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10,000 federal health workers are getting laid off, with many discovering they lost their jobs when their security badges didn’t work: ‘Is this an April Fool’s joke?’

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  • As many as 10,000 workers are expected to lose their jobs Tuesday and some are finding out as they try to enter the building that they no longer have jobs. Laid off staffers are being asked to immediately turn in their badges and cellphones at the door. One staffer waiting in line loudly joked: “Is this an April Fool’s joke?”

Employees across the massive U.S. Health and Human Services Department began receiving notices of dismissal on Tuesday in an overhaul ultimately expected to lay off up to 10,000 people. The notices come just days after President Donald Trump moved to strip workers of their collective bargaining rights at HHS and other agencies throughout the government.

At the National Institutes of Health, the world’s leading health and medical agency, the layoffs occurred as its new director, Dr. Jay Bhattacharya, began his first day of work.

Health Secretary Robert F. Kennedy Jr. announced a plan last week to remake the department, which, through its agencies, is responsible for tracking health trends and disease outbreaks, conducting and funding medical research, and monitoring the safety of food and medicine, as well as for administering health insurance programs for nearly half of the country.

The plan would consolidate agencies that oversee billions of dollars for addiction services and community health centers under a new office called the Administration for a Healthy America.

The layoffs are expected to shrink HHS to 62,000 positions, lopping off nearly a quarter of its staff — 10,000 jobs through layoffs and another 10,000 workers who took early retirement and voluntary separation offers.

At the NIH, the cuts included at least four directors of the NIH’s 27 institutes and centers who were put on administrative leave, and nearly entire communications staffs were terminated, according to an agency senior leader, speaking on condition of anonymity to avoid retribution.

An email viewed by The Associated Press shows some senior-level employees of the Bethesda, Maryland, campus who were placed on leave were offered a possible transfer to the Indian Health Service in locations including Alaska and given until end of Wednesday to respond.

Democratic Sen. Patty Murray of Washington predicted the cuts will have ramifications when natural disasters strike or infectious diseases, like the ongoing measles outbreak, spread.

“They may as well be renaming it the Department of Disease because their plan is putting lives in serious jeopardy,” Murray said Friday.

Beyond layoffs at federal health agencies, cuts are beginning to happen at state and local health departments as a result of an HHS move last week to pull back more than $11 billion in COVID-19-related money. Local and state health officials are still assessing the impact, but some health departments have already identified hundreds of jobs that stand to be eliminated because of lost money, “some of them overnight, some of them are already gone,” said Lori Tremmel Freeman, chief executive of the National Association of County and City Health Officials.

Union representatives for HHS employees received a notice Thursday that 8,000 to 10,000 employees will be terminated. The department’s leadership will target positions in human resources, procurement, finance and information technology. Positions in “high cost regions” or that have been deemed “redundant” will be the focus of the layoffs.

Kennedy criticized the department he oversees as an inefficient “sprawling bureaucracy” in a video Thursday announcing the restructuring. He said the department’s $1.7 trillion yearly budget, “has failed to improve the health of Americans.”

“I want to promise you now that we’re going to do more with less,” Kennedy said.

The department on Thursday provided a breakdown of some of the cuts.

__ 3,500 jobs at the Food and Drug Administration, which inspects and sets safety standards for medications, medical devices and foods.

__ 2,400 jobs at the Centers for Disease Control and Prevention, which monitors for infectious disease outbreaks and works with public health agencies nationwide.

__ 1,200 jobs at the NIH.

__ 300 jobs at the Centers for Medicare and Medicaid Services, which oversees the Affordable Care Act marketplace, Medicare and Medicaid.

At the CDC, most employees have not been unionized, but interest rose sharply this year as the Trump administration took steps to reduce the federal workforce. Roughly 2,000 CDC employees in Atlanta belonged to the American Federation of Government Employees local bargaining unit, with hundreds more who had petitioned to join in recent days being added.

But on Thursday night, Trump signed an executive order that would end collective bargaining for a large number of federal agencies, including the CDC and other health agencies.

The erosion of collective bargaining rights was decried by some Democratic lawmakers.

“President Trump’s brazen attempt to strip the majority of federal employees of their union rights robs these workers of their hard-fought protections,” Reps. Gerald Connolly and Bobby Scott, both of Virginia, said in a joint statement Friday.

“This will only give Elon Musk more power to dismantle the people’s government with as little resistance from dedicated civil servants as possible — further weakening the federal government’s ability to serve the American people.”

This story was originally featured on Fortune.com



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UnitedHealthcare and other major insurance companies pull company and board leadership bios from their websites after executive’s killing

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In the aftermath of the tragic shooting of UnitedHealthcare CEO Brian Thompson, health insurance companies are removing web pages that list their executives and boards of directors. 

A day after Thompson was fatally gunned down outside a New York City hotel on the way to UnitedHealth Group’s investor day, company pages on the websites of major health insurers that previously listed their senior leadership teams redirected elsewhere. UnitedHealthcare is a subsidiary of UnitedHealth Group.

Executive and board of directors bios are common on most company websites, both public and private. Now it appears that major insurers including UnitedHealthcare, Anthem Blue Cross Blue Shield, and its parent company, Elevance Health, all took down those pages, likely as precautionary measures. 

Elevance Health, Anthem Blue Cross Blue Shield, and UnitedHealthcare did not respond to a request for comment. 

Archived versions of the web pages show that they were active on Wednesday. However, as of the publication of this article, those same URLs redirected internet users to other pages on the company’s site. 

For example, United Healthcare’s “About Us” page previously had a subheading that linked to headshots and brief bios of the company’s various executives, including Thompson. Now, that same web address redirects to the company’s homepage, uhc.com. 

Elevance Health, the Indianapolis-based health care conglomerate, also took down a site that featured its company executives. Instead that page now redirects to Elevance’s homepage. 

The website of Elevance-owned Anthem Blue Cross Blue Shield performed similarly. The page that showed its executives now links only to the general landing page for the “About Us” section of the website. The insurer made headlines earlier this week over its intention to implement a new policy in New York, Missouri, and Connecticut that would limit reimbursements for anesthesia costs. However, the company pulled back on that proposal later in the week amid widespread criticism. 

The corporate world found itself grappling with the question of executive safety in the wake of Thompson’s murder. The nature of the shooting, which happened on a street corner in Midtown Manhattan, underscored the level of danger certain executives might face—even if they do not expect it. 

Across the business landscape, major corporations raised the levels of security afforded their executives. In the meantime, private security firms reported a marked increase in business inquiries since the shooting. 

Disclosure: UnitedHealth administers Fortune Media’s employer-sponsored health insurance plan. 

This story was originally featured on Fortune.com



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British billionaire calls for U.K. companies to pay CEOs like footballers, despite bosses making double Premier League players

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As CEOs continue to digest the fallout of the murder of UnitedHealthcare CEO Brian Johnson, a billionaire backer of major companies believes a pay rise is needed to attract them to the job.

Lord Michael Spencer, the billionaire British financier, is frustrated by his belief that CEOs in the U.K. deserve to be paid in the same ballpark as the Premier League’s biggest stars like Kevin De Bruyne and Erling Haaland.

“We don’t mind paying our footballers, top-rate footballers, extraordinary amounts of money,” Spencer told the FT

“Somehow that’s considered perfectly acceptable. But if the CEO of BP or HSBC earns £20 million a year, materially less than their peer group in America, everyone jumps up and down saying this is an outrage.”

He added: “The U.S. celebrates the fact that great chief executives earn large amounts of money. They want their chief executives to be paid like football stars.”

Spencer’s argument is similar to one made by Ryanair CEO Michael O’Leary in April, who used footballer pay to justify his potential €100 million bonus.

The problem with Spencer’s comments? CEOs effectively are already paid like footballers in the U.K.

Multi-millionaire CEOs are already the norm

The average FTSE 100 CEO earned £4.2 million in 2023, while FT analysis shows the average Premier League salary was £1.98 million in the same year.

Spencer was more likely suggesting that CEOs should be paid at levels similar to those of the highest paid in the Premier League. But even here, the figures are comparable.

Manchester City’s Kevin De Bruyne is thought to be the highest-paid player, earning a salary of about £400,000 per week, or £20.8 million a year. With playing-related bonuses and sponsorship deals, his income is likely millions higher.

AstraZeneca CEO Pascal Soriot earned £16.85 million in 2023, making him the FTSE 100’s highest-paid boss. In second place was RELX’s Erik Engstrom with a £13.64 million package, while Rolls Royce’s Terfan Erginbilic earned £13.61 million. 

U.K. bosses have faced steep resistance from investors to pay rises in recent years. AstraZeneca’s Soriot saw 38.5% of shareholders reject plans for a £1.8 million pay increase in April.

Rajiv Jain, chief investment officer at top 20 shareholder GQG Partners, said Soriot was “massively underpaid” when compared with U.S. pharmaceutical CEOs.

Shareholders have been cautious to approve bumper pay rises in an era of historically high inflation that has hit those less well off the hardest. 

On the other hand, proponents of pay rises say they are required to prevent a flight of companies and talent from the U.K. Several U.K. companies have chosen to move their listings to the U.S. this year in search of better market valuations.

C-Suite in the spotlight

Spencer’s comments come at a time of deep unrest in the C-Suite. 

The murder of UnitedHealthcare CEO Brian Thompson last week has brought into the spotlight executive safety at major companies.

UnitedHealthcare and other insurance companies, Elevance Health and Anthem Blue Cross Blue Shield, removed board leadership bios in an apparent effort to protect their privacy amid heightened safety concerns.

Fortune’s Leadership editor Ruth Umoh and reporter Natalie McCormick wrote of a growing trend of trepidation among execs to make the move to the corner office, one that could be accelerated by Johnson’s death.

Those hoping to reverse that trend argue that higher pay may be the way to go.

This story was originally featured on Fortune.com



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Europe has caught a workplace absenteeism bug costing it billions of euros

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