Business

Restaurant stocks, from McDonald’s to Chipotle, fell as investors feared a coming recession.
While President Donald Trump’s tariffs will not have much direct impact on eateries, another pullback in consumer spending would hurt restaurants.
Fast-food chains have historically fared the best during economic downturns.

Following announcements of layoffs, a Starbucks store is shown in Encinitas, California, U.S., February 24, 2025. REUTERS/Mike Blake
Mike Blake | Reuters

Restaurant stocks fell in morning trading Monday, fueled by investors’ fears that a recession is coming.
U.S. stocks have tumbled for three consecutive days after President Donald Trump shocked the markets with high tariffs on goods imported from key trading partners. While analysts do not expect the tariffs to hit most restaurant companies directly, the inflation that is expected to follow would put pressure on consumers’ wallets and could lead to an economic downturn.

“We view the direct cost impact of tariffs on restaurants as manageable, with a focus on select commodity costs, but see the bigger risk as incremental pressure on consumer spending and industry demand,” UBS analyst Dennis Geiger wrote in a note to clients on Monday.
Investor concerns hit restaurant stocks across all sectors.
Shares of Starbucks fell more than 2%, following a downgrade to neutral from Baird, citing near-term economic headwinds. The coffee chain, which is already attempting to turn around its U.S. business, has seen its stock sink nearly 20% since Trump unveiled the new tariffs.
“Explanations for the drawdown we heard included higher coffee costs from tariffs, anti-American sentiment, and recession risk,” Bank of America Securities analyst Sara Senatore wrote in a research note on Saturday.
Most of the world’s coffee is grown in an equatorial region that spans Latin America, the Asia-Pacific region and Africa known as the Coffee Belt. Last week, Trump slapped higher tariffs on key coffee exporters like Vietnam, Brazil and Switzerland, where beans are roasted. Like bananas and vanilla, coffee production cannot be easily shifted to the U.S. because of high domestic demand and climate limitations.

Trade tensions also put Starbucks’ international sales at risk. Consumers in China, the company’s second-largest market, have boycotted Western brands previously for political reasons.

A sign is posted in front of an Applebee’s restaurant on June 12, 2024 in Hayward, California.
Justin Sullivan | Getty Images

Casual dining chains also took a tumble. Shares of Dine Brands, which owns Applebee’s and IHOP, sank nearly 3%, while rivals Darden Restaurants and Texas Roadhouse dropped less than 1% and 2%, respectively.
Fast-casual stocks, a recent favorite of investors, also slipped. Chipotle shares slid nearly 2%, Sweetgreen’s stock fell 1% and shares of Wingstop sank less than 1%.
Fast-food stocks were not spared from Monday’s declines. Shares of McDonald’s, Restaurant Brands International and Yum Brands all dipped in morning trading.
Historically, fast-food chains have fared the best during recessions as diners seeking cheap meals trade down from full-service or fast-casual eateries to McDonald’s or Taco Bell. But last year’s pullback in consumer spending saw fast-food eateries hit hard. Low-income consumers visited less frequently and pared back their orders, while consumers with higher incomes stuck to their usual dining habits, leading to same-store sales declines for quick-service restaurants.
Few restaurant stocks were in the green. Shares of Dutch Bros., a fast-growing rival of Starbucks, rose more than 4% in afternoon trading after tumbling nearly 10% on Friday. Cava gained more than 6%.

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New and used vehicles prices are expected to rise amid auto tariffs, according to experts at Cox Automotive.
The firm expects President Donald Trump’s 25% tariffs on imported vehicles and upcoming 25% levies on auto parts will add thousands of dollars to the costs of imported and domestic cars and trucks.
While the tariffs do not directly impact used car sales, changes in new vehicle prices, production and demand affect the used car market, which is how the majority of Americans purchase a vehicle.

A salesperson (left) shows vehicles to a shopper at a Toyota dealership.
Getty Images

DETROIT — Prices of new and used vehicles in the U.S. are expected to notably increase this year amid President Donald Trump’s 25% auto tariffs, according to a new analysis from industry experts at Cox Automotive.
The automotive data and advisory firm expects the levies to add thousands of dollars to the costs of new cars and trucks — imported and domestic — while also driving up used car prices more than previously expected. Those prices increases are expected despite a potential slowdown in sales compared with prior expectations, the firm said.

The new expectations come as the automotive industry responds to Trump’s 25% tariffs on imported vehicles that took effect Thursday, and ahead of additional 25% levies on auto parts that are expected to be implemented by May 3.
“We expect to see declining discounting and then accelerated price increases as the tariffs are passed through and supply tightens, leading to price increases on all types of most new vehicles,” Cox Automotive Chief Economist Jonathan Smoke said during a virtual event Monday. “Over the longer term, we expect production sales to fall, newly used prices to increase, and some models to be eliminated.”
Smoke described the current automotive market as a “roller coaster ride,” as demand ebbs and flows based on the country’s regulatory environment as well as economic uncertainty that’s impacting consumer purchases.
Automakers have responded to the tariffs in a variety of ways. Manufacturers that are mostly domestic, such as Ford Motor and Chrysler parent Stellantis, have announced temporary deals for employee pricing, while others, such as British carmaker Jaguar Land Rover, have ceased U.S. shipments.  Hyundai Motor also has said it would not raise prices for at least two months to ease consumer concerns.
Regarding new vehicles, Cox estimates a $6,000 increase to the cost of imported vehicles due to the 25% tariff on non-U.S. assembled vehicles, as well as a $3,600 increase to vehicles assembled in the U.S. due to upcoming 25% tariffs on automotive parts. Those are in addition to $300 to $500 increases as a result of previously announced tariffs on steel and aluminum.

Automakers and suppliers may be able to bear some of the cost increases, but they’re also expected to pass them along to U.S. consumers, according to Wall Street analysts.
While the tariffs do not directly impact used car sales, changes in new vehicle prices, production and demand affect the used car market, which is how the majority of Americans purchase a vehicle.
Cox Automotive expects wholesale prices of used vehicles on its Manheim Used Vehicle Value Index — which tracks prices of used vehicles sold at its U.S. wholesale auctions — to now increase between 2.1% and 2.8% by the end of this year. That compares with a previous estimate of a relatively stable 1.4%.
The average listing price of a used vehicle was about $25,000 as of mid-March, according to Cox, //right?// ahead of a significant sales uptick at the end of the month before potential pricing increases due to tariffs.
Retail prices for consumers traditionally follow changes in wholesale prices, but they have not fallen as quickly as wholesale prices in recent years.
“Expect to see some volatility in pricing over the year,” Jeremy Robb, Cox senior director of economic and industry insights, said during the virtual event. He noted the week after auto tariffs were confirmed might end up being this year’s peak in sales.
The change in used vehicle pricing is expected to remain far less dramatic than the unprecedented increases the auto industry saw during the coronavirus pandemic, according to Cox. Those increases were led by robust consumer demand, low interest rates and a historically low availability in new vehicles due to parts and distribution issues.
Ryan Rohrman, CEO of Indiana-based Rohrman Automotive Group, described the current used vehicle market for dealers as volatile, and even said it’s similar to the disruptions during the global health crisis.
“We’re seeing our wholesale car count really go up, but the problem is we’re not able to get as many cars on the used car side as we’re retailing, and then that’s pushing us to go to the auctions. And that’s pushing the value of the cars at the block up, just like it did during Covid. That’s a scary thing,” said Rohrman, whose company specializes in new vehicle sales and select used cars
While automakers are expected to cut production and some have decided to cease imports to the U.S. amid the tariffs, the actions are not expected to be as radical as they were in the early 2020s because of other market conditions.
“It’s going to reduce the demand for vehicles, and it’s that demand component that I think really keeps the lid on from what we’re likely to see with used vehicle price appreciation,” Smoke said. More

Ted Christie, CEO of Spirit Airlines, is stepping down from his role.
Spirit filed for bankruptcy protection in November after years of mounting losses, a failed merger, increased competition and more demanding consumer tastes.

A Spirit Airlines aircraft prepares to depart from the Austin-Bergstrom International Airport on November 13, 2024 in Austin, Texas.
Brandon Bell | Getty Images

Ted Christie, CEO of Spirit Airlines, is stepping down from his role leading the embattled carrier, effective Monday, the company said.
A group of several company executives — Chief Financial Officer Fred Cromer, Chief Operating Officer John Bendoraitis and General Counsel Thomas Canfield — has been tapped to lead the airline until a replacement is found.

Christie had been president and CEO of Spirit since 2019 and saw the airline through the Covid pandemic.
Spirit filed for bankruptcy protection in November after years of mounting losses, a failed merger, increased competition and more demanding consumer tastes.
The budget carrier, which had reshaped the industry with its no-frills tickets, was the first major U.S. airline to file for Chapter 11 since 2011.
The airline last month emerged from bankruptcy protection. More

Airlines are expected to cut 2025 outlooks when they report earnings starting this week.
Wall Street analysts have slashed their price targets for U.S. airlines and downgraded ratings as concerns about travel demand grow.
Consumers had been willing to pay for travel and experiences over goods despite years of inflation, but the industry has seen a stark turn in sentiment.

A Boeing 767-332(ER) from Delta Air Lines takes off from Barcelona El Prat Airport in Barcelona on Oct. 8, 2024.
Joan Valls | Nurphoto | Getty Images

Waning travel from Canada. Signs of weaker demand across the Atlantic. Mass government layoffs. Tariffs. Consumers pulling back on travel bookings. The worst stock market swoon since 2020. All are signs of concerns for the airline industry.
U.S. airlines will likely cut their 2025 outlooks when they report earnings starting this week, analysts say, pointing to cracks in demand for travel, which customers had prioritized even through years of inflation.

“Clearly, things are softer than they were in January,” Raymond James analyst Savanthi Syth told CNBC.
Delta Air Lines last month cut its first-quarter forecast, citing weaker-than-expected corporate and leisure bookings. American Airlines and Southwest Airlines also cut their outlooks for the first half of the year.
Since then, airline stocks have tumbled further, as concerns have grown about weaker demand amid President Donald Trump’s policies, most recently, new globe-spanning tariffs of no less than 10%.
“The level of sell-off is worse than the reality right now, but it doesn’t necessarily mean it won’t be the reality six months from now,” Syth said.

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NYSE Arca Airline Index and S&P 500

Wall Street analysts have slashed their price targets and downgraded their ratings on U.S. airlines, even Delta, the most profitable of the U.S. carriers. Like its main rival United Airlines, Delta has said high-income consumers who are willing to shell out more for roomier seats have been a boon to its bottom line in recent years.

However, they’re not expecting anything like the pandemic in 2020, when countries closed their borders and air travel demand essentially dried up overnight. It was still the industry’s worst-ever crisis. Demand hasn’t disappeared this time, but instead is showing signs of strain that other industries have also seen.
Delta will be the first of the U.S. airlines to report quarterly results before the market opens on Wednesday.
Airline stocks have tumbled this year. Delta has plummeted more than 38%, American has fallen more than 45% and United has dropped more than 40% so far in 2025.
The turn in sentiment is stark for the travel industry, which has enjoyed strong demand, particularly for international destinations, since the end of the pandemic, as consumers prioritized experiences like weekslong trips through Japan and jaunts to Portugal over buying goods.
Signs of lower international demand, in addition to weaker travel from Canada, are emerging in U.S.-Europe bookings.
Bookings between the U.S. and Europe for June through August are down about 13% over last year as of March 31, according to aviation data firm Cirium, though it cautioned that the figures come from online travel agencies and not direct bookings on airline sites.

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Still, some analysts are concerned.
“We expect a world of slower growth, higher inflation, and a more isolationist U.S. to significantly disrupt the competitive environment for airlines,” TD Cowen wrote on Friday. “We are concerned that the new economic paradigm causes another structural leg down in corporate travel while the negative wealth effect further dampens consumption, especially by Baby Boomers.”
The Bank of America Institute wrote last week that it “could be that the recent drop in consumer confidence is translating into people hesitating to book trips, or considering paring them back,” though it added that “bad weather and a late Easter this year are also likely playing a part.”
Airline executives have said that government travel, which accounts for just a few percentage points of their business but millions of dollars in revenue, has dried up during the mass layoffs and other cost cuts. They’ll face questions on earnings calls this month about side effects, such as job cuts at companies like consulting giant Deloitte.
Another question will be how resilient premium travel demand is. Syth said the front of the airplane will likely still be full, but that airlines could stimulate demand, if needed, by offering attractive point redemptions for frequent flyers.
“The cabins will be full, but how good will the yields be?” she asked. More

Some automakers are trying to capitalize on the moment amid the tariffs, industry analysts told CNBC.
Ford and Stellantis are offering employee-pricing programs, while Hyundai Motor said it would not raise prices for at least two months to ease consumer concerns.
Automakers view the actions as a way to get vehicles off their lots and maintain or increase sales amid uncertain market conditions due to the tariffs.

Trucks are shown from a drone view after clearing U.S. Customs and entering the United States from Tijuana along the U.S. Mexico border at Otay Mesa port in San Diego, California, U.S. April 2, 2025. 
Mike Blake | Reuters

DETROIT — As President Donald Trump’s 25% tariffs on imported vehicles were set to take effect, executives at Ford Motor scrambled to figure out how to respond to the new levies.
While they and their industry counterparts are still trying to navigate the impacts, Ford decided to move quickly in one area by offering an employee pricing program — called “From America, For America” — for U.S. consumers.

Such programs have historically been controversial, as they sell vehicles close to or lower than invoice prices for dealers and eat away at already tight profit margins for the retailers. But Ford decided the time was right to launch the program to promote its U.S. operations — the largest among automakers — and assist sales amid consumer concerns and economic uncertainty due to Trump’s tariffs.
“We understand that these are uncertain times for many Americans. Whether it’s navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help,” Ford said in a statement Thursday morning announcing the program. “We have the retail inventory to do this and a lot of choice for customers that need a vehicle.”
It’s an example of how some automakers are attempting to find “opportunity in the chaos” or trying to “capitalize on the moment” amid the tariffs, as several industry analysts told CNBC.

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“I absolutely love it. I think it’s going to drive sales,” said Ford dealer Marc McEver, owner of Olathe Ford Lincoln near Kansas City, Kansas. “It’s really exciting to see Ford step up and take the lead on this program. I think it’s a great play. … It’s truly a real deal for the customer.”
Ford, which is helping retailers financially with the program, told dealers about it a day ahead of the tariffs taking effect Thursday. It publicly announced the new program — which runs through June 30 — hours after the levies began.

Heading into the tariffs, Ford also was largely viewed by Wall Street analysts as being one of the best-positioned automakers because of its large U.S. production footprint, specifically for trucks.
Ford’s stock fared better than its rivals this week, closing the week down by 1.4%. That compares with Chrysler parent Stellantis losing 14.2% and General Motors dropping 5.4% for the week.

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Auto stocks

Others are following Ford’s strategy, which also is assisted by vehicle prices and profits being higher since the Covid pandemic. Crosstown rival Stellantis on Friday announced a similar employee-pricing program, while Hyundai Motor said it would not raise prices for at least two months to ease consumer concerns.
“It makes sense that they would try to capitalize on the moment,” said Erin Keating, executive analyst at Cox Automotive.
Keating points out that with Ford and Stellantis — the latter of which is based in Europe but has major operations and brands in the U.S. — it’s a reminder to consumers that they’re “domestic” companies. The automakers also have inventory, including older models, that they need to sell to make way for newer vehicles.
“Making room for those new vehicles to come into the showroom and trying to maintain that market share makes a lot of sense,” Keating said. “Anyone who’s able to beat the price out there right now, with the level of demand, is going to be able to hold on to their market share longer than others, and perhaps capture something from those that aren’t willing to meet the customer where they are right now.”
Ford and Stellantis brands such as Ram Trucks and Jeep have among the highest days’ supply of vehicle inventories in the automotive industry, according to Cox Automotive.
The two companies also were among the only major automakers this week to report notable drops in first-quarter vehicle sales. Stellantis was off roughly 12%, while Ford was down 1.3% from a year earlier.
Cox reports the national days’ supply vehicle average was 89 days, while those brands were between 110 days and 130 days. The auto industry has historically considered a healthy days’ supply to be between 60 days to 80 days.
In light of the tariffs and fears for potential price increases, demand for vehicles has been high. Consumers flocked to dealer showrooms at the end of last month as Trump confirmed the tariffs would be coming, leading to significant sales gains for many automakers.

A Ford Raptor pickup truck is displayed for sale at a Ford dealership on August 21, 2024 in Glendale, California. 
Mario Tama | Getty Images

Cox Automotive estimated new-vehicle sales in March hit 1.59 million units sold, significantly exceeding its forecast and marking the best month for sales volume in four years.
“The last week, and including this past weekend, was by far the best weekend that I’ve seen in a very long time,” Hyundai Motor North America CEO Randy Parker said Tuesday during a media call. “I’ve been doing this now for a very, very long time. So, lots of people, I think, rushed in this weekend, especially, to try and beat the tariffs.”
Selling now because future sales aren’t guaranteed also could assist if there’s a U.S. recession. J.P. Morgan on Friday raised its odds for a U.S. and global recession from a 40% chance to 60% chance by the end of the year.
“Because the demand is there right now, it makes sense [to offer consumer incentives] because everyone’s saying, ‘Gotta go get it now,’ might as well go ahead and reap the benefits now in case we do go into a recession,” Keating said. More

ANYONE WANT to buy a used social network? One careful Chinese owner, 170m users in America and revenue there of $12bn last year, predicted to rise this year by a fifth. The White House is running a chaotic auction for TikTok, a Chinese-owned app that Congress has ordered to find a non-Chinese owner or else face a ban. On April 4th, on the eve of the cut-off for the app’s sale, President Donald Trump announced that he was extending the deadline by another 75 days. More

Tariffs would drive up costs of key aerospace parts, making it more expensive for Boeing and even foreign companies with U.S. factories to produce planes.
The tariffs are set to hit an aerospace supply chain still in recovery from the Covid-19 pandemic.
The duties would also upend nearly half a century of mostly duty-free aerospace trade.

The production line for the Boeing P-8 Poseidon maritime patrol aircraft is pictured at Boeing’s 737 factory in Renton, Washington, November 18, 2021.
Jason Redmond | Reuters

President Donald Trump’s sweeping tariffs are set to drive up the cost of Boeing and Airbus planes, GE Aerospace engines, and hundreds of other aerospace and defense products, threatening an industry that helps soften the U.S. trade deficit by more than $100 billion a year.
“It certainly makes things more expensive for the industry,” Dak Hardwick, vice president of international affairs at the Aerospace Industries Association, which represents Boeing, GE Aerospace, Airbus and dozens of other aerospace and defense companies, said of the tariffs.

The industry group said it is asking the Trump administration to uphold provisions in a nearly half-century old trade agreement that allows for duty-free trade of civilian aircraft and imports tied to defense and national security.
“The line is certainly long” for requests to the White House, Hardwick said.

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Trump’s executive order announcing the tariffs said trade and economic policies around the world have exacerbated a decline in overall U.S. manufacturing.
Regarding innovation in the defense sector, the order stated, “If the United States wishes to maintain an effective security umbrella to defend its citizens and homeland, as well as for its allies and partners, it needs to have a large upstream manufacturing and goods-producing ecosystem to manufacture these products without undue reliance on imports for key inputs.”
The aerospace industry has long been a top exporter for the United States. At Boeing alone, more than two-thirds of its airplane orders over the past decade came from customers outside of the United States, according to company data.

“Free trade is very important to us,” Boeing CEO Kelly Ortberg said at a Senate hearing Wednesday. “We really are the ideal kind of an export company where we’re outselling internationally. It’s creating U.S. jobs, long-term high value U.S. jobs. So it’s important that we continue to have access to that market and that we don’t get in a situation where certain markets become closed to us.”

President and CEO of Boeing Kelly Ortberg testifies before the Senate Commerce, Science, and Transportation Committee in the Dirksen Senate Office Building on April 02, 2025 in Washington, DC. 
Win Mcnamee | Getty Images News | Getty Images

The industry has mostly bought and sold planes and parts without having to pay tariffs under a 45-year-old trade agreement, which would be derailed by Trump’s new tariffs. The president this week introduced levies of 10% on countries around the world, with higher duties on certain countries and regions, some of which like Europe, are key to the aerospace industry.
Imported steel and aluminum, other key materials in airplanes, are subject to separate sector-level duties that Trump announced earlier this year.
“President Trump has been clear: if you make your product in America, you won’t have to worry about tariffs,” White House spokesman Kush Desai said in an email.
Tariffs are paid by the importer, and the increased prices due to the levies would either have to be absorbed by the airplane or engine maker, by the still-fragile supply chain or by the end consumer, said Hardwick.
Jefferies analyst Sheila Kahyaoglu said in a note Thursday that a price jump on “any product within 12 months is eaten by the [original equipment manufacturer], assuming new inventory buy. Outside that time period, ultimately the buyer and hence consumer.”

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Boeing and the S&P 500

Prices for planes are negotiated in advance, and airlines have to often wait years for aircraft, so material costs can shift dramatically over that period.
“This is not where you put money down for an automobile and it ends up in your driveway” in three months, Hardwick said.
Shares of Boeing, engine maker GE and airlines tumbled again Friday, adding to the market rout after Trump announced the tariffs Wednesday.
“This is the one manufacturing sector where America has, has enjoyed a tremendous trade surplus,” said Richard Aboulafia, managing director at AeroDynamic Advisory. “So the idea of fighting a trade war for this industry, it’s living in a crystal palace hurling giant boulders.”

Global supply chain

The tariffs are also a new strain on the aerospace industry, which still has a fragile supply chain in the wake of Covid, with some parts in short supply. Major supplies have tried to quickly hire workers and ramp up production during a post-pandemic travel boom.
But airplane makers still haven’t kept up with demand.

An Airbus SE A321 plane fuselage is lifted with a crane at the company’s final assembly line facility in Mobile, Alabama
Luke Sharrett | Bloomberg | Getty Images

Even a “Made in the USA” label for an airplane is a misnomer.
For example, the supply chain for a Boeing 787 Dreamliner, which is assembled in South Carolina, spans from Japan to Italy.
Its European rival, Airbus, has a Mobile, Alabama, factory but is still on the hook for tariffs for imported parts, from wings to fuselages.
“It doesn’t matter who owns the company. If an item crosses the border, it will have to be paid by importer of record,” Hardwick said.
Airbus has expanded the factory since the first Alabama-assembled Airbus A321, an aircraft for JetBlue Airways named “BluesMobile,” rolled out nine years ago. Its bet on increasing U.S. output of its jets, which are still largely made in Europe, also includes assembly of smaller A220s in Alabama, for customers that include JetBlue and Delta Air Lines.

American Airlines workers perform maintenance on CFM-56 engine in Tulsa, Oklahoma
Erin Black | CNBC

Meanwhile, continuing along the supply chain, General Electric and France’s Safran have a joint venture in which they make top-selling CFM engines, which power both Boeing and Airbus narrow-body jets. Each company manufactures certain portions of engines, which are sent to factories in Ohio, Indiana and North Carolina for GE and outside of Paris for Safran.
Thousands of imported replacement parts for engines and other aircraft parts, many of which come from abroad, could also become more expensive.
“There’s no such thing as a national jet,” Aboulafia said.

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The Centers for Medicare & Medicaid Services has slashed jobs from its minority health office and other divisions, CNBC has learned, as Robert F. Kennedy Jr. upends the U.S. health department. 
During an all-hands meeting with employees, CMS acting Administrator Stephanie Carlton detailed some of the specific offices impacted by cuts under Kennedy’s plan to restructure the Department of Health and Human Services.
An office responsible for managing the agency’s grants and contracts was affected by job cuts, as was a unit that serves people dually eligible for Medicare and Medicaid, among others.

An aerial of the Centers for Medicare & Medicaid Services building on March 19, 2025 in Woodlawn, Maryland. 
Kayla Bartkowski | Getty Images

The Centers for Medicare & Medicaid Services has slashed jobs from its minority health office and other divisions, CNBC has learned, as Robert F. Kennedy Jr. upends the U.S. health department. 
During a virtual all-hands meeting with employees on Friday, CMS acting Administrator Stephanie Carlton detailed some of the specific offices at the agency impacted by cuts under Kennedy’s broader plan to restructure the Department of Health and Human Services, or HHS.

CNBC viewed a transcript of the internal meeting, which was the first at CMS since HHS employees began to receive notifications Tuesday about whether they had lost their jobs as part of the cuts.
Kennedy’s plan involves slashing 10,000 jobs at HHS, including just 300 at CMS but far greater numbers at other agencies. CMS oversees health insurance programs for 160 million Americans, along with other vital healthcare functions — and the Trump administration has tried to downplay the effects its cuts to government spending will have on the popular Medicare program.
But Kennedy said Thursday that some personnel and programs at different federal agencies affected by his sweeping reductions will be reinstated “because we’ll make mistakes.”
Carlton on Friday did not indicate whether any CMS employees will get reinstated, but said “we do think that painful part of [the cuts] that affects people we care about is finished.” 
“I don’t want to make promises that nothing will ever happen, but these are definitely the ones I’m aware of,” she told workers, referring to the cuts at the agency. She said the layoffs were not easy, but emphasized that CMS leadership had to balance the agency’s mission with achieving efficiency across HHS. 

She added that Dr. Mehmet Oz’s paperwork should be completed later on Friday, a day after he was confirmed by the Senate to run CMS. Oz, a celebrity TV host and former U.S. Senate candidate, would like to hold another all-hands call on Monday, Carlton said. Once called “America’s Doctor,” Oz is now more known for dubious promotion of supplements and hormones unsupported by scientific evidence.
The job cuts across HHS are in addition to about 10,000 employees who opted to leave the department since President Donald Trump took office, through voluntary separation offers. Combined, they will lead to the federal health department shedding about a quarter of its workforce, shrinking it to 62,000 employees.
Kennedy’s restructuring comes as the U.S. grapples with one of the worst measles outbreaks in more than two decades, and as bird flu spreads in wild birds worldwide and is causing outbreaks in poultry and U.S. dairy cows, with several recent human cases. The U.S. Food and Drug Administration is suspending efforts to improve its bird flu testing of milk, cheese and pet food due to massive staff cuts at the agency, Reuters reported on Thursday.
CMS did not immediately respond to a request for comment.

The programs cut at CMS

She said the office of minority health was affected by the cuts. The segment works with local and federal partners to eliminate health disparities and improve health outcomes for people from all minority populations, according to the CMS website. It conducts research and analyses to develop new solutions for lowering costs, preventing diseases and reducing the incidence and severity of chronic diseases in the U.S. 
The office was authorized by the Affordable Care Act more than a decade ago, so shuttering it entirely may be against the law. It appears to be among the victims of the Trump administration’s ideological campaign against diversity, equity and inclusion, or DEI, initiatives.
CMS understands that it needs to continue fulfilling the responsibilities of that office under statutory law, Carlton noted. She said CMS will appoint a new office of minority health director.
But she did not explicitly say whether the current director of the office, Dr. Martin Mendoza, had stepped down or was impacted by the cuts.
But “probably the biggest group that was affected” was the Office of Program Operations & Local Engagement, Carlton said. That office is responsible for implementing and overseeing Medicare and Medicaid programs and engaging with stakeholders at the local level. Carlton said the cuts there tried to target areas where there were several divisions with a “similar mission.”
An office responsible for managing the agency’s grants and contracts was impacted, and so was the Medicare-Medicaid Coordination Office, Carlton added. The latter serves people dually eligible for Medicare and Medicaid, developing models to improve the coordination of care for them.
Some of that work will be picked up by others in CMS or from outside the agency, Carlton said. 
She noted that CMS will retain in-house teams that handle communication, human resources and information technology. The agency’s IT team was not affected at all “because of the sensitivity of many of our data sets,” Carlton said. More