HR News: Uber Puts Diversity Chief on Leave, Scary Stats about Recession, No Coverage for Ozempic, and More Layoffs
HREN News Roundup for the Week of 5/22
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This is a weekly roundup of the latest in HR News.
Human Resources has been putting out many fires lately, and this week is no different. Uber put its diversity chief on leave for a controversial, tone-deaf session she hosted, which drew criticism from employees. Wall Street economists have dire warnings about a potential recession for which HR must brace itself. Employers, who are tightening their belts in anticipation and fending off rising healthcare bills, are denying coverage of Ozempic and other expensive weight-loss medication. Of course, there are also more layoffs, this time at First Citizens Bank and Meta again.
Uber DEI Chief Put on Leave
Bo Young Lee, head of diversity, equity, and inclusion (DEI) at Uber, was put on leave after hosting the session "Don't Call Me Karen," which was part of a series of programming about race, gender, identity, and class. Employees, especially those from underrepresented groups, felt the conversation was misguided and tone-deaf because it made those who tend to have privilege seem like victims, rather than lifting up those who have truly suffered because of systemic racism and other institutional discrimination.
CNN Business explained how the premise of the session was problematic from the start.
"'Karen' is a slang term that usually refers to a middle-aged, white woman with a strong sense of entitlement, often at the expense of people of color."
Joining Uber in 2018, Lee is the first head of diversity at the company.
Even a Mild Recession Would Be Devastating
Bloomberg surveyed Wall Street economists about what to expect if a mild recession hits the United States. The respondents warned that it would happen when the gross domestic product contracts beginning in the third quarter. Two consecutive quarters of contraction are the mark of a recession. If this plays out, then the economy would lose 1.7 million jobs in the next year, and unemployment would rise to more than 4%. This is nothing compared to the damage that would happen if Democrats and Republicans fail to reach an agreement, and the United States defaults on its debts in early June.
Employers Avoid Covering Weight-Loss Meds
Weight-loss medication like Ozempic is gaining popularity among Americans because social media and celebrities have been singing its praises. However, this medication is expensive. Ozempic costs upward of $900 per month and similar drugs like Wegovy can cost more than $1,000 for a 30-day supply, according to the Wall Street Journal.
As a result of the prohibitive cost and the fact that companies are tightening their belts ahead of a possible recession, many are adding extra requirements to qualify for approval. In addition, general healthcare costs are rising. The fact is that doctors have traditionally prescribed these drugs to control diabetes and not for weight loss, which provides grounds for denial.
Employees are arguing that this is a matter of pursuing good health, which is something that HR has agreed to support. In fact, obesity increases medical costs by $1,861 per person, according to a study cited by WSJ.
More Layoffs
Although there have been fewer layoffs in the past couple of weeks, there are still people losing their livelihood. Most recently, First Citizens Bank cut 500 Silicon Valley Bank jobs. These cuts mostly impacted SVB's commercial banking business. They come after First Citizens Bank bailed out SVB after it collapsed as a failed lender.
In addition, Meta, the parent company of Facebook, began its fourth round of layoffs as part of what CEO Mark Zuckerberg is calling the Year of Efficiency, according to CNBC. This time around the cuts mostly impacted those in business groups. Along with the layoffs in April, these will account for 10,000 jobs.
These layoffs might be helping Meta. In April, the company announced that first-quarter revenue rose 3% from $27.91 billion a year earlier after three stright periods in which it declined. Also, shares rose 180% to $246.74 since hitting a low of $89 in November.
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