Nike isnt the only household corporate name to announce significant layoffs this week. Just a day after the sporting goods giant announced layoffs, citing a further embrace of automation, social media giant Pinterest has announced it will cut jobs. The driving factor here? Artificial intelligence.
Heres what you need to know about the Pinterest layoffs.
Whats happened?
On Tuesday, the image-sharing social media platform Pinterest announced it plans to lay off around 15% of its workforce. The company made the announcement in a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC).
In that filing, Pinterest said that its board of directors had approved a global restructuring plan for the company. As part of that plan, Pinterest will pare its workforce back by less than 15%. In addition, the company will also reduce its office space.
When reached for comment, Pinterest told Fast Company that it had around 5,200 employees as of December 2025. A 15% reduction then would result in approximately 780 jobs being lost. The company says the restructuring charges resulting from its plans will cost the company between $35 million and $45 million.
Pinterest said that its restructuring plan is expected to be completed by the end of its third quarter, which finishes on September 30. It is unknown whether the layoffs will take place immediately or be spread over the period from now until September.
Why is Pinterest cutting jobs?
When reached for comment, a Pinterest spokesperson told Fast Company that it was making organizational changes to further deliver on our AI-forward strategy, which includes hiring AI-proficient talent. As a result, weve made the difficult decision to say goodbye to some of our team members.
In its Form 8-K, the company elaborated on the AI shift that is occurring with the layoffs, stating that it plans to reallocate resources to AI-focused roles and teams that drive AI adoption and execution while prioritizing AIpowered products and capabilities.
While Pinterest boasts 600 million monthly active users, that number is well below the billions its main competitor, Meta, has across Facebook and Instagram, as well as TikTok. Users now use all four platforms for shopping to some degree, making them all attractive to advertisers.
However, while Facebook and TikTok wasted no time embracing AI to improve their user experience and the tools and technologies powering their ad business, Pinterest has been slower to adopt AI. Yet that began to change significantly last year with the rollout of its AI chatbot, Pinterest Assistant, which lets users get personalized style and shopping recommendations.
With todays announcements, Pinterest is clearly signaling that it plans to accelerate its AI adoption going forward.
How has Pinterests stock price reacted?
Pinterest, Inc. shares (NYSE: PINS) are currently down heavily in early-morning trading. As of the time of this writing, PINS shares have fallen over 8.5% since the market opened, to $23.68.
Todays fall means PINS stock is now negative around 8.2% for the year so far. Over the past 12 months, Pinterest shares have fallen by over 29%.
In its Q3 2025 earnings report in November, Pinterest reported 17% year-over-year earnings growth of just over $1 billion.
Prominent Republicans and gun rights advocates helped elicit a White House turnabout this week after bristling over the administration’s characterization of Alex Pretti, the second person killed this month by a federal officer in Minneapolis, as responsible for his own death because he lawfully possessed a weapon.The death produced no clear shifts in U.S. gun politics or policies, even as President Donald Trump shuffles the lieutenants in charge of his militarized immigration crackdown. But important voices in Trump’s coalition have called for a thorough investigation of Pretti’s death while also criticizing inconsistencies in some Republicans’ Second Amendment stances.If the dynamic persists, it could give Republicans problems as Trump heads into a midterm election year with voters already growing skeptical of his overall immigration approach. The concern is acute enough that Trump’s top spokeswoman sought Monday to reassert his brand as a staunch gun rights supporter.“The president supports the Second Amendment rights of law-abiding American citizens, absolutely,” White House press secretary Karoline Leavitt told reporters.Leavitt qualified that “when you are bearing arms and confronted by law enforcement, you are raising the risk of force being used against you.”
Videos contradict early statements from administration
That still marked a retreat from the administration’s previous messages about the shooting of Pretti. It came the same day the president dispatched border czar Tom Homan to Minnesota, seemingly elevating him over Homeland Security Secretary Kristi Noem and Border Patrol chief Greg Bovino, who had been in charge in Minneapolis.Within hours of Pretti’s death on Saturday, Bovino suggested Pretti “wanted to massacre law enforcement,” and Noem said Pretti was “brandishing” a weapon and acted “violently” toward officers.“I don’t know of any peaceful protester that shows up with a gun and ammunition rather than a sign,” Noem said.White House deputy chief of staff Stephen Miller, an architect of Trump’s mass deportation effort, went further on X, declaring Pretti “an assassin.”Bystander videos contradicted each claim, instead showing Pretti holding a cellphone and helping a woman who had been pepper sprayed by a federal officer. Within seconds, Pretti was sprayed, too, and taken to the ground by multiple officers. No video disclosed thus far has shown him unholstering his concealed weapon - which he had a Minnesota permit to carry. It appeared that one officer took Pretti’s gun and walked away with it just before shots began.As multiple videos went viral online and on television, Vice President JD Vance reposted Miller’s assessment, while Trump shared an alleged photo of “the gunman’s gun, loaded (with two additional full magazines!).”
Swift reactions from gun rights advocates
The National Rifle Association, which has backed Trump three times, released a statement that began by casting blame on Minnesota Democrats it accused of stoking protests. But the group lashed out after a federal prosecutor in California said on X that, “If you approach law enforcement with a gun, there is a high likelihood they will be legally justified in shooting you.”That analysis, the NRA said, is “dangerous and wrong.”FBI Director Kash Patel magnified the blowback Sunday on Fox News’ “Sunday Morning Futures With Maria Bartiromo.” No one, Patel said, can “bring a firearm, loaded, with multiple magazines to any sort of protest that you want. It’s that simple.”Erich Pratt, vice president of Gun Owners of America, was incredulous.“I have attended protest rallies while armed, and no one got injured,” he said on CNN.Conservative officials around the country made the same connection between the First and Second amendments.“Showing up at a protest is very American. Showing up with a weapon is very American,” state Rep. Jeremy Faison, who leads the GOP caucus in Tennessee, said on X.Trump’s first-term vice president, Mike Pence, called for “full and transparent investigation of this officer involved shooting.”
A different response from the past
Liberals, conservatives and nonpartisan experts noted how the administration’s response differed from past conservative positions involving protests and weapons.Multiple Trump supporters were found to have weapons during the Jan. 6, 2021, attack on the U.S. Capitol. Trump issued blanket pardons to all of them.Republicans were critical in 2020 when Mark and Patricia McCloskey had to pay fines after pointing guns at protesters who marched through their St. Louis neighborhood after the police killing of George Floyd in Minneapolis. And then there’s Kyle Rittenhouse, a counter-protester acquitted after fatally shooting two men and injuring another in Kenosha, Wisconsin, during the post-Floyd protests.“You remember Kyle Rittenhouse and how he was made a hero on the right,” Trey Gowdy, a Republican former congressman and attorney for Trump during one of his first-term impeachments. “Alex Pretti’s firearm was being lawfully carried. He never brandished it.”Adam Winkler, a UCLA law professor who has studied the history of the gun debate, said the fallout “shows how tribal we’ve become.” Republicans spent years talking about the Second Amendment as a means to fight government tyranny, he said.“The moment someone who’s thought to be from the left, they abandon that principled stance,” Winkler said.Meanwhile, Democrats who have criticized open and concealed carry laws for years, Winkler added, are not amplifying that position after Pretti’s death.
Uncertain effects in an election year
The blowback against the administration from core Trump supporters comes as Republicans are trying to protect their threadbare majority in the U.S. House and face several competitive Senate races.Perhaps reflecting the stakes, GOP staff and campaign aides were reticent Monday to talk about the issue at all.The House Republican campaign chairman, Rep. Richard Hudson of North Carolina, is sponsoring the GOP’s most significant gun legislation of this congressional term, a proposal to make state concealed-carry permits reciprocal across all states.The bill cleared the House Judiciary Committee last fall. Asked Monday whether Pretti’s death and the Minneapolis protests might affect debate, an aide to Speaker Mike Johnson did not offer any update on the bill’s prospects.Gun rights advocates have notched many legislative victories in Republican-controlled statehouses in recent decades, from rolling back gun-free zones around schools and churches to expanding gun possession rights in schools, on university campuses and in other public spaces.William Sack, legal director of the Second Amendment Foundation, said he was surprised and disapointed by the administration’s initial statements following the Pretti shooting. Trump’s vacillating, he said, is “very likely to cost them dearly with the core of a constituency they count on.”
Associated Press writer Kimberlee Kruesi in Providence, Rhode Island, contributed to this report.
Bill Barrow and Nicholas Riccardi, Associated Press
Yahoo may not be the most headlined company in tech anymore, but its reach cant be denied. With nearly 250 million monthly users across the country and 700 million globally, its still the second most popular email client in the world, and the third most popular search engine in the U.S. (even though that search engine has technically been powered by either Bing or Google since 2009).
As a privately owned company since 2021 (once worth $125 billion, but purchased for a mere $5 billion at the time), its CEO Jim Lanzone says that the last few years have been about getting the house in order. But now, he promises, this is one of the biggest turnarounds people have tried in internet history.
Lanzone says that turnaround begins with Yahoo Scout, which launches today in beta. In short, Yahoo Scout is a new, free AI search engine (its also an omnipresent button across Yahoo verticals like Finance, Sports, and Mail) that’s there to summarize the performance of a business or break down the key moments of a game.
In one mode, it’s essentially Yahoo’s version of Claude or ChatGPT. (Yahoo Answers for the AI era!) In the other, it’s an AI-translate button accompanying Yahoo’s editorial content, boiling down articles into takeaways. It will even summarize the sentiment of the comments on stories you read across Yahoo.
We [arent] the first to market here, but in evaluating whether we should keep outsourcing or build the AI layer ourselves, it just became clear that we could do this best for our users, says Lanzone. We had a lot of unique assets to do that. And so in that context, timing is almost irrelevant, right? Because this is about Yahoo users on Yahoo, searching on Yahoo, versus what they were getting before.
[Image: Yahoo]
Led by Eric Feng, SVP & general manager of the Yahoo Research Groupwho is best known for recruiting and leading the technical team that created Huluits powered by a combination of Yahoos knowledge graph, Anthropics Claude, and Bings open web APIs. (Yahoo says that user data is kept internally and does not train Claude or Bing.)
Yes, that means Yahoo is still relying on external partners, but the team says that search will feel like Yahoo because its so based within the Yahoo ecosystem. Specifically, Yahoo Scout can answer a question with everything Claude knows within its LLM (and gosh, does Yahoo Scout love to build a table breaking down information!) And it can also search the web itself as well as Bing.
But the team insists that Yahoos own knowledge graph provides a lot more on top of Claude and Bing today, and it promises even more into the future. Specifically, Yahoo publishes 30,000 pieces of licensed stories and other content each day that are at its fingertips, and users create 18 trillion events across its services each year. Every event you get just makes the overall totality of the experience smarter, says Feng.
Even if its something as simple as searching for the score of your favorite team, thats actionable data for Yahoo in the short term, but even more so in the medium to long term as it shifts Scout from a generalized AI search engine or summarizer to more of a personal AI.
Just to be direct about it, you will see the roadmap include personalization [of AI], says Lanzone. Thats certainly where the category is headed, and it is a unique asset to Yahoo to be able to already have that built in. You know, we’re not trying to acquire an audience to start to build that up from scratch. We actually have all that knowledge and that relationship to dip into then layer this on top of.
The experience of Yahoo Scout, and what that means for publishers
Yahoo Scout lives as a responsive website and also as a standalone app.
As a search engine, Scouts white search bar is accompanied by an ever-changing rotation of animated clipart (yeehaw, its quite a cute cowboy hat), bringing back some of the brands original quirk.
The rest of the experience will be pretty familiar to anyone who has used an LLM, as every query is less a collection of blue links than an explanation of an idea.
From a demo I watched, it really does have a bias to break searches down into comparative tables (which may be useful or cloying, depending how often that approach is taken). But its also less text heavy than many LLMs, because it makes liberal use of thumbnails listing news stories and products to buy.
That penchant for prominent, colorful linking isnt coincidence. Publishers are amidst a 30-year mass extinction event, spurred on most recently by AI search tools that mine their reporting and present it to a public that no longer needs to click through to the actual story. Lanzone argues that prominent linking is key to protecting the health of the publishing industrypublishers that Yahoo relies upon for its core media aggregation business.
Our No. 1 job is to bridge the gap for publishers . . . [with] a beautiful UI that’s very rich and intuitive but still leans into linking out without cluttering the page, he says. Well see if this is the exact version of where we wind up, but from day one, that’s a priority for us. And then [priority] two is, can we bring search advertising along as well?
Speaking from two decades in digital publishing, I know that what Yahoo has shown thus far is certainly not enough to protect publishersand I challenged Lanzone on this point. Yahoos design may improve clickthrough rates a hair, but not nearly enough to support the publishing industry. Cloudflare research on search engine referrals demonstrates just how dire this moment is: For every 70,900 times Anthropic bots scraped information off a website, users clicked through only once. Much like McDonalds couldnt survive if Uber Eats began distributing its hamburgers for free, reported news cant live on if search engines are snatching their insights without meaningful compensation.
“It’s not in version one, but we are also passionate about the idea that search advertising was really effective for both publishers, search engines, and advertisers. And there should be a way to cross the chasm, and to bring that model along with generative AI search engines says Lanzone. I don’t know. It won’t wind up exactly where it was, but it can be a lot closer to it than we’ve seen to date. And we are actually working on versions of that. It’s just going to be very hard to scale nine-step agentic processes where you get paid downstream, and it’s just a very difficult model to really scale up.
And make no mistake, Yahoo is advertising with Yahoo Scout. While Anthropic has yet to introduce ads and OpenAI is only starting to, Yahoo is including ads in Scout searches from day one. Those ads appear in traditional paid links in the feed (think Google Adwords). Its also monetizing its shopping referrals (thanks to an AI shopping platform Vetted it acquired late last year). These are just the beginning of Yahoos extensive advertising roadmap, which will be realized with more intricacy later this year.
Outside search, though, Yahoo believes that Scout living across Yahoo services will offer indirect benefit to monetization. If you are on Mail, Finance, or Sports, we want the technology that we’re providing to make that experience better, and then we get more engagement, says Feng. We get those users sticking around longer, and then those properties are able to better monetize.
For now, Yahoo believes that monetization will be significant enough that it justifies keeping Scout free. That said, even Yahoo cannot resist the allure of subscription service revenue, and suggests that a premium paid version of Scout could live somewhere in the future.
Look, we have subscription products of finance and sports and places, and you can definitely see a version of that coming here, says Lanzone. But 100% of our effort [for launch] has been the evolution of Yahoo search into Yahoo Scout. And we have the luxury of doing that because we have a really good business search already.
A privacy-centric cellphone carrier called Cape is now officially available across the United States, offering a unique set of features to protect users from surveillance and identity theft.
Many cellphone users already use virtual private networks, encrypted messaging apps, and secure password managers to help keep their data safe. But those tools cant always protect against security issues with the underlying cell network itself, and other phone companies dont typically compete on privacy, says Cape CEO John Doyle.
Before we built Cape, there was not an obvious differentiated choice in the network space, Doyle says.
[Photo: Cape]
But Cape, founded in 2022, is designed to protect customers from privacy risks like SIM swapping, where a cellphone number is transferred to a new phone without the owners permission to intercept sensitive messages like authentication codes, and IMSI catchers, which snoop on phone users by impersonating legitimate cell towers and monitoring the unique international mobile subscriber identity (IMSI) codes they transmit. That enables their operators, whether spy agencies or other mysterious parties, to track how people move about and potentially intercept calls and texts. (Cape also assisted the Electronic Frontier Foundation in developing technology to spot such devices, which led to evidence of one being found near the 2024 Democratic National Convention.)
The company also doesnt collect subscriber names, addresses, or Social Security numbers, and automatically encrypts voicemails its customers receive so that the company cannot access them.
Cape has raised $61 million in funding from investors including Andreessen Horowitz, Costanoa Ventures, Forward Deployed VC, and Karman Ventures. Doyle says he launched the company after learning about various vulnerabilities in cellular networks, with an early focus on people involved in security-sensitive work. It then expanded to offering service to users like survivors of domestic violence, investigative journalists, and people working in other high-risk fields, says Doyle, who previously ran the national security business at Palantir and served in the U.S. Army Special Forces.
Cape launched an open beta program in March 2025 and has now officially emerged into general availability. Doyle says he believes new consumers will appreciate the companys privacy features enough to pay Capes monthly fee of $99 per month before discounts.
Thats pricier than many plans from carriers like T-Mobile and Verizon, which offer base plans at $75 or less before their own discounts, not to mention discount providers like Mint Mobile, though Doyle points out that Capes cost includes all taxes and feesnot to mention the added privacy features.
And with most people essentially required to carry cellular phones for business and personal reasons, and growing concerns about data privacy and security, he believes theres a market for a service that makes everyday people harder to hack and track.
We find there’s just a wide swath of citizens who are really attracted to the idea of having some choice and taking that little bit of control over how their data is presented to and shared on mobile networks, Doyle says.
[Photo: Cape]
Though Cape doesnt own its own cell towersits whats called a mobile virtual network operator (MVNO), paying for radio spectrum and other services from carriers with their own physical networkthe company operates its own mobile core network, meaning its able to offer a level of customization and security beyond what other carriers offer. In other words, its partner carriers handle radio connectivity, but Capes cloud-based system then takes over the logic of verifying that phones have access to the network, routing calls and messages, and maintaining and securing its own logs.
The company disallows less secure 2G and 3G connections, and regularly changes IMSI numbers to discourage tracking, similar to how iPhones randomize Wi-Fi network addresses. And when users travel overseas, Cape verifies their phones locations using its app before routing connections through foreign networks, reducing the risk of impersonation attacks.
The company also offers a partnership with Proton, a Switzerland-based provider of secure email, VPN, and other digital services, enabling a discount for new customers. Proton offers email features like encrypted message storage and filtration of trackers embedded in messages and a VPN that can filter out ads, trackers, and malware.
And Cape explicitly supports GapheneOS, an Android app-compatible mobile operating system optimized for security and lack of dependence on Google and Apple. The company doesnt have an explicit partnership with the nonprofit behind Graphene, but it does make a donation to the organization for each new Graphene user that signs up, and even offers phones preloaded with the OS, unusual among mobile carriers.
It’s a somewhat technical process to install Graphene, says Doyle, so we do that for people if they want.
[Photo: Cape]
Customers with modern iPhone or Android devices that support eSIMessentially, purely digital SIM cardsdont have to buy phones through Cape and can activate an existing device and port existing numbers. If you do purchase a phone through Cape, which currently offers a range of Google Pixel devices, Cape offers a $500 phone bill discount spread over six months to help defray the device cost (and pledges to delete customer shipping and billing info after 180 days).
Users are also entitled to three numbers per line as a privacy measure, so they can provide one to friends and family and use others to receive authentication codes from businesses, for online dating, or any other privacy-centric purpose they wish. The numbers show up as ordinary numbers, so theyre not barred from services that ban purely internet-based numbers like Google Voice assigns, Doyle says. While the carrier cant entirely protect peoples privacy when they interact with other appsride-hailing apps will still know peoples locations, and users may still elect to share photos or other potentially sensitive data with apps and websitesit can help people keep their primary phone numbers safe.
If subscribers wish to port their numbers to another phone or out of the Cape network, they need to provide a predetermined 25-word passphrase. That may seem daunting, but its designed to prevent number hijacking accounts that can be a serious risk to privacy.
In general, though, Capes privacy measures are designed to be relatively unobtrusive. Some may even save users time and complexity: Requiring less personal information from account holders makes the sign-up process quicker, Doyle says.
For potential customers wanting more detail about Capes privacy policies, the company offers a set of privacy principles along with information about how it will handle law enforcement requests for customer information. Cape pledges to notify customers of such requests whenever its legally allowed to do so (and says so far it has not received any requests for subscriber data that contained a nondisclosure obligation) and to challenge any secret request that is not narrowly tailored or otherwise lawful.
In addition, Cape says it doesnt log phone GPS coordinates, deletes more general location data, and purges call logs after 60 days, except in situations like resolving fraud cases. And if the company is ever acquired, Doyle says, it will require the buyer to agree not to monetize user data.
Of course, its possible some security-conscious users will be wary that Cape will keep its promises, perhaps especially given Doyles background in the military and at Palantir. But Doyle says he hopes the companys record of transparency will help it continue to establish trust among potential customers.
We do everything we can, basically, to be transparent and to do what we said we would do, and say what we’re going to do, he says. And I think that over time, that will just build more and more trust in the market.
President Donald Trump said Monday he is increasing tariffs on South Korean goods because the country’s legislature has yet to approve the trade framework announced last year.Trump said on social media that import taxes would be raised on autos, lumber and pharmaceutical drugs from South Korea with the rate on other goods going from 15% to 25%. The U.S. president previously imposed the tariffs by declaring an economic emergency and bypassing Congress, while South Korea needed legislative approval for the framework announced in July and affirmed during Trump’s October visit to the country.“Our Trade Deals are very important to America. In each of these Deals, we have acted swiftly to reduce our TARIFFS in line with the Transaction agreed to,” Trump said. “We, of course, expect our Trading Partners to do the same.”The threat was a reminder that the tariff drama unleashed last year by Trump is likely to be repeated again and again this year. The global economy and U.S. voters might find the world’s trade structure constantly being subject to disruption and new negotiations as Trump has already sought to levy tariffs in order to bend other nations to his will.Trump has in the past tied his tariffs to commitments by South Korea to invest $350 billion in the U.S. economy over several years, including efforts to revitalize American shipyards. But the Trump administration’s relations with South Korea have at times been rocky with the raid last year by immigration officials at a Hyundai manufacturing site in Georgia in which 475 people were detained.South Korea’s presidential office responded after a meeting of top South Korean officials that it will convey its commitment to implementing last year’s deal to the U.S.The presidential office said that South Korea’s Industry Minister Kim Jung-Kwan will travel to the U.S. for talks with Secretary of Commerce Howard Lutnick, while Trade Minister Yeo Han-koo will travel separately to meet with Trade Representative Jamieson Greer. Kim was on a visit to Canada.South Korean lawmakers have submitted five bills on implementing South Korea’s proposed $350 billion investment package to the National Assembly. The bills are currently before the assembly’s finance committee.Kim Hyun-jung, a spokesperson for South Korea’s governing Democratic Party, said his party will coordinate with the government to organize swift debate and action on the bills.Assembly officials said the five bills will likely be incorporated into a single proposed law, which will need approval from the finance and judiciary committees before it can go to a floor vote.Trump’s announcement of new tariffs fits a pattern in which Trump plans to continue to deploy tariffs, possibly to the detriment of relations with other countries.Just last week, the president threatened tariffs on eight European nations unless the U.S. gained control of Greenland, only to pull back on his ultimatum after meetings at the World Economic Forum in Davos, Switzerland. Trump on Saturday said he would put a 100% tax on goods from Canada if it followed through with plans to bolster trade with China.Trump has bragged about his trade frameworks as drawing in new investment to the U.S., yet many of his heavily hyped deals have yet to be finalized. The European Parliament has yet to approve a trade deal pushed by Trump that would put a 15% tax on the majority of goods exported by the EU’s 27 member states.The United States is poised this year to renegotiate its amended 2020 trade pact with Canada and Mexico. There are also ongoing Section 232 investigations under the 1962 Trade Expansion Act, as well as an upcoming Supreme Court decision on whether Trump exceeded his authority by declaring tariffs under the 1977 International Emergency Economic Powers Act.
Kim reported from Seoul, South Korea.
Josh Boak and Hyung-Jin Kim, Associated Press
After two weeks of intense political and legal scrutiny, the Federal Reserve will seek to make this week’s meeting about interest rates as straightforward and uneventful as possible, though President Donald Trump probably still won’t like the result.The central bank’s interest rate-setting committee is almost certain to keep its key short-term rate unchanged at about 3.6%, after three straight quarter-point cuts last year. Fed Chair Jerome Powell said after December’s meeting that they were “well positioned to wait to see how the economy evolves” before making any further moves.When the Fed lowers its short-term rate, it can over time influence other borrowing costs for things like mortgages, auto loans and business borrowing, though those rates are also affected by market forces.This week’s meeting one of eight the Fed holds each year will be overshadowed by the bombshell revelation earlier this month that the Justice Department has subpoenaed the Fed as part of a criminal investigation into testimony Powell gave last June about a $2.5 billion building renovation. It’s the first time a sitting Fed chair has been investigated, and prompted an unusually public rebuke from Powell.Now, Powell will have to shift from a dispute with the White House to emphasizing that the Fed’s decisions around interest rates are driven by economic concerns, not politics. Powell said Jan. 11 that the subpoenas were “pretexts” to punish the Fed for not cutting rates as sharply as Trump wants.Powell will be “under even more pressure to underscore, ‘everything we’re doing here is all about the economics,'” said Claudia Sahm, a former Fed economist and chief economist at New Century Advisors. “‘We didn’t think about the politics.'”Michael Gapen, chief U.S. economist at Morgan Stanley and also a former Fed staffer, said that despite the scrutiny, the Fed can be expected to consider its interest rate policies like it always does.“The meetings have a regular flow to them,” he said. “There are presentations that are made, there are discussions that have to be had. Some of these other broader-based attacks on the Fed don’t really come up.”Not long after the Justice Department’s subpoenas, the Supreme Court last week considered whether Trump can fire Fed governor Lisa Cook over allegations of mortgage fraud, which she denies. No president has fired a governor in the Fed’s 112-year history. During an oral argument, the justices appeared to be leaning toward allowing her to stay in her job until the case is resolved.Other Fed officials have also signaled the central bank is likely to keep rates unchanged at their two-day meeting that ends Wednesday. The Fed’s three rate cuts last year were intended to bolster the economy after hiring slowed sharply over the summer and fall in the wake of Trump’s April tariffs on dozens of countries.Yet the unemployment rate ticked lower in December, after picking up for much of last year, and there are other signs the job market may be stabilizing. The number of people seeking unemployment benefits has stayed historically low, a sign layoffs haven’t spiked.Meanwhile, inflation remains elevated and actually ticked higher last year, according to the Fed’s preferred measure. Prices rose 2.8% in November from a year earlier, the latest data available. That is up from 2.6% in November 2024.Unless businesses start cutting jobs or the unemployment rate rises, the Fed is unlikely to cut rates again for at least a few months, economists say. If inflation slowly declines this year, as economists expect, the Fed may cut again in the spring or summer. Wall Street investors expect just two quarter-point rate reductions this year, according to futures prices.Many economists expect growth could pick up in the coming months, which would be another reason to forego rate cuts. Gapen estimates that tax refunds could be about 20% higher this spring than last year as the Trump administration’s tax cuts take effect. Refunds could average $3,500, Gapen said.The economy expanded at a 4.4% annual rate in last year’s July-September quarter and may have grown at a similarly healthy pace in the final three months of last year. If such solid growth continues, Fed officials will likely wait to see if hiring picks up as well, further reducing the need for more rate cuts.
Christopher Rugaber, AP Economics Writer
Whether hes climbing skyscrapers in Taiwan or working to build the Honnold Foundation, free solo climber and activist Alex Honnold remains an optimist. He sat down with Fast Company to talk about why a good outlook is essentialboth for his sport and in the fight for the planet. Honnold also reflects on education, human potential, overconsumption, and whats at stake for American national parks and public lands.
Ive always been somewhat ritualistic, shaped by my Midwestern upbringing in a modest immigrant family. I remember my parents calculating the mileage of our 82 Honda Civic in a notepad after every fill-up, the same car I eventually inherited in high school. Or saving every receipt on vacation to audit our daily spending down to the dollar. In every sense, they were amazing parents, and their rituals instilled in me a desire to be intentional about how I lived my life.
As human beings in a world of constant distraction, time is the most precious resource we have. As a CEO, managing that resource is one of the most important skills you can master. And its no picnic. Ive often said work-life balance in the C-suite is an illusion. Its a worthwhile concept, but just like every cause has an effect, every choice has a consequence. Work out or binge-watch a show? Travel the world or save for a house? One isnt better than the other; theyre just choices.
Rituals structure your time. Put simply, the more deliberate you are with your habits and behaviors, the more intentional you can be with that time. They dont emerge from nowhere; theyre developed and refined over years of trial and error. How we create and, more importantly, maintain habits is deeply personal. What works for me almost certainly wont work for someone else.
RITUALS IN SERVICE OF OTHERS
GE, a company known for its highly organized, almost programmatic culture, is where I honed many of my habits. Early in my career, I worked 12- to 13-hour days, socialized until midnight, slept four or five hours, and hit repeat. At 26, I became a manager for the first time and realized that my colleagues, many of them only a year or two younger, were looking to me for guidance. Rituals were no longer just a catalyst for my own success; they became a way to deliver on my responsibility to othersa mindset that still defines my leadership at Twilio 25 years later.
THE 70-20-10 RULE
About 18 months ago, I met with a mentor, a seasoned leader and board chairman for some of the worlds top businesses. He shared a piece of advice that resonated with me: never spend evenings on things that aren’t mission critical. His point was simple: if its not family, it better be work. Otherwise, skip it.
Apart from a select few industry events, I decline nearly all networking and work-adjacent invitations so I can spend my time on what matters: showing up for my family and the company I run.
Most of my rituals orbit my calendar. I refuse to fill it with anything that drains attention or energy, both people and topics, personal or professional. Thats why I adhere to a 70-20-10 rule: 70% of my time on what matters, 20% on what must get done, and 10% on what gives me energy. That leaves exactly 0% for distractions.
Speaking of those work-life consequences, Ive missed milestones and moments with friends and family I can never get back. But I made choices that were right for me at the time and have few regrets. Ive been incredibly fortunate to carve out a life my parents only dreamed about. Today, as a soon-to-be empty nester, Im much more intentional (and present) about building rituals around moments that matter mostthat 70%like family dinners: a ritual I almost never miss when Im in town.
RITUALS BEHIND MY ROUTINE
Rituals are, by nature, structured and repetitive, but they arent immutable. Ive adapted mine to meet different stages of life and careerkids, promotions, jobs. Ive built and shed many, but these seven are most foundational for me right now:
Power of a plan: It sounds obvious, but aday without a plan is a ship without a rudder. I start each day, week, month, and year with one. It prioritizes what matters and reinforces accountability.
Refill the tank: My parents were firm believers in work hard, play hard, and that mantra shapes my weekends. While I do work, I make sure Saturdays and Sundays are memorableor epic as my baseline. With one kid in college and another headed there soon, I prioritize my time with them as much as possible, with regular trips to the record store with my daughter or the driving range with my son.
Delegate a lot: There are two forces at work here: I have a highly competent staff, and delegation empowers ownership (how else do we learn?). And it lightens my load.
Avoid multitasking: Multitasking is a myth; research backs this, and so does my personal experience. Its unavoidable sometimes, but always at the expense of something else. I try to avoid it, at work and home.
Declutter the inbox: Email overload is real. I embrace a philosophy of inbox zero to reduce clutter and track priorities.
No meeting default: I only attend critical meetings and believe they are for three things: dialogue, debate, and decision-making. Everything else can be done asynchronously, and I regularly purge those that dont meet this bar.
FINAL THOUGHTS
The more responsibility you take on as a leader, the greater the demands on your time and energy, and the more critical it becomes to perform for those who depend on your judgment, guidance, and steady hand. Decades into my career, Im a creature of habit. Whether in the office with colleagues, on the road with customers, or at home with family, my days are anchored by rituals.
So, as the energy and enthusiasm of the New Year inevitably wanes, resolutions will too. Its rituals, ones that fuel creativity, value precious time, and set you and your teams up for sustainable success, that last.
Khozema Shipchandler is the CEO of Twilio.
Three of the world’s biggest tech companies face a landmark trial in Los Angeles starting this week over claims that their platformsMeta’s Instagram, ByteDance’s TikTok, and Google’s YouTubedeliberately addict and harm children.Jury selection starts this week in the Los Angeles County Superior Court. It’s the first time the companies will argue their case before a jury, and the outcome could have profound effects on their businesses and how they will handle children using their platforms. The selection process is expected to take at least a few days, with 75 potential jurors questioned each day through at least Thursday. A fourth company named in the lawsuit, Snapchat parent company Snap Inc., settled the case last week for an undisclosed sum.At the core of the case is a 19-year-old identified only by the initials “KGM,” whose case could determine how thousands of other, similar lawsuits against social media companies will play out. She and two other plaintiffs have been selected for bellwether trialsessentially test cases for both sides to see how their arguments play out before a jury and what damages, if any, may be awarded, said Clay Calvert, a nonresident senior fellow of technology policy studies at the American Enterprise Institute.KGM claims that her use of social media from an early age addicted her to the technology and exacerbated depression and suicidal thoughts. Importantly, the lawsuit claims that this was done through deliberate design choices made by companies that sought to make their platforms more addictive to children to boost profits. This argument, if successful, could sidestep the companies’ First Amendment shield and Section 230, which protects tech companies from liability for material posted on their platforms.“Borrowing heavily from the behavioral and neurobiological techniques used by slot machines and exploited by the cigarette industry, Defendants deliberately embedded in their products an array of design features aimed at maximizing youth engagement to drive advertising revenue,” the lawsuit says.Executives, including Meta CEO Mark Zuckerberg, are expected to testify at the trial, which will last six to eight weeks. Experts have drawn similarities to the Big Tobacco trials that led to a 1998 settlement requiring cigarette companies to pay billions in healthcare costs and restrict marketing targeting minors.“Plaintiffs are not merely the collateral damage of Defendants’ products,” the lawsuit says. “They are the direct victims of the intentional product design choices made by each Defendant. They are the intended targets of the harmful features that pushed them into self-destructive feedback loops.”The tech companies dispute the claims that their products deliberately harm children, citing a bevy of safeguards they have added over the years and arguing that they are not liable for content posted on their sites by third parties.“Recently, a number of lawsuits have attempted to place the blame for teen mental health struggles squarely on social media companies,” Meta said in a recent blog post. “But this oversimplifies a serious issue. Clinicians and researchers find that mental health is a deeply complex and multifaceted issue, and trends regarding teens’ well-being aren’t clear-cut or universal. Narrowing the challenges faced by teens to a single factor ignores the scientific research and the many stressors impacting young people today, like academic pressure, school safety, socio-economic challenges and substance abuse.”Meta, YouTube, and TikTok did not immediately respond to requests for comment Monday.The case will be the first in a slew of cases beginning this year that seek to hold social media companies responsible for harming children’s mental well-being. A federal bellwether trial beginning in June in Oakland, California, will be the first to represent school districts that have sued social media platforms over harms to children.In addition, more than 40 state attorneys general have filed lawsuits against Meta, claiming it is harming young people and contributing to the youth mental health crisis by deliberately designing features on Instagram and Facebook that addict children to its platforms. The majority of cases filed their lawsuits in federal court, but some sued in their respective states.TikTok also faces similar lawsuits in more than a dozen states.
Barbara Ortutay, AP Technology Writer
Americas most iconic shoe giant is starting 2026 by laying off workers. Nike has confirmed that it will lay off 775 employees in the United States. The move marks the third year in a row that Nike has cut jobs. Heres what you need to know about the latest Nike layoffs.
Whats happened?
On Monday, CNBC reported that shoe giant Nike would eliminate 775 jobs. The job cuts will primarily encompass positions at the companys distribution centers in Mississippi and Tennessee. Nike has warehouses in those states that act as major hubs in the companys supply chain. The distribution centers store the companys inventory before shipping the products out to customers and retail partners.
Nikes most recent round of job cuts is the third in as many years. In 2024, Nike announced it would cut 2% of its total workforce, or about 1,600 roles. Those cuts were made so the company could reduce expenses in response to weakening sales.
Then last year, Nike announced in August that it would cut about 1% of its corporate staff. Those cuts were part of a company realignment, Nike said at the time.
In May 2025, Nike had around 77,800 employees. Todays confirmed layoffs of 775 workers mean the latest job cuts equate to around 1% of its workforce.
Why is Nike cutting jobs?
When reached for comment, a Nike spokesperson told Fast Company that the job cuts were part of the steps the company was taking to strengthen and streamline our operations so we can move faster, operate with greater discipline, and better serve athletes and consumers.
As part of those steps, Nike said it’s sharpening our supply chain footprint, accelerating the use of advanced technologyand automation, and investing in the skills our teams need for the future.
The company said its actions to consolidate its footprint will primarily impact its U.S. distribution operations.
These actions are designed to reduce complexity, improve flexibility, and build a more responsive, resilient, responsible, and efficient operation and to support our path back to long-term, profitable growth, including contributing to improved EBIT (earnings before interest and taxes) margins over time, the spokesperson added.
Under former Nike CEO John Donahoe, the company moved away from wholesale partners in favor of direct selling, which necessitated a buildup of employees at its distribution centers. But ultimately, Nikes lackluster sales demand could not support the number of employees at the distribution centers. Nikes new CEO Elliott Hill has flipped its sales playbook, embracing wholesale partners again, and focusing on cutting costs to increase margins.
How has Nikes stock price reacted?
As of yesterdays closing price, Nike shares (NYSE: NKE) were trading at $64.99. In premarket trading this morning, shares are essentially flat.
In other words, investors so far seem to have shrugged off the fact that the layoffs will have an immediate impact on the companys finances or operations.
After reaching an all-time high of around $180 in 2021, Nikes share price has steadily declined, falling to as low as the $62 range in March of last year.
Over the past 12 months, Nikes share price has declined by more than 11%, and over the past five years, the stocks price has collapsed by more than 50%. Since the new year began, NKE shares have risen about 2%.
