NIST, a lab under the Commerce Department, will fire up to 500 probationary employees as part of the Trump administration’s efforts to reduce staff across federal agencies.
Reportedly, some staffers at NIST received a verbal notice about the upcoming layoffs earlier on Wednesday. This information was given to Bloomberg by people familiar with the matter. The sources decided to maintain anonymity. However, some of these people mentioned that a final decision regarding the scope of these layoffs has not been finalized yet.
NIST is a key AI agency that has helped implement initiatives under the administration of former President Biden. These included allocating funds for semiconductor manufacturing and setting new standards for the development and use of AI technology.
These employee cuts came about when Howard Lutnick, the new commerce secretary, took control of the agency. Last month, during his confirmation as the new Commerce Secretary, Lutnick said that he would review Biden’s chip program along with AI initiatives that come under NIST. The current layoffs are part of the AI policy shift under the new administration, which is moving away from Biden’s high-risk approach.
It has been reported that the majority of the staff affected by these terminations belongs to offices that were responsible for semiconductor investments during Biden’s era. It includes 3/5 of the office that implemented $39 billion in projects involving manufacturing incentives and 2/3 of the employees that oversaw $11 billion in R&D programs. US AI Safety Institute employees who evaluated and tested advanced AI systems may also face employee cuts. The institute was launched by the Biden administration in 2023 based on an AI executive order repealed by Trump on his first day at the Oval.
However, the mass layoffs have become a cause of concern over a possible brain drain within the federal agencies.
Trump administration continues to back tech companies against EU tech regulations
With support from the Trump administration, tech companies are confidently challenging EU regulations, which they consider hostile rules on market dominance and artificial intelligence. Meta, in particular, is leading this charge against the European Union’s AI Act. Mark Zuckerberg is lobbying with other tech leaders to water down the implementation of the AI Act, a cause that has gained a significant boost from the current administration.
During his recent Europe trip, Vice-president JD Vance denounced the “onerous international” rules by the bloc. At the same time, he also emphasized the need for better regulation that doesn’t “strangle” the evolving AI sector. Henna Virkkunen, EU’s tech chief, told Financial Times that the EU is “fully commited to enforce our rules.” Despite that, the European Commission ended up withdrawing its AI Liability Directive earlier this month. According to Henna Virkkuneen, this decision was made due to the pressure from tech companies in the US.
According to some EU industry officials, such limiting actions may become a bargaining chip for trade negotiations. AI’s code of practice, which gives directives to companies regarding the implementation of the AI Act, is expected in April. However, Meta has clearly refused to sign the voluntary code. The company’s top lobbyist, Joel Kaplan, told an audience in Brussels that this AI Act forces “unworkable and technically unfeasible requirements.”
Virkkunen has made it clear that the rules will not be changed despite the lobbying from big US tech companies. Virkkunen reminded US companies that the EU remains one of the “biggest markets for Big Tech.”
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