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More than 20 civil service employees resigned Tuesday from billionaire Trump adviser Elon Musk’s Department of Government Efficiency, saying they were refusing to use their technical expertise to dismantle critical public services. We swore to serve the American people and uphold our oath to the Constitution across presidential administrations, the 21 staffers wrote in a joint resignation letter, a copy of which was obtained by The Associated Press. However, it has become clear that we can no longer honor those commitments. The employees also warned that many of those enlisted by Musk to help him slash the size of the federal government under President Donald Trump’s administration were political ideologues who did not have the necessary skills or experience for the task ahead of them. The mass resignation of engineers, data scientists and product managers is a temporary setback for Musk and the Republican president’s tech-driven purge of the federal workforce. It comes amid a flurry of court challenges that have sought to stall, stop or unwind their efforts to fire or coerce thousands of government workers out of jobs. In a statement, White House press secretary Karoline Leavitt was dismissive of the mass resignation. Anyone who thinks protests, lawsuits, and lawfare will deter President Trump must have been sleeping under a rock for the past several years,” Leavitt said. “President Trump will not be deterred from delivering on the promises he made to make our federal government more efficient and more accountable to the hardworking American taxpayers. The staffers who resigned worked for what was once known as the United States Digital Service, an office established during President Barack Obama’s administration after the botched rollout of Healthcare.gov, the web portal that millions of Americans use to sign up for insurance plans through the Democrat’s signature health care law. All had previously held senior roles at such tech companies as Google and Amazon and wrote in their resignation letter that they joined the government out of a sense of duty to public service. Trump’s empowerment of Musk upended that. The day after Trump’s inauguration, the staffers wrote, they were called into a series of interviews that foreshadowed the secretive and disruptive work of Musk’s’ Department of Government Efficiency, or DOGE. According to the staffers, people wearing White House visitors’ badges, some of whom would not give their names, grilled the nonpartisan employees about their qualifications and politics. Some made statements that indicated they had a limited technical understanding. Many were young and seemed guided by ideology and fandom of Musk not improving government technology. Several of these interviewers refused to identify themselves, asked questions about political loyalty, attempted to pit colleagues against each other, and demonstrated limited technical ability, the staffers wrote in their letter. This process created significant security risks. Earlier this month, about 40 staffers in the office were laid off. The firings dealt a devastating blow to the government’s ability to administer and safeguard its own technological footprint, they wrote. These highly skilled civil servants were working to modernize Social Security, veterans services, tax filing, health care, disaster relief, student aid, and other critical services, the resignation letter states. Their removal endangers millions of Americans who rely on these services every day. The sudden loss of their technology expertise makes critical systems and Americans data less safe. Those who remained, about 65 staffers, were integrated into DOGE’s government-slashing effort. About a third of them quit Tuesday. “We will not use our skills as technologists to compromise core government systems, jeopardize Americans sensitive data, or dismantle critical public services,” they wrote. We will not lend our expertise to carry out or legitimize DOGEs actions. The slash-and-burn effort Musk is leading diverges from what was initially outlined by Trump during the 2024 presidential campaign. DOGE, a nod to Musk’s favorite cryptocurrency meme coin, was initially presented as a blue-ribbon commission that would exist outside government. After the election, however, Musk hinted there was more to come, posting to his social media site, X, Threat to democracy? Nope, threat to BUREAUCRACY!!! He has leaned aggressively into the role since. Last week he stood on stage at the Conservative Political Action Conference gathering outside Washington, where he boasted of his exploits and hoisted a blinged-out, Chinese-made chainsaw above his head that was gifted by Argentinian President Javier Milei. “This is the chainsaw for bureaucracy, Musk bellowed from the stage. Still, Musk has tried to keep technical talent in place, with the bulk of the layoffs in the Digital Service office focused on people in roles like designers, product managers, human resources and contracting staff, according to interviews with current and former staff. Of the 40 people let go earlier this month, only one was an engineer an outspoken and politically active staffer name Jonathan Kamens, who said in an interview with the AP that he believes he was fired for publicly endorsing Vice President Kamala Harris, a Democrat, on his personal blog and being critical of Musk in chats with colleagues. “I believe that Elon Musk is up to no good. And I believe that any data that he gains access to is going to be used for purposes that are inappropriate and harmful to Americans,” Kamens said. U.S. Digital Service veterans, who spoke on the condition of anonymity out of fear of reprisal, recalled experiencing a similar sort of shock about how government processes worked that Musk and his team are discovering. Over time, many developed an appreciation for why certain things in government had to be treated with more care than in the private sector. Move fast and break things may be acceptable to someone who owns a business and owns the risk. And if things dont go well, the damage is compartmentalized. But when you break things in government, youre breaking things that belong to people who didnt sign up for that, said Cordell chachter, who until last month was the chief information officer at the U.S. Department of Transportation. USDS was established over a decade ago to do things like improving services for veterans, and it helped create a free government-run portal so tax filers did not have to go through third parties like TurboTax. It also devised systems to improve the way the federal government purchased technology. It has been embroiled in its fair share of bureaucracy fights and agency turf wars with chief information officers across government who resented interlopers treading in their agencys systems. USDS power across government stemmed from the imprimatur of acting on behalf of the White House and its founding mission of improving service for the American people. Leavitt, the White House press secretary, is one of three administration officials who face a lawsuit from The Associated Press on first- and fifth-amendment grounds. The AP says the three are punishing the news agency for editorial decisions they oppose. The White House says the AP is not following an executive order to refer to the Gulf of Mexico as the Gulf of America. Brian Slodysko and Byron Tau, Associated Press AP video journalist Rodrique Ngowi contributed to this report.
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E-Commerce
During Apple’s annual meeting today, shareholders struck down a proposal that had targeted many of the tech giant’s diversity, equity, and inclusion initiatives, a move that indicates a continued commitment to DEI even as other major employers pull back on their own efforts. The proposal, which was put forward by a conservative think tank called the National Center for Public Policy Research, suggested that Apple could face “litigation, reputational and financial risks” due to its DEI programs. The group also claimed that Apple could face legal claims from at least 50,000 employees (though it’s not clear where that number came from). Apple’s board had previously urged shareholders to reject the proposal, positing that it was an overreach and “inappropriately attempts to restrict the company’s business operations. (The National Center for Public Policy Research has already targeted diversity programs at Costco with a similar measure, which was also rejected.) Apple also noted that its DEI programs and company culture were key to its success as a business. At Apple, we believe that how we conduct ourselves is as critical to Apples success as making the best products in the world, the board said in a proxy filing in January. We seek to conduct business ethically, honestly, and in compliance with applicable laws and regulations, and our Business Conduct and Compliance policies are foundational to how we do business. And we strive to create a culture of belonging where everyone can do their best work. During Apple’s annual meeting, a leader at the think tank noted that the company could face legal challenges from the Trump administration over its DEI efforts. (He also added that The vibe shift is clear: DEI is out and merit is in.”) For the time being, however, Apple CEO Tim Cook has remained on good terms with Trump, even announcing a whooping $500 billion investment in manufacturing and job creation stateside. Still, Apple’s stance on DEI is notable in this moment, as the Trump administration has set its sights on dismantling diversity efforts across both the federal government and private sector companies. Over the last few months, a number of major employers have made changes to their DEI commitments, including some of Apple’s peers in the tech industry. Amazon has softened some of its public-facing language on diversity and claimed to be winding down outdated programs and materials by the end of 2024, while Google has nixed its representation goals for hiring and is currently reviewing many of its DEI initiatives. Meta, too, has cut representation goals but also went a step further and eliminated the team that focused on DEI efforts at the company. Some of these shifts are more minor or even semantic in nature, and DEI experts have noted that many companies are making calculated changes to mitigate potential legal risks while continuing to invest in diversity work. But even so, Apple appears to stand apart from other tech giants for its continued commitment to DEIat least for now.
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E-Commerce
Teslas stock plunged more than 8% on Tuesday, marking another setback for the electric vehicle giant as it struggles to maintain momentum in 2025. The companys stock hit its lowest level since November, driven by disappointing sales in Europe and growing concerns over CEO Elon Musks controversial political moves. Tesla shares (Nasdaq:TSLA) are now down roughly 25% just this year, making it the weakest performer among the “Magnificent 7” stocks, according to Investopedia. The companys valuation also dipped below $1 trillion for the first time in three months, as reported by MarketWatch. Why Tesla shares are down this week A key factor in Teslas stock slump is a sharp decline in European sales. The companys vehicle sales plummeted 45% across Europe last month, even as overall electric vehicle demand surged, according to the Wall Street Journal. Tesla’s monthly sales in Germany, for instance, fell 60% year-over-year to 1,277 vehicles, per data from Germanys Motor Transport Authority. Meanwhile, competitors such as Volkswagen, Renault, and SAIC Motor saw increased sales, capitalizing on growing EV interest in countries including Germany, the U.K., and the Netherlands. Musks vocal political involvement in Germanys recent election also may have contributed to Teslas waning. His support for the far-right Alternative for Germany (Afd) party sparked backlash, potentially alienating customers in a key market. Additionally, Teslas Model Y is currently undergoing a refresh, leading some buyers to delay purchases while waiting for the updated model, according to WSJ. Beyond sales figures, Tesla faces growing concerns about its reputation. Some critics have argued that Musks leadership outside of Tesla, particularly his role in running the Trump administration’s so-called Department of Government Efficiency (DOGE), is damaging the companys image. On February 15, protestors gathered at Tesla stores and charging stations in cities across the United States to condemn Musks cuts to essential services and mass layoffs related to his work with DOGE. Despite Teslas recent challenges, Europe’s broader EV market remains strong, with overall electric vehicle sales rising 37.3% last month. Germany, the U.K., and the Netherlands are seeing the biggest gains in sales, according to Yahoo Finance. Whats clear is that Tesla investors are increasingly anxious this week as competitors continue to chip away at its dominance in the industry.
Category:
E-Commerce
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