Archives for March 2021

Nokia to cut up to 10,000 jobs to ramp up R&D in 5G race

HELSINKI (AP) — Wireless network maker Nokia says it is planning to cut up to 10,000 jobs, or over 10% of its staff, to reduce costs as it invests in research and development and tries to cement its role as a key supplier of 5G technology.

The restructuring means the number of staff is expected to fall to 80,000-85,000 employees over a period of up to two years, Nokia said on Tuesday. It should reduce costs by 600 million ($715 million) by 2023.

The Finnish company didn’t specify countries or geographical areas affected by the measure but said the cuts would be carried out across its main four business units.

“Decisions that may have a potential impact on our employees are never taken lightly,” Nokia CEO Pekka Lundmark said in a statement. “Ensuring we have the right setup and capabilities is a necessary step to deliver sustainable long-term performance.”

The company based in Espoo, Finland, said the expected savings would “offset increased investments in R&D, future capabilities and costs related to salary inflation.”

Apart from increasing investments in 5G – the new generation of broadband technology where Nokia competes with China’s Huawei and Sweden’s Ericsson and lately also with South Korea’s Samsung – Nokia said it would also invest in cloud and digital infrastructure.

“In those areas where we choose to compete, we will play to win. We are therefore enhancing product quality and cost competitiveness, and investing in the right skills and capabilities,” Lundmark said.

On Monday, Nokia announced separate deals on partnerships with Amazon, Google and Microsoft to develop cloud technologies and build cloud-based 5G solutions for businesses.

Lundmark, a former executive with the company in the 1990s, took over Nokia’s top spot in August, and has said he aims to make Nokia the leader in 5G, even at the expense of the company’s profitability in the short-term. In a period of six months he has revamped the company’s strategy and organisation.

Battling bigness: Congress eyes action against monopolies

WASHINGTON (AP) — The battle against bigness is building. Whether it’s beer, banks or book publishing, lawmakers are targeting major industries they say have become so concentrated that they’re hurting competition, consumers and the economy.

The economic dislocation of the pandemic has laid bare the struggles of small businesses unable to compete with corporate giants that have been able to capitalize on the new order. Experts and lawmakers are throwing out stunning stats:

The four biggest airlines control about 65% of U.S. passenger traffic, five giant healthcare insurers control an estimated 45% of the market, pharmaceuticals are dominated by three major companies, the top four banks control about 44% of the market, the so-called Big Five book publishers control some 80% of the U.S. book market, and Google alone accounts for about 90% of web searches worldwide.

Beer and a burger? Four companies are estimated to control 80% of U.S. meat-packing; the top four brewers and importers control about 76% of the U.S. beer market.

Congress, federal regulators and states had already been putting Big Tech companies under intense scrutiny for nearly two years and even suing some for antitrust. Now with Democrats in the majority in Congress and President Joe Biden seemingly prepared to act on an anti-monopoly agenda, the focus is widening to the rest of corporate America.

Critics say the corporate concentration is quickening, limiting consumers’ choices, raising prices and eroding service.

Sen. Amy Klobuchar, D-Minn., has put forward expansive legislation to overhaul antitrust law. It would make it harder for dominant companies to win regulators’ approval of mergers and stretch the government’s authority over competition in other ways. Klobuchar, who heads the Senate Judiciary subcommittee on competition policy, has launched a broad examination by the panel of monopoly concerns.

“At stake is nothing less than the future of our economy and the way of life that it supports,” Klobuchar said at the panel’s first hearing last week. “This is about saving capitalism and building an economy that works for all Americans.”

At the extreme, experts don’t expect the antitrust push to force breakups of big corporations, as is being called for by many critics of Big Tech. But legislative success could make it harder for the companies to make new acquisitions and shift the burden to them to prove that a given merger would be good for consumers. Right now the onus is on the government to prove a merger would be bad.

On Tuesday, the Federal Trade Commission singled out one industry, Big Pharma, to be subjected to a tougher stance on weighing proposed mergers. Citing proliferating mergers and “skyrocketing” drug prices, new acting FTC chair Rebecca Kelly Slaughter said, “It is imperative that we rethink our approach toward pharmaceutical merger review. We intend to take an aggressive approach to tackling anticompetitive pharmaceutical mergers.”

The current drift toward bigness began with a merger boom in the 1980s in corporate America that fattened profits for the dominant companies. Decisions by both Democratic and Republican administrations over the past 15 years have allowed most big mergers to sail through.

With anti-monopoly sentiment having a moment, some observers see possible bipartisan agreement on new legislation, with Klobuchar’s blueprint a likely starting point to be pushed and pulled. Democrats are mindful that the Senate is split 50-50 with Republicans, and their one-vote margin depends on a tiebreaker by Vice President Kamala Harris. That dictates reaching for compromise, as it would likely take the support of at least 10 Republicans to make new antitrust law.

“We have a monopoly problem in the U.S.,” said Allen Grunes, who led merger investigations at the Justice Department as an antitrust attorney. “It’s not going to be perfect; it’s not going to be easy. But I think there’s a reasonable chance of bipartisan agreement.”

“Is it a tweak or is it a big reform? Something’s going to happen,” said Grunes, now an attorney with Brownstein Hyatt Farber Schreck in Washington.

George Hay, a law professor and antitrust expert at Cornell University, wonders, “God knows what somebody’s going to tack onto it. It opens up the floodgates.”

Republicans express concern over runaway concentration of corporate power and stress their belief in competition to keep the economy vibrant. But hold on, some are saying, let’s not punish bigness for its own sake; better to look at each case individually. They say big companies can bring efficiencies of scale, reduce prices and create jobs.

Industry executives can be expected to make similar arguments when they weigh in on Klobuchar’s legislation at upcoming hearings and mount a lobbying blitz. So far Corporate America hasn’t spoken out publicly on the new antitrust initiative.

Republican lawmakers are denouncing a new school of antitrust thought, gaining currency among Democrats, that looks beyond the impact of big-company market dominance on consumer prices to its broader effects on industries, employees and communities.

Biden has named a legal scholar who’s an adherent of this school, called “hipster antitrust” by its detractors, as a top presidential adviser on competition. And he’s expected to name another to a seat on the Federal Trade Commission; the moves signal a possibly tough stance for Biden on antitrust. He said as a candidate that breaking up Big Tech companies was something that should be considered.

With this approach, Democrats are seeking to use antitrust law not to promote competition but to advance social or environmental goals, the Republicans contend.

“What we need now is not a sweeping transformation of the antitrust laws,” Sen. Mike Lee of Utah, the Judiciary panel’s senior Republican, said at the hearing. “Rather, this moment calls for … (federal) agency leaders with the resources and the will to vigorously enforce the laws we have.”

As a moderate Democrat, Klobuchar may be looking to try on Republican President Teddy Roosevelt’s “Trustbuster” mantle. Her book coming out next month is titled “Taking on Monopoly Power from the Gilded Age to the Digital Age.”

Sen. Dick Durbin, D-Ill., predicts: “A runaway bestseller.”

Follow Marcy Gordon at https://twitter.com/mgordonap

Inflation: The retirees’ biggest enemy

Many, if not most, career federal and postal workers will retire with a decent annuity, indexed to inflation. In many respects, it will be superior to what their private sector counterparts get or will get. Few, if any, non-governmental employers still offer pensions. And those who do don’t provide any inflation protection. Feds by contrast have some or almost total protection. Those under the old Civil Service Retirement System (CSRS) get a cost of living adjustment (COLA) each January based on the rise in living costs as determined by the Bureau of Labor Statistics. Many feds believe using the CPI-W short changes retirees because it doesn’t take into account increases in medical costs. Workers retiring under the newer Federal Employee Retirement System (FERS) are under a diet-COLA formula. If inflation is 2 percent or less they get a full COLA. If inflation is higher retirees get a COLA minus one percent. Better than most private plans, but still a problem.

Over an extended period of retirement — 20, 30 or 40 years — inflation can and will go up. A lot! Even with inflation “protection.” And that, overtime, can eat into the purchasing power of your annuity. We’ve been in a period of low inflation for some time. But many experts expect that to change as more stores open up, more people resume pleasure traveling and rush hour returns. Some are predicting $4-to-5 per gallon gasoline is in our not too different future. If you’ve been retired, you know what inflation can do. If you are planning on retiring later, you should figure it out.

Chart via the Bureau of Labor Statistics

Tammy Flanagan is an expert on the CSRS and FERS programs and she’s our guest on today’s episode of Your Turn at 10 a.m. EST. You can listen here or on the radio in the D.C area at 1500 AM. She recently got an email from a fed named Bill. He is concerned about inflation and says it is important for Congress to act on a proposal from the National Active and Retired Federal Employees that all retired feds get COLAs that actually reflect the true cost of inflation each year. To illustrate the ups and downs of inflation, Tammy cited this official government inflation tracker with the explanation, “I think that this chart says it all about 2020.”

We’ll also be talking about the 7 deadly sins you should avoid in planning your retirement. They are:

Expecting OPM and HR to plan your retirement / Know when and who to ask for help when planning your retirement!
- OPM doesn’t give advice, but they administer your retirement and insurance after your retirement is effective (not while you are an employee)
- HR offices don’t (shouldn’t) provide advice, but their job is to provide you with education and information about your federal retirement benefits so that you can make informed elections. Some HR offices are staffed with experienced, knowledgeable, and helpful personnel and some are not.
- The TSP website and the Thriftline are designed to provide education and information about the TSP however, they are also not in the business of providing financial planning or tax advice.
- The Social Security Administration provides assistance with claiming benefits and understanding your entitlement to the various benefits for workers and eligible family members. They also are not in the business of providing financial planning advice.
- You may need help from other professionals when you are ready to make important and sometimes irrevocable retirement decisions:
  - Federal benefits subject matter expert if not available at your agency
  - Financial Advisor
  - Tax Advisor
  - Estate Planning Attorney
- Disregarding tax consequences and not taking advantage of tax strategies.
  - Could You Be Paying Too Much in Taxes in Retirement?
  - Tax Planning for and during retirement is the second most overlooked area in developing a financial plan for Federal Employees.
  - Many federal employees assume that their taxes are going to be lower in retirement.
  - Most Feds put the majority of their retirement savings in tax-deferred accounts, like the TSP or Individual Retirement Arrangements (IRA).
  - Learn how much of your retirement income will be subject to federal (and state, if applicable) income taxes.
  - The IRS has a calculator to help you estimate your federal income tax and information for retirees.
- Ignoring the differences between your “Leave” Service Computation Date and your “Retirement” Service Computation Date.
  - Service that counts for leave accrual is not always credited for retirement eligibility and computation.
  - Military service is credited generally only if deposit is paid.
  - Changes in work schedule can impact retirement eligibility and computation.
  - Your retirement service computation date is often not computed until you file your retirement application; learn how to have this done earlier.
  - Employees who were hired between 1984 and 1987 as well as those who returned to federal service after 1983 after a break in federal service are among those who may have an error in their retirement coverage.
  - Learn what you can do to be sure your service is creditable and adequately documented.
- Misjudging the timing and processing of your retirement claim
  - Allow enough time for your HR and Payroll office to do their part of your retirement processing.
  - The transition from employee to annuitant involves a paper-based processing system that can take months for adjudication.
  - Botching the CSRS or FERS retirement application by using white out, cross outs, or not answering all of the questions.
  - Learning the best order to turn on your retirement benefits. FERS is a 3-tiered retirement system: government pension, Social Security and Thrift Savings Plan. You don’t have to turn on all three benefits at the same time.
- Ignoring the need to have a long-term care plan
  - What is the best time to plan for the future needs of long term care?
  - Does everyone need long term care insurance?
  - What does it mean to be self insured?
- Neglecting to Plan for the inevitable
  - Erring when planning for a current spouse’s financial security.
  - Underestimating the value of the spousal survivor benefit election, if married.
  - Failing to understand the court order requirements for a former spouse.
  - Forget to keep beneficiary designations updated.
  - Overlook the standard order of precedence as an option instead of designating named beneficiaries.
  - Having too much or not enough life insurance.
  - Canceling basic life insurance is not a great idea.
  - You may be paying too much for life insurance.
- Failing to take advantage of annual open seasons to change health plans to meet your changing needs
  - You may be in the wrong health plan if you are over age 65.
  - Retirement can last a long time, learn how Medicare works with your FEHB plan.
  - What health plans work for families with different needs for healthcare.
  - A high deductible health plan can save you money if you understand how to make the most of a health savings account.

Nearly Useless Factoid

Bats are the only flying mammal. While the flying squirrel can only glide for short distances, bats are true fliers. A bat’s wing resembles a modified human hand — imagine the skin between your fingers larger, thinner and stretched. This flexible skin membrane that extends between each long finger bone and many movable joints make bats agile fliers.

Source: Interior Department

Ford partners with U-M on robotics research, new building

ANN ARBOR, Mich. (AP) — Digit marches on two legs across the floor of the University of Michigan’s Ford Motor Co. Robotics Building, while Mini-Cheetah — staccato-like — does the same on four and the yellow-legged Cassie steps deliberately side-to-side.

A grand opening was held Tuesday for the four-story, $75 million, 134,000-square-foot (11,429-square-meter) complex. Three floors house classrooms and research labs for robots that fly, walk, roll and augment the human body.

On the top floor are Ford researchers and engineers and the automaker’s first robotics and mobility research lab on a university campus.

Together, they will work to develop robots and roboticists that help make lives better, keep people safer and build a more equitable society, the school and automaker announced Tuesday.

“As we all drive and use our vehicles and go about our day-to-day lives, I’m sure all of us have moments in our day where we could use a little help or a little assistance,” said Ken Washington, Ford’s chief technology officer.

“We are going to be working on drone technology, walking robots, roving robots, all types of robots in this facility and the ways in which they can make people’s lives better,” Washington added. “And we’ll do it in a way that addresses questions and fears around safety and security. The more people see how these robots can interact with society and interact with humans, the more comfortable they’ll get with them.”

The building on the university’s Ann Arbor campus brings together researchers from 23 buildings and 10 programs into one space. Those working on two-legged disaster response robots can test them on a 30-mph (48-kph) treadmill studded with obstacles or on a stair-stepped “robot playground” designed with the help of artificial intelligence.

Biomedical engineers are looking at developing lighter, more stable prosthetic legs. Ford engineers are exploring how upright Digit robots can work in human spaces.

“We want them to be able to operate in realistic situations … you get out in the real world where there’s rolling, twigs,” said Jessy Grizzle, the Robotics Institute director. “There’s rocks. There’s boulders. There’s holes that you can’t see because the grass is cut flat, and then you want your robots to respond well and stay upright just like a human would.”

Dearborn, Michigan-based Ford and other automakers are investing billions of dollars in autonomous vehicles. and robotics is expected to play a major role in their development. Ford announced in February that it was autonomous vehicle investment to $7 billion, from sensing systems to specific research into applications such as Digit, a spokesman said.

In November, Ford revealed plans to transform a long-vacant Detroit book warehouse into a hub for automobile innovation. Detroit’s Corktown neighborhood is the site of Ford’s planned $740 million project to create a place where new transportation and mobility ideas are nurtured and developed.

People one day may see a robot similar to Digit emerge from a driverless vehicle, stroll across their lawn and leave a package at the door of homes in their neighborhood, according to Washington.

“This is an exciting proposition, especially in this post-COVID era where the promise of doing shopping online has become just sort of the norm,” he said. “As you think about a future where package delivery is going to be part of daily life, this is a real opportunity for us to pair a robot with an autonomous vehicle to help solve the problem of package delivery at scale.”

“It’s not here today, but you can be pretty certain that it’s coming in the not-too-distant future,” Washington said.

Researchers working together in the building are designing robots for people, said Alec Gallimore, dean of Engineering at the University of Michigan.

“Robots aren’t people and people aren’t robots, but we think — together — there can be synergy,” Gallimore said. “So, we’re designing robots that are going to help you. First responders for example. Can we put robots in harm’s way so we don’t have to have people there?”

Ford contributed about $37 million to the cost of the robotics building which also features a three-story, indoor fly zone to test drones and other autonomous aerial vehicles indoors; a yard designed with input from scientists at the university and NASA to test vehicles and landing concepts on a landscape mimicking the surface of Mars.

The University of Michigan and Ford also are working with two historically Black colleges in Atlanta, Morehouse and Spelman, allowing students there to enroll remotely in a pilot robotics course.

Vikings continue defense revamp, release DT Shamar Stephen

MINNEAPOLIS (AP) — The Minnesota Vikings released defensive tackle Shamar Stephen on Tuesday, continuing the overhaul of a front four that fell off badly last season.

Stephen’s departure will clear $3.75 million in space under the salary cap for 2021 for the Vikings, who will carry about $1.33 million in dead money for unaccounted-for bonus proration.

Stephen signed a three-year contract as a free agent in 2019 with a $4 million signing bonus. The Vikings agreed to terms on Monday with his replacement, former New York Giants starter Dalvin Tomlinson.

Drafted in the seventh round by the Vikings in 2014, Stephen spent just one season with Seattle before returning to Minnesota. He was a coaching staff favorite for his fundamentals and toughness, but he didn’t make much of an impact with his expanded role the past two years. Stephen was brought in to play the 3-technique tackle spot, but in 2020 when Linval Joseph was released and replacement Michael Pierce opted out of the season because of COVID-19 concerns, Stephen was moved to nose tackle.

With Stephen out and 3-technique starter Jaleel Johnson becoming an unrestricted free agent, the Vikings will have a new look in the middle in 2021. Defensive end Ifeadi Odenigbo will be a restricted free agent. Star defensive end Danielle Hunter is on track to return after missing last year with a neck injury and Pierce is expected to make his delayed debut in purple, but there is more work to be done. The Vikings ranked 27th in the NFL in rushing yards allowed per game in 2020.

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More AP NFL coverage: https://apnews.com/hub/NFL and https://twitter.com/AP_NFL

Archives for March 2021

Nearly Useless Factoid

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