Welcome back! President Donald Trump said that he plans to impose 25% tariffs today on imports of steel and aluminum. Gold hit a record high following the news, while some related currencies softened against the dollar. US futures are rising in premarket trading.
In today’s big story, Meta employees impacted by its performance-based cuts are getting notified today.
What’s on deck
Markets: Palantir and retail investors are a match made in heaven.
Tech: Consulting executives told us the prompts they use to get the most out of AI.
Business: The billionaire heirs desperate to give away their money.
But first, a “reduction of force.”
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The big story
A culling of the herd
Chris Unger/Zuffa LLC via Getty Images
The day after the Super Bowl is always tough at work, but it’s about to be particularly hard for some Meta employees.
Today Meta is starting to notify workers impacted by its performance-based job cuts. Less than a month ago, CEO Mark Zuckerberg told employees the tech giant was firing 5% of its entire workforce to speed up how quickly it got rid of low performers. (He wasn’t that blunt, but the point stands.)
Business Insider’s Jyoti Mann got the internal memo detailing how the cuts will work. When it’s all said and done, some 4,000 Meta workers are expected to be shown the door.
Jyoti, Pranav Dixit, and Hugh Langley spoke to some employees about the vibes inside Meta leading up to the cuts — “feels like living in a George Orwell novel,” one worker said — along with how they play into Meta’s broader reorganization efforts.
The layoffs come as Meta has made some other seismic shifts. From overhauling its content moderation system and nixing DEI programs to doubling its investment in AI, Meta hasn’t wasted time in what Zuckerberg has said will be an “intense year.”
Coincidentally, Meta employees are having their own issues with content moderation. Some workers have questioned Meta’s removal of posts and comments from its internal forum. Meta’s Community Engagement Expectations restrict mocking protected categories like race, but some employees accused the tech giant of censoring valid discussions.
Internal drama isn’t the only problem Meta is facing. The fight for AI dominance is heating up and getting more expensive. Meta expects its capital expenditure to be as high as $65 billion this year, about double what it spent in 2022.
Meta’s push for open-source AI models also contradicts what some of its competitors are doing, which could either boost it or backfire.
News brief
Top headlines
- Nike made a surprise comeback at the Super Bowl — and JPMorgan analysts broke the news.
- The CFPB says it’s shutting down its DC headquarters and has instructed employees to work remotely.
- Fido’s RTO blues: America’s pets are heartbroken over the end of WFH.
- Trump is instructing the Treasury to stop making new pennies.
- Behind the scenes, corporate America is scrambling to stop Trump’s deportation plans.
- Elon Musk says former DOGE staffer who made ‘inappropriate’ remarks will be rehired after polling X users.
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A jump in delinquencies in a corner of the mortgage market suggests first-time homebuyers may be struggling.
3 things in markets
Kevin Dietsch/Getty Images; Rebecca Zisser/BI
1. Palantir + retail investors = big returns. CEO Alex Karp doesn’t fit the Wall Street mold, so it’s not surprising his approach to investors doesn’t either. Instead of the IPO route, Palantir went for a direct listing, and — during earnings calls — Karp often prioritizes retail investor questions. These mom-and-pop investors are reaping the rewards, with the stock up more than 47% this year.
2. The White House’s opening pro-crypto move. AI and crypto czar David Sacks announced on Tuesday that the Trump administration has prioritized a federal stablecoins bill. Stablecoins, which are cryptos pegged to fiat currencies, could help ensure US dollar dominance, a crypto expert told BI. That’s because about 98% of the stablecoins are tied to the greenback.
3. The investor gold rush amid Trump-era policies. Trump’s administration has spurred trade and geopolitical uncertainty, so investors are flocking to the yellow metal as a safe haven. Gold hit a record high today after Trump on Sunday threatened steel and aluminum tariffs. Ahead of Trump’s comments, IGN said it had expected gold to reach $3,000 an ounce this quarter.
3 things in tech
Getty Images; Jenny Chang-Rodriguez/BI
1. Rise of the (VC-backed) robots. A few startups are building autonomous robots, with some US companies securing up to $150 million in funding. The robots use AI and spatial intelligence to do everything from making coffee to helping with surgery. BI found 12 businesses to watch.
2. X has a new adtech partner. Elon Musk’s company is working with Magnite, a supply-side platform that helps publishers manage and sell advertising. X has been working to reverse the losses it took when many advertisers left the platform in 2022, though Musk’s beef with them is still going strong.
3. How McKinsey and the Big Four use AI. BI asked execs at five big consulting firms — McKinsey, PwC, KPMG, EY, and Deloitte — their best tips for using AI in everyday work. They told us their favorite prompts and advice for getting the most out of the tech.
3 things in business
Fromm Studio for BI
1. These wealthy heirs want to divest — from themselves. One conference is helping rich — and mostly young — people grapple with their identities and redistribute their funds to causes that matter. The up-and-coming millionaires and billionaires are also finding community (albeit a small one) along the way.
2. Are we making eggs-cuses for all these price hikes? Most people know that egg prices have skyrocketed lately, in part because bird flu has decimated the egg-laying hen population. But when customers are primed to expect price hikes, some retailers can hike prices beyond what’s really necessary. Are retailers surcharging to stay afloat, or is there a bit of fowl play at work?
3. RTO FAQs. If you’re one of the tens of thousands of Americans recently affected by an order to return to the office, fear not. BI has assembled a guide to help you prepare, including commute planning and deciding what to wear.
In other news
What’s happening today
- China imposes retaliatory tariffs on US goods.
- McDonald’s reports earnings.
