
Mass layoffs at Veteran Affairs dept soon? Thousands of jobs to be shed by end of this fiscal year
VA to cut nearly 30,000 jobs
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
The Department of Veteran Affairs has taken a U-turn and has dropped plans to lay off tens of thousands of personnel in August, a news release from the department indicated Monday. It announced on Monday it is walking back plans for mass layoffs at the agency but says it will still shed tens of thousands of jobs by the end of fiscal year 2025, reports CNN. A reduction of 30,000 employees constitutes about 6.2% of the VA's workforce, based on 484,000 total VA employees as of January 1, 2025.The VA is scrapping those plans for now, but it is on pace to reduce the total number of staffers by nearly 30,000, 'through the federal hiring freeze, deferred resignations, retirements and normal attrition,' the agency said in a news release, adding that those cuts will eliminate 'the need for a large-scale reduction-in-force.'It was reported in March that VA leadership outlined a plan to shed more than 76,000 workers as part of the Trump administration's widespread efforts to reduce the federal workforce. The department originally planned to reduce its staff to 2019 levels, or just under 400,000.The VA said in its release that it had "roughly 484,000 employees on Jan. 1, 2025" — meaning the initial plans would have required the VA to cut upwards of 80,000 jobs.As for next year, VA press secretary Peter Kasperowicz said, 'VA is not planning to make any other major changes to staffing levels beyond those outlined in the release.'The release insists the reductions 'do not impact Veteran care or benefits.' 'All mission-critical positions are exempt' from the deferred resignations and voluntary early retirements, the agency said.'A department-wide RIF is off the table, but that doesn't mean we're done improving VA. Our review has resulted in a host of new ideas for better serving Veterans that we will continue to pursue,' Collins said in the statement.The US Veteran Affairs Department will make two-thirds fewer employee cuts this fiscal year than it first targeted. This means it will reduce staff by about 30,000 rather than 80,000, the agency said, reported news agency Reuters.At the start of the Trump administration, the agency employed about around 4,80,000 and it and expects to end the fiscal year in September with nearly 450,000 staff. Under President Donald Trump's program to downsize the federal government, the agency had planned to reach just under 400,000 employees which attracted widespread condemnation from military veteran groups and Democrats.The agency said in a statement it was on pace to reduce its staff "through the federal hiring freeze, deferred resignations, retirements and normal attrition." It did not say why it no longer needed to make further cuts.The initial layoff plan was significantly larger than job cuts proposed at other federal agencies — a move that could have backfired politically for Trump, who brands himself as a staunch defender of the U.S. military and veterans. Between January and June, the Department of Veterans Affairs cut nearly 17,000 positions, and it expects nearly 12,000 more employees to leave by September 30, according to the agency.'A department-wide reduction in force is off the table — but that doesn't mean we're done improving the VA,' said VA Secretary Doug Collins in a statement. As of March, nearly 9 million veterans were enrolled in the VA Health Care System.A spokesperson for the VA said in a statement Monday that it spent "nearly four months conducting a holistic review of the department to see what needs to be changed." The department claimed that in recent months, the VA has improved services for veterans, citing "huge drops in the number of Veterans waiting for disability benefits, sizeable increases in claims processing productivity, and extraordinary progress regarding our electronic health record modernization."The spokesperson said the original number of 80,000 staff cuts "got employees thinking outside of the box to come up with new and better ways of serving Veterans," and the "main goal all along has been creating the best possible experiences and outcomes" for veterans and their families.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
21 minutes ago
- Time of India
Trump pauses export controls to bolster China trade deal: Report
The United States has temporarily eased restrictions on technology exports to China. This decision aims to facilitate ongoing trade negotiations with Beijing. It also supports President Trump's efforts to meet with President Xi Jinping. The Commerce Department has been instructed to avoid taking strict actions against China. Nvidia will resume sales of its H20 GPUs to China. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The U.S. has paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support President Donald Trump 's efforts to secure a meeting with President Xi Jinping this year, the Financial Times said on industry and security bureau of the Commerce Department, which oversees export controls, has been told in recent months to avoid tough moves on China, the newspaper said, citing current and former could not immediately verify the report. The White House and the department did not respond to Reuters' requests for comment outside business U.S. and Chinese economic officials are set to resume talks in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world's top two giant Nvidia said this month it would resume sales of its H20 graphics processing units (GPU) to China, reversing an export curb the Trump administration imposed in April to keep advanced AI chips out of Chinese hands over national security planned resumption was part of U.S. negotiations on rare earths and magnets, Commerce Secretary Howard Lutnick has paper said 20 security experts and former officials, including former deputy US national security adviser Matt Pottinger, will write on Monday to Lutnick to voice concern, however."This move represents a strategic misstep that endangers the United States' economic and military edge in artificial intelligence," they write in the letter, it added.


Mint
21 minutes ago
- Mint
Bull Case Forecast: Sensex may hit 1,15,836 and Nifty 43,876 by FY28, says Ventura
Indian equity market is likely to deliver strong gains over the next few years, with the benchmark indices potentially rising 42 percent by fiscal 2028, according to Ventura Securities. Despite a turbulent global economic backdrop, the brokerage sees India's strong GDP growth, manageable debt levels, and relatively stable bond yields as key drivers positioning the country ahead of global peers. In its latest forecast, Ventura Securities said that the Sensex could reach 1,15,836 and the Nifty 50 could climb to 43,876 by FY28 in a bullish scenario. These projections are supported by a compound annual earnings per share (EPS) growth rate of 12–14 percent and macroeconomic stability. Even in a more conservative or bearish environment, the brokerage sees solid upside. It estimates the Sensex could still rise to 104,804 points and the Nifty 50 to 39,697. The forecast is underpinned by a price-to-earnings (PE) multiple of 21 times in the bull case and 19 times in the bear case, with estimated FY28 EPS at 5,516 for the Sensex and 2,089 for the Nifty. According to Ventura, India's unique macroeconomic combination — relatively high growth, moderate debt, and benign interest rates — gives it an edge over advanced economies like the US and Japan. 'India's large growth market is likely to outpace its global peers supported by a unique combination of strong GDP growth, moderate debt levels, and comparatively benign bond yields,' the brokerage noted. Ventura's bullish outlook is also shaped by encouraging Q1FY26 earnings season trends. As of mid-quarter, 159 companies have declared their results, with broad-based growth across sectors. Engineering, manufacturing, and services led the charge, while consumption, commodities, and pharmaceuticals delivered steady performances. Sectors such as BFSI, IT, healthcare, and logistics have delivered positive earnings surprises. This, Ventura said, highlights the resilience of Indian corporate earnings and reinforces confidence in long-term fundamentals. 'India remains the world's most promising investment destination,' the brokerage added, citing GDP growth at 6.5 percent, a debt-to-GDP ratio around 80%, and stable bond yields. While developed markets face headwinds such as high debt and sluggish growth, India's demographic dividend and structural economic reforms continue to attract global capital. Vinit Bolinjkar, Head of Research at Ventura Securities, said the past decade has proven India's resilience despite multiple crises. 'In the last 10 years, the Indian economy has demonstrated resilience and clocked the highest GDP growth among large economies, despite global headwinds such as the NBFC crisis, COVID-19, Russia–Ukraine war, and the recent uncertainty on Trump tariffs,' he said. According to Bolinjkar, India's ability to mitigate risks will outweigh existing challenges and help push GDP growth to an estimated 7.3 percent by FY30. Strategic measures like the discovery of oil in the Andaman region, the gold monetization scheme, and a multi-pronged national security strategy are expected to add further strength to India's macroeconomic fundamentals. Ventura believes that the Indian equity market has not yet priced in the long-term structural advantages the country offers. Factors such as rising foreign exchange reserves, sustainable debt levels, and the possibility of lower interest rates could create a highly favorable investment landscape in the coming years. In this context, the Sensex's journey to 115,000 and beyond looks achievable — provided the current momentum in earnings and reforms continues. For investors looking beyond short-term volatility, India stands out as a resilient and rewarding long-term bet. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
&w=3840&q=100)

Business Standard
21 minutes ago
- Business Standard
Explained: What is the new 15% US-EU tariff deal and what does it cover?
US President Donald Trump and European Commission President Ursula von der Leyen on Sunday, July 27, announced a wide-ranging trade agreement that imposes a 15 per cent tariff on most European imports into the US. The deal, which was finalised during a brief meeting at Trump's Turnberry golf resort in Scotland, averted the looming threat of a 30 per cent tariff that was set to take effect on August 1. While the headline tariff rate is fixed at 15 per cent, many of the agreement's finer details are still unclear. The deal includes zero tariffs on select 'strategic goods' such as aircraft and aircraft parts, certain chemicals, semiconductor equipment, some agricultural products, and critical raw materials. However, pharmaceuticals, steel, and some farm goods remain outside the scope of this agreement. What is not included in the deal? While the agreement removes immediate tariff threats, several issues remain unresolved. Trump confirmed that the existing 50 per cent US tariff on imported steel will stay in place. Talks will continue on setting steel import quotas and reducing overcapacity in the global market. Pharmaceuticals were not included in this agreement. Von der Leyen clarified that those discussions are ongoing, separate from Sunday's deal. Tariffs on some EU agricultural products also remain unchanged, but with no clear indication of which items are excluded. What impact will the agreement have? The 15 per cent tariff is a significant increase from the pre-Trump average US tariff of about 1 per cent on European goods and above the 10 per cent baseline tariff applied during negotiations. For European exporters, the impact could be considerable as many companies will face the difficult choice of either passing the cost on to US consumers or absorbing losses. The earlier 10 per cent tariff was already enough to prompt the European Commission to slash its growth forecast from 1.3 per cent to 0.9 per cent. Now, with 15 per cent, German industry leaders warn of 'immense negative effects' on export-reliant sectors. Von der Leyen defended the deal, calling it 'the best we could do' and noting that it secures continued access to the US market and brings a degree of stability. How are different sectors reacting, especially carmakers? The car industry, which was gearing for a 30 per cent tariff, sees the 15 per cent rate as a relief. Von der Leyen pointed out that the new rate is significantly lower than the current 27.5 per cent tariff on cars from all countries — which includes Trump's 25 per cent tariff and the pre-existing 2.5 per cent US auto tariff. Still, European automakers remain under pressure. Volkswagen revealed it had already lost $1.5 billion in profits in the first half of the year due to higher US tariffs. Mercedes-Benz, which produces a significant share of its US-sold vehicles in Alabama, said price hikes are likely for future model years. What were the key issues dividing the two sides? Before Trump's presidency, US-EU tariffs were relatively low. According to the Brussels-based Bruegel think tank, the US averaged a 1.47 per cent tariff on European goods, while the EU imposed 1.35 per cent on American products, Associated Press reported. Trump frequently criticised the $235 billion US merchandise trade deficit with the EU, calling the European market unfair — particularly in the automotive sector. However, the EU argues that the US enjoys a substantial surplus in services like cloud computing, travel, and financial services, which helps offset the imbalance. Despite Trump's stance that the EU 'was formed to screw the United States', both sides have recognised the need to preserve their trading relationship. With $2 trillion in annual commerce, the US and EU form the world's largest bilateral trading bloc. How did the deal come together? The last-minute breakthrough came just days before the US deadline to impose new tariffs. Trump and von der Leyen held brief talks at Trump's golf resort in Scotland, joined by top EU trade officials. Commerce Secretary Howard Lutnick said the August 1 deadline was firm. 'No extensions, no more grace periods,' he said. Yet he said that Trump remained open to future dialogue. The EU had prepared its own list of retaliatory tariffs targeting hundreds of US goods, including beef, auto parts, beer, and even Boeing aircraft. Without a deal, everything from French cheese to German electronics could have become more expensive for American consumers. What are the concerns going forward? While the agreement avoided an immediate trade war, analysts caution that the deal remains vague in parts. 'There is nothing on paper, yet,' said ING's global chief of macro Carsten Brzeski. He warned that the lack of formal documentation makes enforcement and interpretation difficult. German Chancellor Friedrich Merz praised the outcome for preserving 'core interests' but expressed disappointment that deeper tariff relief wasn't achieved. (With agency inputs)