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Tag: labor

  • Fintech company Block lays off 4,000 of its 10,000 staff, citing gains from AI

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    BANGKOK — Shares in the financial technology company Block soared more than 20% in premarket trading Friday after its CEO announced it was laying off more than 4,000 of its 10,000 plus employees, reconfiguring to capitalize on its use of artificial intelligence.

    “The core thesis is simple. Intelligence tools have changed what it means to build and run a company,” Jack Dorsey said in a letter to shareholders in Block, the parent company to online payment platforms such as Square and Cash App. “A significantly smaller team, using the tools we’re building, can do more and do it better,” he said.

    Dorsey’s comments explicitly naming AI as a key driver behind the move were also posted on X, or Twitter, a company he co-founded. The assertion that the job cuts will add to Block’s profitability and efficiency led investors to jump in and buy, analysts said.

    Block’s shares gained 5% Thursday to $54.53, before it reported its earnings. They shot up to nearly $69 in after-hours trading. The mobile payments services provider reported its fourth quarter gross profit jumped 24% from a year earlier.

    “For years, we have debated whether AI would dent jobs at the margin. Now we have a public case study in which the CEO explicitly says that intelligence tools have changed what it means to build and run a company,” Stephen Innes of SPI Asset Management said in a commentary.

    “Other large employers have announced tens of thousands of cuts in recent months. Some have downplayed the AI link. Block did not,” he said.

    A global technology company founded in 2009, San Francisco-based Block operates in the United States, Canada, parts of Europe, Australia and Japan.

    In a post on Twitter, Dorsey outlined various ways the company will support those laid off. For employees overseas, the terms might differ, he said.

    It was unclear which employees would be laid off where.

    Layoffs by American companies remain at relatively healthy levels, but the job cuts at Block are the latest among thousands announced in recent months.

    A number of other high-profile companies have announced layoffs recently, including UPS, Amazon, Dow and the Washington Post.

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  • Trump’s State of the Union seeks to calm economic jitters

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    WASHINGTON — President Donald Trump declared during the State of the Union on Tuesday that “we’re winning so much,” saying he sparked a jobs and manufacturing boom at home while imposing a new world order abroad — hoping that offering a long list of his accomplishments can counter approval ratings that have been falling.

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    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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    By WILL WEISSERT and MICHELLE L. PRICE – Associated Press

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  • Federal workplace safety regulators penalize businesses over 6 deaths at Colorado dairy

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    Federal workplace safety regulators have issued citations and fines against three businesses for violations in the deaths of six people last year at a Colorado dairy.

    The U.S. Occupational Safety and Health Administration on Tuesday announced fines including penalties for failing to protect workers against hazardous gases against the dairy owner and a dairy service provider. The deaths of five men and a teenager on Aug. 20, 2025, sent shockwaves through the rural communities in and around Keenesburg, 35 miles (55 kilometers) northeast of Denver.

    Previously, the Weld County coroner’s office determined from autopsies and toxicology tests that all the people who died were exposed to hydrogen sulfide gas.

    Those autopsy reports gave little indication of the circumstances of the deaths, describing only an industrial accident in a confined space at a dairy farm.

    In August 2025, federal regulators opened initial investigations of the dairy, owned by Prospect Ranch as well as Johnstown, Colorado-based Fiske Inc, whose subsidiary High Plains Robotics services dairy equipment and employed some of those who died.

    The hazards of confined spaces on farms and dairies are a well-known and persistent cause of death in agriculture across the U.S. — often from exposure to odorless and colorless noxious gases, or due to asphyxiation in closed spaces where oxygen has been depleted.

    First responders from a rural fire district in Weld County were dispatched around 6 p.m. on Aug. 20 to Prospect Ranch and took their own safety precautions as they entered a confined space.

    All those who died in Colorado were Latino, ranging in age from 17 to 50. Four of them, including the teenage high school student, were from the same extended family.

    Alejandro Espinoza Cruz, of Nunn, was found dead along with his 17-year-old son Oscar Espinoza Leos and a second son, 29-year-old Carlos Espinoza Prado.

    The Espinozas are related by marriage to a 36-year-old from Greeley who died — Jorge Sanchez Pena, according to the Weld County coroner’s office.

    The other two men — Ricardo Gomez Galvan, 40, and Noe Montañez Casañas, 32 — lived in Keenesburg.

    The remains of Montañez Casañas, a veterinarian who was employed under a U.S. visa, were repatriated to the central Mexican state of Hidalgo, according to the Mexican consulate in Denver.

    ___

    Lee reported from Santa Fe, New Mexico.

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  • US Economy Grows at 1.4% Rate in the Fourth Quarter, Slower Than Economists Expected

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    WASHINGTON (AP) — America’s gross domestic product — the nation’s output of goods and services — increased at an 1.4% annual rate in the fourth quarter, the Commerce Department reported Friday, down from 4.4% in the July-September quarter and 3.8% in the quarter before that.

    A downturn in government and consumer spending contributed to the slowdown in fourth-quarter growth, the government said. Consumer spending rose just 2.2%, a significant slowdown from the third quarter’s healthy 3.5% gain.

    The report underscores an odd aspect of the U.S. economy: It is growing steadily, but without creating many jobs. Growth was a fairly healthy 2.2% in 2025, yet a government report last week showed that employers added less than 200,000 jobs last year — the fewest since COVID struck in 2020.

    Economists point to several possible reasons for the gap: The Trump administration’s crackdown on immigration has sharply slowed population growth, reducing the number of people available to take jobs. It’s one reason that the unemployment rate rose only slightly — to 4.3% from 4% — last year, even with the nearly non-existent hiring.

    Some businesses may also be holding back on adding jobs out of uncertainty about whether artificial intelligence will enable them to produce more without finding new employees. And the cost of tariffs has reduced many companies’ profits, possibly leading them to cut back on hiring.

    The economy is also unusual right now because growth is solid, inflation has slowed a bit, and unemployment is low, but surveys show that Americans are generally gloomy about the economy. In January, a measure of consumer confidence fell to its lowest level since 2014, yet consumers have kept spending, propelling growth.

    Some of that spending may be disproportionately driven by upper-income consumers, in a phenomenon known as the “K-shaped” economy. Yet data from many large banks suggests lower-income consumers are still raising their spending, even if by not as much.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    Photos You Should See – Feb. 2026

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    Associated Press

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  • Met Opera’s 2026-27 season has 17 productions, its fewest in at least 60 years

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    NEW YORK — Despite encouraging box office figures for the season’s first half, the financially strapped Metropolitan Opera scaled back its 2026-27 schedule with its fewest productions in at least 60 years.

    The Met announced Thursday it will present 17 productions, its lowest total in a non-truncated season since the company moved to Lincoln Center in 1966. There are just five new stagings, and revivals of three popular operas account for 71 of the 187 individual opera performances (38%): Puccini’s “Tosca” and “La Bohème,” and Verdi’s “Aida.”

    “It makes more sense for us, and this is an experiment — to present these works in extended runs,” Met general manager Peter Gelb said. “And by double-casting them, it also is more economic in terms of how many different shows are playing in one week.”

    Ticket sales of 72% this season are up from 70% in the first half of 2024-25.

    “Basically, it’s back to pre-pandemic levels,” Gelb said. “We’re not grossing as much money because the average price per ticket is slightly less than it was, because we have a younger audience and more discounted tickets.”

    Mason Bates’ “The Amazing Adventures of Kavalier & Clay,” which opened the current season in its world premiere, sold 84% of tickets in a success rate that prompted the Met to schedule an extra four performances this month.

    “One of my goals at the Met is to stimulate new audiences with new works,” Gelb said. “This one was one of the most successful we’ve presented so far.”

    “Kavalier” was followed by an English-language holiday time staging of Mozart’s “The Magic Flute” (83%), Bellini’s “I Puritani” (82%), Puccini’s “Turandot” (77%), Puccini’s “Madama Butterfly” (74%), “The Gershwin’s Porgy and Bess” (73%), and Donizetti’s “La Fille du Régiment,” Bizet’s “Carmen,” Bellini’s “La Sonnambula” and “Bohème” (68% each).

    Lagging were Mozart’s “Don Giovanni” and Strauss’ “Arabella” (64% each) and Giordano’s “Andrea Chenier” (57%).

    Next season opens on Sept. 22 with a new production of Verdi’s “Macbeth” starring soprano Lise Davidsen and directed by Louisa Proske.

    Composer Missy Mazzoli’s “Lincoln in the Bardo,” based on George Saunders’ novel, has its world premiere on Oct. 19 and stars Christine Goerke, Stephanie Blythe, Anthony Roth Costanzo and Peter Mattei in a staging directed by Lileana Blain-Cruz.

    There are three new-to-the Met productions: Janáček’s “Jenůfa” starring Asmik Grigorian in a Claus Guth staging that debuted at London’s Royal Opera in 2021 (Nov. 16); Puccini’s “La Fanciulla del West” with Sondra Radvanovsky and SeokJong Baek in a Richard Jones staging that premiered at the English National Opera in 2014 (Dec. 31); and the company premiere of Kevin Puts’ “Silent Night” featuring Elza van den Heever and Rolando Villazon in a James Robinson staging first seen at the Houston Grand Opera last month (March 8, 2027).

    A gala with more than two dozen stars is scheduled for May 25, 2027, to mark the company’s 60th season at Lincoln Center.

    “We’re in a kind of golden age of opera singing,” Gelb said. “The only difference between today and 30 or 40 years ago is that 30 or 40 years ago opera was much more in the cultural mainstream.”

    “Lincoln” was not included among the eight simulcasts to move theaters due to a post-pandemic drop in audience.

    “A title that is unknown, even with whatever maximum efforts of marketing and publicity that are done, will underperform to a degree where it is not really financially viable for the movie theaters or for us,” Gelb said.

    A Simon McBurney staging of Mussorgsky’s “Khovanshchina” was postponed as part of budget tightening that included 22 layoffs and 4-15% temporary salary cuts.

    “Unfortunately, I have to wear two hats,” Gelb said. “I have to wear my artistic hat, and I have to wear my financial hat.”

    Next season will be Gelb’s 20th as general manager, and he says he intends to retire when his current contract expires in 2030.

    “That certainly is our current plan,” Gelb said.

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  • Penn officials, graduate student workers reach tentative deal after nearly 2 years of negotiations

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    University of Pennsylvania graduate student workers and the school reached a tentative contract agreement Tuesday morning to avoid a strike. The deal, which awaits ratification, includes raises and additional worker protections.

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  • Coerced Colorado prison labor amounts to involuntary servitude, judge rules

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    Colorado Department of Corrections officials forced inmates to work prison jobs through coercion that ultimately amounted to involuntary servitude, a Denver judge ruled Friday.

    The state’s prisons unconstitutionally coerced labor by levying severe punishments — including solitary confinement — against prisoners who refused to work, Denver District Court Judge Sarah Wallace found in the 61-page ruling.

    “By creating a framework where failure to work triggers a sequence of restrictions that culminate in a more restrictive ‘custody level’ and physical isolation, CDOC has established a system of compulsion that overrides the voluntariness of the (prisoners’) labor,” Wallace wrote.

    The ruling comes out of a 2022 lawsuit in which state prisoners claimed the Department of Corrections’ approach to prison labor amounted to involuntary servitude or slavery, which Colorado voters outlawed in 2018 via Amendment A.

    The lawsuit, which went to trial in October, was brought by Towards Justice, a nonprofit law firm headed by David Seligman, a candidate in the 2026 race for Colorado attorney general.

    Prisoners in Colorado are expected to work prison jobs, which include food preparation, janitorial services and other positions within their facilities. They are paid well below minimum wage for the work.  They can choose not to work, but doing so is a disciplinary infraction for which prisoners are punished, according to court filings.

    State attorneys argued during the October trial that prisoners’ labor was voluntary, and that punishments for failing to work, while “uncomfortable,” did not rise to the level of coercion legally required to constitute involuntary servitude.

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  • RFK Jr. Pledged More Transparency. Here’s What the Public Doesn’t Know Anymore

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    NEW YORK (AP) — A year ago, U.S. Health Secretary Robert F. Kennedy Jr. said he wanted to rebuild trust in federal health agencies, and vowed to employ “radical transparency” to do it.

    But many types of health information that steadily flowed from the government for years or decades has been delayed, deleted and in some cases stopped all together.

    The collection and sharing of information was hurt by sweeping layoffs at federal agencies and the longest government shutdown in U.S. history. Officials took down health agency websites to comply with an executive order from President Donald Trump, causing outside researchers to archive federal health datasets and leading to a lawsuit that ended with a judge ordering the websites’ restoration.

    Ariel Beccia, a researcher at the Harvard T.H. Chan School of Public Health, said changes in the flow of federal health information have made her angry.

    “We pay taxes to hopefully have good, inclusive public health practice and data,” said Beccia, who focuses on the health of LGBTQ youth. “The past year it felt like every single day, something that I and my colleagues use daily in our work has just been taken away” by federal officials.

    Asked about now-unavailable data and information, a spokesman for Kennedy said the premise of The Associated Press’ inquiry was flawed and relied on selective and inaccurate characterizations.

    “Secretary Kennedy is leading the most transparent HHS in history, with unprecedented disclosure and openness aimed at restoring public trust in federal health agencies,” said the spokesman, Andrew Nixon.

    He pointed to an HHS webpage on the agency’s transparency efforts, which includes a list of canceled government contracts and the repackaging of previously available information — including a U.S. Food and Drug Administration “chemical contaminants transparency tool.”

    Here are some examples of how less information is coming out of federal public health agencies than in past administrations.

    The Project 2025 blueprint that’s been influential to the Trump administration called for the Centers for Disease Control and Prevention to enhance its data collection of U.S. abortions, but the agency failed to post its annual abortion surveillance report in November. (Nixon said it will come out this spring.)

    HHS officials blamed the delay on the CDC’s former chief medical officer, Dr. Debra Houry, saying she directed staff to return state-submitted abortion data rather than analyze it. But Houry — who resigned months before the report was slated to come out — said that claim was false. She says the report was derailed because of HHS cutbacks to the funding and staff needed to get it done.

    Fighting the nation’s overdose epidemic has long been a priority for both Republicans and Democrats. And the federal government has continued to collect and report on death certificate-based information on drug deaths.

    But the Trump administration curtailed other kinds of overdose work, including shutting down the Drug Abuse Warning Network (DAWN), which tracked emergency department visits — an early alert about drug-use trends. It was discontinued “as part of a broader effort to align agency activities with agency and administration priorities,” officials posted.

    Nixon said past DAWN data will remain available. But some experts say that’s not enough, and recently likened the termination of DAWN and other recent changes to spreading cracks in a windshield that makes it harder to see what’s ahead in the epidemic.

    Smoking has long been known as the nation’s leading preventable cause of death. The federal government for decades has not only monitored what percentage of people use cigarettes and other tobacco products, but also run successful public education campaigns like the FDA’s “Real Cost” and the CDC’s “Tips from Former Smokers.”

    Those campaigns were ended last year, although Nixon said the FDA campaign will return.

    Meanwhile, layoffs to CDC staff who worked on smoking meant an important survey on youth smoking and vaping — normally out in the fall — was never released. Those layoffs also put a stop to work on a report on smoking for the Office of the U.S. Surgeon General.

    For three decades, federal health officials tracked food poisoning infections caused by eight germs. In July, the Trump administration scaled back required reporting to just two pathogens monitored by the Foodborne Diseases Active Surveillance Network, known as FoodNet.

    Under the change, health departments in 10 states that participate in the joint state and federal program only monitor infections caused by salmonella and Shiga toxin-producing E. coli. Tracking is optional for infections caused by campylobacter, cyclospora, listeria, shigella, vibrio and Yersinia.

    CDC officials said the change would allow the agency to “steward resources effectively.” Food safety experts said the move undercuts the nation’s ability to accurately monitor risks in the U.S. food supply.

    Even before Kennedy was confirmed, President Donald Trump signed executive orders to roll back protections for transgender people and terminate diversity, equity and inclusion programs.

    That caused the CDC to remove from its website a range of information about HIV and transgender people. The government also stopped collecting and reporting crucial survey findings on transgender students — data that has shown higher rates of depression, drug use, bullying and other problems.

    That data is used to help fund and focus suicide-prevention programs and other efforts. And this is all happening as the federal and some state governments try to discourage gender-affirming care, ban transgender youth from sports and dictate which bathrooms they can use, Beccia said.

    “Without the data, we can’t systematically show the harm that’s being done” by these policies, Beccia said.

    Nixon said the data collection and reporting now aligns with agency priorities.

    Before he was health secretary, Kennedy was a leading voice in the anti-vaccine movement and repeatedly accused federal health advisers of conflicts of interest that aligned them with vaccine-makers. In June, he dismissed the entire Advisory Committee on Immunization Practices and named his own replacements.

    A federal official said the government would release ethics forms for the new members. But it didn’t.

    Meanwhile, a CDC website that compiles disclosures by past and current ACIP members has more than 200 entries of former panel members, but information on only one Kennedy appointee. Among those missing from that list are Martin Kulldorff, the initial chair of Kennedy’s reconstituted committee, who had been paid to be an expert witness in legal cases against the vaccine-maker Merck. Another is current member Dr. Robert Malone, who also was paid as an expert witness in vaccine litigation.

    AP Health Writer JoNel Aleccia contributed to this report.

    The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  • Workers at Greeley’s JBS meatpacking plant vote to authorize strike

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    Workers at Greeley’s JBS meatpacking plant have voted to authorize an unfair labor practices strike, according to a Wednesday morning announcement.

    The strike stems from what union representation says is “illegal conduct at the bargaining table and inside the plant,” according to a press release from United Food and Commercial Workers Local 7, which represents 22,000 union workers across Colorado and Wyoming, including those at JBS. Ninety-nine percent of unionized workers at the plant voted in favor of the strike.

    The union did not give specifics on when the strike is expected to start, but told Denver7 it is expecting virtually all employees to take part in it, adding “workers are prepared to strike until JBS ceases unfair labor practices.”

    “This vote reflects the seriousness of this moment,” Kim Cordova, president of UFCW Local 7, said. “JBS can either return to the bargaining table prepared to negotiate in good faith and immediately cease its Unfair Labor Practices, or it can face the consequences of its own decisions.”

    The union alleges that over the course of an eight-month bargaining process, JBS intimidated and retaliated against workers and threatened to “withhold a proposed bonus and lump sum pension payment if workers exercise their democratic right to strike.”

    Denver7 spoke with Matt Shechter, the union’s labor and employment litigator, who claims JBS is charging workers for lost or damaged personal protective equipment that is required by law.

    He also claims there is a “wage theft problem” and JBS is endangering the lives of those who work at the plant by making “chain speeds” on the line of work faster while also cutting back on workers’ hours.

    “The vote yesterday was an incredible act of democracy,” Shechter said. “Virtually all workers [at JBS] are immigrants and this is the first time many have ever voted in their entire lives.”

    A JBS spokesperson said in an email that the company “presented a comprehensive offer that reflects the national agreement reached with UFCW International” that was accepted by other large JBS facilities in the country.

    “This agreement includes meaningful wage increases and a pension plan, providing both near-term and long-term financial security for team members, in addition to other strong benefits,” JBS Spokesperson Nikki Richardson wrote in an email. “Workers at our other locations have already agreed to these terms and are benefiting from these improvements today.”

    According to Shechter, those wage increases are $0.90 over the next two years, which he says represents a 4% increase and claims is below the rise in inflation.

    Approximately 3,800 workers are employed at JBS in Greeley, according to the UFCW Local 7 release. The company is headquartered in Greeley and has operations in the U.S., Australia, the United Kingdom, Mexico, Canada, Europe and New Zealand, according to the company’s website. JBS is the top producer in the world of beef and chicken, according to the company website, and is the largest employer in Weld County, according to the Northern Colorado Economic Alliance.

    This is a developing story that will be updated. Denver7 has reached out to UFCW Local 7 and JBS for more information.

    Coloradans making a difference | Denver7 featured videos


    Denver7 is committed to making a difference in our community by standing up for what’s right, listening, lending a helping hand and following through on promises. See that work in action, in the videos above.

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  • MLB salary increase slowed to 1.4% in 2025 while setting record at $4.7 million

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    NEW YORK — The rate of increase for Major League Baseball’s average salary slowed to 1.4% last year while setting a record average at $4,721,393, according to final figures from the players’ association.

    The increase was the smallest since the average dropped in four straight seasons before 2022. The average rose 2.9% in 2024 to $4,655,366 after increases of 7.2% in 2023 and 14.8% in 2022, following a 99-day lockout that led to a five-year collective bargaining agreement.

    After declining to $3.68 million in 2021, a year following the coronavirus pandemic-shortened season, MLB’s average has risen 28.3% in the first four seasons of the current labor deal, an annual average of 7.1%. The current agreement expires Dec. 1 and another lockout appears likely.

    Union figures are based on the 2025 salaries, earned bonuses and prorated shares of signing bonuses for 1,046 players on Aug. 31 active rosters and injured lists, before active rosters expanded for the remainder of the season.

    MLB has not yet finalized its 2025 average. Its figures differ slightly because of methodology.

    The average each year is higher on opening day but declines during the season as higher-paid veterans are released and replaced by those with less service time.

    Players with less than one year of major league service averaged $822,589, according to the union, and those with one to two years averaged $1,179,192.

    Among players with two to three years who were eligible for salary arbitration, the average was $1,833,386 while those in that service class not eligible averaged $1,374,760. The top 22% of the class by service time is arbitration eligible.

    Averages among others in the arbitration-eligible years were $3,273,039 for the three-years-plus group, $3,932,847 in the four-plus group and $8,019,748 in the five-plus group, a year of service time shy of free-agent eligibility.

    The average rose to $9,649,380 for six-to-seven-year players and peaked at $22,034,231 for 11-to-12-year players before declining to $13,703,052 for the six players with 15 or more years of major league service.

    ___

    AP MLB: https://apnews.com/hub/mlb

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  • Major League Baseball Salary Increase Slowed to 1.4% in 2025 While Setting Record at $4.7 Million

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    NEW YORK (AP) — The rate of increase for Major League Baseball’s average salary slowed to 1.4% last year while setting a record average at $4,721,393, according to final figures from the players’ association.

    The increase was the smallest since the average dropped in four straight seasons before 2022. The average rose 2.9% in 2024 to $4,655,366 after increases of 7.2% in 2023 and 14.8% in 2022, following a 99-day lockout that led to a five-year collective bargaining agreement.

    After declining to $3.68 million in 2021, a year following the coronavirus pandemic-shortened season, MLB’s average has risen 28.3% in the first four seasons of the current labor deal, an annual average of 7.1%. The current agreement expires Dec. 1 and another lockout appears likely.

    Union figures are based on the 2025 salaries, earned bonuses and prorated shares of signing bonuses for 1,046 players on Aug. 31 active rosters and injured lists, before active rosters expanded for the remainder of the season.

    MLB has not yet finalized its 2025 average. Its figures differ slightly because of methodology.

    The average each year is higher on opening day but declines during the season as higher-paid veterans are released and replaced by those with less service time.

    Players with less than one year of major league service averaged $822,589, according to the union, and those with one to two years averaged $1,179,192.

    Among players with two to three years who were eligible for salary arbitration, the average was $1,833,386 while those in that service class not eligible averaged $1,374,760. The top 22% of the class by service time is arbitration eligible.

    Averages among others in the arbitration-eligible years were $3,273,039 for the three-years-plus group, $3,932,847 in the four-plus group and $8,019,748 in the five-plus group, a year of service time shy of free-agent eligibility.

    The average rose to $9,649,380 for six-to-seven-year players and peaked at $22,034,231 for 11-to-12-year players before declining to $13,703,052 for the six players with 15 or more years of major league service.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  • Labor Department Delays January Jobs Report Because of Partial Shutdown

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    WASHINGTON (AP) — The Labor Department, citing the partial federal government shutdown, said Monday that it will not release the January jobs report on Friday as scheduled.

    In a statement, the department’s Bureau of Labor Statistics said: “Once funding is restored, BLS will resume normal operations and notify the public of any changes to the news release schedule.’’ It is also postponing the December report on job openings, which was supposed to come out Tuesday.

    The jobs report and other key economic statistics were previously delayed by a record 43-day government shutdown last fall.

    Economists had expected the January jobs report to show that employers added 80,000 jobs last month, up from 50,000 in December.

    The delay in data comes at a bad time. The economy is in a puzzling place.

    Growth is strong: Gross domestic product — the nation’s output of goods and services — advanced from July through September at the fastest pace in two years.

    But the job market is sluggish: Employers have added just 28,000 jobs a month since March. In the 2021-2023 hiring boom that followed COVID-19 lockdowns, by contrast, they were creating 400,000 jobs a month.

    Economists are trying to figure out if hiring will accelerate to catch up to strong growth or if growth will slow to match weak hiring, or if advances in artificial intelligence and automation mean that the economy can roar ahead without creating many jobs.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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  • Did artificial intelligence really drive layoffs at Amazon and other firms? It can be hard to tell

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    The one thing N. Lee Plumb knows for sure about being laid off from Amazon last week is that it wasn’t a failure to get on board with the company’s artificial intelligence plans.

    Plumb, his team’s head of “AI enablement,” says he was so prolific in his use of Amazon’s new AI coding tool that the company flagged him as one of its top users.

    Many assumed Amazon’s 16,000 corporate layoffs announced last week reflected CEO Andy Jassy’s push to “reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”

    But like other companies that have tied workforce changes to AI — including Expedia, Pinterest and Dow last week — it can be hard for economists, or individual employees like Plumb, to know if AI is the real reason behind the layoffs or if it’s the message a company wants to tell Wall Street.

    “AI has to drive a return on investment,” said Plumb, who worked at Amazon for eight years. “When you reduce head count, you’ve demonstrated efficiency, you attract more capital, the share price goes up.”

    “So you could potentially have just been bloated in the first place, reduce head count, attribute it to AI, and now you’ve got a value story,” he said.

    Plumb is atypical for an Amazon worker in that he’s also running what he describes as a “long shot” bid for Congress in Texas, on a platform focused on stopping the tech industry’s reliance on work visas to “replace American workers with cheaper foreign labor.”

    But whatever it was that cost Plumb his job, his skepticism about AI-driven job replacement is one shared by many economists.

    “We just don’t know,” said Karan Girotra, a professor of management at Cornell University’s business school. “Not because AI isn’t great, but because it requires a lot of adjustment and most of the gains accrue to individual employees rather than to the organization. People save time and they get their work done earlier.”

    If an employer works faster because of AI, Girotra said it takes time to adjust a company’s management structure in a way that would enable a smaller workforce. He’s not convinced that’s happening at Amazon, which he said is still scaling back from a glut of hiring during the COVID-19 pandemic.

    A report by Goldman Sachs said AI’s overall impact on the labor market remains limited, though some effects might be felt in “specific occupations like marketing, graphic design, customer service, and especially tech.” Those are fields involving tasks that correlate with the strengths of the current crop of generative AI chatbots that can write emails and marketing pitches, produce synthetic images, answer questions and help write code.

    But the bank’s economic research division said in its most recent monthly AI adoption tracker that, since December, “very few employees were affected by corporate layoffs attributed to AI,” though the report was published Jan. 16, before Amazon, Dow and Pinterest announced their layoffs.

    San Francisco-based Pinterest was the most explicit in asserting that AI drove it to cut up to 15% of its workforce. The social media company said it was “making organizational changes to further deliver on our AI-forward strategy, which includes hiring AI-proficient talent. As a result, we’ve made the difficult decision to say goodbye to some of our team members.”

    Pinterest echoed that message in a regulatory disclosure that said the company was “reallocating resources to AI-focused roles and teams that drive AI adoption and execution.”

    Expedia has voiced a similar message but the 162 tech workers the travel website cut from its Seattle headquarters last week included several AI-specific roles, such as machine-learning scientists.

    Dow’s regulatory disclosures tied its 4,500 layoffs to a new plan “utilizing AI and automation” to increase productivity and improve shareholder returns.

    Amazon’s 16,000 corporate job cuts were part of a broader reduction of employees at the ecommerce giant. At the same time as those cuts, all believed to be office jobs, Amazon said it would cut about 5,000 retail workers, according to notices it sent to state workforce agencies in California, Maryland and Washington, resulting from its decision to close almost all of its Amazon Go and Amazon Fresh stores.

    That’s on top of a round of 14,000 job cuts in October, bringing the total to well over 30,000 since Jassy first signaled a push for AI-driven organizational changes.

    Like many companies, in technology and otherwise, but particularly those that make and sell AI tools and services, Amazon has been pushing its workforce to find more efficiencies with AI.

    Meta CEO Mark Zuckerberg said last week that 2026 will be when “AI starts to dramatically change the way that we work.”

    “We’re investing in AI-native tooling so individuals at Meta can get more done, we’re elevating individual contributors, and flattening teams,” he said on an earnings call. “We’re starting to see projects that used to require big teams now be accomplished by a single very talented person.”

    So far, Meta’s layoffs this year have focused on cutting jobs from its virtual reality and metaverse divisions. Also driving job impacts is the industry shifting resources to AI development, which requires huge spending on computer chips, energy-hungry data centers and talent.

    Jassy told Amazon employees last June to be “curious about AI, educate yourself, attend workshops and take trainings, use and experiment with AI whenever you can, participate in your team’s brainstorms to figure out how to invent for our customers more quickly and expansively, and how to get more done with scrappier teams.”

    Plumb was fully on board with that and said he demonstrated his proficiency in using Amazon’s AI coding tool, Kiro, to “solve massive problems” in the company’s compensation system.

    “If you weren’t using them, your manager would get a report and they would talk to you about using it,” he said. “There were only five people in the entire company that were a higher user of Kiro than I was, or had achieved more milestones.”

    Now he’s shifting gears to his candidacy among a field of Republicans in the Houston area looking to unseat U.S. Rep. Dan Crenshaw in the March primary.

    Cornell’s Girotra said it’s possible that increasing AI productivity is leading companies to cut middle management, but he said the reality is that those making layoff decisions “just need to cut costs and make it happen. That’s it. I don’t think they care what the reason for that is.”

    Not all companies are signaling AI as a reason for cuts. Home Depot confirmed on Thursday that it was eliminating 800 roles tied to its corporate headquarters in Atlanta, though most of the affected employees worked remotely.

    Home Depot’s spokesman George Lane said that Home Depot’s cuts were not driven by AI or automation but “truly about speed, agility” and serving the needs of its customers and front-line workers.

    And exercise equipment maker Peloton confirmed on Friday that it is reducing its workforce by 11% as part of a broader cost-cutting move under its CEO Peter Stern to pare down operating expenses.

    ——

    AP Retail Writer Anne D’Innocenzio contributed to this report.

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  • ‘I just don’t have a good feeling about this’: Top economist Claudia Sahm says the economy quietly shifted while policymakers wait for the wrong alarm | Fortune

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    Analysts’ favourite gauge of the U.S. economy’s health comes from data. And at the moment, the numbers look OK … ish. Hiring is down, but unemployment hasn’t spiked, inflation isn’t ballooning (as feared) because of tariffs, and consumer spending is holding up remarkably well.

    Economist Claudia Sahm is an expert (if not the expert) on the conditions that presage a recession and how policymakers should react as a result. She is the creator of “the Sahm Rule,” an employment indicator monitored by everyone from central banks to the global financial giants. The Sahm Rule says that a recession is likely when the three-month moving average of the national unemployment rate rises by 0.5 percentage points or more, relative to the minimum of the three-month averages from the previous year.

    Sahm’s equation has proved invaluable. As JP Morgan observed, it “was 100% accurate prior to the pandemic, dating back to 1959.”

    Therein lies the problem: During the pandemic, Sahm believes the tectonic plates of the economy began shifting and haven’t settled since.

    The labor market has behaved strangely since the pandemic. President Trump’s anti-immigration drive has reduced the number of available workers. Employers have been reluctant to hire for new roles. Unemployment has ticked up but isn’t out of control by historical standards. Hiring remains tight, in a “low-hire, low-fire” environment.

    Secondly, America’s institutions—the courts, the central bank, its federal agencies—have been politically swayed by the Trump Administration. Economists are no longer sure they act independently to provide the checks and balances that historically made the U.S. economy a transparent, and therefore trustworthy, place to do business.

    The former Fed Section Chief who once served as Obama’s senior economist doesn’t think a blow-out event will crash the American economy. Rather, her fear is that aggregating events will reshape these two fundamental factors, and that the usual responses from policymakers are unlikely to be fit for purpose.

    If a path can be charted, Sahm fears we’re moving the wrong way down it.

    Tectonic plate one: Labor

    Many economists have been eyeing the “knife-edge” in the labor market. They are watching the “breakeven number” (the job creation figure needed to stop unemployment from climbing) grind lower and lower, offset by significant immigration, which has reduced labor supply.

    Sahm isn’t so concerned by the month-to-month shifts. Businesses are finding a steadier footing amid tariffs, according to the Fed’s first Beige Book of the year, meaning employers’ low-fire, low-hire approach is no longer driven by fear. Sahm’s concern is longer term: What it means for people looking for work but who can’t find a job, and whether they’ll be ignored by policymakers who are only alert for the technical numbers that signal a downturn.

    “I get concerned when I hear ‘Well, we don’t have layoffs, so we don’t have a recession,’” Sahm told Fortune in an exclusive interview. “But you do have a very low hiring rate. It might not be an aggregate event, it might not be a broad-based contraction like we see in a recession, but it certainly has real implications for workers coming into the labor market.”

    “Something’s happening here,” Sahm adds. “It’s clearly bad for people looking for work, but we can’t just have this, ‘Oh, if we avoid a recession, all is good.’ It could be that we’re dealing with much more structural shifts, and those aren’t just hard to forecast; they’re hard to assess in the moment because those structural shifts can be very slow.”

    AI replacing roles is, of course, a factor. Fed Chairman Jerome Powell is monitoring the situation “very carefully.” JPMorgan’s CEO Jamie Dimon said LLM-driven layoffs could lead to civil unrest. Yet the hand-wringing over the impact of AI doesn’t explain the depressed hiring rates we’re seeing right now, Sahm said.

    An optimist might suggest that a lower hiring rate is a shake-out from incredibly tight conditions during the pandemic. Between 2022 and early 2024, the Beveridge curve—usually a downward slope illustrating the relationship between job openings and the unemployment rate—was more of a straight line: In theory, for every job opening there was a person in need of a role. Fewer openings at the moment may merely show that employers have found the talent they need, and don’t want to add individuals who—in a tight market—can demand the pay and conditions they want, a phenomenon observed by ADP’s chief economist Dr Nela Richardson.

    The data also isn’t illustrating an economy in need of fiscal stimulus to generate activity—though that’s what it’s getting this year anyway in the form of the One Big, Beautiful Bill Act. Analysts are also banking on interest rate cuts from a more dovish Fed chairman, but again Sahm feels this won’t kickstart sluggish hiring: Sahm described the behavior as how a government might “traditionally” stimulate a weakening economy, “kind of [a] front-end recession response.”

    “But against the backdrop, as best we know from the data, business activity looks pretty OK, consumer activity looks OK. I’m concerned that stimulating more demand isn’t what’s holding back hiring—there’s something else.”

    Sahm’s own creation isn’t demanding action: Currently, the recession indicator is sitting at a mild 0.35. She warned policymakers against relying too heavily on the tool in the current cycle, saying their attention should be focused—”maybe even more so”—on the labor market because “it doesn’t hold the typical pattern, which means our typical tools to fight [it] like a recession may not be the right ones.” 

    Tectonic plate two: Institutions

    For all the ingenuity and commitment it took to build America into the globe’s preeminent economic force, the country would not retain the title if it weren’t for the strength of its institutions. President Trump witnessed the market blip when he threatened the independence of the Federal Reserve with remarks about firing Chairman Powell, and Wall Street has been reinforcing the importance of an autonomous central bank ever since.

    But Trump hasn’t stopped pressuring the Fed, with Chairman Powell now being investigated by a grand jury over expensive renovations to central bank buildings.

    “I think we can look and say up to this point with pretty high confidence, that it’s been economics driving the interest rates,” Sahm said. “What I have a hard time with is [that] the escalation has continued, and the Fed itself is going to go through a transformation this year with a change in leadership. If Powell had two or three more years on his tenure as chair, I would feel more confident than I do with the fact that he has four months left.”

    Like the labor market, Sahm’s concern is that institutions like the Fed—where she spent more than a decade of her career—will be allowed by policymakers to drift.

    “We’re not on a good path, and while I applaud Jay Powell for standing up and having a statement and pushing back, over the long haul that’s not a sufficient check on pressure,” she added. “I don’t know where this goes, and [where] the economy may. We may see inflation come down more rapidly, we may end up in an envionment where lowering interest rates makes sense and we diffuse the issues by that.

    “But I just don’t have a good feeling about this.”

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  • WGA West Staff Authorizes Strike, Accusing Guild Leadership Of Bad Faith Bargaining Ahead Of Negotiations With AMPTP

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    Just weeks before the start of a high-stakes bargaining cycle with the major Hollywood studios, the Writers Guild of America’s own staff is threatening to go on strike.

    The Writers Guild Staff Union said late Thursday that 82% of its membership has voted to authorize the work stoppage, accusing guild management of bad faith bargaining. The union staff organized last spring and have been negotiating their first contract with management intermittently since September.

    The alleged unfair labor practices include “surface bargaining, bad faith bargaining, unilateral changes to status quo, retaliation for protected activity, and unlawful surveillance.” The latest development comes after the WGSU filed a ULP charge against the WGA West with the National Labor Relations Board, suggesting that a member of the organizing committee was unlawfully fired.

    The staff union did not give a deadline but said in a public Instagram post that “if management won’t bargain in good faith with us at the table, we will see them on the picket line.”

    The timing is less than ideal, considering that the Writers Guild is set to begin negotiating a new TV/Theatrical contract with the Alliance of Motion Picture and Television Producers in March. The current contract expires May 1.

    The WGAW staff union is represented by the Pacific Northwest Staff Union. It encompasses residuals & dues processors, IT & data management workers, organizers, communications specialists, legal personnel, researchers, Writers Guild Theater employees, contract enforcement staff, and more.

    This marks the first bargaining cycles since the historically long writers and actors strikes in 2023. The WGA West staffers played a critical role in that organizing effort, which saw thousands of writers on picket lines across Los Angeles and New York for 148 days.

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    Katie Campione

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  • ASML made record $11.5 billion profit in 2025 thanks to AI-driven demand, plans to cut 1,700 jobs

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    THE HAGUE, Netherlands — Dutch semiconductor chip machine maker ASML recorded a record net profit of 9.6 billion euros ($11.5 billion) in 2025 on sales of 32.7 billion euros fueled by AI-driven demand, the company reported Wednesday as it also announced plans to slash its workforce by about 1,700, about 4% of its workforce.

    The growth comes despite Dutch government restrictions on exports of machines that can be used to make chips that can be integrated into weapons systems. The measures, initially announced in 2023 and later expanded, are seen as part of a U.S. policy that aims at limiting China’s access to such technology.

    “In the last months, many of our customers have shared a notably more positive assessment of the medium-term market situation, primarily based on more robust expectations of the sustainability of AI-related demand. This is reflected in a marked step-up in their medium-term capacity plans and in our record order intake,” ASML President and Chief Executive Officer Christophe Fouquet said in a statement.

    In a message to employees, the company said it was cutting jobs in order to become more streamlined and efficient. It said ASML was “choosing to make these changes at a moment of strength for the company. Improving our processes and systems will allow us to innovate more and innovate better, generating further responsible growth for ASML and our stakeholders.”

    The job cuts are intended to sharpen ASML’s focus on engineering and innovation by streamlining the company’s technology and IT departments, the message said.

    The company said it expects 2026 to be “another growth year for ASML’s business” driven by sales of its extreme ultraviolet lithography systems.

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  • Legal Questions Swirl Around FDA’s New Expedited Drug Program, Including Who Should Give Sign Off

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    At the highest levels of the FDA, questions remain about which officials have the legal authority to sign off on drugs cleared under the Commissioner’s National Priority Voucher program, which promises approval in as little as one month for medicines that support “U.S. national interests.”

    Traditionally, approval decisions have nearly always been handled by FDA review scientists and their immediate supervisors, not the agency’s political appointees and senior leaders.

    But drug reviewers say they’ve received little information about the new program’s workings. And some staffers working on a highly anticipated anti-obesity pill were recently told they can skip certain regulatory steps to meet top officials’ aggressive deadlines.

    Outside experts point out that FDA drug reviews — which range from six to 10 months — are already the fastest in the world.

    “The concept of doing a review in one to two months just does not have scientific precedent,” said Dr. Aaron Kesselheim, a professor at Harvard Medical School. “FDA cannot do the same detailed review that it does of a regular application in one to two months, and it doesn’t have the resources to do it.”

    On Thursday Reuters reported that FDA officials have delayed the review of two drugs in the program, in part due to safety concerns, including the death of a patient taking one of the medications.

    Health and Human Services spokesman Andrew Nixon said the voucher program prioritizes “gold standard scientific review” and aims to deliver “meaningful and effective treatments and cures.”

    The program remains popular at the White House, where pricing concessions announced by the Republican president have repeatedly been accompanied by FDA vouchers for drugmakers that agree to cut their prices.

    For instance, when the White House announced that Eli Lilly and Novo Nordisk would reduce prices on their popular obesity drugs, FDA staffers had to scramble to vet new vouchers for both companies in time for Trump’s news conference, according to multiple people involved in the process.

    That’s sparked widespread concern that FDA drug reviews — long pegged to objective standards and procedures — have become open to political interference.

    “It’s extraordinary to have such an opaque application process, one that is obviously susceptible to politicization,” said Paul Kim, a former FDA attorney who now works with pharmaceutical clients.


    Top FDA officials declined to sign off on expedited approvals

    Many of the concerns around the program stem from the fact that it hasn’t been laid out in federal rules and regulations.

    The FDA already has more than a half-dozen programs intended to speed up or streamline reviews for promising drugs — all approved by Congress, with regulations written by agency staff.

    In contrast, information about the voucher program is mostly confined to an agency website. Drugmakers can apply by submitting a 350-word “statement of interest.”

    Increasingly, agency leaders such as Dr. Vinay Prasad, the FDA’s top medical officer and vaccine center director, have been contacting drugmakers directly about awarding vouchers. That’s created quandaries for FDA staffers on even basic questions, such as how to formally award a voucher to a company that didn’t request one.

    Nixon, the HHS spokesman, said that voucher submissions are evaluated by “a senior, multidisciplinary review committee,” led by Prasad.

    Questions about the legality of the program led the FDA’s then-drug director, Dr. George Tidmarsh, to decline to sign off on approvals under the pathway, according to several people with direct knowledge of the matter. Tidmarsh resigned from the agency in November after a lawsuit challenging his conduct on issues unrelated to the voucher program.

    After his departure, Sara Brenner, the FDA’s principal deputy commissioner, was set to have the power to decide, but she also declined the role after looking further into the legal implications, according to the people. Currently the agency’s deputy chief medical officer, Dr. Mallika Mundkur, who works under Prasad, is taking on the responsibility.

    Giving final approval to a drug carries significant legal risks, essentially certifying that the medicine meets FDA standards for safety and effectiveness. If unexpected safety problems later emerge, both the agency and individual staffers could be pulled into investigations or lawsuits.

    Traditionally, approval comes from FDA drug office directors, made in consultation with a team of reviewers. Under the voucher program, approval comes through a committee vote by senior agency leaders led by Prasad, according to multiple people familiar with the process. Staff reviewers don’t get a vote.

    “It is a complete reversal from the normal review process, which is traditionally led by the scientists who are the ones immersed in the data,” said Kesselheim, who is a lawyer and a medical researcher.

    Not everyone sees problems with the program. Dan Troy, the FDA’s top lawyer under President George W. Bush, a Republican, says federal law gives the commissioner broad discretion to reorganize the handling of drug reviews.

    Still, he says, the voucher program, like many of Makary’s initiatives, may be short-lived because it isn’t codified.

    “If you live by the press release then you die by the press release,” Troy said. “Anything that they’re doing now could be wiped out in a moment by the next administration.”


    The voucher program has ballooned after outreach by FDA officials

    Initially framed as a pilot program of no more than five drugs, it has expanded to 18 vouchers awarded, with more under consideration. That puts extra pressure on the agency’s drug center, where 20% of the staff has left through retirements, buyouts or resignations over the past year.

    When Makary unveiled the program in October there were immediate concerns about the unprecedented power he would have in deciding which companies benefit.

    Makary then said that nominations for drugs would come from career staffers. Indeed, some of the early drugs were recommended by FDA reviewers, according to two people familiar with the process. They said FDA staffers deliberately selected drugs that could be vetted quickly.

    But, increasingly, selection decisions are led by Prasad or other senior officials, sometimes unbeknownst to FDA staff, according to three people. In one case, FDA reviewers learned from GlaxoSmithKline representatives that Prasad had contacted the company about a voucher.

    Access to Makary is limited because he does not use a government email account to do business, according to people familiar with the matter, breaking with longstanding precedent.


    Under pressure from drugmakers, some FDA reviewers were told they can skip steps

    Once a voucher is awarded, some drugmakers have their own interpretation of the review timeline — creating further confusion and anxiety among staff.

    Two people involved in the ongoing review of Eli Lilly’s anti-obesity pill said company executives initially told the FDA they expected the drug approved within two months.

    The timeline alarmed FDA reviewers because it did not include the agency’s standard 60-day prefiling period, when staffers check the application to ensure it isn’t missing essential information. That 60-day window has been in place for more than 30 years.

    Lilly pushed for a quicker filing turnaround, demanding one week. Eventually the agency and the company agreed to a two-week period.

    Nixon declined to comment on the specifics of Lilly’s review but said FDA reviewers can “adjust timelines as needed.”

    Staffers were pushed to keep the application moving forward, even though key pieces of data about the drug’s chemistry appeared to be missing. When reviewers raised concerns about some of the gaps during an internal meeting, they were told by one senior official: “If the science is sound then you can overlook the regulations.”

    Former reviewers and outside experts say that approach is the opposite of how FDA reviews should work: By following the regulations, staffers scientifically confirm the safety and effectiveness of drugs.

    Skipping review steps could also carry risks for drugmakers if future FDA leaders decide a drug wasn’t properly vetted. Like other experts, Kesselheim says the program may not last beyond the current administration.

    “They are fundamentally changing the application of the standards, but the underlying law remains what it is,” he said. “The hope is that one day we will return to these scientifically sound, legally sound principles.”

    The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    Photos You Should See – January 2026

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  • NYC Nurses Strike Enters Second Day as Hospitals Move to Fill Labor Gaps

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    NEW YORK (AP) — Thousands of New York City nurses were set to return to the picket lines Tuesday as their strike targeting some of the city’s leading hospital systems entered its second day.

    The walkout, which comes during a severe flu season, involved roughly 15,000 nurses spread out across multiple private hospitals, including NewYork-Presbyterian/Columbia, Montefiore Medical Center and Mount Sinai hospital.

    The affected hospitals have hired droves of temporary nurses to try to fill the labor gap. Both nurses and hospital administrators have urged patients not to avoid getting care during the strike.

    The labor action comes three years after a similar strike forced medical facilities to transfer some patients and divert ambulances.

    As with the 2023 labor action, nurses have pointed to staffing issues as a major flashpoint, accusing the big-budget medical centers of refusing to commit to provisions for manageable, safe workloads.

    The private, nonprofit hospitals involved in the current negotiations say they’ve made strides in staffing in recent years, and have cast the union’s demands as prohibitively expensive.

    On Monday, the city’s new mayor, Zohran Mamdani, stood beside nurses on a picket line outside NewYork-Presbyterian, praising the union’s members for seeking “dignity, respect and the fair pay and treatment that they deserve.”

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    Photos You Should See – January 2026

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  • Slightly more Americans file for jobless benefits in the last week of 2025

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    WASHINGTON — U.S. filings for jobless benefits rose in the last week of 2025 but remain historically low, despite signs that the labor market is weakening.

    The number of Americans filing for jobless claims for the week ending Jan. 3 rose by 8,000 to 208,000, up from 200,000 the previous week, the Labor Department reported Thursday. The figure was right in line with what analysts surveyed by the data firm FactSet were expecting.

    Applications for unemployment aid are viewed as a proxy for layoffs and are close to a real-time indicator of the health of the job market.

    The four-week average of claims, which softens some of the week-to-week volatility, fell by 7,250 to 211,750.

    The total number of Americans filing for jobless benefits for the previous week ending Dec. 27 jumped by 56,000 to 1.91 million, the government said.

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  • McKinsey and General Catalyst execs say the era of ‘learn once, work forever’ is over | TechCrunch

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    If there is one point of consensus among the CES 2026 keynote speakers, it is that AI is reshaping technology with a speed and scale unlike any previous technological revolution.

    In a live taping on Tuesday of the All-In podcast, co-host Jason Calacanis interviewed Bob Sternfels, Global Managing Partner of McKinsey & Company, and Hemant Taneja, CEO of General Catalyst. Their discussion focused on how AI is transforming investment strategies and the workforce.

    “The world has completely changed,” Taneja said about the unprecedented growth of AI companies. He noted that while it took Stripe about 12 years to reach a $100 billion valuation, Anthropic, another General Catalyst portfolio company, soared from a $60 billion valuation last year to a “couple hundred billion dollars” this year.

    Taneja believes we are on the verge of seeing a new wave of trillion-dollar companies. “That’s not a pie-in-the-sky idea with Anthropic, OpenAI, and a couple of others,” he said.

    Calacanis pressed them on what’s driving this explosive growth. According to McKinsey’s Sternfels, while many companies are testing AI products, non-tech enterprises remain on the fence about full adoption. Sternfels says the question that McKinsey consultants often hear from CEOs is: “Do I listen to my CFO or my CIO right now?”

    CFOs, seeing little return on investment, argue for delaying implementation. Meanwhile, CIOs claim it’s “crazy” not to adopt AI because “we’ll be disrupted,” Sternfels said.

    Another key concern is how AI is reshaping the labor force. “Some people are looking at AI and they’re scared,” Calacanis said, noting concerns that AI could replace entry-level jobs traditionally filled by recent graduates. He asked Sternfels and Taneja for advice on what young people should do in this new landscape.

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    Sternfels said that while AI models can handle many tasks, sound judgment and creativity remain the essential skills humans must bring to succeed in an AI-infused world.

    Meanwhile, Taneja argued that people must recognize that “skilling and re-skilling” will be a lifelong endeavor. “This idea that we spend 22 years learning and then 40 years working is broken,” he said.

    Calacanis agreed that in a world where it may take less time to build an AI agent than to train a new worker, people must find ways to stay relevant. “To stand out, you’re going to have to show chutzpah, drive, passion,” he said.

    Sternfels provided a glimpse into that future. While he expects McKinsey to have as many “personalized” AI agents as employees by the end of 2026, he noted that headcount will not necessarily decrease. Instead, the firm is shifting its composition; it’s increasing employees who work directly with clients by 25% while reducing back-office roles by the same percentage.

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    Marina Temkin

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