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North American Edition
3rd March 2025
 
THE HOT STORY
BlackRock ends diversity goals
Asset manager BlackRock is dissolving its standalone diversity, equity and inclusion (DEI) team and integrating it into a broader "Talent and Culture" unit, signaling a shift away from formal diversity targets. The decision follows legal and policy changes in the U.S. that have put corporate DEI initiatives under increased scrutiny. Fortune suggests the move reflects BlackRock’s evolving approach to workforce management while maintaining its commitment to inclusivity. In a memo, BlackRock CEO Larry Fink, President Rob Kapito and Caroline Heller, global head of human resources, said: “We are committed to creating a culture that welcomes diverse people and perspectives to foster creative solutions and avoid groupthink."
CORPORATE
Consultancy chiefs meet Trump officials to justify contracts
Senior executives at major consultancy firms have been meeting with officials from the Trump administration to defend their contracts amidst a cost-cutting exercise being run by the General Services Administration (GSA). Federal agencies have been asked to list and justify consulting contracts from the 10 highest-paid companies, including Booz Allen, Accenture ACN, Guidehouse and others, that the agencies intend to keep. The Wall Street Journal suggests contracts providing market research and analysis or supporting work on topics the Trump administration has deprioritized may be the first to get cut. Firms may be asked to make pricing concessions on existing contracts. However, people familiar with the matter said Josh Gruenbaum, the Federal Acquisition Service commissioner within the GSA, has told executives that they could make up for the cuts by also suggesting new projects or services to the government that could offer a demonstrable return-on-investment.
WORKFORCE
GSA pulls plug on 18F team
The Trump administration has disbanded the 18F team, a group of tech-savvy civil servants within the U.S. General Services Administration (GSA) that played a crucial role in enhancing federal digital services. According to Thomas Shedd, the GSA's Director of Technology Transformation Services, the team was deemed “non critical.” Approximately 90 employees were locked out of their devices immediately. Established in 2014 under former President Barack Obama, 18F focused on improving website accessibility and modernizing technology across federal agencies. Elon Musk, leading the Department of Government Efficiency team, referred to 18F as a "far left government-wide computer office" and confirmed its termination, saying it has been "deleted." The IRS's free direct-file tax website remains operational. 
Job losses at 'air traffic control for space' unit
Employees at the National Oceanic and Atmospheric Administration's Office of Space Commerce who were working on a system to manage satellite traffic in space have been terminated by the Trump administration. A source said: "These are like air traffic controllers for space, they handle space traffic coordination to prevent collisions," noting that the dismissals come at a time when the number of collision alerts being issued is rising.
DIVERSITY, EQUITY & INCLUSION
Consumers fight back against DEI cuts
As companies like Target scale back their diversity, equity, and inclusion (DEI) initiatives, Jaclyn Peiser and Taylor Telford write in the Washington Post that consumers are increasingly supporting small businesses that uphold these values. A recent event in Detroit saw 500 parishioners purchase $25,000 worth of products from Black-owned businesses to demonstrate their discontent with Target's decision to reduce its $2bn commitment to supplier diversity. The authors suggest that this grassroots movement reflects a growing trend of conscientious consumerism, with calls for actions like Friday's “economic blackout” to raise awareness about retailers' DEI positions. Experts suggest that while the immediate impact may be small, the long-term effects on companies that abandon DEI could be significant, as consumers increasingly align their spending with their values.
LEGAL
Pentagon's new transgender policy
The Pentagon has unveiled its new transgender troop policy, stating that service members diagnosed with or treated for gender dysphoria are disqualified from military service unless they can demonstrate a specific warfighting need. The policy, included in a court filing regarding a lawsuit against President Donald Trump's executive order on transgender military service, asserts that the military's "lethality and integrity is inconsistent" with the experiences of transitioning personnel. Exceptions exist for those who can prove their support for warfighting activities or who have remained stable in their biological sex for 36 months. Even with a waiver, individuals will only be recognised by their biological sex in various military contexts. A 2018 study estimated around 14,000 transgender troops serve among over 2 million active personnel.
New labor contract ratified by Alaska Air workers
Flight attendants at Alaska Air have agreed a new three-year labor contract, the Association of Flight Attendants-CWA has announced. Pay increases ranging from 18.6% to 28.3%, boarding pay, 25 months of retroactive pay and two additional raises are included in the deal. The airline's CEO Ben Minicucci remarked: "I'm glad to have them working under a new contract that values their contributions to Alaska."
WORKPLACE
Paul Weiss ups office attendance
Law firm Paul Weiss will implement a mandatory four-day office attendance policy starting April 30, moving on from its previous three-day requirement. Its decision aligns with similar moves by other major firms such as Latham, Weil, and Skadden. A representative for the firm explained: "By being physically present together, we better develop our talent and ensure that we continue to deliver the level of extraordinary service that our clients expect." Employees will still have the option to work remotely on Fridays.

 
Law
HEALTH & WELLBEING
Big Tech data center buildout boom costs U.S. public health $5.4bn
Pollution derived from the huge amounts of energy needed to run data centers has created related public health costs of more than $5.4bn over the past five years, according to research.
TAX
California's film tax credits get a boost
California legislators are working on two bills to enhance the state's film and TV tax credit program, aiming to attract production back to the state. Assemblymember Rick Chavez Zbur emphasized the need to modernize the program to compete with other states, saying: "This is one of California's foundational industries." Proposed changes include increasing the effective rate and expanding eligibility for productions, particularly those that provide "the best jobs" and support underrepresented communities. The initiative follows Gov. Gavin Newsom's proposal to raise the annual funding for the program from $330m to $750m, positioning California as a leader in film incentive programs. 
INTERNATIONAL
Turkey's new law targets same-sex marriage
Proposed legislation in Turkey aims to criminalize same-sex marriage ceremonies and promote "biological sex" in law, raising concerns among LGBTQ advocates. According to a draft document from the justice ministry obtained by Kaos GL, short for Kaos Gay and Lesbian Cultural Research and Solidarity Association, one of the oldest and largest LGBT rights organisations in Turkey, individuals conducting same-sex ceremonies could face imprisonment from one year and six months to four years. The bill also seeks to increase the age for gender reassignment from 18 to 21 and complicate the process of changing gender on official documents. Damla Umut Uzun from Kaos GL said: "This bill is not about protecting families - it is about criminalising existence," highlighting fears that it could dismantle nearly 40 years of LGBTQ activism in Turkey. The legislation follows President Recep Tayyip Erdogan's declaration of 2025 as the "Year of the Family," signalling a crackdown on what the government deems harmful ideologies.
OTHER
Beverley faces lawsuit from Pacers fans
Former NBA player Patrick Beverley is facing a lawsuit from Indiana Pacers fans Jessica Simmons and Katie Lanciotti, who claim they suffered “physical, mental and emotional damage” after being struck by a ball he threw during a game. The lawsuit, filed in Marion County Superior Court, includes counts of battery, intentional infliction of emotional distress, invasion of privacy, and defamation. Beverley acknowledged the lawsuit on his podcast, saying: “I woke up this morning, found out I was getting sued first.” The incident occurred during a playoff game on May 2, where Beverley threw the ball into the stands, hitting Lanciotti and Simmons. They are seeking unspecified damages, with the Milwaukee Bucks and assistant coach Josh Oppenheimer also named as a defendant.
 


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