Markus Andrews

A general view of the Hewlett Packard Enterprise company offices in Minneapolis, Minnesota, on Jan. 3, 2024.
AaronP | Bauer-Griffin | GC Images | Getty Images

Company: Hewlett Packard Enterprise (HPE)

Business: Hewlett Packard Enterprise is a global edge-to-cloud company. It delivers open and intelligent technology solutions as a service. The company offers cloud services, compute, high performance computing and artificial intelligence, intelligent edge, software and storage. Its segments include Server, Hybrid Cloud, Intelligent Edge, Financial Services, Corporate Investments and Other. Its Server segment offerings consist of general-purpose servers for multi-workload computing, workload-optimized servers, and integrated systems. Its Hybrid Cloud segment offers a range of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. Its Intelligent Edge segment offers wired and wireless local area networks, campus, branch, and data center switching, and others. Its Financial Services segment provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management services.
Stock Market Value: $19.88B ($15.14 per share)

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Hewlett Packard Enterprise shares in the past 12 months

Activist: Elliott Investment Management

Ownership: ~7.4%
Average Cost: n/a
Activist Commentary: Elliott is a very successful and astute activist investor. The firm’s team includes analysts from leading tech private equity firms, engineers, operating partners – former technology CEOs and COOs. When evaluating an investment, Elliott also hires specialty and general management consultants, expert cost analysts and industry specialists. The firm often watches companies for many years before investing and has an extensive stable of impressive board candidates. Elliott has historically focused on strategic activism in the technology sector and has been very successful with that strategy. However, over the past several years its activism group has grown, and the firm has been doing a lot more governance-oriented activism and creating value from a board level at a much larger breadth of companies.

What’s happening

Behind the scenes

Hewlett Packard Enterprise (HPE) is a global edge-to-cloud company that delivers open and intelligent technology solutions as a service. The company was spun off from HP Inc in 2015. HPQ, the RemainCo, retained the PC, desktop and printer businesses, while HPE, the SpinCo, focuses on servers, storage and networking. The majority of HPE’s revenue (53.8%) is derived from its Server segment, which consists of general-purpose servers for multi-workload computing, workload-optimized servers, and integrated systems. Its Hybrid Cloud segment (17.88%) offers a range of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. Its Intelligent Edge segment (15.04%) offers wired and wireless local area networks. The remainder of HPE’s revenue is derived from its financial services, investments and other activities. This comprehensive product portfolio sets HPE apart from peers like Dell or Cisco, which typically lack one or more of these pieces. Despite this unique marketing position the company is still undervalued to its peers. Currently, HPE trades at less than 5-times earnings before interest, taxes, depreciation and amortization, compared to its closest server peer Dell at over 7-times EBITDA, reflecting a 30% discount.

The primary driver of HPE’s undervaluation appears to be poor execution and a loss of credibility with the market. In Q1, HPE reported a net revenue decrease in its core Server business. The company attributed this loss to mispricing servers relative to inventory costs, which went unnoticed until late in the quarter. As a result, the stock sold off sharply in the days following the company’s earnings. Meanwhile, Dell reported beats on both revenue and margin for the same quarter. However, this is not an isolated incident, but rather the latest in a history of underperformance. Since Dell resumed trading on the NYSE at the end of 2018, it has outperformed HPE’s returns by over 200%.
While its Server business is the core business for HPE, much of the opportunity here revolves around the networking business. This is a higher multiple business that Dell does not have. HPE’s Intelligent Edge business accounts for one-third of the company’s profits, and networking peers like Cisco trade at 12-times EBITDA. If Intelligent Edge traded at that multiple it would be worth almost the entire enterprise value of HPE today. That leaves significant value from the company’s core Server business and its Cloud Storage business even if those businesses continued to trade at 5-times EBITDA. That value increases significantly with better management execution and efficiency, which should get those businesses to the 7-times multiple Dell trades at. Furthermore, while HPE’s differentiator is its high multiple networking business, Dell’s primary differentiator is a low-multiple PC and desktop business, so a case can be made that HPE’s analogous businesses should trade at a higher multiple than Dell.
There is also a major uncertainty that is hanging over HPE – its pending acquisition of Juniper Networks, a networking peer to HPE and Cisco. The $14 billion deal, originally announced in January 2024, has been stalled. Earlier this year, the Department of Justice sued to block the acquisition, saying it would eliminate competition. This uncertainty puts HPE at a crucial inflection point, something that markets inherently dislike – especially when management lacks a track record of savvy execution. The potential complications here are clear: If the deal is blocked, HPE would have over 25% of its market cap in net cash, prompting concerns that management may pursue a rushed and risky acquisition to compensate for this failed transaction. Conversely, if the deal goes through, given HPE’s recent executional missteps, investors may worry whether the company will be able to effectively integrate a business of Juniper’s size. So, even though acquiring Juniper would significantly improve HPE’s profitability mix to almost 50% attributed to the higher multiple networking business, many market participants may be looking at this as a lose-lose. But with the right oversight, it should be a win-win.
This is where Elliott comes in as a potential value creator for HPE. With sufficient shareholder representation on the board that restores confidence that the company will be keenly attuned to shareholder value, the uncertainty of Juniper could turn into a great opportunity for shareholders regardless of whether it closes or not. If the deal gets blocked and there is strong shareholder representation on the board, shareholders will have confidence that the large net cash position will be used wisely, whether through a diligent and disciplined value-creating acquisition or to buy back shares at these depressed values. If the deal does close, shareholders will have more confidence that a refreshed board will do a better job integrating Juniper. Elliott is one of the most prolific activist investors today with a history of effective and successful strategic activism in the technology sector. In the past 10 years, the firm has engaged 25 technology companies and has delivered an average return of 20.60% versus 8.56% for the Russell 2000 over the same periods. However, in the six of those 25 situations where Elliott received board representation, the firm returned an average of 45.53% versus 15.35% for the Russell 2000 over the same time periods. Importantly, Elliott has a deep familiarity with Juniper, having previously engaged the company from 2014-2015. In this engagement, Elliott called for a slew of capital allocation and strategic initiatives, ultimately settling for board seats for Gary Daichendt and Kevin DeNuccio. Notably, DeNuccio is still on Juniper’s board today.
While we believe Elliott’s activist campaign and the value at HPE is compelling over a full activist cycle on its own, given the economic climate today, we would be remiss not to mention something about tariffs. HPE is likely in a better position than Dell to face certain geopolitical headwinds. The majority of HPE’s servers comply with the United States-Mexico-Canada Agreement and are manufactured in Mexico. In contrast, a significant portion of Dell’s PC products are manufactured in China and are therefore significantly more exposed to tariff risks.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

The IRS free tax filing program, known as Direct File, has faced heavy Republican scrutiny since its 2024 launch.
Direct File expanded to more than 30 million taxpayers across 25 states for the 2025 filing season. 
However, the Trump administration hasn’t yet decided on the future of the program.

Vithun Khamsong | Moment | Getty Images

The IRS’ free tax filing program is in jeopardy as the agency faces continued cuts from the Trump administration.
After a limited pilot launch in 2024, the program, known as Direct File, expanded to more than 30 million taxpayers across 25 states for the 2025 filing season.   

Funded under the Inflation Reduction Act in 2022, the program has been heavily scrutinized by Republicans, who have criticized the cost and participation rate. Over the past year, Republican lawmakers from both chambers have introduced legislation to halt the IRS’ free filing program.
Now, some reports say Direct File could be at risk. Meanwhile, no decision has been made yet about the program’s future, according to a White House administration official. 
More from Personal Finance:Federal Reserve: College is still worth it for most studentsHere’s why retirees shouldn’t fully ditch stocksHere’s how a trade war could impact the price of clothingDuring his Senate confirmation hearing in January, Treasury Secretary Scott Bessent committed to keeping Direct File active during the 2025 filing season without commenting on future years.  
“I will consult and study the program and understand it better and make sure it works to serve the IRS’ three goals of collections, customer service and privacy,” Bessent told the Senate Finance Committee at the hearing. 
However, the future of the free tax filing program remains unclear.

As of April 17, the Direct File website said the program would be open until Oct. 15, which is the deadline for taxpayers who filed for a federal tax extension.
Many taxpayers can also file for free via another program known as IRS Free File, which is a public-private partnership between the IRS and the Free File Alliance, a nonprofit coalition of tax software companies.
The IRS in May 2024 extended the Free File program through 2029.

Mixed reviews of IRS Direct File

Direct File supporters on Wednesday blasted the possible decision to end the program.
“No one should have to pay huge fees just to file their taxes,” Senate Finance Committee Ranking Member Ron Wyden, D-Ore., said in a statement on Wednesday.
Wyden described the program as “a massive success, saving taxpayers millions in fees, saving them time and cutting out an unnecessary middleman.”
In January, more than 130 Democrats, led by Sens. Elizabeth Warren, D-Mass., and Chris Coons, D-Del., voiced support for Direct File.

However, opponents have criticized the program’s participation rate and cost.
During the 2024 pilot, some 423,450 taxpayers created or signed in to a Direct File account. Roughly one-third of those taxpayers, about 141,000 filers, submitted a return through Direct File, according to a March report from the Treasury Inspector General for Tax Administration.
Those figures represent a mid-season 2024 launch in 12 states for only simple returns. It’s unclear how many taxpayers used Direct File through the April 15 deadline.
The cost for Direct File through the pilot was $24.6 million, the IRS reported in May 2024. Direct File operational costs were an extra $2.4 million, according to the agency. More

Overall, the benefits of a college degree far outweigh the costs. But not all students get the same return on investment.
Many factors, including how much you have to pay out of pocket and your choice of major, determine the ultimate value, according to a new study by the Federal Reserve.
For at least one-quarter of graduates, college does not pay off, the Fed researchers found. 

In general, the economic benefits of a college education still far outweigh the high cost. However, college does not pay off for everyone, according to a new study by the Federal Reserve Bank of New York.
Many factors, including how much financial aid is offered and how much students have to pay out of pocket, as well as the choice of major, future earnings potential and how long it takes to graduate, determine the actual return on investment, the Fed researchers found. 

Overall, “majors providing technical training — that is, quantitative and analytical skills—earn the highest return, including engineering, math and computers,” the Fed researchers wrote in the blog post on April 16.
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“While expensive schools and on-campus living may seem to make college a risky bet, our estimates suggest that even a relatively high-cost college education tends to yield a healthy return for the typical graduate,” the Fed researchers said.
“Taking five or six years to complete a degree also still generally pays off. However, as many as a quarter of college graduates appear to end up in relatively low-paying jobs, and for them, a college degree may not be worth it, at least in terms of the economic payoff,” according to the Fed researchers.

‘College continues to get more expensive’

Meanwhile, studies consistently demonstrate that college costs continue to rise faster than the growth of financial aid. This means families and students are bearing a greater share of the financial burden of higher education. 

College tuition costs have indeed risen significantly, averaging a 5.6% annual increase since 1983, outpacing inflation and other household expenses. And families now shoulder 48% of college expenses with their income and investments, up from 38% a decade ago, according to a report by J.P. Morgan Asset Management.
“College continues to get more expensive and even though we’ve made aid more accessible by making the FAFSA [The Free Application for Federal Student Aid] shorter and more digestible, it’s not enough,” said Tricia Scarlata, head of education savings at J.P. Morgan Asset Management. (The new Free Application for Federal Student Aid was meant to improve access by expanding aid eligibility.)

In fact, these days, more students are opting out. Both bachelor’s degree and associate degree earners fell for the third consecutive year in 2023-24, according to a recent report by the National Student Clearinghouse Research Center.
“Today’s students want shorter-term, lower-cost credentials that lead to faster employment opportunities,” Doug Shapiro, the National Student Clearinghouse Research Center’s executive director said in a statement.
“It is certificate programs, not associates or bachelor’s degrees, that are drawing students into colleges today,” Shapiro added.
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The national average credit score fell for only the second time in a decade, according to a new report from FICO.
The resumption of federal student loan delinquency reporting on consumers’ credit was a significant contributing factor.
Severe delinquencies, or 90-day past-due missed payments, surpassed pre-pandemic levels for the first time.

Consumer debt is rising, and now credit scores have declined.
The national average FICO credit score dropped to 715 from 717, according to a recent report from FICO, developer of one of the scores most widely used by lenders. FICO scores range between 300 and 850.

Amid high interest rates and rising debt loads, the share of consumers who fell behind on their payments jumped over the past year, FICO found. Also, the resumption of federal student loan delinquency reporting on consumers’ credit was a significant contributing factor, the report said.
“Those are now being reported for the first time since March 2020,” said Tommy Lee, senior director of scores and predictive analytics at FICO. “This is really driving the increase in severe delinquencies.”
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The effects of student loan delinquency reporting

The Federal Reserve Bank of New York cautioned in a March report that student loan borrowers who are late on their payments would experience “significant drops” in their credit scores.
Initially, those borrowers benefitted from the pandemic-era forbearance on federal student loans, which marked all delinquent loans as current. Median credit scores for student loan borrowers increased by 11 points between the end of 2019 to the end of 2020, the Fed researchers found. However, that relief period officially ended on Sept. 30, 2024.

“We expect to see more than nine million student loan borrowers face substantial declines in credit standing over the first quarter of 2025,” the Fed researchers wrote in the blog post last month.
“Although some of these borrowers may be able to cure their delinquencies,” the Fed researchers said, “the damage to their credit standing will have already been done and will remain on their credit reports for seven years.”
Lower credit scores could result in reduced credit limits, higher interest rates for new loans and overall lower credit access, the researchers also said.

During the 2007-2010 housing crisis, average nationwide credit scores fell to 686 due to a surge in foreclosures. They subsequently ticked higher until the Covid-19 pandemic, when government stimulus programs and a spike in household saving helped boost scores to a historic high of 718 in 2023.
However, last year, FICO scores notched their first decline in over a decade, dropping to 717 in 2024, when rising credit card balances and an uptick in missed payments started to take a toll.
This year, scores fell even further as severe delinquencies, or 90-day past-due missed payments, surpassed pre-pandemic levels for the first time.

The consequences of a lower credit score

In general, the higher your credit score, the better off you are when it comes to getting a loan. Lenders are more likely to approve you for loans when you have a higher credit score, or offer you a better rate. Alternatively, borrowers with lower scores are typically charged more in interest, if they are approved for a loan at all.
In fact, increasing your credit score to very good (740 to 799) from fair (580 to 669) could save you more than $39,000 over the lifetime of your balances, a recent analysis by LendingTree found — with the largest impact from lower mortgage costs, followed by preferred rates on credit cards, auto loans and personal loans.
Some of the best ways to improve your credit score come down to paying your bills on time every month and keeping your utilization rate, or the ratio of debt to total credit, below 30% to limit the effect that high balances can have, FICO’s Lee said.
A good score generally is above 670, a very good score is over 740 and anything above 800 is considered exceptional.
An average score of 715 by FICO measurements means most lenders will consider your creditworthiness “good” and are more likely to extend lower rates.
“There are still many consumers that are managing their payments very well,” Lee said. “On the other hand, the decline [in average credit scores] does indicate there are some consumers being impacted by the current economy.”
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Few consumer goods are immune from the effects of new tariffs on imported goods, but apparel may be among the hardest hit.
The U.S. gets 97% of clothing and shoes from other countries, a report by the American Apparel & Footwear Association found.
Tariffs “will be passed along to the end consumer,” says the National Retail Federation’s executive vice president of government relations, David French.
Most consumers have already started to change their shopping habits accordingly.

Women shop for clothing from a Gap outlet store in Los Angeles, California on April 10, 2025. 
Frederic J. Brown | Afp | Getty Images

Few consumer products are immune from the impact of new tariffs on goods imported into the United States, but apparel may be among the hardest hit.
A trade war could significantly raise the price of clothing for consumers. Since a large portion of U.S. clothing and shoes are imported, tariffs on those goods would increase the cost for both the importers and, ultimately, the consumer, experts say.

“The 2025 tariffs disproportionately affect clothing and textiles, with consumers facing 64% higher apparel prices in the short-run,” according to forecasts by the Yale University Budget Lab. “Apparel prices will stay 27% higher in the long-run.”
For now, the Trump Administration has opted for a universal tariff rate of 10%. Earlier this month, the White House imposed 145% tariffs on products from China. President Donald Trump recently granted exclusions from steep tariffs on smartphones, computers and some other electronics imported largely from China.
“We are concerned about the escalating trade war with China. Ultimately no one wins,” said Julia Hughes president of the United States Fashion Industry Association.
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“This policy continues to subject U.S. imports of our industry’s largest trading partner to an unsustainable tax,” Steve Lamar, the American Apparel & Footwear Association’s president and CEO, said in a prepared statement. 

Tariffs, particularly on clothing and materials, which are not made at scale in the U.S., will lead to higher prices for consumers and will only fuel inflation, according to the American Apparel & Footwear Association.
The U.S. receives 97% percent of clothing and shoes from other countries, but primarily China and Vietnam, a 2024 report by the American Apparel & Footwear Association found.

Tariffs ‘will be passed along to the consumer’

“Tariffs are a tax paid by the U.S. importer that will be passed along to the end consumer. Tariffs will not be paid by foreign countries or suppliers,” the National Retail Federation’s executive vice president of government relations, David French, said in a statement.
As part of the new high tariffs on China, Trump also revoked a popular tax loophole known as de minimis. The exemption allowed many e-commerce companies to send goods worth less than $800 into the U.S. duty-free. The loophole also allowed American shoppers to buy low-cost goods directly from retailers in China and Hong Kong.
Some popular clothing brands, like Shein and Temu imported from China, could face an immediate impact and will likely funnel those extra costs to customers in the way of higher prices, which would hit low- and middle-class Americans particularly hard.

How consumers plan to cushion the blow

Three-quarters of consumers said they’re already engaging in “trade-down” behavior when purchasing clothing and footwear, according to recent research by Empower.
In the years since high inflation made clothing more expensive, a shift was already starting.
Shoppers downgraded to more affordable secondhand merchandise and embraced buying “dupes” — short for duplicates.
“If you can’t afford Louis Vuitton, you are going to buy Coach. If you can’t afford Coach, you are going to buy the knock off,” said Shawn Grain Carter, an associate professor at the Fashion Institute of Technology, part of the State University of New York.

Historically, trade restrictions drive up the cost of authentic goods, creating the perfect conditions for counterfeiters to flood the market with cheaper, harder-to-detect fakes, according to Vidyuth Srinivasan, co-founder and CEO of Entrupy, an authentication service.
With Trump’s recent executive order eliminating duty-free de minimis treatment for low-value imports, the flow of counterfeit goods will also be more expensive and logistically challenging, Srinivasan explained.
However, “counterfeiters are incredibly agile,” he said. “When one route is blocked, they’ll adapt, seeking alternative distribution channels to continue flooding the market with fakes.”
Alternatively, “there might be a little more of a lean into the secondhand market because it just seems more affordable,” Srinivasan said. 

Faced with higher costs, 67% of consumers plan to change their shopping habits, according to another recent report by Bid-on-Equipment. Among the top strategies, 46% say they will shop at thrift or secondhand stores. Other ways to save include comparison shopping or buying fewer imported goods. The survey polled more than 1,000 adults in January.
In another survey by shopping app Smarty, 50% of respondents said they’re more likely to consider secondhand goods or local alternatives because of tariff-induced price hikes.
“Tariffs are already prompting my customers to even more actively seek alternatives when it comes to luxury designer goods,” said Christos Garkinos, the CEO and founder of online reseller Covet By Christos.
“On the one hand, customers who are looking to make some extra money in this volatile economy are considering selling off parts of their designer collections,” Garkinos said.
“On the flip side, so many of my existing customers are doubling down on resale,” he said, “because they know that there is no tariff to pay and they can still get their hands on luxury goods without paying that extra premium right now.”
The U.S. resale market is experiencing significant growth, with projections indicating it will continue to expand rapidly over the next few years. This growth is being driven by factors like rising consumer preference for secondhand options, especially among younger generations, and the increasing adoption of online resale platforms, experts say.
Re-commerce — which encompasses the buying and selling of preowned, refurbished or secondhand goods  — is projected to increase 55%, reaching $291.6 billion by 2029. That would outpace the overall retail market, with resale potentially accounting for 8% of total retail by 2029, according to a 2024 report by OfferUp, an online marketplace for buying and selling new and used items.
Still, there aren’t enough secondhand products to satisfy consumer demand, Hughes said. “The quantities aren’t there.”
For now, the apparel industry must wait and see what will happen with potential trade agreements going forward, just as back-to-school inventory — one of the most important shopping seasons of the year — is set to start shipping, Hughes said.
“The chaos is still rippling through,” she added. “This is a real time of uncertainty.”
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The first-quarter estimated tax deadline for 2025 is April 15, which is also the federal tax due date for most filers.
You could owe estimated tax payments for self-employment earnings, rental income, interest, dividends or gig economy work.
The “safe harbor” to avoid late payment penalties is sending 90% of 2025 taxes or 100% of 2024 levies if adjusted gross income is less than $150,000.

Georgijevic | E+ | Getty Images

If you’re scrambling to file your taxes, you could miss another key due date on April 15: the first-quarter estimated tax deadline for 2025. 
Typically, quarterly payments apply to income without tax withholdings, such as self-employment earnings, rental income, interest, dividends or gig economy work. Similarly, retirees and investors “frequently need to make these payments,” the IRS said in a news release last week. 

The first-quarter deadline for 2025 “could be a surprise” if you’re newly self-employed or recently started contract work, said Misty Erickson, tax content manager at the National Association of Tax Professionals. 
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Those individuals could experience “sticker shock” when it’s time to file 2025 taxes or be subject to future penalties, Erickson said.
Generally, you must make quarterly payments if you expect to owe at least $1,000 for the current tax year, according to the IRS.
The April 15 deadline applies to earnings from Jan. 1 through March 31. The other 2025 quarterly due dates are June 16, Sept. 15 and Jan. 15, 2026.

If you skip one of the payments, you could trigger an interest-based penalty calculated with the current interest rate. The fee compounds daily.

Follow the ‘safe harbor’ guidelines

Generally, you can avoid IRS penalties by following the “safe harbor” guidelines, certified public accountant Brian Long, also a senior tax advisor at Wealth Enhancement in Minneapolis, previously told CNBC. To satisfy the safe harbor rule, you must pay at least 90% of your 2025 tax liability or 100% of your 2024 taxes, whichever is smaller.
The threshold jumps to 110% if your 2024 adjusted gross income was $150,000 or more, which you can find on line 11 of Form 1040 from your 2024 tax return.
However, the safe harbor only protects an individual from an IRS underpayment penalty. If you don’t pay enough, you could still owe a balance for 2025, experts say.

Where to pay your quarterly taxes 

There are “several options” for estimated tax payments, according to the IRS.
You can pay by mail, online via IRS Direct Pay or the Treasury Department’s Electronic Federal Tax Payment System. You can also use a debit card, credit card or digital wallet.  
Your IRS online account “streamlines the payment process” because you can monitor pending transactions, see history and other key tax filing information, according to the agency.
The online account makes it easier to correct mistakes “sooner rather than later,” Erickson said. “I have heard stories of payments being misapplied, so this is a way to double-check.” 
If you mail the payment, experts recommend sending it via certified mail with a return receipt for proof. More

The Social Security Administration may be planning to cut staff at an important department responsible for protecting data, maintaining benefit claims processing and managing its website.
In a new letter to agency leadership, Democratic Sens. Elizabeth Warren, Ron Wyden and Kirsten Gillibrand slammed the reported plans as “dangerous.”

A Social Security Administration office in Washington, D.C., on March 26. The Department of Government Efficiency (DOGE) is reportedly aiming to reform and downsize the agency.
Saul Loeb | Afp | Getty Images

Several Democratic senators are demanding answers from the Social Security Administration following reports that the agency may make staff cuts to a significant department within the agency.
The Social Security Administration is reportedly considering additional workforce reductions, including a potential 50% cut in the Office of the Chief Investment Officer. The department, otherwise known as OCIO, is responsible for protecting sensitive data, maintaining benefit claims processing systems, and managing the agency’s website and online portal.

The prospective cuts come as the SSA has already had “ongoing issues” with its website, Sens. Elizabeth Warren, D-Mass., Kirsten Gillibrand, D-N.Y., and Ron Wyden, D-Ore., wrote in a letter dated April 13 to Social Security Administration acting Commissioner Leland Dudek.
“We are concerned these cuts will lead to further website and benefit disruptions, preventing tens of millions of Americans from accessing their hard-earned Social Security and Supplemental Security Income benefits,” the senators wrote.
A Social Security Administration spokesperson acknowledged the agency had received the letter and will respond to the senators.
“There has not been a reduction in workforce. Rather, to improve the delivery of services, staff are being reassigned from regional offices to front-line help – allocating finite resources where they are most needed,” White House spokesperson Elizabeth Huston said in an email to CNBC.
“President Trump will continue to always protect Social Security and there will be no disruptions to service,” Huston said.

Sen. Elizabeth Warren, D-Mass., walks with Sen. Ron Wyden, D-Ore., following a press conference with Senate Democrats on Social Security at the U.S. Capitol on April 1 in Washington, D.C. 
Win Mcnamee | Getty Images News | Getty Images

The senators, however, cited disruptions for prompting them to write the letter.
The Social Security Administration website has crashed repeatedly and suffered outages, the senators wrote. The lawmakers previously wrote a letter to the agency asking about a March 31 issue that prompted some beneficiaries to receive messages that they are “not receiving payments” and see their account histories disappear.
In addition, the agency’s field offices are also experiencing glitches that impact their ability to serve the public, according to the senators.
The cuts to OCIO would be “intentional – and dangerous,” the lawmakers wrote. The OCIO staff know the agency’s programming language and can keep its systems running, the senators said.
President Donald Trump on March 27 signed an executive order ending collective bargaining for many federal workers. Because OCIO employees are represented by a union, that would affect them. The executive order makes it easier to replace existing employees with complacent personnel from the so-called Department of Government Efficiency, according to the senators.
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The Social Security Administration was already at a 50-year staffing low when the Trump administration took office, the lawmakers note. Since then, the agency has announced plans to cut its force by more than 12%.
“We ask that you immediately cease all OCIO firings and act swiftly to restore SSA system and website functionality to prevent any further disruption of Social Security beneficiaries’ access to their account information and benefits,” the senators wrote.
The letter follows an April 10 letter sent by 21 senators, led by Sens. Gillibrand and Wyden, demanding that the Trump administration stop attacks on the agency, following plans for staffing cuts, field office closures and reduced phone services.
Democratic senators have also launched a “war room” to work to fight the changes that are happening at the Social Security Administration. As part of that initiative, the leaders are planning to propose legislation that would provide an emergency $200 per month boost to benefits through the end of the year, according to a source familiar with the situation.

Last week, it was reported that the Social Security Administration would no longer use press releases and “dear colleague” letters to advocacy groups and third parties to communicate with the public, and instead shift its communications exclusively to Elon Musk’s social media platform X. The report also suggested the Social Security Administration plans to reduce its regional workforce by approximately 87%.
White House spokesperson Huston said that that report is “misleading.”
“The Social Security Administration is actively communicating with beneficiaries and stakeholders. There has not been a reduction in workforce,” she said. More

A rising share of America’s top executives sees a recession on the horizon, according to a monthly survey from Chief Executive released on Monday.
The data comes as President Donald Trump’s tariff rollout has sent financial markets reeling and worried the business world.

The Goldman Sachs headquarters in New York.
Bloomberg | Bloomberg | Getty Images

A growing majority of America’s top executives now expects the U.S. economy to enter a recession in the near future, according to a survey released Monday.
Of the more than 300 CEOs polled in April, 62% said they forecasted a recession or other economic downturn in the next six months, according to Chief Executive, an industry group that runs the survey. That’s up from 48% who said the same in March.

Chief Executive’s data underscores the growing concern within corporate America around the future of the U.S. economy. Fears about a forthcoming recession hit a boiling point in the last two weeks, as President Donald Trump’s on-again-off-again tariff policy ratcheted up volatility in financial markets and stirred panic among some consumers.
Indeed, around three-fourths of CEOs surveyed said tariffs would hurt their businesses in 2025. About two-thirds said they did not support Trump’s proposed levies, many of which are currently on pause.

Economic anxiety among executives

The monthly survey, which has run since 2002, includes several data points that paint a concerning picture of how America’s foremost business leaders view the economy.
An index of CEOs’ views on current business conditions tumbled 9% in April, continuing its decline after plunging 20% in the prior month. The measure now sits at its lowest level since the early months of the pandemic in 2020.
When forecasting business conditions a year out, CEOs held their view steady from March. Still, these readings were the lowest since late 2012 and have tanked around 29% from the end of 2024.

The survey found that more than four out of five chief executives project costs spiking this year, which is no surprise given the ongoing negotiations over import taxes between the White House and foreign countries. Around half forecast their percentage increases in expenses to be in the double digits.
In this vein, just 37% said they believe their companies’ profits will increase. That’s a steep drop from the 76% who gave this response in January.
To be sure, Chief Executive’s data set included a few bright spots. Slightly over half of respondents said they foresee business conditions bettering over the next year, an increase from the 39% share seen a month earlier.
Many CEO may be getting some tariff relief as well. Trump late Friday announced that smartphones and PCs would be exempt from duties, though Commerce Secretary Howard Lutnick said Sunday that these exemptions would be temporary.
Chief Executive’s data comes as U.S. business leaders have started flashing warning signs on the country’s economic future.
JPMorgan Chase CEO Jamie Dimon said Friday that he expects earnings estimates for S&P 500 firms to fall due to the uncertainty around Trump’s levies. Also on Friday, BlackRock CEO Larry Fink warned that the U.S. economy may have already weakened to the point of growth coming in negative.
“I think we’re very close, if not in, a recession now,” Fink said on CNBC’s “Squawk on the Street.” More