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APAC Edition
13th May 2025
 
THE HOT STORY
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.
STRATEGY
Nissan plans massive job cuts
Japanese automaker Nissan is reportedly planning to cut nearly 20,000 jobs globally as part of a cost-reduction strategy following a significant decline in sales and profits. This follows last year's announcement of 9,000 job cuts and a 20% production reduction. According to media, the new cuts would represent about 15% of Nissan's workforce, although the specific locations of the job losses remain unclear. 
LEGAL
Korea's foreign labour programme under fire
The seasonal workforce programme in Korea, which is aimed at addressing local labour shortages, is facing increasing scrutiny amid allegations of human trafficking and exploitation. Experts highlight systemic flaws in the programme's management, including brokers reportedly extorting fees from workers. The US has already banned imports of salt from Korea's largest producer over forced labour allegations, raising concerns that other agricultural and marine products could face similar sanctions. The Ministry of Gender Equality and Family has reported a rise in confirmed human trafficking cases, with nine linked to the seasonal worker programme this year alone. Critics argue that the government's response has been inadequate, and warn that continued issues could lead to further economic repercussions, including additional US sanctions.
TECHNOLOGY
French start-up Mistral launches chatbot for companies
Paris-based start-up Mistral AI has launched its Le Chat chatbot for corporate use. The open source version of the assistant was launched in February; the enterprise version now connects with content management systems including Microsoft's SharePoint and Google Drive. Mistral operates its own compute capabilities and is reducing its dependency on cloud providers to allow it to offer customers a service that does not depend on the US companies, chief executive Arthur Mensch said. "In the last 100 days we have tripled our business, in particular in Europe and outside of the US," he said, adding "We've been . . .  growing in the US quite fast as well."
How AI agents compare on routine work tasks
The FT has put some of the most popular AI agents to the test, including top apps from OpenAI, Anthropic and Google, to write emails, book travel and summarise the news.
CORPORATE
Workday wins agency contract without competition
HR platform Workday has secured a contract from the US Office of Personnel Management without competitive tender. A sole-source award to Workday is required due to "an urgent confluence of operational failures and binding federal mandates that require immediate action," the agency that is key to billionaire Trump advisor Elon Musk's efforts to slash the federal workforce said in a memo, citing strict Trump administration deadlines for workforce restructuring and hiring reforms. "OPM's fragmented and outdated HR systems have reached a critical failure point, resulting in payroll errors, benefits disruptions, and a manual workload that is no longer sustainable," said the memo.
HEALTH & WELLBEING
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.”
ECONOMY
Japan could cut consumption tax
Japan is considering cutting the consumption tax as a potential countermeasure to the effects of US tariffs. The tax, set at 10% for most items and 8% for food and beverages, has been suggested as a way to protect the economy's fragile recovery. Some economists argue that consumption-tax relief could be more effective in stimulating consumption than cash distribution, as people would not benefit from the policy unless they purchase something. Eliminating the 8% consumption tax on food would increase Japan's economic growth rate by 0.4 percentage points, and the Government would need about ¥4tr to ¥5tr to fund the tax cut annually.
INTERNATIONAL
Foreign workers are 'a key driver of euro zone growth'
A European Central Bank study says foreign workers are a key driver of growth in the euro zone. Foreign workers have accounted for half of the bloc's labour force growth over the past three years, the ECB said in a blog post written by some of its most senior economists, and are helping to alleviate labour shortages and beginning to make a greater contribution in higher skills jobs as their education levels improve. "The influx of foreign workers in recent years has secured a robust growth in the euro area labour force, which has somewhat offset the negative demographic trends," the blog post argued.
Novo Nordisk abandons US gender goals
Danish pharmaceutical company Novo Nordisk has announced that it will no longer enforce gender representation requirements for senior leadership roles in its US operations, citing changes in legal requirements following executive orders from President Trump aimed at halting diversity initiatives. Despite this shift, the company maintains its global goal of achieving at least 45% gender representation by the end of 2025. Novo Nordisk's decision aligns it with other European pharmaceutical companies that have also adjusted their diversity policies in response to the evolving legal landscape in the US.
UAE to introduce AI classes for children as young as four
The United Arab Emirates is launching an artificial intelligence curriculum from the earliest years in state schools as it seeks to become a regional AI hub, its education minister said.
 


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