Layoffs and Job Reductions

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    Trump Taps Elon Musk and Vivek Ramaswamy to Lead ‘Dept. of Government Efficiency’

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    How do you slash, cut, restructure and even dismantle parts of the federal government?If you’re President-elect Donald J. Trump, you turn to two wealthy entrepreneurs: the spaceship-inventing, electric-car-building owner of a social media platform and a moneymaking former pharmaceutical executive who was once one of your presidential rivals.Mr. Trump said on Tuesday that Elon Musk and Vivek Ramaswamy will lead what he called the Department of Government Efficiency. It will be, he said, “the Manhattan Project” of this era, driving “drastic change” throughout the government with major cuts and new efficiencies in bloated agencies in the federal bureaucracy by July 4, 2026.“A smaller Government, with more efficiency and less bureaucracy, will be the perfect gift to America on the 250th Anniversary of The Declaration of Independence,” Mr. Trump wrote in a statement. “I am confident they will succeed!”The statement left unanswered all kinds of major questions about an initiative that is uncertain in seriousness but potentially vast in scope. For starters, the president-elect did not address the fact that no such department exists. And he did not elaborate on whether his two rich supporters would hire a staff for the new department, which he said is aimed in part at reducing the federal work force.Mr. Musk, who became one of Mr. Trump’s biggest campaign contributors, said before the election that he would help the president-elect cut $2 trillion from the federal budget. But he did not explain in any detail how that would be accomplished or what parts of the government would be slashed.“This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!” Mr. Musk said in the statement.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Will Sell $19 Billion in Stock Amid Costly Strike

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      The aerospace company, locked in a standoff with striking workers, is seeking to shore up its balance sheet and avoid a credit rating downgrade.Boeing on Monday began to raise roughly $19 billion by selling stock, an attempt to shore up its finances as a costly and disruptive worker strike weighs on the plane maker’s balance sheet.The sale comes shortly after the aerospace giant reported a $6.1 billion loss in the last quarter and said it was cutting about 17,000 jobs. A weekslong strike by Boeing machinists is costing the company tens of millions of dollars each day, according to analyst estimates, adding to the financial strain created by long-running production and quality issues.The fund-raising aims to stave off a potential credit rating downgrade, which could make it more expensive for the company to borrow money. Boeing has about $58 billion in debt. S&P Global Ratings said this month that it was considering lowering Boeing’s credit rating to “junk” status, depending on how long the strike continues.Boeing’s shares fell about 1 percent Monday morning. The company’s stock has fallen more than 40 percent this year.Last week, Boeing’s largest union, which represents about 33,000 workers, rejected a tentative labor contract, extending a strike that began last month and has halted airplane production at crucial plants in the Seattle area. The proposed agreement did not address a frozen pension plan that workers were seeking to restore.Boeing indicated in regulatory filings this month that it planned to raise as much as $25 billion by selling stock or debt over the next three years, and the company entered into a $10 billion credit agreement with a group of banks. It described the plans as “two prudent steps to support the company’s access to liquidity.”The plane maker hasn’t reported an annual profit since 2018. Before the machinists’ strike started to weigh on the company, two fatal crashes of Boeing’s 737 Max in 2018 and 2019 cost it billions of dollars and severely damaged its reputation. Concerns about the safety of Boeing’s commercial planes resurfaced in January, when a door panel on a 737 Max 9 jet blew open during an Alaska Airlines flight.The stock sale on Monday covers only the company’s near-term needs, “without an extended strike or further production disruptions,” analysts at Wells Fargo said in a research note. More

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      Boeing Union Workers Reject Contract

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      The vote, hours after Boeing reported a $6.1 billion loss, will extend a monthlong strike at factories where the company makes its best-selling commercial plane.Boeing’s largest union rejected a tentative labor contract on Wednesday, a blow to the aerospace manufacturer and the Biden administration, which had intervened in the hopes of ending an economically damaging strike that began more than five weeks ago.The contract, the second that workers have voted down, was defeated by a wide margin, with 64 percent of those voting opposing the deal, according to the union, the International Association of Machinists and Aerospace Workers. The union represents about 33,000 workers, but it did not disclose how many voted on Wednesday.“This wasn’t enough for our members,” said Jon Holden, president of District 751 of the union, which represents the vast majority of the workers. “They’ve spoken loudly and we’re going to go back to the table.”The vote is a setback for Boeing’s new chief executive, Kelly Ortberg, who is trying to restore Boeing’s reputation and business, which he described in detail earlier on Wednesday. In remarks to workers and investors, Mr. Ortberg said Boeing needed to undergo “fundamental culture change” to stabilize the business and to improve execution.“Our leaders, from me on down, need to be closely integrated with our business and the people who are doing the design and production of our products,” he said. “We need to be on the factory floors, in the back shops and in our engineering labs. We need to know what’s going on, not only with our products, but with our people.”Mr. Ortberg delivered that message alongside the company’s quarterly financial results, which included a loss of more than $6.1 billion. This month, Boeing also announced plans to cut its work force by about 10 percent, which amounts to 17,000 jobs. Boeing also recently disclosed plans to raise as much as $25 billion by selling debt or stock over the next three years as it tries to avoid a damaging downgrade to its credit rating.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Americans Growing Worried About Losing Their Jobs, Labor Survey Shows

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      The New York Fed’s labor market survey showed cracks just as Jerome H. Powell, the Fed chair, prepares for a closely watched Friday speech.Americans are increasingly worried about losing their jobs, a new survey from the Federal Reserve Bank of New York released on Monday showed, a worrying sign at a moment when economists and central bankers are warily monitoring for cracks in the job market.The New York Fed’s July survey of labor market expectations showed that the expected likelihood of becoming unemployed rose to 4.4 percent on average, up from 3.9 percent a year earlier and the highest in data going back to 2014.In fact, the new data showed signs of the labor market cracking across a range of metrics. People reported leaving or losing jobs, marked down their salary expectations and increasingly thought that they would need to work past traditional retirement ages. The share of workers who reported searching for a job in the past four weeks jumped to 28.4 percent — the highest level since the data started — up from 19.4 percent in July 2023.The survey, which quizzes a nationally representative sample of people on their recent economic experience, suggested that meaningful fissures may be forming in the labor market. While it is just one report, it comes at a tense moment, as economists and central bankers watch nervously for signs that the job market is taking a turn for the worse.The unemployment rate has moved up notably over the past year, climbing to 4.3 percent in July. That has put many economy watchers on edge. The jobless rate rarely moves up as sharply as is has recently outside of an economic recession.But the slowdown in the labor market has not been widely backed up by other data. Jobless claims have moved up but remain relatively low. Consumer spending remains robust, with both overall retail sales data and company earnings reports suggesting that shoppers continue to open their wallets.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      X Spaces With Trump and Musk Is Off to a Glitchy Start

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      Elon Musk’s live conversation with former president Donald J. Trump on X got off to a glitchy start on Monday, a setback for the social media service as Mr. Musk pushes the company to regain its dominance as an online epicenter of political discourse.Some users who tried to listen to the conversation, which was hosted on the company’s audio livestreaming feature called Spaces, were greeted by silence and an error message that read: “Details not available.” Users said they had trouble accessing the livestream on desktop computers and mobile phones. Those who were able to get the livestream to work were met with hold music. The Spaces event was originally scheduled to start at 8 p.m. Eastern. The number of attendees fluctuated wildly as users struggled to gain access, drifting between 100,000 and more than 700,000 listeners. Mr. Musk blamed a cyberattack known as a distributed denial of service attack, or DDoS, for the glitches. DDoS attacks work by flooding servers with malicious traffic and knocking them offline. “Worst case, we will proceed with a smaller number of live listeners and post the conversation later,” he wrote. The attack could not immediately be verified.Mr. Musk claimed the system had been tested “with 8 million concurrent listeners” earlier that day.He had spent Sunday evening testing the service to make sure it could stay up and running by streaming himself playing a video game. We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      CNN Cuts 100 Jobs, and Announces Plan for Digital Subscription Product

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      The network’s C.E.O., Mark Thompson, has promised a more robust digital strategy as people flee traditional cable packages.CNN’s top leader announced 100 job cuts on Wednesday as well as a digital strategy that would include a new subscription-only digital offering by the end of the year.The company is laying off around 100 people, or about 3 percent of its work force. The layoffs would come “across the company,” Mark Thompson, the network’s chairman, said in a memo to employees. CNN last had significant layoffs in late 2022.Mr. Thompson announced the job cuts as the company began to unveil steps on a digital plan that he said would help the network “regain a leadership position in the news experiences of the future.”Mr. Thompson, the former chief executive of The New York Times and a senior leader at the BBC, has been in charge of CNN since October 2023. He has promised a more robust digital strategy as people flee traditional cable packages in favor of streaming entertainment.CNN’s ratings have plummeted over the last two years, more so than those of its primary competitors, Fox News and MSNBC. Additionally, CNN’s parent, Warner Bros. Discovery, has an enormous debt load, and its share price has fallen sharply this year.CNN got a recent shot in the arm when it organized and broadcast the first presidential debate in late June, an event that continued to set off alarm bells within the Democratic Party about the future of President Biden’s campaign. CNN made the debate available for other outlets to broadcast, and it drew more than 50 million viewers overall. About 9.5 million of those watched on CNN.As part of the announcement on Wednesday, Mr. Thompson said CNN.com’s “first subscription product” would debut later this year. He also said the company would create “a growing stable of ‘news you can use’ offerings” in lifestyle coverage. Additionally, he said the company would make a push into artificial intelligence.Mr. Thompson laid out a reorganization that would include merging three separate newsrooms (U.S. news gathering, international news gathering and digital news) under one leader, Virginia Moseley. And on the prime-time television front, he has directed deputies to “increase audience competitiveness and also keep a close eye on production costs.”“Turning a great news organization toward the future is not a one-day affair,” Mr. Thompson wrote in a memo to employees. “It happens in stages and over time. Today’s announcements do not answer every question or seek to solve every challenge we face. However, they do represent a significant step forward.” More

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      Dear Elites (of Both Parties), the People Will Take It From Here, Thanks

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      I first learned about the opioid crisis three presidential elections ago, in the fall of 2011. I was the domestic policy director for Mitt Romney’s campaign and questions began trickling in from the New Hampshire team: What’s our plan?By then, opioids had been fueling the deadliest drug epidemic in American history for years. I am ashamed to say I did not know what they were. Opioids, as in opium? I looked it up online. Pills of some kind. Tell them it’s a priority, and President Obama isn’t working. That year saw nearly 23,000 deaths from opioid overdoses nationwide.I was no outlier. America’s political class was in the final stages of self-righteous detachment from the economic and social conditions of the nation it ruled. The infamous bitter clinger and “47 percent” comments by Mr. Obama and Mr. Romney captured the atmosphere well: delivered at private fund-raisers in San Francisco in 2008 and Boca Raton in 2012, evincing disdain for the voters who lived in between. The opioid crisis gained more attention in the years after the election, particularly in 2015, with Anne Case and Angus Deaton’s research on deaths of despair.Of course, 2015’s most notable political development was Donald Trump’s presidential campaign launch and subsequent steamrolling of 16 Republican primary opponents committed to party orthodoxy. In the 2016 general election he narrowly defeated the former first lady, senator and secretary of state Hillary Clinton, who didn’t need her own views of Americans leaked: In public remarks, she gleefully classified half of the voters who supported Mr. Trump as “deplorables,” as her audience laughed and applauded. That year saw more than 42,000 deaths from opioid overdoses.In a democratic republic such as the United States, where the people elect leaders to govern on their behalf, the ballot box is the primary check on an unresponsive, incompetent or corrupt ruling class — or, as Democrats may be learning, a ruling class that insists on a candidate who voters no longer believe can lead. If those in power come to believe they are the only logical options, the people can always prove them wrong. For a frustrated populace, an anti-establishment outsider’s ability to wreak havoc is a feature rather than a bug. The elevation of such a candidate to high office should provoke immediate soul-searching and radical reform among the highly credentialed leaders across government, law, media, business, academia and so on — collectively, the elites.The response to Mr. Trump’s success, unfortunately, has been the opposite. Seeing him elected once, faced with the reality that he may well win again, most elites have doubled down. We have not failed, the thinking goes; we have been failed, by the American people. In some tellings, grievance-filled Americans simply do not appreciate their prosperity. In others they are incapable of informed judgments, leaving them susceptible to demagoguery and foreign manipulation. Or perhaps they are just too racist to care — never mind that polling consistently suggests that most of Mr. Trump’s supporters are women and minorities, or that polling shows he is attracting far greater Black and Hispanic support than prior Republican leaders.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Little, Brown, a Hachette Imprint, Lays Off Seven People

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      The shake up at the Hachette Book Group imprint comes at a time when publishers are feeling pressured by sluggish print sales and rising supply chain costs.Hachette Book Group laid off seven employees at its Little, Brown imprint on Wednesday, according to the company, in a shake-up that was the latest example of turmoil in the publishing industry.The layoffs, which the company described as part of a corporate restructuring, come as major publishing companies have been buffeted by sluggish print sales and rising supply chain costs, and have struggled to find new ways to get books in front of customers who have migrated online.The seven people being laid off include the editors Tracy Sherrod, Pronoy Sarkar, Jean Garnett and Ben George, according to a person with knowledge of the situation who wasn’t authorized to discuss personnel matters.To many industry observers, the departure of Sherrod, a high-ranking Black editor, is a troubling sign that publishers are faltering in their promise to diversify their companies, particularly within their executive ranks.A Hachette spokeswoman said the restructuring was part of an effort to better serve readers and was not a cost-cutting measure. As part of the restructuring, the company said, it will hire in new roles. The news was reported earlier by Publishers Weekly.Last month, Penguin Random House let go of two publishers of its most prestigious literary imprints, casting off Reagan Arthur, the publisher of Alfred A. Knopf, and Lisa Lucas, who was the publisher of Pantheon and Schocken and had been the first Black publisher at Pantheon in its 80-year history. Their departures were part of a cost-saving restructuring, according to a person in publishing familiar with the decision.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Peloton CEO Barry McCarthy Steps Down as Company Cuts 15% of Workers

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      Barry McCarthy took over as C.E.O. in February 2022 to revive Peloton from its late-pandemic slump, but the company has struggled to become profitable.Peloton said on Thursday that its chief executive, Barry McCarthy, was stepping down and it would lay off more workers, as it continued to struggle in the fitness market.The connected-fitness company announced disappointing quarterly earnings on Thursday, with revenue down 4 percent from last year. The company, which has not turned a profit since December 2020, is also looking to refinance more than $1 billion in debt.Peloton had a spectacular rise at the start of the pandemic, when gyms and fitness centers closed and consumers were hungry for at-home workout options. But after gyms reopened, Peloton began to face stiffer competition from companies like Bowflex and Lululemon.Barry McCarthy, a former Spotify and Netflix executive, joined Peloton in 2022.Kevin Dietsch/Getty ImagesIt is reducing its head count by 15 percent, or 400 workers, in an effort to cut its costs this year by $200 million. Peloton has had several other rounds of job cuts in the past couple of years, most recently in October 2022, when it laid off about 12 percent of employees, or about 500 people.“Hard as the decision has been to make additional head count cuts, Peloton simply had no other way to bring its spending in line with its revenue,” Mr. McCarthy said in a statement.Investors appeared optimistic about the news; Peloton’s stock price rose about 9 percent in premarket trading.The company said it was looking to reduce its retail footprint and instead invest in “software, hardware and content portfolio and in improvements” for paying subscribers. Mr. McCarthy, a former Spotify and Netflix executive, joined Peloton in February 2022, taking over from the company’s founder, John Foley. Two board members, Karen Boone and Chris Bruzzo, will serve as interim co-chief executives. More