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European Edition
5th February 2025
 
THE HOT STORY
EU issues guidance on AI regulations
Brussels has released guidance on the enforcement of its AI Act, which bans certain uses of AI, including the creation of facial recognition databases and social scoring systems. The law, passed in 2023, aims to clarify compliance for companies. A commission official said the guidelines are designed to "explain how the prohibitions will apply." Companies face fines of as much as $35.8m or 7% of their global annual revenues - whichever amount is higher - for breaches of the law. Tasos Stampelos, head of EU public policy and government relations at Mozilla, explained that compliance will depend on how standards, guidelines, secondary legislation or derivative instruments that follow the AI Act develop. Although some tech executives are concerned the new rules could be a burden on innovation, others say requirements around bias detection, regular risk assessments, and human oversight are instead defining what good regulation looks like. However, Politico points out that the AI Act has numerous loopholes for police and security forces.
WORKFORCE
Dutch workers to see continued wage growth in 2025
Workers in the Netherlands are poised for significant salary increases in 2025, driven by ongoing labour shortages. Economists at RaboResearch predict a 5.9% rise in collective labour agreement wages for 2025, with a further 4.8% increase in 2026. In January, wages rose by an average of 4.5%, with the hospitality, construction, and transport sectors experiencing the sharpest increases. Despite this growth, businesses are cautious due to rising costs and economic uncertainties. Labour union FNV continues to demand a 7% wage increase, arguing that companies have the capacity to raise salaries following strong profit growth.
DIVERSITY, EQUITY, & INCLUSION
New UK guidance boosts neurodiversity support
UK employer advice agency Acas has introduced new guidance to assist employers in fostering inclusive workplaces that support neurodiversity, including conditions such as ADHD, autism, dyslexia, and dyspraxia. Julie Dennis, head of inclusive workplaces at Acas, highlighted the need for a supportive environment, saying: "Employees may not want to tell people that they are neurodiverse or may mask their condition due to concerns about a negative reaction at work." Sir Stephen Timms, Minister for Social Security and Disability, stressed the importance of open dialogue, noting that "having conversations about health conditions and adjustments is the first step to fostering a healthy workplace." Ruth Wilkinson from the Institution of Occupational Health and Safety, called for a cultural shift, insisting that businesses must create environments that allow neurodiverse individuals to thrive.
HYBRID WORKING
Citi boss champions hybrid working
Jane Fraser, the British CEO of Citigroup, has reaffirmed the bank's commitment to hybrid working, allowing staff to work remotely up to two days a week. The decision contrasts with other Wall Street firms including Goldman Sachs and JPMorgan Chase, which are pushing for a full return to the office. Fraser believes that this flexible approach is beneficial for recruitment. Despite concerns from some executives about the impact of remote work on corporate culture and junior staff development, Citigroup says it remains focused on maintaining its flexible policy. Fraser, who has been leading Citi for nearly four years, is also working to improve the bank's performance by simplifying its operations.
STRATEGY
Julius Baer announces cuts
Julius Baer Group has announced job cuts as it looks to deliver an additional 110m Swiss francs in annual savings. The announcement  involves the loss of about 400 jobs in Switzerland, equivalent to around 5% of the workforce. The wealth manager has also announced a governance revamp that will see the executive board being cut to five members from 15. The new executive board will consist of the CEO, deputy CEO Dreckmann, chief risk officer Oliver Bartholet, chief financial officer Evie Kostakis, and group general counsel Christoph Hiestand.
HIRING
Big Four firms cut UK graduate jobs
The UK's Big Four accounting firms — KPMG, PwC, Deloitte, and EY — have significantly reduced their graduate recruitment, hiring 1,000 fewer graduates, school leavers, and apprentices last year. KPMG reported an 11% profit increase, partly due to cost-cutting measures, yet hired only 942 graduates, a 33% decrease from the previous year. Deloitte, PwC, and EY also scaled back their recruitment efforts, with Deloitte hiring 2,150, down from 2,767, and EY bringing in 1,600, 200 fewer than the prior year. The firms have historically been major employers for graduates in the UK, playing a crucial role in training future finance leaders. However, younger staff, who earn between £32,000 and £40,000 annually, are now facing job cuts as firms adapt to a challenging economic landscape.
CYBERSECURITY
Riot raises $30m to boost cybersecurity
French start-up Riot has successfully raised $30m in a Series B funding round, bringing its post-money valuation to over $170m. The company, which initially focused on educating employees about cybersecurity risks, aims to enhance its offerings by introducing a so-called Employee Security Posture Management platform. This new product will analyse employees' security practices and provide a "karma score" to indicate their security posture. Riot's founder and CEO, Benjamin Netter, explained: “It’s the little things you can do that will take you a minute or two, and that will basically make life difficult for hackers.” Currently, Riot engages with one million employees across 1,500 companies.
CORPORATE
Former Burberry CEO Gobbetti leaves Ferragamo
Salvatore Ferragamo has announced that chief executive Marco Gobbetti will resign next month after over three years in the role. The company is currently searching for a new chief executive, with chair Leonardo Ferragamo stepping in to manage executive duties alongside an advisory committee until a replacement is appointed. Gobbetti, who joined Ferragamo in early 2022, faced challenges in revitalising the brand following the significant impact of the COVID-19 pandemic. Despite efforts, the company has struggled with declining sales, particularly in Asia, reporting an 8% drop in sales for 2023.
ECONOMY
German retail sales growth slows
German retail sales experienced a 1.1% increase in inflation-adjusted terms last year, but the outlook for 2025 is less optimistic, with the retail association HDE forecasting only 0.5% growth. HDE managing director Stefan Genth said: "There is simply too much uncertainty," citing factors such as wars and high energy costs as detrimental to consumption. In nominal terms, retail sales rose by 2.5% in 2024, with a projected 2.0% growth for 2025. A recent HDE survey revealed that 22% of retailers expect sales to rise this year, while nearly half anticipate lower results compared to the previous year. December saw a 1.6% decline in retail sales from the previous month, contrary to analysts' expectations of a 0.2% increase.
INTERNATIONAL
DEI work will continue amid backlash, executive says
Amira Barger, executive vice president of communications and head of DEI advisory at global communications firm Edelman, tells AP News that efforts to diversify workplaces and promote equality will continue despite a sweeping crackdown by the Trump administration. "When DEI initiatives are attacked, companies need to be prepared to address the criticism by being really clear about demonstrating positive impacts of this kind of work. That means defending the work with facts. From increased innovation to a greater sense of belonging among employees, there are very real outcomes that companies can use to show measurable progress because of the existence of these programs," Barger says.
Workplace discrimination has declined in Singapore, study says
According to a 2024 study by the Institute of Policy Studies (IPS) in collaboration with racial and religious harmony non-governmental organisation OnePeople.sg, Singaporeans have reported a decrease in racial discrimination at work. The study found that 18.4% of Malays and 16.7% of Indians experienced discrimination in job applications or promotions, down from over 25% in previous surveys. The report highlights that while overall discrimination has decreased, issues persist, particularly regarding perceptions of promotions based on race rather than qualifications. OnePeople.sg chair Dr Janil Puthucheary notes the need for both legislative measures and community efforts to address these challenges.
OTHER
Most of Europe's surface water bodies 'are contaminated with chemicals'
Most of Europe's surface water bodies are contaminated with chemicals, according to a new assessment from the European Commission which reveals that 39.5% of surface waters, including lakes, rivers, and coastal areas, achieved "good" ecological status in 2021. The Independent notes the "alarming" decline in chemical status, with only 26.8% of these bodies meeting the required standards, a drop from 33.5% in 2015. The situation is better in Europe's groundwater bodies, 86% of which had a good chemical status, although nitrates from farming were polluting groundwater supplies in most EU countries, the assessment showed.
 


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