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North American Edition
20th June 2025
 
THE HOT STORY
More employers put health insurance decisions in workers' hands
A growing number of employers are shifting health insurance decisions to their employees through Individual Coverage Health Reimbursement Arrangements (ICHRAs). This approach allows workers to select their own insurance plans, providing them with more tailored options. While ICHRAs offer predictable costs for employers, they also place the burden of finding suitable coverage on employees, which can be overwhelming. Currently, around 450,000 individuals are covered through ICHRAs, marking a 50% increase from 2024. Cynthia Cox of the non-profit KFF, which studies health care issues, said: “It's maybe not perfect, but it's solving a problem for a lot of people.” As healthcare costs rise, more employers may consider adopting ICHRAs to limit their financial exposure.
WORKFORCE
Uncertainty over immigration raids scares off workers
Last week, President Donald Trump ordered a pause on immigration raids, providing temporary relief to farmers, cattle ranchers, and hospitality managers. Rebecca Shi, CEO of the American Business Immigration Coalition, observed at the time: “There was finally a sense of calm.” However, this relief was short-lived after Assistant Secretary of the Department of Homeland Security, Tricia McLaughlin, subsequently said: “There will be no safe spaces for industries who harbor violent criminals or purposely try to undermine (immigration enforcement) efforts. Worksite enforcement remains a cornerstone of our efforts to safeguard public safety, national security and economic stability.'' Such uncertainty surrounding immigration policies has left many businesses anxious, with reports of workers avoiding jobs due to fears of raids by U.S. Immigration and Customs Enforcement. Patrick Murphy, chief investment officer at Coastal Construction, expressed his concern over the unpredictability of immigration enforcement, saying: “That uncertainty makes it really hard to operate a forward-looking business.”
FAA overtime costs soar amid shortages
FAA overtime for air traffic controllers has risen over 300% since 2013, reaching $200m for 2.2m hours in 2024, according to a National Academies report. Staffing fell 13% over a decade, with hiring reaching only two-thirds of planned levels. Controllers now average 167 overtime hours annually, often working six-day weeks. The FAA failed to implement shift scheduling software from 2012, worsening inefficiencies. Nearly one-third of facilities are 10% below staffing targets. The Trump administration is seeking $20bn to modernize air traffic systems and increase controller hiring.
STRATEGY
Microsoft plans major layoffs amid AI push
Microsoft is preparing to cut thousands of jobs, especially in sales, as it refocuses on artificial intelligence, Bloomberg reports. The cuts come after a May round that affected 6,000 workers. While final decisions may shift, layoffs are expected after the company’s fiscal year ends next month. Microsoft, with 228,000 employees as of last June, is investing $80bn in capital expenditures this year- primarily for expanding data centers to support AI. The move aligns with broader industry trends. Microsoft declined to comment on the planned cuts.
Lululemon to cut 150 corporate employees
Lululemon Athletica is cutting about 150 corporate jobs at its store support centers, as part of changes to its organizational structure. "As we continue to deliver on our strategy, we regularly assess our business operations to ensure we are well-positioned for the future," a spokesperson said. "Following a recent review, we have decided to evolve some aspects of our organizational structure to operate with more agility and further invest in our growth."
MANAGEMENT
Can CFOs' experiences overseas contribute to corporate digital transformation?
Nature has published a study exploring the relationship between the overseas experiences of chief financial officers, and digital transformation in Chinese-listed companies, using data from 2009-2022. Based on upper echelons theory, which is used in human resource management to determine correlations between organizational outcome and managerial background characteristics, it examines how CFOs’ international experience influences corporate strategy and digital innovation. The results demonstrate that CFOs with overseas experience significantly drive digital transformation within firms. By linking CFOs’ overseas experience with innovation and sustainable development strategies, the research contributes to the theoretical understanding of how strategic leadership impacts digital transformation. 
LEGAL
$6.2m award for ex-law firm employee who was paid less than male colleagues
A jury in New York has awarded $6.2m to Denise A. Rubin, a former general counsel at Napoli Bern Ripka Shkolnik, who sued her firm for allegedly firing her after she complained that she was paid less than male attorneys who ranked lower than her. Jurors also found that Rubin was the target of retaliation by Paul Napoli, the firm's founding partner, who she said personally and professionally denigrated her to colleagues and filed “meritless, lewd and professionally damaging” counterclaims against her.
TECHNOLOGY
Study warns AI chatbots hinder learning
Research from the Massachusetts Institute of Technology (MIT) suggests that reliance on AI chatbots, such as ChatGPT, may hinder the development of critical thinking, memory, and language skills. The study monitored 54 participants who wrote essays using different methods, finding that those who used ChatGPT exhibited lower brain activity and performed worse in tests compared to those who relied solely on their cognitive abilities. "Reliance on AI systems can lead to a passive approach and diminished activation of critical thinking skills," the study observed, also noting that 83% of chatbot users failed to recall correct quotes from their essays, indicating a lack of engagement with the material.
INTERNATIONAL
U.S. begins evacuating Israel embassy
The U.S. State Department has started evacuating nonessential diplomats and their families from Israel amid escalating tensions with Iran. A government flight removed some personnel, while others may have exited via land. Ambassador Mike Huckabee announced possible evacuation plans for private Americans, though the State Department later said no official assistance was yet confirmed. The embassy in Jerusalem remains closed, with staff under shelter-in-place orders.
Latin American AI model scheduled to launch later in year
A coalition of twelve Latin American countries is set to launch Latam-GPT in September, the first large AI language model tailored to the region's cultural and linguistic diversity. Spearheaded by Chile's National Center for Artificial Intelligence (CENIA) and supported by over 30 regional institutions, this open-source project aims to enhance AI accessibility and preserve Indigenous languages, with initial applications planned for education and public services. Chilean Science Minister Aisen Etcheverry described the initiative as a potential "democratizing element for AI," emphasizing its role in addressing the limitations of existing global AI models.
Napping at work not a sackable offence
U.K. Employment Judge Richard Conley has ruled that falling asleep at work does not automatically justify dismissal. The case involved Chukwuma Okoro, a CCTV controller who was unfairly dismissed after dozing off for 15 minutes during his sixth consecutive night shift. Judge Conley said: "The seriousness of falling asleep on the job is something that very much depends upon its context." He concluded that Okoro's actions were involuntary and did not warrant termination, especially given his 16 years of unblemished service. The tribunal awarded Okoro £20,521 ($27,700) in compensation, while he was ordered to pay £4,030 in legal costs to his former employer, Bidvest Noonan.
OTHER
Older people need to be more vigilant than ever about oral health
Older people are living longer and keeping more of their teeth, which means that seniors need to be more vigilant than ever about oral health, the San Francisco Chronicle reports. Over the past 20 years, the share of adults 65 and older with no teeth fell from about 32% to a record low of 17%, and among those 75 and older, it fell from 38% to 22%, according to a report from the National Institute of Dental and Craniofacial Research. “More people are keeping more of their teeth for longer,” said Dr. Don Curtis, a professor at UCSF School of Dentistry. “So there’s more teeth to take care of and more teeth that are vulnerable to chronic disease.” These dental problems may include periodontal disease (gum disease), root cavities and oral cancer.
 


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