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North American Edition
29th July 2026
 
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THE HOT STORY

Union sues EEOC over class action freeze

The American Federation of Government Employees (AFGE), representing around 800,000 federal workers, has filed a lawsuit against the Equal Employment Opportunity Commission (EEOC) for suspending all class action federal-sector cases. The lawsuit, lodged in the U.S. District Court for the District of Columbia, claims that the EEOC violated the Administrative Procedure Act by halting the processing of these cases. The action is part of the union's ongoing efforts to counter what it perceives as destabilizing actions by the Trump administration against the federal workforce. As a result of the freeze, administrative judges are unable to certify lawsuits, set hearings, or provide classwide relief.
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WORKFORCE

Visa to cut 2,600 jobs as AI reshapes payments industry

Visa is cutting 2,600 jobs, around 7% of its global workforce, as the payments giant restructures to adapt to rapid changes in the industry driven by AI and new payment technologies. Most of the reductions will be in its technology and product teams, although cuts will affect the wider organisation. Chief executive Ryan McInerney said AI is accelerating changes in how work is carried out at Visa and described the current technological shift as a "once-in-a-lifetime inflection point" for the payments industry. The restructuring comes as the sector adapts to emerging technologies such as stablecoins and agentic commerce, which could reshape traditional card payments.

AI takes over call center jobs

The rise of AI is significantly impacting call center jobs globally, with companies like Commonwealth Bank of Australia and Microsoft Corp. leading the charge in automation. Forrester analyst Kate Leggett noted that "almost half of customer service roles will be impacted by 2030." Major corporations are increasingly deploying AI tools to reduce labor costs, with Microsoft saving approximately $750m annually in customer service expenses. As a result, many workers, particularly in countries like the Philippines, face job insecurity. While some companies claim to avoid mass layoffs, the trend towards automation is undeniable, with firms like Brink's Home Security reducing their workforce from 800 to 400. The shift towards AI in customer service is reshaping the industry, leaving many workers anxious about their future.

BuzzFeed slashes workforce by 35%

BuzzFeed is undergoing a significant restructuring, cutting approximately 35% of its workforce, which translates to about 180 staff and contract positions across BuzzFeed, HuffPost, and Tasty. The layoffs were announced in a Securities and Exchange Commission filing and are part of efforts to achieve "profitable and sustainable growth," according to the company's leadership. This restructuring follows Byron Allen's acquisition of a majority stake in BuzzFeed for $20m in cash and a $100m promissory note. Despite a reported $15m net loss in the first quarter, BuzzFeed aims to enhance its audience and strengthen its position in free streaming content. The company is set to release its second-quarter results on August 4.

Haitian workers face job uncertainty

Thousands of business owners in the U.S. are grappling with uncertainty regarding work permits for Haitian employees with Temporary Protected Status (TPS). Bobby Kuchinsky, a restaurant manager, suspended six Haitian workers after their work permits were invalidated. The Trump administration's termination of TPS for about 350,000 Haitians has left many facing potential deportation. “Each day feels like the last day,” said a TPS holder, highlighting the fear of returning to Haiti, where gang violence is rampant. The Department of Homeland Security stated that TPS was meant to be temporary, urging Haitians to apply for a “free flight home.” As businesses struggle to adapt, Robert Dominguez from Engage PEO noted that “it’s hard for employers to keep up with the government’s changes.”

Chicago Public Schools reverses furlough plan amid backlash

Chicago Public Schools (CPS) has decided against furloughing staff for five days in the upcoming school year, a reversal prompted by significant pushback from staff unions and the public. Superintendent Macquline King said: “We have worked to listen to as many CPS voices as possible,” emphasizing the need to alleviate potential disruptions to the school year. The district is now relying on increased funding from special taxing districts to balance its budget, which still includes over 1,500 layoffs and a midyear spending freeze. The school board is set to approve the budget soon, with CPS expecting to receive $285m from these districts, up from an initial estimate of $200m. However, uncertainty remains about the availability of funds as the city prepares its budget.
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LEGAL

Drivers sue Papa John's over wages

Another class-action lawsuit has been filed against PJIOWA, a Papa John's franchise in Iowa, alleging that food-delivery drivers are paid less than the minimum wage due to inadequate reimbursement for vehicle expenses. The lawsuit claims that while the average cost of operating a vehicle is between 77 cents and 82 cents per mile, PJIOWA reimburses drivers only 35 cents per mile, in addition to a base pay of $5 per hour, which includes a tip credit. Christina Knox, a named plaintiff, states that her net wages have decreased by approximately $6.30 per hour due to these policies. The lawsuit asserts that all delivery drivers at PJIOWA have faced similar issues, leading to potential minimum-wage violations. PJIOWA has not yet responded to the lawsuit but has previously denied similar allegations.

Lawsuit challenges EEOC's suspension order

Two female prison employees, Deanna Chelette and Alexzandria Boyd, along with the American Federation of Government Employees, have filed a lawsuit against the Equal Employment Opportunity Commission (EEOC) for unlawfully halting their sexual harassment case. The lawsuit claims that the EEOC's indefinite suspension of federal-sector class complaints violates its own regulations, leaving the plaintiffs vulnerable to ongoing harassment. Joseph Sellers, co-chair of Cohen Milstein Sellers & Toll's civil rights and employment practice, stated, “Without an explanation, it's hard to infer what the EEOC's intentions behind this were.” The case highlights broader concerns about the EEOC's recent changes in civil rights enforcement priorities under Chair Andrea Lucas.
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DIVERSITY, EQUITY & INCLUSION

Diversity in boardrooms hits new low

A recent analysis by Spencer Stuart reveals that corporate boardroom diversity among S&P 500 companies has fallen to its lowest level in over a decade. The report indicates that diverse board appointments peaked at 72% in 2021 but have since declined, with diverse directors currently holding 49.3% of board seats, down from a record 49.6% in 2024. George Anderson from Spencer Stuart noted that boards are reacting to evolving legal and political pressures, particularly following a landmark 2023 Supreme Court ruling against considering race in college admissions. This shift has led many companies, including Meta and Google, to abandon diversity, equity, and inclusion (DEI) initiatives. In contrast, Costco has maintained its DEI policies, stating, “We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed.” The analysis was based on data collected from 488 companies between May 1, 2025, and April 30, 2026.
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REGULATION

Tech workers urge AI brakes

More than 1,100 employees from Meta, Anthropic, OpenAI and Google have called on the U.S. government to support international tools for controlling the pace of advanced artificial intelligence development. The Pacing the Frontier initiative argues that increasingly powerful systems could outstrip existing safety, governance and oversight mechanisms. Its statement requests tools to “deliberately pace the frontier of automated AI development.” Signatories include Anthropic chief executive Dario Amodei, OpenAI chief scientist Jakub Pachocki and Meta AI research executive Dawn Song. OpenAI and Anthropic acknowledged that rapid advances and recursive self-improvement may eventually require coordinated limits, while Nvidia separately formed an industry coalition focused on AI safety and cybersecurity following concerns about autonomous agents.
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PRODUCTIVITY

AI tokenmaxxing hits a wall

The trend of "tokenmaxxing," where companies maximize the use of AI tokens, is facing backlash as costs rise without a corresponding increase in productivity. Vincent Gusdorf, head of AI analytics at Moody's Ratings, said, "It's very easy to create something you don't need with AI." Initially celebrated in Silicon Valley, high token consumption is now seen as a financial burden, with Microsoft chief executive Satya Nadella warning that customers are paying twice for AI. Many companies are now reassessing their AI investments, with Bain & Company consultant Jue Wang noting that token costs have been doubling frequently. As firms seek more efficient AI solutions, the focus is shifting towards better "routing" of AI tasks to optimize costs. Open-source alternatives from Chinese startups are also gaining traction, offering similar capabilities at lower prices. Raffi Krikorian, chief technology officer at Mozilla, remarked that the industry is realizing "tokenmaxxing is a dumb thing," suggesting a shift in perspective on productivity metrics.
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WORKPLACE

Why return-to-office policies backfire

The return-to-office debate has intensified as many employees feel that their employers' mandates are more about surveillance than collaboration. A recent EnhancV survey revealed that 72% of workers suspect these policies are a strategy for voluntary attrition. Gleb Tsipursky, Ph.D., noted that "attendance can be mandated, but commitment cannot." The research indicates that rigid office policies can lead to higher turnover rates, particularly among skilled workers. Flexibility has become essential, with studies showing that hybrid work improves job satisfaction and reduces quit rates. Companies must create meaningful reasons for in-office work, focusing on mentorship and innovation, to retain talent and foster a positive workplace culture.
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INTERNATIONAL

U.K. job market shifts as AI rises

Data from Employment Hero suggests U.K. hiring is shifting towards practical and technology-led roles as businesses cut costs and adopt AI. Construction employment rose 2.1% in June and 8.1% over three months, while manufacturing increased 4.7% monthly and 9.3% annually. Education roles grew 4.4%, and science and technology recorded the strongest monthly rise at 5.7%. Kevin Fitzgerald, Employment Hero’s U.K. managing director, said many young people were “changing tack” towards vocational careers and apprenticeships. By contrast, accountancy employment fell 6% over three months, banking declined 5.7%, and administrative roles slipped 0.3% in June. Automation, economic pressure, political uncertainty and skills shortages are contributing to weaker recruitment in finance and office-based work.
 
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