In a significant development, it has been reported that a substantial number of employees at a renowned tech legislation office in the United States have been laid off. Sources familiar with the situation revealed that approximately one-third of the workforce at the U.S. Commerce Department office, responsible for managing a substantial $39 billion in manufacturing subsidies for chipmakers, were let go this week. Despite requests for comments, the Commerce Department has remained silent on the matter.
This news comes in the wake of recent reports by Reuters indicating that the newly-appointed Trump administration is in the process of reviewing the projects sanctioned under the 2022 U.S. CHIPS Act. This legislation was designed to bolster domestic semiconductor production in the U.S. through the provision of grants and loans to various companies within the chip industry.
According to insiders who preferred to remain anonymous, around 40 employees were terminated on Monday. These individuals, who were on probationary status, reportedly received termination emails around 2 p.m. EST and were escorted out of the premises by 4 p.m. One source also disclosed that an additional 20 staffers had departed the previous week as part of the government’s deferred resignation program.
Adding to the turbulence within the office, Todd Fisher, the chief investment officer, tendered his resignation last week as well, as per an email obtained by Reuters. Another source familiar with the situation indicated that Fisher’s resignation had been planned over the past few months.
This development has left many within the industry and the affected office reeling from the sudden and drastic changes. The repercussions of these layoffs are likely to reverberate through the tech sector and raise concerns about the future of the projects and initiatives managed by the office. Further updates on this unfolding situation are eagerly awaited by all stakeholders involved.
(Reporting by Karen Freifeld, David Shepardson, and Alexandra Alper; Editing by Paul Simao)
