Spain Cuts Legal Workweek

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🏛️ Spain cuts legal workweek

🤨 Buyout for federal workers?

✖️ Workday lays off 8.5% of workforce

And, of course, MEMES!

MEME OF THE DAY

WORKWEEK

Spain Cuts Workweek

Earlier this week, Spanish ministers agreed to reduce the legal working week to 37.5 hours without changing salaries despite opposition from employers' associations. However, the proposal still needs to be approved in parliament, where the center-left government lacks a clear majority.

We’ll save you the boring legalities of the Spanish government; basically, it’s a toss-up.

"This proposal is about living better, working less and being much more productive and more efficient economically.” -Labor Minister Yolanda Diaz.

Spain's central bank and former economy minister have both warned that higher labour costs could fuel inflation and curb job creation. Carlos Cuerpo, Spain’s Economy Minister, said companies could resist the change given Spain's strong economic growth, declining inflation, and an unemployment rate at a 16-year low.

GOVERNMENT

Buyouts for Federal Workers?

Last week, the Trump administration informed federal employees Tuesday that they could receive buyouts, according to a memo posted by the U.S. Office of Personnel Management. 

Workers who opt for a “deferred resignation” have until today (Feb. 6) to make their decision and will receive pay and benefits through September 30th.

These workers also will be exempted from return-to-work mandates, according to the memo.

The announcement comes on the heels of Jan. 20 executive orders directing federal agencies to “take all necessary steps to terminate remote work” and to adhere to a new federal hiring freeze.

The hiring freeze executive order also instructed leaders of the Office of Management and Budget, OPM, and the U.S. Department of Government Efficiency to create a plan to reduce the size of the federal government “through efficiency improvements and attrition.”

Workers who do not resign during this window are not ensured that their position or agency will not be eliminated.

An OPM spokesperson said that the administration expects 5-10% of federal employees to accept the offer, amounting to $100 billion in savings.

LAYOFFS

Workday Lays Off 8.5%

In a memo to employees earlier this week, Workday CEO Carl Eschenbach informed employees that the company would be eliminating 1,750 positions, equivalent to roughly 8.5% of the total headcount. Eschenbach said the layoffs were necessary for ongoing growth efforts at the company, including a particular focus on artificial intelligence investments.

“As we start our new fiscal year, we’re at a pivotal moment. Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.” -Carl Eschenbach, Workday CEO.

Despite the current layoffs, the maker of human resources software says that it still expects to continue hiring in certain locations and positions over the next year. Workday estimates that it will incur between $230 million and $270 million in charges related to the restructuring plan — primarily in severance payments, employee benefits, and other related costs.

All employees laid off in the U.S. will be offered a minimum of 12 weeks of pay, with additional weeks based on tenure.

Many companies have turned to restructuring as they grapple with how to stay competitive with evolving consumer spending, while also boosting AI-related investments. 

The Workday layoffs are part of a huge wave of big tech layoffs within the past year. Other big name companies with similar reductions in headcount include Intel, Cisco, and Apple.

Source: AP News

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