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North American Edition
14th May 2025
 
THE HOT STORY
Starbucks baristas protest against new uniform mandate
Hundreds of Starbucks employees at more than 50 U.S. outlets have walked off the job since Sunday to protest the company's new dress code, according to Starbucks Workers United, which represents baristas at about 570 of the chain's more-than 10,000 company operated locations. The coffee chain on Monday implemented a new dress code that requires baristas to wear solid black tops, a change from prior practice that allowed any color, among other changes. Baristas argue that the dress code won’t improve operations or make their jobs easier, union delegate Michelle Eisen said in a statement from Workers United. “This policy change puts the burden on baristas, many of whom are already struggling to get by, to buy new clothes or risk being disciplined,” she said. The company has said it would provide two Starbucks-branded shirts free of charge but couldn’t guarantee they would arrive by May 12th, when the new dress code went into effect.
STRATEGY
Microsoft is laying off 3% of its workforce
Microsoft is laying off about 6,000 people, or 3% of its workforce, across all levels, teams and geographies. “We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” a Microsoft spokesperson told CNBC. One objective is to reduce layers of management, the spokesperson said.
WORKFORCE
America's appeal among international students is being tested
The appeal of the U.S. among international students is being tested by the Trump administration, which has increased scrutiny on student visas and deported students involved in pro-Palestinian activism. Ma Tianyu, a computer science student from China, expressed concerns about the impact of U.S. politics on his plans to study in America, saying: “I need to consider how American politics could affect me.” Clay Harmon, executive director of AIRC,  a professional association for international enrollment managers at colleges, said that the administration's actions send a message that “international students are not welcome in the U.S.” Despite these challenges, the U.S. remains attractive due to its diverse job market and programs like optional practical training, which allows students to work post-graduation. However, uncertainty surrounding visa statuses will continue to concern prospective students.
U.S. health department to reverse federal layoffs of coal safety workers
Over 100 employees at the National Institute for Occupational Safety and Health (NIOSH) in Morgantown, West Virginia, have had their jobs reinstated following recent government layoffs. Senator Shelley Moore Capito announced that Health Secretary Robert F. Kennedy, Jr. confirmed the reversal of terminations. The reinstated staff are crucial for monitoring black lung disease, which has seen a resurgence among coal miners, affecting one in five workers.
LEGAL
Boeing settles with family of whistleblower who took his own life
The family of a former Boeing quality control manager has settled a lawsuit against the company following his suicide. John Barnett, who raised safety concerns about alleged defects in Boeing's jumbo jets, took his life on March 9, 2024, after being questioned by attorneys. He had previously reported issues, including discarded metal shavings near flight control wiring and problems with oxygen systems on Boeing's 787 planes. Despite his efforts to communicate these concerns, Barnett faced harassment from his supervisors. The settlement details remain undisclosed, but either party can reopen the case if not finalized within 60 days.
LEADERSHIP
UnitedHealth CEO steps down
UnitedHealth Group has announced the resignation of its chief executive, Sir Andrew Witty, following "some of the most challenging times any company has ever faced." Witty's departure comes five months after the tragic shooting of Brian Thompson, a top executive, during an investor conference in New York. Stephen Hemsley, the company's chairman, will take over as CEO while continuing in his role as chairman. Hemsley expressed gratitude for Witty's leadership, saying: "We are grateful for Andrew's stewardship of UnitedHealth Group."
COMPLIANCE
PCAOB releases content to aid firms implement QC 1000 standards
The Public Company Accounting Oversight Board (PCAOB) has released a new series of staff presentation videos to assist firms in implementing four key areas of their quality control system under QC 1000, A Firm’s System of Quality Control. Led by the PCAOB’s office of the chief auditor, the videos focus on roles and responsibilities, ethics and independence, people resources, and technological and intellectual resources. Each topic addresses specific requirements and responsibilities for firms in designing, implementing, and operating their QC systems. In its statement, PCAOB said firms can access additional implementation-related videos, resources, and tools on the Implementation Resources for PCAOB Standards and Rules page.  
ECONOMY
Small business sentiment continued to decline last month
U.S. small-business confidence fell for a fourth straight month in April, the National Federation of Independent Business (NFIB) said on Tuesday, with the share of owners reporting job openings declining to the lowest level in more than four years. The business group's Small Business Optimism Index dropped 1.6 points to 95.8, the second straight month of a reading below the 51-year average of 98. The NFIB's Uncertainty Index eased 4 points to 92 last month. Additionally, 34% of small business owners reported job openings they could not fill, down 6 points from March. The share of small business owners expecting better business conditions fell 6 points to 15%. "This component, along with unfilled job openings, contributed the greatest to the Optimism Index's decline," said NFIB Chief Economist Bill Dunkelberg.
TAX
Missouri set to axe capital gains tax
Missouri is on track to become the first state to eliminate the capital gains tax on profits from asset sales, including stocks and real estate. The legislation, which has received final approval, aims to exempt individuals from this tax this year, with potential future benefits for corporations if state revenues continue to rise. Proponents argue that the repeal will stimulate economic growth, with Jonathan Williams, president of the American Legislative Exchange Council, saying: “When you tax something you get less of it.” However, critics warn that the repeal will primarily benefit the wealthy and could lead to significant revenue losses for public services, with estimates suggesting a cost of up to $600m annually. The Missouri Budget Project highlights that 80% of the tax relief would go to the top 5% of earners, raising concerns about economic inequality.
INTERNATIONAL
Korean companies struggle with retention
According to a survey by HR tech firm Incruit, 60.9% of new hires in Korean companies leave within one to three years. The survey, which polled 446 HR managers, found that the primary reason for early departures was a mismatch between job expectations and actual roles (cited by 58.9% of respondents). Other factors included low pay (42.5%) and poor cultural fit (26.6%). The impact of early turnover is considerable, with 80.5% of HR managers noting disruptions to workplace dynamics and increased workloads for remaining staff. Despite recognising these issues, only 34.5% of companies have implemented retention initiatives, with some offering incentives or mentoring systems to address the problem.
U.S. approves Qatari financing of Syria public sector salaries
The United States has approved a Qatari initiative to provide financial support for Syria's public sector, allowing Qatar to fund a $29m monthly salary increase for civilian public sector workers over three months. This funding, which excludes the interior and defence ministries due to Western concerns, is part of efforts to help rebuild Syria's economy after years of conflict and sanctions. The initiative reflects a potential shift in U.S. policy towards engagement with the new Syrian government, which is attempting to stabilize the country and improve living conditions for its citizens.
OTHER
Ultra-processed foods linked to Parkinson's risk
Research published in the journal Neurology indicates that ultra-processed foods, such as breakfast cereals and soft drinks, may significantly increase the risk of developing Parkinson's disease. Individuals consuming around 11 servings of these foods daily had a 2.5-times higher likelihood of experiencing early symptoms compared to those with lower intake. The study tracked nearly 43,000 US health professionals over 26 years, revealing a link between high ultra-processed food consumption and various early Parkinson's symptoms, excluding constipation. Dr. Xiang Gao, senior researcher at Fudan University, said: “Eating a healthy diet is crucial as it has been associated with a lower risk of neurodegenerative diseases.”
 


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