they intend to file police reform legislation ahead of the general assembly’s Tuesday filing deadline.

    The bills would seek to address mental health care for law enforcement officers, hiring, training, discipline practices and other topics, said Tennessee state Rep. G.A. Hardaway, who represents a part of Memphis and Shelby County.

    While Democrats hold the minority, with 24 representatives compared to 99 GOP representatives, this legislation is not partisan and should pass on both sides of the legislature, Rep. Joe Towns Jr. said.

    “You would be hard-pressed to look at this footage (of Tyre Nichols) and see what happened to that young man, OK, and not want to do something,” he said. “If a dog in this county was beaten like that, what the hell would happen?”

    Correction: An earlier version of this story had the wrong first name for Tyre Nichols.

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  • How Big Tech’s pandemic bubble burst | CNN Business

    How Big Tech’s pandemic bubble burst | CNN Business


    New York
    CNN
     — 

    In January 2021, Microsoft CEO Satya Nadella spoke in lofty terms about how the first year of the pandemic had sparked a staggering shift toward online services, benefiting his company in the process. “What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” he said.

    Two years later, the situation appears much more stark. This week, Microsoft said it planned to lay off 10,000 employees as businesses rethink their pandemic-era digital spending and confront broader economic uncertainty. Microsoft’s customers, Nadella said, are now trying “to do more with less.”

    Microsoft isn’t the only company experiencing such a dramatic reversal. Days later, Google-parent company Alphabet followed suit, saying it plans to cut around 12,000 jobs, amounting to more than 6% of its staff.

    Over the past three months, Amazon, Google, Microsoft and Facebook-parent Meta have announced plans to cut more than 50,000 employees from their collective ranks, a stunning reversal from the early days of the pandemic when the tech giants were growing rapidly to meet surging demand from countless households living, shopping and working online. At the time, many tech leaders seemed to expect that growth to continue unabated.

    By September of 2022, Amazon

    (AMZN)     had more than doubled its corporate staff compared to the same month in 2019, hiring more than half a million additional workers and vastly expanding its warehouse footprint. Meta nearly doubled its headcount between March 2020 and September of last year. Microsoft

    (MSFT)     and Google

    (GOOGL GOOGLE)     also hired thousands of additional workers, as did other tech firms like Salesforce

    (CRM)    , Snap

    (SNAP)     and Twitter, all of which have announced layoffs in recent weeks, too.

    But many of those same leaders appear to have misjudged just how much growth spurred by the pandemic would continue once people returned to their offline lives.

    In recent months, higher interest rates, inflation and recession fears causing a pullback in advertising and consumer spending have all weighed on tech companies’ profits and share prices. Wall Street analysts now project single-digit revenue growth during the all-important December quarter for Google, Microsoft and Amazon, and declines for Meta and Apple, when they report earnings in the coming weeks, according to Refinitiv estimates.

    The recent cuts in most cases amount to a relatively small percentage of each company’s overall headcount, essentially erasing the last year of gains for some but leaving them with tens or in some cases hundreds of thousands of remaining workers. But it nonetheless upends the lives of many workers now left to search for new jobs after their employers exit a period of seemingly limitless growth.

    “They went from being on top of the world to having to make some really tough decisions,” said Scott Kessler, global sector lead for technology, media and telecommunications at investment firm Third Bridge. “To see this dramatic reversal of fortunes… it’s not just the magnitude of these moves but the speed that they’ve played out. You’ve seen companies make the wrong strategic decisions at the wrong times.”

    Apple

    (AAPL)     remains an outlier as the one major tech company that has yet to announce layoffs, although the iPhone maker has reportedly instituted a hiring freeze of all areas except research and development. Apple

    (AAPL)     grew its staff by 20% from 2019 through last year, markedly less than some of its peers.

    “They’ve taken a more seemingly thoughtful approach to hiring and overall managing the company,” Kessler said.

    Tech CEOs, from Meta’s Mark Zuckerberg to Salesforce’s Marc Benioff, have blamed themselves for over-hiring early on in the pandemic and misreading how a surge in demand for their products would cool once Covid-19 restrictions eased. Pichai on Friday also took the blame for Alphabet’s cuts, and said he plans to return the company’s focus to its core business and “highest priorities.”

    “The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here,” Pichai said in an email to employees that was posted to the company’s website Friday.

    Notably, however, none of the Big Tech company CEOs now overseeing layoffs appear to have been hit with any change to their compensation or title.

    The tech layoff announcements are likely to continue into the upcoming earnings season, Kessler said, amid ongoing economic warning signs. And even companies that might not yet be feeling the pain may follow their peers’ lead in trimming their workforces.

    “I think there is an element of [some companies saying], ‘We might not see this right now but all these other big companies, these companies that we compete with, that we know, that we respect, are taking these kinds of actions, so maybe we should be thinking and acting accordingly,” Kessler said.

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  • Here are the companies that have laid off employees this year — so far | CNN Business

    Here are the companies that have laid off employees this year — so far | CNN Business


    New York
    CNN
     — 

    Just this week, Alphabet, Google’s parent company, Microsoft

    (MSFT)     and Vox Media announced layoffs that will affect more than 22,000 workers.

    Their moves follow on the heels of job cuts earlier this month at Amazon, Goldman Sachs and Salesforce. More companies are expected to do the same as firms that aggressively hired over the last two years slam on the brakes, and in many cases shift into reverse.

    The cutbacks are in sharp contrast to 2022, which had the second-highest level of job gains on record, with 4.5 million. But last year’s job numbers began falling as the year went on, with December’s job report showing the lowest monthly gains in two years.

    The highest level of hiring occurred in 2021, when 6.7 million jobs were added. But that came on the heels of the first year of the pandemic, when the US effectively shut down and 9.3 million jobs were lost.

    The current layoffs are across multiple industries, from media firms to Wall Street, but so far are hitting Big Tech especially hard.

    That’s a contrast from job losses during the pandemic, which saw consumers’ buying habits shifting toward e-commerce and other online services during lockdown. Tech firms went on a hiring spree.

    But now, workers are returning to their offices and in-person shopping is bouncing back. Add in the increasing likelihood of a recession, higher interest rates and tepid demand due to rising prices, and tech businesses are slashing their costs.

    January has been filled with headlines announcing job cuts at company after company. Here is a list of layoffs this month – so far.

    Google

    (GOOGL)    ’s parent said Friday it is laying off 12,000 workers across product areas and regions, or 6% of its workforce. Alphabet added 50,000 workers over the past two years as the pandemic created greater demand for its services. But recent recession fears has advertisers pulling back from its core digital ad business.

    “Over the past two years we’ve seen periods of dramatic growth,” CEO Sundar Pichai said in an email to employees. “To match and fuel that growth, we hired for a different economic reality than the one we face today.”

    The tech behemoth is laying off 10,000 employees, the company said in a securities filing on Wednesday. Globally, Microsoft has 221,000 full-time employees with 122,000 of them based in the US.

    CEO Satya Nadella said during a talk at Davos that “no one can defy gravity” and that Microsoft could not ignore the weaker global economy.

    “We’re living through times of significant change, and as I meet with customers and partners, a few things are clear,” Nadella wrote in a memo. “First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.”

    The publisher of the news and opinion website Vox, tech website The Verge and New York Magazine, announced Friday that it’s cutting 7% of its staff, or about 130 people.

    “We are experiencing and expect more of the same economic and financial pressures that others in the media and tech industries have encountered,” chief executive Jim Bankoff said in a memo.

    Layoffs are also hitting Wall Street hard. The world’s largest asset manager is eliminating 500 jobs, or less than 3% of its workforce.

    Today’s “unprecedented market environment” is a stark contrast from its attitude over the last three years,, when it increased its staff by about 22%. Its last major round of cutbacks was in 2019.

    The bank will lay off up to 3,200 workers this month amid a slump in global dealmaking activity. More than a third of the cuts are expected to be from the firm’s trading and banking units. Goldman Sachs

    (FADXX)     had almost 50,000 employees at the end of last year’s third quarter.

    The crypto brokerage announced in early January that it’s cutting 950 people – almost one in five employees in its workforce. The move comes just a few months after Coinbase laid off 1,100 people.

    Though Bitcoin had a solid start to the new year, crypto companies were slammed by significant drops in prices of Bitcoin and other cryptocurrencies.

    McDonald’s

    (MCD)    , which thrived during the pandemic, is planning on cutting some of its corporate staff, CEO Chris Kempczinski said this month.

    “We will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead,” Kempszinski said, outlining a plan to “break down internal barriers, grow more innovative and reduce work that doesn’t align with the company’s priorities.”

    The online personalized subscription clothing retailer said it plans to lay off 20% of its salaried staff.

    “We will be losing many talented team members from across the company and I am truly sorry,” Stitch Fix

    (SFIX)     founder and former CEO Katrina Lake wrote in a blog post.

    As the new year began, Amazon

    (AMZN)     said it plans to lay off more than 18,000 employees. Departments from human resources to the company’s Amazon

    (AMZN)     Stores will be affected.

    “Companies that last a long time go through different phases. They’re not in heavy people expansion mode every year,” CEO Andy Jassy said in a memo to employees.

    Amazon boomed during the pandemic, and hired rapidly over the last few years. But demand has cooled as consumers return to their offline lives and battle high prices. Amazon says it has more than 800,000 employees.

    At The New York Times DealBook summit In November, Jassy said he believes Amazon “made the right decision” regarding its rapid infrastructure build out but said its hiring spree is a “lesson for everyone.”

    Even as he spoke, Amazon warehouse workers who helped organize the company’s first-ever US labor union at a Staten Island facility last year were picketing Jassy’s appearance outside the conference venue.

    “We definitely want to take this opportunity to let him know that the workers are waiting and we are ready to negotiate our first contract,” Amazon Labor Union President Chris Smalls said, calling the protest a “welcoming party” for Jassy.

    Salesforce

    (CRM)     will cut about 10% of its workforce from its more than 70,000 employess and reduce its real estate footprint. In a letter to employees, Salesforce

    (CRM)    ’s chair and co-CEO Marc Benioff admitted to adding too much to the company’s headcount early in the pandemic.

    – CNN’s Clare Duffy, Matt Egan, Oliver Darcy, Julia Horowitz, Catherine Thorbecke, Paul R. La Monica, Nathaniel Meyersohn, Parija Kavilanz, Danielle Wiener-Bronner and Hanna Ziady contributed to this report.

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  • Elon Musk’s Twitter accused of unlawful staff firings in the UK | CNN Business

    Elon Musk’s Twitter accused of unlawful staff firings in the UK | CNN Business


    New York
    CNN
     — 

    A law firm representing dozens of former UK Twitter employees is accusing the company of “unlawful, unfair and completely unacceptable treatment” of workers following recent mass layoffs, which the firm referred to as a “sham redundancy process.”

    In a letter sent to the company on Monday, law firm Winckworth Sherwood alleged that Twitter violated UK law by cutting off terminated employees’ access to internal systems without engaging in the required warning and consultation period. The letter also said Twitter has failed to provide information about the selection criteria used to determine the layoffs.

    The letter states that 43 affected UK employees are prepared to take the issue to an Employment Tribunal, a UK system for employees to bring legal disputes against their employers, if the company does not agree to cooperate with negotiations over the layoff process.

    The warning marks the latest challenge to Twitter from former employees affected by mass layoffs that took place after Elon Musk acquired the company in October. Twitter laid off half of its global staff in early November, and has continued to fire and push out additional employees in the months since, including through an ultimatum to work “hardcore.”

    More than 300 former US employees have filed demands for arbitration against the company, according to attorneys representing them. Twitter is also facing four proposed class action lawsuits in the United States related to the layoffs. Now, the backlash to the layoffs may be escalating in the UK.

    “Our clients have been aghast at the direction taken by their employer, whose mission they have genuinely believed in and, in a number of cases, whose growth and transformation they have supported for many years,” lawyers for Winckworth Sherwood wrote in the letter. “They remain resolved to protect their positions, professional reputations and legal claims against the Company should it now proceed to dismiss them unlawfully and unfairly.”

    Twitter, which cut much of its public relations team as part of the layoffs, did not immediately respond to a request for comment on the letter.

    UK trade union Prospect, which represents more than 100 UK Twitter employees, also wrote to the company this week raising concerns about its layoff process, including claims that Twitter is “choosing not to honor” its promise that employees laid off following Musk’s acquisition would receive severance with terms no less favorable than prior to his takeover.

    Prospect also said the company has given workers “an arbitrary date to sign their rights away” in order to receive better separation terms, although negotiations over the layoffs are ongoing. (Typically, negotiations over mass layoffs by UK companies involve discussions of the reasons for terminations and how to minimize their size and impact.)

    “It is to be celebrated that in the UK it is not possible to simply fire employees en masse at will as Twitter has done in other countries,” Prospect, said in the letter. “Rest assured, Prospect will continue to lobby the Government and raise public awareness about employers who treat their workers like commodities to be discarded on a whim.”

    In the United States, there have also been concerns among Twitter employees after they began receiving their severance packages last weekend. The offers promise one month’s pay in exchange for agreeing to various terms, including a non-disparagement agreement and waiving the right to take any legal action against the company, according to Lisa Bloom, a lawyer representing dozens of former Twitter employees affected by the layoffs.

    Many were dissatisfied by the offer, according to public posts and attorneys representing ex-employees, raising concerns about the terms and saying it falls short of what the company has previously promised to provide to affected employees.

    The amount is also significantly less than provided at rivals like Facebook-parent Meta, which laid off thousands of workers around the same time and guaranteed them 16 weeks of base pay plus two additional weeks for each year they were employed at the company.

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  • Silicon Valley layoffs go from bad to worse | CNN Business

    Silicon Valley layoffs go from bad to worse | CNN Business



    CNN
     — 

    Shortly before Thanksgiving, Amazon CEO Andy Jassy confirmed rumors that layoffs had begun in multiple departments at the e-commerce giant and said it would review staffing needs into the new year.

    On Wednesday, Jassy provided a sobering update on that review: Amazon is cutting more than 18,000 jobs, nearly double the 10,000 that had previously been reported and marking the highest absolute number of layoffs of any tech company in the recent downturn.

    At Amazon and other tech companies, the second half of last year was marked by hiring freezes, layoffs and other cost-cutting measures at a number of household names in Silicon Valley. But if 2022 was the year the good times ended for these tech companies, 2023 is already shaping up to be a year when people at those companies brace for how much worse things can get.

    On the same day Amazon announced layoffs, cloud-computing company Salesforce said it was axing about 10% of its staff – a figure that easily amounts to thousands of workers – and video-sharing outlet Vimeo said it was cutting 11% of its workforce. The following day, digital fashion platform Stitch Fix said it planned to cut 20% of its salaried staff, after having cut 15% of its salaried staff last year.

    The continued fallout in the industry comes as tech firms grapple with a seemingly perfect storm of factors. After initially seeing a boom in demand for digital services amid the onset of the pandemic, many companies aggressively hired. Then came a whiplash in demand as Covid-19 restrictions receded and people returned to their offline lives. Rising interest rates also dried up the easy money tech companies relied on to fuel big bets on future innovations, and cut into their sky-high valuations.

    Heading into 2023, recession fears and economic uncertainties are still weighing heavily on consumers and policymakers’ minds, and interest rate hikes are expected to continue. Beyond that, the growing number of layoffs may also give certain tech companies some cover to take more severe steps to trim costs now than they may have otherwise done.

    While there have been some layoffs recently in the consumer goods sector and hints of more to come elsewhere, the situation in Silicon Valley remains in stark contrast to the economy as a whole.

    The Labor Department’s latest employment report on Friday pointed to a year of extraordinary job growth in 2022, marking the second-best year for the labor market in records that go back to 1939. Meanwhile, a separate report from outplacement firm Challenger, Gray & Christmas found tech layoffs were up 649% in 2022 compared to the previous year, versus just a 13% uptick in job cuts in the overall economy during the same period.

    In his note to employees this month, Jassy chalked up the need for significant cost cutting at Amazon to “the uncertain economy and that we’ve hired rapidly over the last several years.” Others across the industry have echoed those points, with varying degrees of atonement.

    In a series of apologies that are beginning to sound the same, Silicon Valley business leaders from Meta’s Mark Zuckerberg to Salesforce’ Marc Benioff have blamed the wave of job cuts on their own misreading of how pandemic-fueled demand for tech products would play out.

    Benioff began a memo to the employees of Salesforce last week by invoking, as he so often does, the Hawaiian word for family. “As one ‘Ohana,” he wrote, “we have never been more mission-critical to our customers.” But the economic environment was “challenging,” Benioff wrote. “With this in mind, we’ve made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks.”

    “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,” Benioff went on to say. Like other tech leaders, however, it’s unclear if Benioff will face any repercussions to his title or compensation.

    Patricia Campos-Medina, the executive director of the Worker Institute at Cornell University’s School of Industrial and Labor Relations, slammed this spate of mea culpas as “empty apologies” to the workers now paying for their miscalculations.

    While there will be a lot of near-term uncertainty for these tech workers, as well “a big economic hit on their lives,” Campos-Medina added, “I do think that this is a very skilled workforce that will find a way to engage back in the economy.” She predicts many of the laid-off tech workers will likely be able to find jobs and “we will see more stability in the mid-to-long term.”

    But the end may still not be in sight. Dan Ives, an analyst at Wedbush Securities said last week that the Salesforce and Amazon layoffs “add to the trend we expect to continue in 2023 as the tech sector adjusts to a softer demand environment.” The industry is now being forced to cut costs after “spending money like 1980’s Rock Stars to keep up with demand,” he added.

    And despite the robust overall labor market, there are growing concerns that tech layoffs could spread elsewhere.

    “I think we’re seeing an inflection point; the rate of jobs growth is slowing and a lot of these tech layoffs that we’re hearing about, I think are going to start materializing across the broader economy by the end of the first quarter,” John Leer, chief economist at Morning Consult told CNN’s Chief Business Correspondent Christine Romans in an interview Friday.

    In that sense, at least, Silicon Valley may once again be ahead of the curve, but not in the way it wants.

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  • What to expect at work this year | CNN Business

    What to expect at work this year | CNN Business


    New York
    CNN
     — 

    The pandemic has transformed work over the past three years in ways few expected. It normalized remote work, created a shortage of critical workers and drove home to organizations that employees’ mental health and need for a sane work-life balance are critical to retention and engagement.

    So what does 2023 likely hold for you at your job, regardless of your industry?

    There are welcome and unwelcome developments on tap, along with some potentially confusing ones, too.

    Let’s get the bad news out of the way first.

    Regardless of whether the United States slips into a recession, there will be more widespread job cuts than what we’ve seen happening so far in industries like tech, media and finance.

    “We’re starting to see more layoffs pick up in other industries. I do anticipate rising layoffs in most sectors,” said Andrew Challenger, senior vice president of outplacement firm Challenger, Gray & Christmas.

    But that shouldn’t be surprising, given that layoffs in 2021 and 2022 were at their lowest levels since 1993.

    That said, the job market has cooled a bit — but it’s still running hot, with a high level of job openings per job seeker.

    The overall slowdown in hiring is likely to continue, with employers more likely to reinstate performance-improvement plans for underperforming employees and performance-related layoffs, Challenger predicts.

    And, of course, should there be a real recession, the layoffs would cut much deeper.

    While there is still tension between executives and employees about how many days people should be physically present at work, hybrid work and work flexibility isn’t going away.

    “Today, the majority of employers (66%) are permitting hybrid working and an additional 9% give employees the option to work from home every day,” according to benefits consulting firm Mercer.

    Nevertheless, this may be the year employers start to actually enforce their minimum-days-in-the-office mandates, Challenger said.

    Just this week, for example, Disney CEO Bob Iger ordered employees to return to corporate offices four days a week beginning March 1.

    Front-line employees like retail workers, health care aides and security guards, whose jobs require them always to be on site, may be offered other forms of flexibility, said Emily Rose McRae, senior director of research at Gartner, a workplace consulting firm.

    That could include being given a regular schedule, as opposed to working “on demand,” where they don’t know their schedule in advance, McRae said. It also could mean getting more paid leave, or that front-line workers could opt out of working certain shifts or certain days.

    McRae said she sees more employers offering what she calls “proactive rest” options this year.

    The idea is to actively help people recover before becoming fully depleted not only by work, but by the upending of their lives from the pandemic and the social and political upheaval of the past few years.

    “The big shift is in recognizing our work force is in trouble,” McRae said.

    Proactive rest can take many forms. Some employers may offer days off — whether it’s a whole week or just one day a week for a set period of time. Or it could simply mean branding a given workday as a no-meeting day.

    Information technology professionals will continue to win the day at work when it comes to who gets the biggest raises and bonuses.

    “Most organizations are anticipating the talent market to remain as competitive, or more competitive, at least in the first half of this year,” said Tony Guadagni, a senior principal in Gartner’s HR practice. “They will do what they have to to attract that critical talent.”

    Employers’ projected increases for this year in terms of merit increases (3.9%) and total pay (4.3%) are the highest they’ve been in 15 years, according to workplace consulting firm Mercer. But given that inflation is still pacing higher than those levels, you may not feel the raise you get is making a huge difference in what you can afford — unless your skills are in high demand.

    It used to be difficult to figure out whether you were being paid competitively for your talents, since companies weren’t open about what they paid others and colleagues wouldn’t discuss their pay.

    But now that New York City, the state of California, and a handful of other states and localities have implemented pay transparency rules for job postings, it will be easier in 2023 to confirm you’re being paid fairly relative to your teammates, and to determine the salary range on offer if you’re looking for a new job.

    Still, these laws are very new, and companies have not been uniform in how they’re handling the new rules. Some recent job postings, for instance, have advertised unhelpfully wide pay ranges — think $50,000 to $200,000.

    Beyond the big benefits employers typically offer full-time staffers (e.g., subsidized health insurance, a 401(k) match, etc.), they also offer a range of secondary benefits or perks, such as tuition reimbursement, supplemental life insurance, a stipend for home office supplies or financial coaching.

    Gartner and Mercer are seeing more companies let employees decide how best to spend these perk dollars by letting them direct a fixed amount of money across the secondary benefits that are most important to them.

    Your organization may engage in “quiet hiring” this year, if it hasn’t already.

    It’s a misleading term, in that it is neither quiet nor does it involve actual hiring.

    Rather, your company will want to repurpose existing employees — possibly you, if you have relevant skills — for the employer’s highest priority projects this year.

    That could be a great opportunity if you hate being limited to the same tasks of your official job, or if you want to develop new skills and work with new people in your company.

    It also could be highly frustrating, especially if a company is simply putting everyone on rotation to make sure understaffed, critical tasks get done by anyone with the adequate skills to do so.

    Either way, “quiet hiring” may offer an initial taste of a broader trend likely to unfold over the next several years that could spell the end of “jobs” — and specifically job descriptions as we know them, according to consulting firm Deloitte.

    That’s because many employers want to transition away from being a jobs-based organization to a skills-based one so they can quickly adapt to change, address talent shortages and provide their workforce with opportunities to develop professionally, said Arthur Mazor, a principal global leader at Deloitte’s Human Capital Practice.

    So instead of viewing you as a holder of Job X, your company is likely to view you as a person with an array of skills that can be deployed in many ways.

    Early adopters this year can be found across various industries, Mazor said — from software makers to auto manufacturers to financial services to health care.

    Even at companies that have not formalized a shift to being a skills-based organization, the change is happening anyway. Roughly 70% of workers say they’re already doing work outside of their job, according to Deloitte.

    One recent example, cited in Deloitte’s latest work report, comes from M&T Bank, a leading Small Business Administration lender. Its chief talent officer told the firm, “when the Paycheck Protection Program was rolled out during the pandemic, we had to stop thinking about jobs and start thinking about skills. … By focusing on skills versus jobs — and rapidly mobilizing talent in an agile way — we outperformed our peers.”

    It’s too early to determine exactly how this will play out for employees, in terms of incentives offered for switching to a new project or pinch-hitting for another department, how an employee’s work will be assessed and rewarded, and how much say they will get in the projects assigned.

    But done right, Mazor said, employees should have the opportunity to share on an internal database their skills and what areas they wish to develop before being matched with a new assignment.

    “This isn’t a clandestine effort. It involves worker input.”

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  • 5 reasons why the Republican claim about 87,000 new IRS agents is an exaggeration | CNN Politics

    5 reasons why the Republican claim about 87,000 new IRS agents is an exaggeration | CNN Politics


    Washington
    CNN
     — 

    In its first vote on legislation, the new Republican-controlled House approved a bill Monday that would rescind nearly $80 billion for the Internal Revenue Service – with key GOP lawmakers making the exaggerated claim that the money would be used to hire 87,000 auditors who will target hardworking Americans.

    “House Republicans just voted unanimously to repeal the Democrats’ army of 87,000 IRS agents,” tweeted speaker Kevin McCarthy after the vote.

    “This was our very first act of the new Congress, because government should work for you, not against you,” he added.

    But Democrats approved the $80 billion in funding last year as part of the sweeping Inflation Reduction Act, intending to support the troubled IRS crack down on tax cheats and provide better service to taxpayers.

    The bill to rescind the funding, which passed along party lines, has little chance of becoming law, given the Democratic majority in the Senate and a pledge from President Joe Biden to veto the bill if it ever reaches his desk.

    But the vote highlights how funding for the IRS has become a political football. The issue is sure to come up when Daniel Werfel, Biden’s nominee for IRS commissioner, gets a confirmation hearing.

    Here’s why the Republicans’ oft-repeated claim about new IRS agents is exaggerated:

    The 87,000 figure comes from a 2021 Treasury report that estimated the IRS could hire 86,852 full-time employees over the course of a decade with a nearly $80 billion investment – not solely enforcement agents.

    And all those new employees can’t be hired overnight. The money will flow to the IRS over a 10-year period.

    “The reality is the $80 billion boost would be spread throughout the agency, with money flowing to enforcement, taxpayer services, operations, and modernization,” wrote Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center.

    The Inflation Reduction Act dictates that about $45.6 billion will go toward strengthening enforcement activities – including collecting taxes owed, providing legal support, conducting criminal investigations and providing digital asset monitoring. But the IRS has not specified how many auditors will be hired.

    More than $25 billion is allocated to support IRS operations, including expenses like rent payments, printing, postage and telecommunications.

    Nearly $4.8 billion can be used for modernizing the agency’s customer service technology, like developing a callback service.

    Roughly $3 billion is allocated for taxpayer assistance, filing and account services.

    Many of the new hires will be replacing staff that the IRS has already lost or is expected to lose through attrition in coming years.

    Last year, then-IRS Commissioner Charles Rettig told lawmakers that staffing has shrunk to 1970s levels and that the IRS would need to hire 52,000 people over the next six years just to maintain current staffing levels to replace those who retire or otherwise leave.

    The IRS is already using the new funds to ramp up hiring for work outside of its audit operations.

    In October, the IRS announced it had hired 4,000 customer service representatives to answer phones and provide other taxpayer assistance. At the time, the agency said it intended to hire another 1,000 staffers by the end of 2022.

    Many of the new staff will be in place at the start of the 2023 tax season, and nearly all are expected to be trained by Presidents’ Day in February, which is traditionally when the agency sees the highest call volumes.

    National Taxpayer Advocate Erin Collins expects IRS services for taxpayers to improve this year – in part due to the funding increase.

    Taxpayer service, like answering the phones and processing returns in a timely manner, has suffered as the IRS’ budget has shrunk by more than 15% over the last decade. Collins, who heads the independent watchdog organization within the IRS, last year called the IRS service “horrendous.”

    Only about one in eight calls from taxpayers got through to an IRS employee last year, according to her annual report released Wednesday.

    The IRS struggled significantly during the Covid-19 pandemic, allowing backlogs of millions of tax returns to pile up in the past two years.

    “The majority of new hires the IRS makes will be those who answer the phones, work on processing individual tax returns or go after high-end taxpayers or corporations who are avoiding their taxes,” wrote Rettig in an op-ed published by Yahoo!Finance in August.

    A Trump appointee, Rettig called the claim that the IRS is hiring 87,000 agents to harass taxpayers “absolutely false.”

    While audit rates are expected to go up for some taxpayers as the new funding flows to the IRS, the rates have also been declining for some time.

    Audit rates of individual income tax returns decreased for all income levels between tax years 2010 to 2019, according to the Government Accountability Office. They decreased the most for taxpayers with incomes of $200,000 and above, which are generally more complex.

    The Inflation Reduction Act says that the new investment in the IRS is not “intended to increase taxes on any taxpayer or small business with a taxable income below $400,000.”

    Still, there is some uncertainty about how exactly the IRS will decide how to ramp up audits.

    In an effort to shed some clarity, Treasury Secretary Janet Yellen affirmed the Biden administration’s commitment to not target low- and middle-income taxpayers.

    “I direct that any additional resources – including any new personnel or auditors that are hired – shall not be used to increase the share of small business or households below the $400,000 threshold that are audited relative to historical levels,” she wrote in a six to Rettig in August.

    Yellen also directed the IRS to produce an operational plan within six months to detail how the new funding will be spent.

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  • Lovie Smith said the NFL had ‘a problem’ about Black coaches. A year later he was fired and the league is being criticized yet again about its lack of diversity | CNN

    Lovie Smith said the NFL had ‘a problem’ about Black coaches. A year later he was fired and the league is being criticized yet again about its lack of diversity | CNN



    CNN
     — 

    When Lovie Smith was hired by the Houston Texans in February 2022 as the team’s new head coach, he said the NFL had “a problem” with hiring Black coaches and diversity.

    “I realize the amount of Black head coaches there are in the National Football League,” Smith told reporters just under a year ago.

    “There’s Mike Tomlin and I think there’s me, I don’t know of many more. So there’s a problem, and it’s obvious for us. And after there’s a problem, what are you going to do about it?”

    Smith was fired Monday at the end of his one and only season at the helm of the Texans, finishing with a record of 3-13-1.

    Smith is the second Black coach in two years to be relieved of his duties by the Texans, which fired David Culley at the end of the 2021 season.

    Smith’s time in charge wasn’t full of wins and high points – though his parting gift to the organization was a last-minute Hail Mary victory over the Indianapolis Colts, which saw them relinquish the No. 1 pick in the 2023 NFL draft to the Chicago Bears. But his Texans team showed togetherness and competence, traits often desired by outfits undergoing a rebuild.

    Houston general manager Nick Caserio said Smith’s firing was the best decision for the team right now.

    “On behalf of the entire organization, I would like to thank Lovie Smith for everything he has contributed to our team over the last two seasons as a coach and a leader,” Caserio said in a statement.

    “I’m constantly evaluating our football operation and believe this is the best decision for us at this time. It is my responsibility to build a comprehensive and competitive program that can sustain success over a long period of time. We aren’t there right now, however, with the support of the McNair family and the resources available to us, I’m confident in the direction of our football program moving forward.”

    But the firing of the 64-year-old coach, the Texans organization as a whole, and the measures implemented by the league to promote diversity have been heavily criticized by former players and TV pundits.

    “The Houston Texans have fired Lovie Smith after 1 year. Using 2 Black Head Coaches to tank and then firing them after 1 year shouldn’t sit right with anyone,” former NFL quarterback Robert Griffin III tweeted Sunday, when news of Smith’s firing broke.

    On ESPN, Stephen A. Smith and NFL Hall of Famer Michael Irvin also condemned the decision. Smith called the Texans organization an “atrocity.”

    “They are an embarrassment. And as far as I’m concerned, if you’re an African American, and you aspire to be a head coach in the National Football League, there are 31 teams you should hope for. You should hope beyond God that the Houston Texans never call you,” Smith said.

    Irvin said Black coaches are being used as “scapegoats” by the Texans.

    “It’s a mess in Houston and they bring these guys in and they use them as scapegoats. And this is what African American coaches have been yelling about for a while and it’s blatant, right in our face,” he said.

    When CNN contacted the Texans for comment, the team highlighted the moment at Monday’s news conference when Caserio was asked why any Black coach would consider working for the team, and his response was that individual candidates would have to make their own choices.

    “In the end it’s not about race. It’s about finding quality coaches,” the general manager said. “There’s a lot of quality coaches. David (Culley) is a quality coach. Lovie (Smith) is a quality coach.

    “In the end, each coach has their own beliefs. Each coach has their own philosophy. Each coach has their comfort level about what we’re doing. That’s all I can do is just be honest and forthright, which I’ve done from the day that I took this job, and I’m going to continue to do that and try to find a coach that we feel makes the most sense for this organization. That’s the simplest way I can answer it, and that’s my commitment.

    “That’s what I’m hired to do, and that’s what I’m in the position to do. At some point, if somebody feels that that’s not the right decision for this organization, then I have to respect that, and I have to accept it.”

    CNN has reached out to Lovie Smith for comment.

    At the beginning of the 2022 season, NFL.com reported Smith was one one of just six minority head coaches in the NFL, a low number in a league where nearly 70% of the players are Black.

    Since Art Shell was hired by the Los Angeles Raiders in 1989 as the first Black head coach in modern history, there have been 191 people hired as head coaches, but just 24 have been Black.

    However, the NFL has taken steps to increase diversity in the coaching ranks.

    Notably, in 2003, the NFL introduced the Rooney Rule to improve hiring practices in a bid to “increase the number of minorities hired in head coach, general manager, and executive positions.”

    But the Rooney Rule hasn’t been an unqualified success.

    In 2003, the Detroit Lions were fined $200,000 for not interviewing any minority coaches before hiring Steve Mariucci as their new head coach.

    In response to criticism, the NFL announced it was setting up a diversity advisory committee of outside experts to review its hiring practices last March. Teams would also be required to hire minority coaches as offensive assistants.

    Despite changes to the rule being implemented in recent years to strengthen it, a 2022 lawsuit alleges that some teams have implemented “sham” interviews to fulfill the league’s diversity requirements.

    Last February, former Miami Dolphins head coach Brian Flores filed a federal civil lawsuit against the NFL, the New York Giants, the Denver Broncos and the Miami Dolphins organizations alleging racial discrimination.

    Flores, who is Black, said in his lawsuit that the Giants interviewed him for their vacant head coaching job under disingenuous circumstances.

    Two months after submitting the initial lawsuit, Flores added the Texans to it, alleging the organization declined to hire him this offseason as head coach “due to his decision to file this action and speak publicly about systemic discrimination in the NFL.”

    In response to the lawsuit, the Texans said their “search for our head coach was very thorough and inclusive.”

    The NFL called Flores’ allegations meritless.

    “The NFL and our clubs are deeply committed to ensuring equitable employment practices and continue to make progress in providing equitable opportunities throughout our organizations,” the league said in response to the lawsuit.

    “Diversity is core to everything we do, and there are few issues on which our clubs and our internal leadership team spend more time. We will defend against these claims, which are without merit.”

    But 12 months after firing their last Black head coach, the Texans have fired another one.

    “How do you hire two African Americans, leave them one year and then get rid them?” questioned NFL Hall of Famer Irvin.

    “You know the mess that Houston is,” Irvin added. “We get the worst jobs and we don’t get the opportunity to fix the worst jobs, just like this.

    “I don’t know any great White coach that would take the (Texans) job unless you give them some guarantees. ‘You’re going to have to guarantee me four years to turn this place around.’ But the African American coaches can’t come in with that power because Lovie wouldn’t have got another job.

    “This was his last chance to get back into the NFL and you have to take what’s on the table to try to change that.”

    The Texans are now searching for a new head coach under general manager Caserio. The new appointment will be Caserio’s third coach in the role: It is almost unprecedented for a general manager to get the opportunity to hire a third head coach with the same team.

    Texans chairman and CEO Cal McNair said he would take on a more active role in the hiring process. The next head coach will be the organization’s fourth in three years.

    According to the NFL, the Texans have requested to speak to five candidates already about filling Smith’s position, a list that includes two Black coaches.

    After Smith was hired in March 2021, McNair said: “I’ve never seen a more thorough, inclusive, and in-depth process than what Nick (Caserio) just went through with our coaching search.”

    At that introductory news conference, Smith spoke candidly about how to bring greater diversity to the NFL coaching ranks.

    “People in positions of authority throughout – head coaches, general managers – you’ve got to be deliberate about trying to get more Black athletes in some of the quality control positions just throughout your program. If you get that, they can move up, that’s one way to get more.”

    Smith continued: “It’s not just an interview, if you’re interviewing a Black guy. It’s about having a whole lot of guys to choose from that look like me. And it’s just not about talk. You look at my staff, that’s what I believe in. And letting those guys show you who they are. That’s how we can increase it, then it’s left up to people to choose. We all have an opportunity to choose, and that’s how I think we’ll get it done.”

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  • Two months after mass Twitter layoffs, affected employees still waiting for severance offers | CNN Business

    Two months after mass Twitter layoffs, affected employees still waiting for severance offers | CNN Business


    New York
    CNN
     — 

    Two months after Elon Musk laid off half of Twitter’s workforce, some employees affected say they have yet to receive any formal severance offer or separation agreement.

    One former Twitter employee told CNN that they had expected to receive some information from the company by Wednesday, the last official employment date for many workers affected by the first wave of layoffs under Musk based on state and federal notice period regulations.

    As of early Thursday, however, the former employee said they had yet to receive any documents related to a severance agreement or offer. Other laid-off employees tweeted similar remarks this week, including one who said they had “never even seen a severance letter let alone been offered severance.”

    A spokesperson for Shannon Liss-Riordan, the attorney representing hundreds of former Twitter employees, confirmed that her clients who were hit by the Twitter layoffs in early November also had yet to receive any severance information as of Thursday. “There was some anticipation that they would be sent yesterday, but we haven’t seen that,” Kevin Ready, the spokesperson, said of the severance agreements.

    “Yesterday was the official separation date for thousands of Twitter employees, and after months of chaos and uncertainty created by Elon Musk, these workers remain in the lurch,” Liss-Riordan said in a Thursday statement.

    The employee concerns come as Musk scrambles to cut costs at the company he bought in October for $44 billion, including a significant amount of debt. After laying off half the company in early November, Musk continued cutting and pushing out additional employees, including by requiring anyone who remained to sign a pledge committing to “hardcore” work.

    The company was recently sued by a commercial landlord and a private flight company alleging Twitter has failed to pay bills. And The New York Times last month reported that Twitter was considering denying laid off employees their severance as a cost-cutting measure, citing people familiar with the talks among company leadership, adding to the sense of uncertainty for affected workers.

    Twitter, which cut much of its public relations department as part of the layoffs, did not immediately respond to a request for comment regarding the claims it has not offered or paid any severance. At the time of the layoffs, Musk promised that “everyone exited was offered 3 months of severance,” a time period that appears to include the 60-days advanced notice Twitter was obligated to provide.

    A report by Fortune on Thursday afternoon, citing an unnamed source familiar with the situation and screenshots viewed by the publication, said that Twitter planned to send severance agreements to affected employees on Thursday, although it was unclear exactly when they would go out. The severance agreements were set to provide laid off US employees with one month’s base pay and would include a provision requiring employees to waive participation in pending lawsuits against the company, according to the report.

    Liss-Riordan has filed four proposed class action lawsuits against Twitter on behalf of employees affected by layoffs, with claims including that Twitter backtracked on promises to allow remote work and consistent severance benefits, as well as complaints related to alleged disability and gender-based discrimination. She has also filed three claims against Twitter with the National Labor Relations Board on behalf of former employees. Liss-Riordan said Thursday that she has also filed another 100 demands for arbitration against Twitter on behalf of former employees, after filing an initial 100 last month.

    Last month, the employees represented by Liss-Riordan scored an early win in court when a judge ordered Twitter to inform laid-off employees of the pending lawsuits before asking them to sign any separation agreements that include a release of legal claims.

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  • LinkedIn is having a moment thanks to a wave of layoffs | CNN Business

    LinkedIn is having a moment thanks to a wave of layoffs | CNN Business


    New York
    CNN
     — 

    In a normal year at this time, a typical LinkedIn feed might be full of posts about year-end reflections on leadership and professional goals and suggested lifehacks for the year ahead — possibly with a few posts from CMOs offering tips on brand strategy, for good measure.

    Those posts are still there. But mixed in are many others about job hunts, offers of support for laid off friends and colleagues, and advice for coping with career hurdles in an uncertain economic environment.

    Some LinkedIn users affected by recent layoffs have formed groups on the site aimed at providing assistance, coordinating around signing exit paperwork and aiding with connections for new jobs. One LinkedIn group of employees affected by the November layoffs at Facebook-parent Meta, for example, now has more than 200 members. Even bosses who are doing the laying off have turned to LinkedIn to explain themselves and seek support or advice, as one marketing CEO did in a post alongside a tearful selfie last year (to mixed results).

    If the first year of the pandemic was marked by widespread layoffs in lower paying retail and services jobs, the past few months have been defined by something different: the prospect of a white-collar recession. Even as the overall job market remains strong, there has been a wave of recent layoffs in the tech and media industries — which just so happen to make up a core part of LinkedIn’s user base. Suddenly, the normally staid professional network has become both a vital lifeline for recently laid off workers and a surprisingly lively social platform.

    The LinkedIn mobile app was downloaded an estimated 58.4 million times worldwide in 2022 across the Google Play and Apple app stores, up 10% from the prior year, according to research firm Sensor Tower.

    The number of posts on LinkedIn mentioning “open to work” were up 22% during November compared to the same period in the prior year, according to data provided by the company. LinkedIn says it also saw a steady increase in the rate of users adding connections last year compared to the year prior, a sign that users were more active on the platform.

    The uptick in use appears to have been good for LinkedIn’s business. The platform posted 17% year-over-year revenue growth in the three months ended in September, according to parent company Microsoft’s most recent earnings report. Microsoft CEO Satya Nadella told analysts in the October earnings call that LinkedIn was seeing “record engagement” among its 875 million members, with growth accelerating especially in international markets.

    Some of LinkedIn’s momentum may predate the wave of layoffs. “There’s been an uptick in [LinkedIn use] since the pandemic,” said Jennifer Grygiel, an associate professor and social media expert at Syracuse University. “You had to do social distancing and we were quarantining and people were working remotely so there was a shift in real-life networking possibilities.”

    LinkedIn rose to the occasion — and now it may be rising to another one.

    Even apart from the layoffs, the social media landscape has been through a volatile year. Facebook and Instagram have been criticized by users for racing to turn their services into TikTok. TikTok has been criticized over concerns that user data could end up in the hands of the Chinese government. And after Elon Musk’s takeover of Twitter late last year, the platform has been criticized for morphing into a possible haven for its most incendiary users.

    But LinkedIn remains, as ever, LinkedIn — and at this moment, with fears of a looming recession and career concerns top of mind, LinkedIn may be just what the digital world needs.

    Grygiel said many people working in media or academia are likely now looking for somewhere to build and engage in professional communities other than Twitter. And while upstart Twitter alternatives like Mastodon have experienced a surge in growth, they still don’t have the same sort of network effect that comes with a legacy platform’s broad user base.

    LinkedIn in recent years has leaned into courting influencers who regularly post content to the site, potentially giving users more reasons to visit. And the platform has been growing its “learning” section, which provides video courses taught by various industry experts and which the company says experienced a 17% increase in hours spent as of November compared to the year prior. But lately it appears users have more than enough reason to use LinkedIn amid a wave of thousands of layoffs.

    Perhaps the clearest and most public examples of LinkedIn’s new centrality came from rival social networks like Twitter.

    In the wake of Twitter’s November mass layoffs — in which half the company was terminated, followed by additional firings and exits — many former and remaining employees took to LinkedIn, rather than the platform they had built, to seek support, community and new opportunities.

    One group of Twitter employees created a spreadsheet of laid-off workers from the company alongside recruiters hiring for other firms, and used LinkedIn to help facilitate sign-ups. Another pair of former Twitter employees set up a system to connect job hunters with recruitment professionals open to volunteering to provide free resume review and interview prep services, which they promoted through LinkedIn.

    “We completely understand how the job-hunting process can be scary and overwhelming … While we can’t guarantee where your next opportunity will be or when it will come, we can offer guidance, so you will be ready for that opportunity when it arrives,” Darnell Gilet, a former Twitter senior technical recruiter who helped coordinate the effort, said in a LinkedIn post.

    Gilet, who was affected by the mass layoffs at Twitter in November following Elon Musk’s takeover, told CNN last month that around 28 different recruiters and talent acquisition professionals had agreed to participate in the system, and that he himself had spoken to nearly two dozen job seekers since shortly after he was laid off to offer advice and support. He said LinkedIn seemed like the obvious place to promote the service.

    “Chaos creates opportunity for somebody, right?” Gilet said. “People are getting laid off and you have this recession that’s looming, the ideal place … that would have the greatest growth opportunity from that would be a platform that’s focused on careers like LinkedIn. So it makes perfect sense.”

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  • Twitter layoffs continue under Elon Musk | CNN Business

    Twitter layoffs continue under Elon Musk | CNN Business



    CNN
     — 

    Additional Twitter employees were terminated Thursday as part of ongoing, rolling layoffs under new owner Elon Musk, including from the public policy and media and entertainment teams, according to tweets from affected employees.

    As part of Thursday’s layoffs, the members of Twitter’s public policy team who had remained following last month’s mass layoffs were again cut down by about half to around 15 employees, a former Twitter employee with knowledge of the layoffs told CNN.

    Among the public policy team’s responsibilities are working with outside advisory groups such as the Twitter Trust and Safety Council, which the company disbanded earlier this month. It also manages human rights programs to protect vulnerable users like activists, engages in transparency efforts, works with government agencies and helps to ensure compliance with global regulations. The public policy team had more than 60 employees prior to Musk’s takeover, the former employee said.

    Thursday’s exits come after Musk laid off about half of Twitter’s workforce last month shortly after his takeover, and later pushed out additional employees, including through an ultimatum requiring them to work “hardcore” or exit the company. Musk’s team — seeking to cut costs at the struggling company that the billionaire purchased for $44 billion — has continued to lay off hundreds of additional Twitter staff since then, including top engineering and legal talent, according to the former employee and multiple recent reports.

    More than 100 former Twitter employees have filed demands for arbitration or are participating in proposed class action lawsuits related to the layoffs.

    The latest round of layoffs could further affect Twitter’s ability to protect key users and comply with regulations amid heightened scrutiny of the company following Musk’s takeover.

    Thierry Breton, a top EU official, warned Musk in a meeting last month that the social media platform must take significant steps to comply with EU content moderation laws, and that European officials will be monitoring closely for compliance. Musk has agreed to let EU officials “stress test” the social media platform for compliance with the Digital Services Act, Europe’s new platform regulation, early next year.

    Twitter also continues to struggle with the exit of many of its advertisers, which provide most of the company’s revenue. As of December 17, 72 of Twitter’s top 100 advertisers had paused ad campaigns on the platform, according to a review by digital marketing intelligence firm Pathmatics, which it provided to CNN.

    In the meantime, Musk may be considering finding someone else to head the social platform, after Twitter users voted over the weekend for him to step down as CEO. Musk tweeted this week that he would leave the top role “as soon as I find someone foolish enough to take the job!”

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  • Twitter hit by legal complaints from 100 former employees following Musk’s layoffs | CNN Business

    Twitter hit by legal complaints from 100 former employees following Musk’s layoffs | CNN Business


    New York
    CNN
     — 

    Twitter has been hit with allegations from 100 former employees affected by mass layoffs at the company, including that it unfairly laid off more women than men, terminated employees who were actively on medical or parental leave and reneged on promises related to severance pay.

    The allegations were included as part of the former employees’ demands for arbitration against the company, according to a statement on Tuesday by attorney Shannon Liss-Riordan.

    Liss-Riordan is the same attorney who has brought four proposed class action lawsuits against Twitter by former employees affected by Elon Musk’s takeover. The arbitration demands are meant to help workers who can’t participate in that litigation because of contracts they signed with the company.

    Claims in the arbitration demands mirror those in the lawsuits. Some also claim that Musk placed “unreasonable demands” on Twitter’s workforce in an effort to shrink its staff, according to the statement.

    “The conduct of Twitter since Musk took over is incredibly egregious, and we will pursue every avenue to protect workers and extract from Twitter the compensation that is due to them,” Liss-Riordan said in the statement. She added that her firm has heard from hundreds of former Twitter employees and has filed only the “first wave” of arbitration demands.

    “We are ready to fight them one by one, on behalf of potentially thousands of employees if that becomes necessary,” she said.

    Liss-Riordan previously brought three proposed class action suits on behalf of female employees, disabled employees and contractors who were laid off. Another suit was filed by a group of former employees who accuse Twitter of breach of contract because it allegedly failed to follow through on promises to allow remote work and provide consistent severance benefits after the acquisition.

    Twitter, which recently laid off much of its communications department, did not immediately respond to a request for comment regarding the arbitration demands. Twitter has denied the breach of contract allegations in the lawsuit brought by former employees about remote work and severance, and it has not responded to the claims in the three other suits.

    Liss-Riordan has also filed three complaints against Twitter with the National Labor Relations Board on behalf of employees affected by the layoffs.

    The mounting claims by former employees come after Twitter terminated about half of its staff in a mass layoff last month shortly after Musk’s takeover. Musk later pushed out hundreds of additional employees, including by requiring them to agree to an ultimatum to work “extremely hardcore” or leave the company.

    The former employees suing Twitter scored an early win last week when a judge ruled in favor of their motion ordering the company to alert all laid-off employees of the pending lawsuits before requiring them to sign severance agreements waiving their rights to litigation.

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