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Unpacking Trump's Historic Shake-up Of The Federal Workforce

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The Trump administration carried out immigration raids in Chicago as part of the president's mass deportation campaign.

Chip Somodevilla/Pool/AFP/Getty Images

Hello. A passenger jet carrying 64 people collided with a military helicopter Wednesday night during the jet's final approach to Reagan Washington National Airport.

In a press conference early Thursday morning, officials gave no updates on any survivors but indicated that many families had lost loved ones. Muriel Bowser, the mayor of Washington, DC, said the helicopter was carrying three people.

Washington's fire chief, John Donnelly, said about 300 people were working on the rescue and recovery effort but cold and wind were adding challenges. Follow our coverage here.

In today's newsletter, President Donald Trump's plan for widespread buyouts still raises plenty of questions.

What's on deck

Markets: The people who won big betting on Nvidia early aren't sweating things.

Tech: Tesla, Meta, and Microsoft reported earnings.

Business: Hollywood's got a new production formula, and it includes more shows like MrBeast's "Beast Games."

But first, should I stay or should I go?

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The big story

Move fast and cut the federal workforce

joe daniel price/Getty, Tyler Le/BI

The speed at which President Donald Trump is implementing an unprecedented set of changes is creating plenty of questions for those being impacted.

Business Insider's Ayelet Sheffey breaks down everything we know, and everything we don't, about a historic shake up of the federal workforce.

One key unknown factor is how individual agencies will handle buyout offers. The OPM kept its parameters pretty broad, leaving it to the agencies' discretion to decide which employees would be excluded from a buyout offer.

And then there's also the question of what the federal government will look like going forward. The OPM detailed four pillars the federal workforce will be built around — RTO, performance culture, more streamlined and flexible workforce, and enhanced standards of conduct — but specifics were sparse.

Leaving the federal workforce comes with a catch, though. If you're looking for a boss who hates RTO mandates and cost-cutting initiatives, you might be searching for a while. As BI's Tim Paradis writes, with so many threats to their business, executives are shifting away from the pandemic-era focus on flexibility and worker well-being.

And then there's just the sheer unpredictability factor, as was the case with the pause on federal grants and loans. After a brief back-and-forth, the memorandum has been tabled.

Alex Wong/Getty Images

One corner of the government, however, remains predictably predictable.

The Federal Reserve paused its rate-cutting campaign, as was widely expected. Despite urging from President Trump to lower rates last week, Fed Chair Jerome Powell and company held firm on the pause.

For a while, Powell has maintained that the economy is trending in the right direction. While there has been speculation about the impact of Trump's policies on the economy, he's made clear that the Fed cannot react to them until they are in place.

That makes the buyouts an interesting wrinkle for the Fed to consider. As the largest employer in the US, any significant change to the federal workforce has the potential to shake up the job market and wider economy.

News brief

Top headlines

3 things in markets

1. Not so fast. Why some market strategists aren't sweating the impact of DeepSeek. Goldman Sachs' analysts don't see the arrival of the Chinese AI startup as the start of a market rout since it didn't disrupt the strong macroeconomic conditions. Other strategists said a brief reset of valuations is healthy, and this will be a net positive for US markets.

2. Nvidia investors are unfazed. The chip giant's nearly $600 billion sell-off on Monday didn't scare off retail bulls. Instead, investors said they saw it as an opportunity to buy more of the stock at a discount. One Nvidia retail trader told BI he thinks DeepSeek's move to disrupt players in the space is "laughable."

3. Trump takes another big step into the crypto world. Truth Social is launching Truth.Fi to offer financial products and is working with Schwab to do it. Meanwhile, crypto exchange Coinbase tapped Chris LaCivita, the co-manager of President Trump's election campaign, to serve on its global advisory council.

3 things in tech

Microsoft CFO Amy Hood

Stephen Brashear/Getty Images

1. Microsoft's AI business boom isn't enough to keep investors happy. Azure and other cloud computing sales grew 31% in Q2. Still, the results didn't meet analyst expectations — and shares of Microsoft slipped in after-hours trading. Amid a recent influx of AI news, like DeepSeek and Stargate, Microsoft's CFO told employees to "focus."

2. Zuckerberg touts Meta's big year ahead as it beats Q4 earnings. Despite exceeding Q4 expectations, the tech giant lowered its forecast for the coming quarter. CEO Mark Zuckerberg highlighted Meta's AI glasses during its earnings call, saying 2025 would be a pivotal year for the tech. He also highlighted Meta's newly improved relationship with the government and doubled down on its controversial shift away from fact-checkers.

3. Despite a disappointing earnings beat, Tesla keeps investors positive. Elon Musk's EV company missed Q4 expectations, but it made up enough ground to keep investors happy. It said its energy business is booming, it's on track to mass produce its robotaxi in 2026, and it's gearing up to start producing more affordable models in the coming months. Shares rose over 3% in after-hours trading.

3 things in business

BI

1. Inside Amazon's plan to cut managers. Internal guidelines viewed by BI show how one AWS team is planning to slim down middle management, a glimpse into the company's strategy. The details aren't pretty — they include more direct reports, fewer senior hires, and pay cuts.

2. Hollywood may have a new normal. New data from industry data firm Ampere Analysis found that scripted TV show productions were down 25% in 2024, compared to their peak in 2022. The firm also expects big streamers' spending on entertainment to flatten. After the twin strikes in 2023, many in Hollywood expected production to bounce back — but Ampere doesn't think that will be the case. The key might be finding the next 'Beast Games.'

3. Inside Starbucks' plan to avoid chaos at the coffee counter. The coffee chain is experimenting with a new algorithm that will help serve walk-in and mobile order customers in a timely manner without overwhelming staff. The algorithm, which sequences mobile orders to avoid hitting baristas all at once, is only being tested in three stores so far, but early results already show improvements, Starbucks CEO Brian Niccol said.

In other news

What's happening today

  • Apple, Intel, Comcast, Southwest Airlines, Visa, and US Steel report earnings.

  • Q4 GDP data published.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Grace Lett, editor, in Chicago. Ella Hopkins, associate editor, in London. Hallam Bullock, senior editor, in London. Amanda Yen, associate editor, in New York. Elizabeth Casolo, fellow, in Chicago.

Read the original article on Business Insider

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