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    Fear and Loathing Return to Tech Start-Ups

    Workers are dumping their stock, companies are cutting costs, and layoffs abound as troubling economic forces hit tech start-ups.Start-up workers came into 2022 expecting another year of cash-gushing initial public offerings. Then the stock market tanked, Russia invaded Ukraine, inflation ballooned, and interest rates rose. Instead of going public, start-ups began cutting costs and laying off employees.People started dumping their start-up stock, too.The number of people and groups trying to unload their start-up shares doubled in the first three months of the year from late last year, said Phil Haslett, a founder of EquityZen, which helps private companies and their employees sell their stock. The share prices of some billion-dollar start-ups, known as “unicorns,” have plunged by 22 percent to 44 percent in recent months, he said.“It’s the first sustained pullback in the market that people have seen in legitimately 10 years,” he said.That’s a sign of how the start-up world’s easy-money ebullience of the last decade has faded. Each day, warnings of a coming downturn ricochet across social media between headlines about another round of start-up job cuts. And what was once seen as a sure path to immense riches — owning start-up stock — is now viewed as a liability.The turn has been swift. In the first three months of the year, venture funding in the United States fell 8 percent from a year earlier, to $71 billion, according to PitchBook, which tracks funding. At least 55 tech companies have announced layoffs or shut down since the beginning of the year, compared with 25 this time last year, according to Layoffs.fyi, which monitors layoffs. And I.P.O.s, the main way start-ups cash out, plummeted 80 percent from a year ago as of May 4, according to Renaissance Capital, which follows I.P.O.s.An Instacart shopper at a grocery store in Manhattan. The company slashed its valuation to $24 billion in March from $40 billion last year. Brittainy Newman/The New York TimesLast week, Cameo, a celebrity shout-out app; On Deck, a career-services company; and MainStreet, a financial technology start-up, all shed at least 20 percent of their employees. Fast, a payments start-up, and Halcyon Health, an online health care provider, abruptly shut down in the last month. And the grocery delivery company Instacart, one of the most highly valued start-ups of its generation, slashed its valuation to $24 billion in March from $40 billion last year.“Everything that has been true in the last two years is suddenly not true,” said Mathias Schilling, a venture capitalist at Headline. “Growth at any price is just not enough anymore.”The start-up market has weathered similar moments of fear and panic over the past decade. Each time, the market came roaring back and set records. And there is plenty of money to keep money-losing companies afloat: Venture capital funds raised a record $131 billion last year, according to PitchBook.But what’s different now is a collision of troubling economic forces combined with the sense that the start-up world’s frenzied behavior of the last few years is due for a reckoning. A decade-long run of low interest rates that enabled investors to take bigger risks on high-growth start-ups is over. The war in Ukraine is causing unpredictable macroeconomic ripples. Inflation seems unlikely to abate anytime soon. Even the big tech companies are faltering, with shares of Amazon and Netflix falling below their prepandemic levels.“Of all the times we said it feels like a bubble, I do think this time is a little different,” said Albert Wenger, an investor at Union Square Ventures.On social media, investors and founders have issued a steady drumbeat of dramatic warnings, comparing negative sentiment to that of the early 2000s dot-com crash and stressing that a pullback is “real.”Even Bill Gurley, a Silicon Valley venture capital investor who got so tired of warning start-ups about bubbly behavior over the last decade that he gave up, has returned to form. “The ‘unlearning’ process could be painful, surprising and unsettling to many,” he wrote in April.The uncertainty has caused some venture capital firms to pause deal making. D1 Capital Partners, which participated in roughly 70 start-up deals last year, told founders this year that it had stopped making new investments for six months. The firm said that any deals being announced had been struck before the moratorium, said two people with knowledge of the situation, who declined to be identified because they were not authorized to speak on the record.Other venture firms have lowered the value of their holdings to match the falling stock market. Sheel Mohnot, an investor at Better Tomorrow Ventures, said his firm had recently reduced the valuations of seven start-ups it invested in out of 88, the most it had ever done in a quarter. The shift was stark compared with just a few months ago, when investors were begging founders to take more money and spend it to grow even faster.That fact had not yet sunk in with some entrepreneurs, Mr. Mohnot said. “People don’t realize the scale of change that’s happened,” he said.Sean Black, the founder and chief executive of Knock. “You can’t fight this market momentum,” he said.Jeenah Moon for The New York TimesEntrepreneurs are experiencing whiplash. Knock, a home-buying start-up in Austin, Texas, expanded its operations from 14 cities to 75 in 2021. The company planned to go public via a special purpose acquisition company, or SPAC, valuing it at $2 billion. But as the stock market became rocky over the summer, Knock canceled those plans and entertained an offer to sell itself to a larger company, which it declined to disclose.In December, the acquirer’s stock price dropped by half and killed that deal as well. Knock eventually raised $70 million from its existing investors in March, laid off nearly half its 250 employees and added $150 million in debt in a deal that valued it at just over $1 billion.Throughout the roller-coaster year, Knock’s business continued to grow, said Sean Black, the founder and chief executive. But many of the investors he pitched didn’t care.“It’s frustrating as a company to know you’re crushing it, but they’re just reacting to whatever the ticker says today,” he said. “You have this amazing story, this amazing growth, and you can’t fight this market momentum.”Mr. Black said his experience was not unique. “Everyone is quietly, embarrassingly, shamefully going through this and not willing to talk about it,” he said.Matt Birnbaum, head of talent at the venture capital firm Pear VC, said companies would have to carefully manage worker expectations around the value of their start-up stock. He predicted a rude awakening for some.“If you’re 35 or under in tech, you’ve probably never seen a down market,” he said. “What you’re accustomed to is up and to the right your entire career.”Start-ups that went public amid the highs of the last two years are getting pummeled in the stock market, even more than the overall tech sector. Shares in Coinbase, the cryptocurrency exchange, have fallen 81 percent since its debut in April last year. Robinhood, the stock trading app that had explosive growth during the pandemic, is trading 75 percent below its I.P.O. price. Last month, the company laid off 9 percent of its staff, blaming overzealous “hypergrowth.”SPACs, which were a trendy way for very young companies to go public in recent years, have performed so poorly that some are now going private again. SOC Telemed, an online health care start-up, went public using such a vehicle in 2020, valuing it at $720 million. In February, Patient Square Capital, an investment firm, bought it for around $225 million, a 70 percent discount.Others are in danger of running out of cash. Canoo, an electric vehicle company that went public in late 2020, said on Tuesday that it had “substantial doubt” about its ability to stay in business.Baiju Bhatt, left, and Vlad Tenev, founders of Robinhood, at the New York Stock Exchange last year for the company’s initial public offering. Robinhood recently laid off 9 percent of its workers.Sasha Maslov for The New York TimesBlend Labs, a financial technology start-up focused on mortgages, was worth $3 billion in the private market. Since it went public last year, its value has sunk to $1 billion. Last month, it said it would cut 200 workers, or roughly 10 percent of its staff.Tim Mayopoulos, Blend’s president, blamed the cyclical nature of the mortgage business and the steep drop in refinancings that accompany rising interest rates.“We’re looking at all of our expenses,” he said. “High-growth cash-burning businesses are, from an investor-sentiment perspective, clearly not in favor.” More

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    Gopuff Buys Time for Its 30-Minutes-or-Less Delivery Promise

    The $15 billion rapid-delivery start-up decided to do business differently from rivals like Instacart. A changing environment is testing its model.From its beginning in 2013, Gopuff aimed to do rapid delivery differently.The start-up’s founders, Yakir Gola and Rafael Ilishayev, based the company in Philadelphia, away from other delivery ventures in Silicon Valley and New York. They opened warehouses and bought their own merchandise, instead of acting as middlemen who connected retailers and restaurants with customers. And they promised speed, delivering food and other items in 30 minutes or less.By late last year, Gopuff had amassed $3.4 billion in funding, bought the alcohol and beverage retailer BevMo! and was valued at $15 billion. This year, it appeared poised to go public.“We built a sustainable business that thrives and that is set up to win long term,” Mr. Gola, 29, said in an interview last month. Gopuff, he added, is “a disrupter.”Now the question is whether Gopuff has done delivery differently enough. In the past few months, the start-up environment has changed from boom to uncertainty, as tech stocks have cratered, inflation has risen, interest rates have increased and the economic outlook has darkened.In response, Gopuff recently put off its public listing and is trying to raise $1 billion in debt that could potentially be turned into stock. The unprofitable company also lowered its drivers’ minimum pay in California. This year, it has done two rounds of job cuts, including last month when it laid off about 450 people, or 3 percent of its 15,000 workers.Gopuff faces a dismal history of failed delivery start-ups, from Webvan and Kozmo.com in the early 2000s to Buyk, 1520 and Fridge No More in the past few months. Delivery — with high labor and transportation costs, stiff competition and lofty marketing expenses — is notoriously expensive and logistically complicated to provide and make money on.While delivery companies such as DoorDash and Grubhub have gone public, many of them lose money, and some have later been acquired. And with the bump in pandemic orders tailing off, many of these companies are hitting hurdles. Last month, the grocery delivery start-up Instacart cut its valuation to about $24 billion from $39 billion.“These companies are fine during a very ebullient and frothy capital markets environment,” said Ken Smythe, the chief executive of Next Round Capital Partners, which advises investors buying and selling stakes in start-ups. “The world has changed significantly in the past 60 days.”Gopuff’s delivery people are gig workers. The business also has warehouses where its workers are full-time employees.Gabby Jones for The New York TimesIn the interview, Mr. Gola acknowledged that delivery was “very logistically complex — it takes a lot of time and a lot of effort and capital.” But having warehouses and inventory is the only way to profit over time, he said, because it allows the company to make money from selling goods and not just charging delivery fees.“Once you can execute, and obviously that’s hard, it wins in the long term,” he said.Gopuff added that it was putting a public offering on the back burner because the stock market had been volatile and it had enough cash on hand. The layoffs were part of a global restructuring, it said.Mr. Gola and Mr. Ilishayev met as students at Drexel University in Philadelphia in 2011. In their sophomore year, they founded Gopuff for college students, offering fast late-night deliveries of junk food, condoms and smoking paraphernalia. They called themselves a “one-stop puff shop,” which led to the name Gopuff. Deliveries were available until 4:20 a.m.To set themselves apart from DoorDash and Instacart, which connect customers to restaurants and grocery stores via their apps and rely on gig workers, Mr. Gola and Mr. Ilishayev decided Gopuff would buy goods from distributors and wholesalers and have warehouses. Its warehouse workers would be full-time employees, though its delivery drivers and bike messengers would be contractors.Mr. Gola, who dropped out of college, and Mr. Ilishayev, who graduated from Drexel with a degree in legal studies, became co-chief executives of Gobrands, Gopuff’s parent company. To fund the business, they sold used office furniture on Craigslist and eBay. They also offered discounts on orders to attract customers and charged just $2.95 for delivery.As Gopuff gained traction beyond Drexel students, Mr. Gola and Mr. Ilishayev expanded their product offerings and set up warehouses in Boston, Washington and Austin, Texas. Starting in 2016, the company raised money from venture firms such as Anthos Capital and, later, investors including the Japanese conglomerate SoftBank.“We saw it in the data: customers coming back multiple times every month, very strong customer retention, customers who would stick around forever, basically,” said Jett Fein, a partner at Headline, a venture capital firm that invested in Gopuff.In 2020, the pandemic sent Gopuff’s business into overdrive as people shied away from shopping in person and relied on deliveries. Billions of dollars in new venture capital flooded in.Mr. Gola and Mr. Ilishayev went on a spending spree. That November, Gopuff acquired the California retailer BevMo! for $350 million, giving it a foothold in the state as well as the chain’s liquor licenses. In Europe, it bought the delivery start-ups Fancy and Dija.The company also started offering a $5.95 monthly subscription for delivery and began an advertising business.Gopuff now has nearly 700 warehouses that deliver to 1,200 cities in North America and Europe. It also has several retail locations in New York, Texas and Florida, where customers can walk in and shop.But profits have been elusive. The start-up is not cash-flow positive, which means it is spending more money than it is taking in, said Scott Minerd, the chief investment officer of Guggenheim Investments, which has invested in Gopuff. He added that the company had paused some plans to open new warehouses.Gopuff spends more on property and salaries of warehouse workers than its rivals, said John Mercer, head of global research at the firm Coresight Research. Discounts to attract customers have also eaten into revenue.Gopuff said it made money in its first three years. Its 2020 revenue was $340 million, according to a company document for potential landlords that was obtained by The New York Times. The document also showed that Gopuff’s cash balance dropped $111 million that year to $521 million.Revenue totaled $2 billion last year, Gopuff said. The company also lost $500 million, which was first reported by Axios.Some of its spending has gone toward handling delivery issues, said four former warehouse and district managers, three of whom declined to be identified because of severance agreements with the company. Several said they had sometimes spent hundreds or thousands of dollars a day on Instacart or at grocery stores to replenish Gopuff’s “never out of stock” staples like bacon, eggs and milk.At other times, suppliers sent pallets of items like ice cream that were not needed and could not be stored.“I would throw away $1,000, $2,000, $3,000 in inventory as soon as I received it because I had nowhere to put it,” said Anthony Nelson, who managed two Gopuff warehouses in Houston from 2019 through 2021. “That happened at least once or twice a week at bare minimum.”Mr. Gola said Gopuff bought items from Instacart or local retailers less than 1 percent of the time and threw out less inventory than the industry standard.The start-up has also faced questions over its use of gig workers, many of whom sign up for shifts with the company and report to managers. In 2018, the Labor Department found that Gopuff had misclassified delivery drivers in Pennsylvania as independent contractors.“Gopuff’s entire business model depends on flagrant misclassification of a kind that’s shocking well beyond what we see even from other gig companies,” said David Seligman, a lawyer who filed a 2017 class-action lawsuit claiming Gopuff wrongly categorized its drivers as contractors. The suit was settled in 2019.In November, hundreds of Gopuff gig workers went on strike, said Candace Hinson, a delivery driver in Philadelphia who helped organize the stoppage.Mr. Gola said the company used gig workers as drivers, rather than hiring employees, because “that’s what they want.” The company disputed that hundreds had gone on strike and said the workers’ action had not hurt its business.In the interview, Mr. Gola insisted that Gopuff would be the company to crack the instant delivery code.“The world is moving toward instant,” he said, “and Gopuff is at the forefront of that.” More

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    U.S. Employers Still Scrambling to Fill Vacancies, Report Shows

    Job openings in the United States and the number of workers quitting their jobs remained near record highs in January, an indicator of demand for labor and of worker leverage.The data, released by the Labor Department on Wednesday as part of its monthly Job Openings and Labor Turnover Survey, or JOLTS report, was another sign of an economy that wobbled slightly yet remained sturdy when faced with the Omicron wave of the coronavirus this winter.Job openings dipped to 11.3 million, down slightly from a record in December, but were still up about 61 percent from February 2020.In a potential sign of the impact wrought by the variant’s spread, several industries that had been rebounding from the pandemic, and had been most hungry for workers, reported fewer job openings. Accommodation and food services experienced a drop of 288,000. Transportation, warehousing and utilities reported 132,000 fewer openings. But openings continued to increase in both manufacturing and the service sector at large.Some 4.3 million people left their jobs voluntarily in January, edging down somewhat from the record 4.5 million who quit in November. While layoffs picked up slightly in January, they were still hovering above historical lows.For Jeffrey Roach, the chief economist at LPL Financial, the most fascinating current in the labor market is the increased share of workers who are quitting jobs not to make a career change but simply to achieve higher pay.“You can see people are actually staying within their industry — and it really helps the ‘lower-skilled’ worker,” he said. “I think we’ll continue to see really high churn rates.”The share of Americans in their prime working years — ages 25 to 54 — who were either working or looking for work plummeted in 2020, yet it has recovered to a rate of 79.5 percent, within 1 percentage point of prepandemic levels, a much faster rebound than occurred after the last downturn.The prevailing environment is likely to increase the price of labor — a welcome development for workers who have dealt with stagnant wages and a lack of power for decades, and an unsettling one for employers as high inflation increases the cost of doing business.Some business executives and managers have expressed concern — in corporate earnings and in private calls — that “wage inflation” could set in and cut into profits if the rapid wage gains that workers achieved last year don’t taper off.“When it comes to their business, they’re very concerned about it: What does that mean to their margins going forward? What kind of pricing power do they have?” said Steve Wyett, chief investment strategist at BOK Financial, a regional bank based in Oklahoma, where unemployment is notably low at 2.8 percent. “How do we protect ourselves against this?”Data from the Federal Reserve Bank of Atlanta shows that workers who quit to take other jobs are receiving larger pay increases than those who are staying put, though much of this movement is in lower-wage sectors.After the Labor Department’s employment survey showed strong wage gains in January, hourly earnings were nearly flat in February. And even if wage gains stay strong, they remain far from runaway levels.Fed data shows that median annual pay increases in the American labor market have been well within the range — 3 to 7 percent — that prevailed from the 1980s until the 2007-9 recession. More

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    Starbucks Is Moving to Oust Workers in Buffalo, Union Supporters Say

    Some employees who back unionization efforts have been told they must increase their work availability or leave. The company cites scheduling issues.Workers at Starbucks stores in Buffalo are accusing the company of retaliating against union supporters by telling some of them they may have to leave the company if they cannot increase their work availability.At least five of the cases have arisen at a store that unionized in December, though union supporters at other Buffalo-area stores report similar conversations with managers, frequently but not always involving pro-union employees. The company denies any connection between the scheduling issues and union activities and says the matter is strictly logistical.The tensions indicate how labor relations are playing out after initial successes in unionizing company stores. None of Starbucks’s roughly 9,000 corporate-owned stores in the United States were unionized before early December, but three have unionized since then, and workers at more than 100 stores across the country have filed for union elections.One of the Buffalo workers, Cassie Fleischer, said her manager told her on Feb. 20 that she would soon no longer be employed at the store where she had worked since 2020 because she had sought to reduce her hours from around 30 to 15, a change the manager said she could not accommodate. The store was recently unionized, and Ms. Fleischer is a prominent union supporter.Kellen Montanye, who works at the same store, said the manager told him in a meeting Sunday that he would have to decide this week if he could increase his availability to 15 or 20 hours or leave the company. Mr. Montanye was also outspoken in supporting the union.“This new policy is a complete betrayal of the promise made by Starbucks to its partners, to schedule us around our other jobs or our school hours,” Starbucks Workers United, the union representing the workers, said in a statement, using the company’s term for its employees. “This is a part of Starbucks’s broader strategy to bust our union.”News that the company was asking some employees to be available to work more hours or leave was reported earlier by the labor-oriented website More Perfect Union.Reggie Borges, a Starbucks spokesman, said that the company was not firing the workers and that there was no policy requiring minimum availability. The company generally tries to honor employees’ preferences on availability, he said, but it cannot guarantee that it will do so, especially when several employees request more limited availability around the same time.Mr. Borges said that 10 people at Ms. Fleischer’s and Mr. Montanye’s store, on Elmwood Avenue in Buffalo, had made such requests recently, out of a total of about 27 workers there.Union supporters said they had not previously faced resistance when making such requests. Many union supporters were also skeptical that 10 workers at the Elmwood store had asked to scale back their hours in ways that posed an unusual challenge for management. A recording of a meeting between Ms. Fleischer and her manager, provided to a reporter by the union, seemed to indicate that the number was lower.“There’s your shift and a couple other people that really, with the hours that I — I just, I don’t have the quite the availability,” the manager told Ms. Fleischer. If fewer workers had sought significant reductions in availability, that would presumably be easier to accommodate.The manager appeared to acknowledge in the recording that the refusal to grant the reduction in hours was a break with her previous approach. “There’s certain things that I have to take care of as well, that maybe I didn’t do the right way before, but I have to get on board,” the manager said.Mr. Montanye, a graduate student at the University at Buffalo, said that he had worked at Starbucks since 2018 and at the Elmwood store for roughly one year, and that he had frequently adjusted his hours. He said he typically worked nearly full time during winter and summer breaks and only one or two days a week while school was in session. His managers had never taken issue with these requests, he added.But at an initial meeting on Feb. 13, he said, his manager told him that his current schedule of one day a week no longer met the store’s “needs” and that he would have to provide 15 or 20 hours of weekly availability to stay on the schedule. At a follow-up meeting over the weekend, he said, the manager told him to decide this week whether he could provide the additional availability. He may seek a leave of absence instead.The Starbucks store on Elmwood Avenue in Buffalo. Union supporters were skeptical that 10 workers at the store had asked to scale back their hours.Mustafa Hussain for The New York TimesMs. Fleischer had worked at Starbucks for over four years, and at the Elmwood store since the summer of 2020. She was typically scheduled for about 33 or 34 hours a week during the second half of last year. But she began looking for additional work elsewhere to cover expenses after her scheduled hours dropped somewhat in January.She asked to scale back to 15 hours a week upon finding a second job, at which point her manager told her in an initial meeting in early February that the more limited availability didn’t meet the “needs of the business,” according to Ms. Fleischer.In her final meeting with her manager, which Ms. Fleischer recorded on Feb. 20, the manager said that she had not put Ms. Fleischer on the schedule for the next two weeks and that, after a certain number of weeks of being unscheduled, Ms. Fleischer would be “termed out” — that is, no longer employed by Starbucks. She is scheduled to meet with her district manager to discuss the issue on Mar. 7.Ms. Fleischer said she would have been unlikely to look for a second job had her hours not dropped in January. Hours at Starbucks tend to fall somewhat during the slow months of January and February, but Ms. Fleischer and Mr. Montanye said they believed the changes were also driven by the addition of several new workers to the store in the fall.The union has said the fall hiring was intended to dilute union support ahead of an election at the store; the company has said the hiring was intended to address understaffing. Mr. Borges said that a similar number of workers had left the store since then and that hours had been fairly consistent.An employee at another Starbucks in Buffalo, Roisin Doherty, said her store also cut back her hours. In late January she too took another job, then informed her manager that she would need to change her availability to weekends only. Screenshots provided by Ms. Doherty show that the manager congratulated her through a messaging app and did not indicate that the new constraints would be a problem. But in early February the manager wrote that she would need “at least four days” of availability. Workers at her store filed for a union election in between the two exchanges, on Jan. 31, and Ms. Doherty has helped lead the union campaign, though she said another worker who is not identified with the union had also been told that his availability was insufficient.Ms. Doherty said that she remained on the schedule and that she had yet to have a second interaction with a manager forcing the issue.Mr. Borges, the Starbucks spokesman, said Ms. Doherty’s hours were reduced after she was given a written warning about tardiness and attendance issues. He said managers would continue contacting employees when necessary to explain that narrow availability could lead them to go unscheduled for a few weeks, which could ultimately cause their separation from the company.“Leaders are trying to make sure partners understand that the lack of availability could lead to that,” Mr. Borges said in an email. More

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    The Age of Anti-Ambition

    Listen to This ArticleAudio Recording by AudmTo hear more audio stories from publications like The New York Times, download Audm for iPhone or Android.I used to think of my job as existing in its own little Busytown — as in the Richard Scarry books, where there’s a small, bright village of workers, each focused on a single job, whose paths all cross in the course of one busy, busy day. In my neighborhood in Brooklyn, I would see the same person at the Myrtle Avenue bus stop several days a week and imagine where he was going with his Dell laptop bag and black sneakers. I’d buy coffee from a rotating cast of the same baristas at the cafe on the third floor of my office building, where I worked as an editor at a magazine. I’d stop to chat with another editor, whose office was on the other side of the wall from mine; sometimes, she would motion for me to shut the door, and we would say what we really thought about some piece of minor professional gossip, important to at most about 3.5 people in the world. I would watch my boss walk toward a meeting with his boss and wonder whether their chat would wind up affecting my job.We all mostly worked on computers, typing in documents and sending emails to the person on the other side of a cubicle wall, but there was a bustle to the whole endeavor. It was a little terrarium where we all spent 50 hours a week, and we filled it with office snacks and bathroom outfit compliments and after-work drinks. Even on a day when nothing much happened professionally, there was the feeling of having worked, of playing your part in an ecosystem.Every job had its own Busytown. Although no one in the broader world wanted to talk about, say, cost-cutting strategies for a potential new client, you could find someone in your Busytown who was just as preoccupied about it as you were. In Scarry’s actual Busytown, meanwhile, the world is populated by people (OK, animals) who find it very easy to explain their jobs. They’re policemen and grocers and postmen and doctors and nurses. When the pandemic hit, the people with those Scarry-style jobs had to keep going to work. Their Busytowns rolled on. And actually, those jobs got harder.Everyone else has lost all touch with theirs. They log on to Slack and Zoom, where their co-workers are two-dimensional or avatars, and every day is just like the last one. Depending on what’s happening with the virus, their children might be there again, just as in March 2020, demanding attention and sapping mental energy. The internet is definitely there, always, demanding attention and sapping mental energy. A job feels like just one more incursion, demanding attention and sapping mental energy.And it didn’t help that, early in the pandemic, all jobs were pointedly rebranded: essential or nonessential. Neither label feels good. There is still plenty of purpose to be found in a job that isn’t in one of the helper professions, of course. But “nonessential” is a word that invites creeping nihilism. This thing we filled at least eight to 10 hours of the day with, five days a week, for years and decades, missed family dinners for … was it just busy work? Perhaps that’s what it was all along.For the obviously essential workers — I.C.U. nurses, pulmonologists — the burden of being needed is a costly one. The word “burnout,” promiscuously applied these days, was in fact coined to diagnose exhaustion in medical workers (in a more quaint time, when we weren’t heading into the third year of a multiwave global pandemic). And meanwhile, a vast majority of people deemed essential have jobs like Amazon warehouse worker or cashier. To be told that society can’t function without you, and that you must risk your health to come in, while other people push around marketing reports from home — often for much more money — it becomes difficult not to wonder if “essential” is cynical, a polite way of classing humans as “expendable” or “nonexpendable.”Teachers, who happen to be both highly unionized and college-educated, haven’t taken kindly to being on the expendable end of the equation, asked to work in person with tiny people who aren’t good at distancing and masking and have spent the past years cooped up. In early January, I read an article in The Times about the drama between the Chicago teachers’ union and the city over in-person instruction. When classes were abruptly canceled, a mother who worked as a bank teller had taken her child in for day care, provided by nonunionized school employees. (Day care workers: even further down the ugly new caste lines than teachers.) “I understand they want to be safe, but I have to work,” the bank teller said of her child’s teachers. “I don’t understand why they are so special.” This kind of comparison can curdle people’s relationships to one another — and to their own jobs.Essential or nonessential, remote or in person, almost no one I know likes work very much at the moment. The primary emotion that a job elicits right now is the determination to endure: If we can just get through the next set of months, maybe things will get better.The act of working has been stripped bare. You don’t have little outfits to put on, and lunches to go to, and coffee breaks to linger over and clients to schmooze. The office is where it shouldn’t be — at home, in our intimate spaces — and all that’s left now is the job itself, naked and alone. And a lot of people don’t like what they see.There are two kinds of stories being told about work right now. One is a labor-market story, and because that’s a little dull and quite confusing, it’s mixed up with the second one, which is about the emotional relationship of American workers to their jobs and to their employers. The Great Resignation is the phrase that has been used, a little incorrectly, to describe each story.The Future of WorkDive into the magazine’s annual exploration of the ways in which work, and our lives with it, is changing.The Age of Anti-Ambition: When 25 million people leave their jobs, it’s about more than just burnout.Calling All Job Haters: Inside the rise and fall of r/Antiwork — the Reddit community that made it OK to quit, but couldn’t quite spark a labor movement.Nurse Shortages: As the coronavirus spread, demand for nurses came from every corner. Some jobs for those willing to travel  paid more than $10,000 a week. Is this a permanent shift?It’s true that we’re in the midst of a “quitagion,” as this paper has jauntily termed it, citing the record number of people (4.5 million) who gave notice in November alone. An estimated 25 million people left their jobs in the second half of 2021; it’s all but certain that this is the highest U.S. quit rate since the Bureau of Labor Statistics began tracking those numbers in 2000.The labor market, as economists like to say, is tight: Employment statistics are strong and getting stronger. Despite inflation, real income is up across all income levels. It’s a remarkable turnaround, following the early pandemic’s horrific job losses, which disproportionately affected the lowest earners and those with little job security. Many of the recent quitters have been on the lower part of the income ladder. They’re getting or seeking better work, for more money, because they can. And that kind of labor market means at least some lower-income workers get to think about their jobs the way the white-collar class more traditionally has, as something that needs to work for them, rather than the other way around.But those top-line numbers obscure a muddier truth. After the latest employment numbers were released in February (which seemed to show remarkable job growth and an unemployment rate of 4 percent), one B.L.S. economist took to his Substack to call it the “most complicated job report ever.” In addition to those workers trying to trade their way into objectively better jobs, millions of others have simply left the work force — because they’re sick, or taking care of children, or retiring, or just plain miserable.The precise reasons are a little mysterious. The jobs recovery isn’t spread evenly across industries, nor is the quit rate. Staffing levels in the leisure and hospitality sectors are still 10 percent lower than they were prepandemic, and according to December’s job report, people who work in hotels and restaurants are the most likely to have quit. Eight percent of all jobs in health care are open right now. There are almost 400,000 fewer health care workers now than there were before the pandemic. As LinkedIn’s chief economist put it to CBS News, “It may not just be worth it for some folks.”Even among the people who were technically employed, a sizable number were unable to work because of child care issues or sick leave. Add to that the fact that many people who would prefer full-time work with benefits are still working on employers’ terms, which means part-time, unstable employment, as The Times’s Noam Scheiber recently reported. And if you dig into the quit numbers for higher-wage workers, it’s still hardly about people going on “Eat, Pray, Love” journeys. The full picture just isn’t that rosy.It’s also not entirely a fluke of this moment. For decades, job productivity has been increasing while real wages haven’t. People were already stretched thin. The writer Anne Helen Petersen, who has made a specialty of truffle-hunting for the millennial internet’s preoccupations, recently wrote a book about professional-class burnout based on a viral 2019 BuzzFeed article she wrote on the same subject. (Her lead personal example involved not getting around to having her knives sharpened.) I was in a particularly stressful moment of a management job at the time and would Google the symptoms of burnout late at night, on a private browser screen. But I was allergic to people talking ostentatiously about it, and I was embarrassed by the indulgence of the language, or, maybe, what I saw as the self-importance of it.Now, though, it’s as if our whole society is burned out. The pandemic may have alerted new swaths of people to their distaste for their jobs — or exhausted them past the point where there’s anything to enjoy about jobs they used to like.Perhaps that’s why the press is filled with stories about widespread employee dissatisfaction; last month a Business Insider article declared that companies “are actively driving their white-collar workers away by presuming that employees are still thinking the way they did before the pandemic: that their jobs are the most important things in their lives,” and pointed to a Gallup poll that showed that last year only a third of American workers said they were engaged in their jobs.At Amazon, in its managerial ranks, employee departures have reached what is being seen as a “crisis” level, according to Bloomberg’s Brad Stone. (A source told him that the turnover rate was as high as 50 percent in some groups, although Amazon disputes this.) One woman, leaving her job, posted in an internal listserv she started called Momazonian, which has more than 5,000 members. “While it has been an incredibly rewarding place to work, the pressure often feels relentless and at times, unnecessary,” she wrote, in a Jerry Maguire screed for the careful networker set; she also copied senior vice presidents and some board members.It’s not an accident that it was the moms’ affinity group where she aired that feeling. A McKinsey study from last year showed that 42 percent of women feel burned out, compared with 32 percent in 2020. (For men, it jumped to 35 percent from 28 percent.) At the beginning of the pandemic, the working world lost more than 3.5 million mothers, according to the Census Bureau; and the National Women’s Law Center found that in early 2021, women’s labor-force participation was at a 33-year-low, returning us all the way back to the era when “Working Girl” was revolutionary. Many of those women haven’t come back.Illustration by María Jesús ContrerasSo the numbers are bad enough. But then there’s the way the hard facts of the economy interact with our emotions. Consider this theory: that the current office ennui was simply the inevitable backlash to the punishing culture of the previous decade’s #ThankGodItsMonday culture. And furthermore, sometime around the rise of #MeToo (and after Donald Trump’s election), ambition began to seem like a mug’s game. The enormous personal costs of getting to the top became clear, and the potential warping effects of being in charge also did. It wasn’t just the bad sexually harassing bosses who were fired but the toxic ones, too, and soon enough we began to question the whole way power in the office worked. What started out as a hopeful moment turned depressing fast. Power structures were interrogated but rarely dismantled, a middle ground that left everyone feeling pretty bad about the ways of the world. It became harder to trust anyone who was your boss and harder to imagine wanting to become one. Covid was an accelerant, but the match was already lit.Recently, I stumbled across the latest data on happiness from the General Social Survey, a gold-standard poll that has been tracking Americans’ attitudes since 1972. It’s shocking. Since the pandemic began, Americans’ happiness has cratered. The graph looks like the heart rate has plunged and they’re paging everyone on the floor to revive the patient. For the first time since the survey began, more people say they’re not too happy than say they’re very happy.The plague, the death, the supply chain, long lines at the post office, the collapse of many aspects of civil society might all play a role in that statistic. But in his classic 1951 study of the office-working middle class, the sociologist C. Wright Mills observed that “while the modern white-collar worker has no articulate philosophy of work, his feelings about it and his experiences of it influence his satisfactions and frustrations, the whole tone of his life.” I remember a friend once saying that although her husband wasn’t depressed, he hated his job, and it was effectively like living with a depressed person.After the latest job report, the economist and Times columnist Paul Krugman estimated that people’s confidence in the economy was about 12 points lower than it ought to have been, given that wages were up. As the pandemic drags on, either the numbers aren’t able to quantify how bad things have become or people seem to have persuaded themselves that things are worse than they actually are.It’s not in just the data where the words “job satisfaction” seem to have become a paradox. It’s also present in the cultural mood about work. Not long ago, a young editor I follow on Instagram posted a response to a question someone posed to her: What’s your dream job? Her reply, a snappy internet-screwball comeback, was that she did not “dream of labor.” I suspect that she is ambitious. I know that she is excellent at understanding the zeitgeist.It is in the air, this anti-ambition. These days, it’s easy to go viral by appealing to a generally presumed lethargy, especially if you can come up with the kind of languorous, wry aphorisms that have become this generation’s answer to the computer-smashing scene in “Office Space.” (The film was released in 1999, in the middle of another hot labor market, when the unemployment rate was the lowest it had been in 30 years.) “Sex is great, but have you ever quit a job that was ruining your mental health?” went one tweet, which has more than 300,000 likes. Or: “I hope this email doesn’t find you. I hope you’ve escaped, that you’re free.” (168,000 likes.) If the tight labor market is giving low-wage workers a taste of upward mobility, a lot of office workers (or “office,” these days) seem to be thinking about our jobs more like the way many working-class people have forever. As just a job, a paycheck to take care of the bills! Not the sum total of us, not an identity.Even elite lawyers seem to be losing their taste for workplace gunning. Last year, Reuters reported an unusual wave of attrition at big firms in New York City — noting that many of the lawyers had decided to take a pay cut to work fewer hours or move to a cheaper area or work in tech. It’s happening in finance, too: At Citi, according to New York magazine, an analyst typed “I hate this job, I hate this bank, I want to jump out the window” in a chat, prompting human resources to check on his mental health. “This is a consensus opinion,” he explained to H.R. “This is how everyone feels.”Things get weird when employers try to address this discontent. Amazon’s warehouse workers have, for the past year, been asked to participate in a wellness program aimed at reducing on-the-job injuries. The company recently came under fire for the reporting that some of its drivers are pushed so hard to perform that they’ve taken to urinating in bottles, and warehouse employees, for whom every move is tracked, live in fear of being fired for working too slowly. But now, for those warehouse workers, Amazon has introduced a program called AmaZen: “Employees can visit AmaZen stations and watch short videos featuring easy-to-follow well-being activities, including guided meditations [and] positive affirmations.” It’s self-care with a dystopian bent, in which the solution for blue-collar job burnout is … screen time.The cultural mood toward the office even appears in the television shows that knowledge workers obsessed over. Consider “Mad Men,” a show set during the peaking economy of the late 1960s. It was a show that found work romantic. I don’t mean the office affairs. I mean that the characters were in love with their work (or angrily sometimes out of love, but that’s a passion of its own). More than that, their careers and the little dramas of their daily work — the presentations to clients, the office politics — gave their lives a sense of purpose. (At the show’s end, Don Draper went to a resort that looks an awful lot like Esalen to find out the meaning of life, and meditated his way into a transformative … Coke ad campaign.)Peggy Olson, the striving adwoman on the make, has recently been taken up as the patron saint of quitters. An image of her shows up frequently illustrating articles about people leaving their jobs, sometimes in GIF form. In it, Olson is wearing sunglasses, carrying a box of office stuff. She has a cigarette dangling from her mouth, off to the side for maximum self-assurance. But she isn’t actually quitting in that scene. Instead, she’s walking into a new, better job at a different agency. The swagger she has comes from ambition, not from opting out.That show was on the air from 2007 to 2015, at the peak of what sometimes gets called hustle culture (and Obama-era optimism). Back then — just before, during and after a psyche-shattering global recession — work had betrayed large swaths of the population, but many (at least those who were better off, for whom the economy recovered much more quickly) took that as inspiration to work harder, to short-circuit the problems of employment with entrepreneurship, or the dreams of it. Start a company! Build a brand! Become a girlboss! (A word that used to be a compliment, not an insult.)Now, Sunday nights are for “Succession,” the beloved pitch-black workplace drama of the post-Trump nihilistic years. On that show, whose third season recently came to a close, work is a corrupting force. The Roy family is ruined not by their money but by their collective desire to run a conglomerate. Ambition perverts the love between parent and child, husband and wife, brother and sister. Even the from-nothing strivers on the show are ruined by their jobs. It’s a Greek tragedy filtered through the present moment, in which every bit of labor is said to happen under late capitalism, and all the jobs are burnout jobs.When “Succession” was over, the office workers of America got up off the couch, and they turned off the TV. They dozed off thinking about the psychological abuse the Roys heap on one another and their Waystar Royco underlings, then sat on the same couch Monday morning.It’s important to acknowledge that some people have reacted to this moment by becoming less cynical about the possibilities of work. The broader world is getting darker — climate change, crumbling democracy. It feels impossible to change it. But work? Work could change. An idealistic generation has set about demanding a utopian world, on a local scale, in their own little Busytowns. More diversity, more attention to structural racism, better hours, better boundaries, better leave policies, better bosses.At some companies, it finally feels as if the old hierarchies are being upended, and the top-paid people are running a little scared of their underlings, rather than the other way around. (No one has much sympathy for managers, and it’s true, as Don Draper once told Peggy Olson, that’s what the money is for. But steering a company through the past few years has been its own particular challenge.)Confronted with this world, many young people with professional options want to be in solidarity with their colleagues instead of climbing the ladder above them. The meaning that they once found in work is now found in trying to make the workplace itself better. At Authentic, a Democratic consulting firm, some members of the unionized staff are refusing to work a contract serving Senator Kyrsten Sinema. Unionized think-tankers at the Center for American Progress, which tends to serve as a pipeline to coveted roles in Democratic presidential administrations, threatened to strike in mid-February over their wages. Some congressional staff members have begun the process of forming a union.I’m now on staff at a digital news site that is unionized; I marvel at the fact that I can have a job with a title like “editor at large” and all the benefits that come from union membership. At Google, home of plush offices and free meals, the company formally recognized a union in early 2021 composed of 400 of its highly paid engineers. The professional managerial classes — as Bernie Sanders supporters called that slice of the white-collar work force pejoratively — are in the middle of developing a class consciousness.So some of the most prestigious offices are organizing, and the college-educated make up a larger slice of the union pie than ever, thanks largely to growth among teachers’ unions. But union membership, more broadly, is at an all-time low. Those warehouse employees at Amazon voted against unionization in Alabama last year. (A federal review board found that Amazon had improperly pressured staff members against forming a union, and ordered a revote, which will take place in five weeks.) Amazon workers might end up voting to join a union. Starbucks employees are starting the process, too. But somehow, workplace protections still seem in danger of becoming one more luxury item that accrues to the privileged.Perhaps there’s no better example of this than what happened at Goldman Sachs last year. Junior bankers in San Francisco felt alienated over their long hours, what they considered low pay and lack of Seamless stipends while working from home. They made a formal presentation to their office’s top executives, relying on survey data they gathered that showed, for instance, that three-quarters of them felt they had been victims of workplace abuse. It was something a little like collective action by America’s future elite.One lead organizer of that action was, as Bloomberg reported, the son of the vice chairman of TPG Capital, a private-equity firm. His father, a creature of a previous zeitgeist, got his start working for Michael Milken at Drexel Burnham Lambert, the famously competitive (and corrupt) investment bank.The son’s hostile takeover worked. The Goldman analysts got their base pay raised by nearly 30 percent. New York magazine reported that while at least five of the 13 analysts from the protest cohort in San Francisco had already left Goldman (four of whom were women of color), the bank was having no trouble recruiting college students to join the next class of analysts.The Goldman raise is a reminder of a cold, hard fact. One that is explained in the very first sentence of Richard Scarry’s “What Do People Do All Day?”: “We all live in Busytown and we are all workers. We work hard so that there will be enough food and houses and clothing for our families.” Work is mainly, really, about making money to live. And then trying to make some more. A boring, ancient story. The future of work might be more like its past than anyone admits.Noreen Malone is an editor at large for Slate Magazine. In 2015, she won a George Polk Award and a Newswomen’s Club award for her reporting in New York magazine on the women who accused Bill Cosby of rape and sexual assault. More

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    Making ‘Dinobabies’ Extinct: IBM’s Push for a Younger Work Force

    Documents released in an age-discrimination case appear to show high-level discussion about paring the ranks of older employees.In recent years, former IBM employees have accused the company of age discrimination in a variety of legal filings and press accounts, arguing that IBM sought to replace thousands of older workers with younger ones to keep pace with corporate rivals.Now it appears that top IBM executives were directly involved in discussions about the need to reduce the portion of older employees at the company, sometimes disparaging them with terms of art like “dinobabies.”A trove of previously sealed documents made public by a Federal District Court on Friday show executives discussing plans to phase out older employees and bemoaning the company’s relatively low percentage of millennials.The documents, which emerged from a lawsuit contending that IBM engaged in a yearslong effort to shift the age composition of its work force, appear to provide the first public piece of direct evidence about the role of the company’s leadership in the effort.“These filings reveal that top IBM executives were explicitly plotting with one another to oust older workers from IBM’s work force in order to make room for millennial employees,” said Shannon Liss-Riordan, a lawyer for the plaintiff in the case.Ms. Liss-Riordan represents hundreds of former IBM employees in similar claims. She is seeking class-action status for some of the claims, though courts have yet to certify the class.Adam Pratt, an IBM spokesman, defended the company’s employment practices. “IBM never engaged in systemic age discrimination,” he said. “Employees were separated because of shifts in business conditions and demand for certain skills, not because of their age.”Mr. Pratt said that IBM hired more than 10,000 people over 50 in the United States from 2010 to 2020, and that the median age of IBM’s U.S. work force was the same in each of those years: 48. The company would not disclose how many U.S. workers it had during that period.A 2018 article by the nonprofit investigative website ProPublica documented the company’s apparent strategy of replacing older workers with younger ones and argued that it followed from the determination of Ginni Rometty, then IBM’s chief executive, to seize market share in such cutting-edge fields as cloud services, big data analytics, mobile, security and social media. According to the ProPublica article, based in part on internal planning documents, IBM believed that it needed a larger proportion of younger workers to gain traction in these areas.In 2020, the Equal Employment Opportunity Commission released a summary of an investigation into these practices at IBM, which found that there was “top-down messaging from IBM’s highest ranks directing managers to engage in an aggressive approach to significantly reduce the head count of older workers.” But the agency did not publicly release evidence supporting its claims.The newly unsealed documents — which quote from internal company emails, and which were filed in a “statement of material facts” in the lawsuit brought by Ms. Liss-Riordan — appear to affirm those conclusions and show top IBM executives specifically emphasizing the need to thin the ranks of older workers and hire more younger ones.“We discussed the fact that our millennial population trails competitors,” says one email from a top executive at the time. “The data below is very sensitive — not to be shared — but wanted to make sure you have it. You will see that while Accenture is 72% millennial we are at 42% with a wide range and many units falling well below that average. Speaks to the need to hire early professionals.”“Early professionals” was the company’s term for a role that required little prior experience.Another email by a top executive, appearing to refer to older workers, mentions a plan to “accelerate change by inviting the ‘dinobabies’ (new species) to leave” and make them an “extinct species.”A third email refers to IBM’s “dated maternal workforce,” an apparent allusion to older women, and says: “This is what must change. They really don’t understand social or engagement. Not digital natives. A real threat for us.”Mr. Pratt, the spokesman, said that some of the language in the emails “is not consistent with the respect IBM has for its employees” and “does not reflect company practices or policies.” The statement of material facts redacts the names of the emails’ authors but indicates that they left the company in 2020.Both earlier legal filings and the newly unsealed documents contend that IBM sought to hire about 25,000 workers who typically had little experience during the 2010s. At the same time, “a comparable number of older, non-Millennial workers needed to be let go,” concluded a passage in one of the newly unsealed documents, a ruling in a private arbitration initiated by a former IBM employee.Similarly, the E.E.O.C.’s letter summarizing its investigation of IBM found that older workers made up over 85 percent of the group whom the company viewed as candidates for layoffs, though the agency did not specify what it considered “older.”The newly unsealed documents suggest that IBM sought to carry out its strategy in a variety of ways, including a policy that no “early professional hire” can be included in a mass layoff in the employee’s first 12 months at the company. “We are not making the progress we need to make demographically, and we are squandering our investment in talent acquisition and training,” an internal email states.Previously sealed documents show IBM executives bemoaning the company’s relatively low percentage of millennials.David Paul Morris/Bloomberg
    The lawsuit also argues that IBM sought to eliminate older workers by requiring them to move to a different part of the country to keep their jobs, assuming that most would decline to move. One internal email stated that the “typical relo accept rate is 8-10%,” while another said that the company would need to find work for those who accepted, suggesting that there was not a business rationale for asking employees to relocate.And while IBM employees designated for layoffs were officially allowed to apply for open jobs within the company, other evidence included in the new disclosure suggests that the company discouraged managers from actually hiring them. For example, according to the statement of material facts, managers had to request approval from corporate headquarters if they wanted to move ahead with a hire. Several of the plaintiffs in a separate lawsuit brought by Ms. Liss-Riordan appeared to have been on the receiving end of these practices. One of them, Edvin Rusis, joined IBM in 2003 and had worked as a “solution manager.” He was informed by the company in March 2018 that he would be laid off within a few months. According to his legal complaint, Mr. Rusis applied for five internal positions after learning of his forthcoming layoff but heard nothing in response to any of his applications.Mr. Pratt, the spokesman, said that the company’s efforts to shield recent hires from layoffs, as well as its approach to relocating workers, were blind to age, and that many workers designated for layoffs did secure new jobs with IBM.The ProPublica story from 2018 identified employees in similar situations, and others who were asked to relocate out of state and decided to leave the company instead.The company has faced other age discrimination claims, including a lawsuit filed in federal court in which plaintiffs accused the company of laying off large numbers of baby boomers because they were “less innovative and generally out of touch with IBM’s brand, customers and objectives.” The case was settled in 2017, according to ProPublica.In 2004, the company agreed to pay more than $300 million to settle with employees who argued that its decision in the 1990s to replace its traditional pension plan with a plan that included some features of a 401(k) constituted age discrimination.The federal Age Discrimination in Employment Act prohibits discrimination against people 40 or over in hiring and employment on the basis of their age, with limited exceptions.The act also requires companies to disclose the age and positions of all people within a group or department being laid off, as well as those being kept on, before a worker waives the right to sue for age discrimination. Companies typically require such waivers before granting workers’ severance packages.But IBM stopped asking workers who received severance packages to waive their right to sue beginning in 2014, which allowed it to cease providing information about the age and positions of workers affected by a mass layoff.Instead, IBM required workers receiving a severance package to bring any discrimination claims individually in arbitration — a private justice system often preferred by corporations and other powerful defendants. Mr. Pratt said the change was made to better protect workers’ privacy.While some former employees preserved their ability to sue IBM in court by declining the severance package, many former employees accepted the package, requiring them to bring claims in arbitration. Ms. Liss-Riordan, who is running for attorney general of Massachusetts, represents employees in both situations.The particular legal matter that prompted the release of the documents in federal court was a motion by one of the plaintiffs whose late husband had signed an agreement requiring arbitration, and whose arbitration proceeding IBM then sought to block.IBM argued that the plaintiff sought to pursue the claim in arbitration after the window for doing so had passed, and that some of the evidence the plaintiff sought to introduce was confidential under the arbitration agreement. The plaintiff argued that those provisions of the arbitration agreement were unenforceable.The judge in the case, Lewis J. Liman, has yet to rule on the merits of that argument. But in January, Judge Liman ruled that documents in the case, including the statement of material facts, should be available to the public.IBM asked a federal appellate court to stay Judge Liman’s disclosure decision, but a three-judge panel of the U.S. Court of Appeals for the Second Circuit rejected the company’s argument, and the full circuit court also declined to grant a stay. The New York Times filed an amicus brief to the circuit court arguing that the First Amendment applied to the documents in question. More

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    How The Trucker Protests Are Snarling the Auto Industry

    Blockades of U.S.-Canada border crossings could hurt the auto industry, factory workers and the economy, which are still recovering from pandemic disruptions.After two years of the pandemic, semiconductor shortages and supply chain chaos, it seemed as if nothing else could go wrong for the auto industry and the millions of people it employs. But then came thousands of truckers who, angry about vaccine mandates, have been blocking major border crossings between Canada and the United States.With Canadian officials baffled about what to do, the main routes that handle the steel, aluminum and other parts that keep car factories running on both sides of the border were essentially shut down Wednesday and Thursday.Ford Motor, General Motors, Honda and Toyota have curtailed production at several factories in Michigan and Ontario, threatening paychecks and offering a fresh reminder of the fragility of global supply chains and of the deep interdependence of the U.S. and Canadian economies, which exchange $140 million in vehicles and parts every day.No one knows how this is going to end. The protests are expected to swell in the coming days and could spread, including to the United States. Canada’s transport minister has called the bridge blockades illegal. Marco Mendicino, Canada’s minister of public safety, said on Thursday that the Royal Canadian Mounted Police, the national force, was sending additional officers to the Canadian capital, Ottawa, and to Windsor, Ontario. The mayor of Windsor has threatened to remove the protesters. But those statements have seemed to have little impact. Gov. Gretchen Whitmer of Michigan pleaded with Canadian officials to quickly reopen traffic.“They must take all necessary and appropriate steps to immediately and safely reopen traffic so we can continue growing our economy,” Ms. Whitmer said in a statement on Thursday.The chaos is already starting to take an economic toll. The pain is likely to be most acute for smaller auto parts suppliers, for independent truckers and for workers who get paid based on their production. Many of these groups, unlike large automakers like G.M., Ford and Toyota, lack the clout to raise prices of their goods and services. Companies and workers in Canada are more likely to suffer because they are more dependent on the United States.The longer crossings between the countries remain blocked, the more severe the damage, not only to the auto industry but also to the communities that depend on manufacturing salaries. Workers at smaller firms typically receive no compensation for lost hours, said Dino Chiodo, the director of auto at the giant Canadian union Unifor. Workers who have been sent home early because of parts shortages will spend less at stores and restaurants.“People say, ‘I have $200 less this week, what do I do?’” Mr. Chiodo said. “It affects the Canadian and U.S. economy as a whole.”Auto factories and suppliers in the United States generally keep at least two weeks of raw materials on hand, said Carla Bailo, the president of the Center for Automotive Research in Ann Arbor, Mich. If the bridges remain blocked for longer than that, she said, “then you’re looking at layoffs.”The blockades came after a demonstration in Ottawa that started nearly two weeks ago. The protests began over a mandate that truck drivers coming from the United States be vaccinated against the coronavirus and have grown to include various pandemic restrictions. Some have demanded that Prime Minister Justin Trudeau resign. The truckers have been joined by various groups, including some displaying Nazi symbols and damaging public monuments. Police in Ottawa said on Thursday that the protesters and their supporters, including some in the United States, had almost overwhelmed the city’s 911 system with calls.The crossing that has the auto industry and government officials most concerned is the Ambassador Bridge, which connects Windsor and Detroit. It carries roughly a quarter of the trade between the two countries, which has been relatively unrestricted for decades. While food and other products are also affected, about a third of the cargo that uses the bridge is related to the auto industry, Ms. Bailo said.The blockade has been felt as far south as Kentucky, where production has been disrupted at a Toyota factory, the company said on Thursday. The shutdown at the border also will prevent manufacturing at Toyota’s three Canadian plants for the rest of the week, a spokesman for the automaker, Scott Vazin, said.Demonstrators blocking access to the Ambassador Bridge in Windsor. The bridge accounts for roughly a quarter of the trade between the United States and Canada.Nathan Denette/The Canadian Press, via Associated PressG.M. said it had canceled two shifts on Wednesday and Thursday at a factory in Lansing, Mich., that makes Buick Enclave and Chevrolet Traverse sport utility vehicles. The company also sent workers from the first shift at a plant in Flint, Mich., home early. Ford said Thursday that plants in Windsor and Oakville, also in Ontario, were running at reduced capacity.Shortages of semiconductors and other components have not been all bad for giant automakers, creating scarcity that has driven up prices of cars in the last year. Ford and G.M. both reported healthy profits for 2021. And the economic damage will not be severe if the bridge and other crossings reopen soon, industry experts said.But the last two years have shown that, because supply chains are so complex, problems at obscure parts makers can have far-reaching and unpredictable impact. Last year, Ford had to shut down plants for weeks at a time in part because of a fire at a chip factory in Japan.“If it stretches on for weeks it could be catastrophic,” said Peter Nagle, an analyst who covers the car industry at IHS Markit, a research firm.Mr. Nagle said the bridge blockade was worse than the semiconductor shortage for carmakers. They “were already running pretty tight because of other supply chain shortages,” he said. “This is just bad news on top of bad news.”The auto industry operates relatively seamlessly across Canada, the United States and Mexico. Some parts can travel back and forth across borders multiple times as raw materials are processed and are turned into components and, eventually, vehicles.An engine block, for example, might be cast in Canada, sent to Michigan to be machined for pistons, then sent back to Canada for assembly into a finished motor. The blockades have stranded some truckers on the wrong side of the border, creating a chain reaction of missed deliveries.The slowdown in Canadian trade will disproportionately affect New York, Michigan and Ohio, said Arthur Wheaton, the director of labor studies at Cornell’s School of Industrial and Labor Relations. At the same time, he added, the protests were “certainly raising concerns for all U.S. manufacturers.”“There is already a shortage of truck drivers in North America, so protests keeping truckers off their routes exacerbates problems for an already fragile supply chain,” Mr. Wheaton said.Carmakers had hoped that shortages of computer chips and other components would ease this year, allowing them to concentrate on the long-term: the transition to electric vehicles.A larger fear for many elected officials and business executives is that the scene at the Ambassador Bridge could inspire other protests. The Department of Homeland Security warned in an internal memo that a convoy of protesting truckers was planning to travel from California to Washington, D.C., potentially disrupting the Super Bowl and President Biden’s State of the Union address on March 1.“While there are currently no indications of planned violence,” the memo, which was dated Tuesday, said, “if hundreds of trucks converge in a major metropolitan city, the potential exists to severely disrupt transportation, federal government operations, commercial facilities and emergency services through gridlock and potential counter protests.”Mr. Chiodo, the Canadian union leader, said that “the people who are demonstrating are doing it for the wrong reasons. They want to get back to the way things were before the pandemic, and in reality they are shutting things down.”The scene in Ottawa remained a raucous party Thursday, with hundreds of people on the street, many wearing Canadian flags like capes. The song “Life Is a Highway,” by the Canadian musician Tom Cochrane, pumped from loudspeakers set up on the back of an empty trailer that had been converted into a stage.But there was a thinning out of protesters — with some empty spaces where trucks had been the day before.Johnny Neufeld, 39, a long-haul trucker from Windsor, Ontario, said the vaccine mandate would spell the end of his job transporting molds into the United States since he had chosen not to be inoculated out of fear the shots had been developed too quickly. He got his first ticket from the police Thursday morning, a fine of 130 Canadian dollars (about $100) for being in a no-stopping zone.“This is a souvenir,” he said.Dan Bilefsky More

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    Job Openings Remained Elevated in December Despite Omicron Surge

    The Omicron variant of the coronavirus has disrupted business and kept millions of people home from work. But in December, at least, it did little to cool off the red-hot job market.Employers posted 10.9 million open jobs in the last month of 2021, the Labor Department said Tuesday. That was up modestly from November, and close to the record 11.1 million openings in July. There were roughly 1.7 job openings for every unemployed worker in December, the most in the two decades the government has been keeping track.Lots of jobs, not enough workersThere were nearly 11 million jobs posted in December and fewer than 7 million unemployed workers, the highest ratio in the two decades the government has been keeping track.

    Notes: Unemployment figures adjusted to account for workers misclassified as employed. Data is seasonally adjusted.Source: Labor DepartmentBy The New York TimesForecasters had expected the jump in coronavirus cases to lead to a pullback in recruiting, and a slowdown is still possible. Nationally, coronavirus cases did not reach their peak until mid-January, and they are still rising in some parts of the country. Job postings on the career site Indeed, which tend to track the government’s data relatively closely, remained high through much of December but fell in January.The virus kept millions of workers home in December and January, leaving many businesses short staffed and forcing some to close or limit their hours. That probably forced some companies to postpone hiring. Employers might have also found it harder to hire because some people were unwilling to look for or start new jobs as virus cases rose, or unable to do so because of child care obligations.But there is little evidence so far that Omicron has derailed a strong job market. Employers laid off or fired just 1.2 million workers in December, the fewest on record. The difficult hiring environment may have led some companies that normally shed temporary workers after the holidays to hold on to them this year, said Diane Swonk, chief economist for the accounting firm Grant Thornton.“Companies kept their seasonal hires,” she said. “One, because it’s already a labor shortage. And two, because they had so many people out sick that they wanted to keep people on.”Many workers are taking advantage of their leverage by seeking out better jobs. More than 4.3 million workers quit their jobs voluntarily, down a bit from November but still near a record.With workers scarce and employees in the driver’s seat, companies are raising pay. Wages and salaries rose 4.5 percent in the final three months of 2021, according to separate data released by the Labor Department last week. Wages are rising fastest in sectors where labor is particularly scarce, such as leisure and hospitality.Economists will get a more up-to-date snapshot of the labor market on Friday, when the Labor Department releases data on job growth and unemployment in January. Forecasters surveyed by FactSet expect the report to show that employers added 165,000 jobs. But Omicron has created an unusual amount of uncertainty, and some economists believe the report could show a net loss of jobs last month. More