Trump Administration Plans Massive Layoffs at Key AI and Chip Agencies: Nearly 500 Employees at NIST Face Potential Job Losses
The Trump administration is currently accelerating the streamlining plan for federal agencies, with a particular focus on the National Institute of Standards and Technology (NIST). This agency is responsible for setting AI technology standards and providing subsidies for the semiconductor industry. However, reports indicate that approximately 500 probationary employees have recently received “verbal layoff notices,” which will significantly impact the AI and chip initiatives under the Biden administration.
NIST Faces Major Layoffs, Semiconductor and AI R&D Sectors Affected
According to Bloomberg, NIST, which is part of the U.S. Department of Commerce, is responsible for executing several key initiatives during the Biden administration, including:
– $39 billion in semiconductor manufacturing subsidies.
– $11 billion in chip research and development investments.
– AI technology standards and safety testing.
However, after the Trump administration took office, there was a dramatic shift in policy direction, with the originally risk management-focused AI regulatory policies being canceled in favor of promoting AI innovation. This has made NIST, which is responsible for implementing Biden’s policies, a primary target for layoffs. Internal sources indicate that:
– Nearly 60% of the staff in the office responsible for semiconductor manufacturing subsidies are at risk of termination.
– About two-thirds of the personnel involved in chip research and development projects are facing layoffs.
– The U.S. Artificial Intelligence Safety Institute may also be affected.
New Commerce Secretary Lutnick Takes Office, AI and Chip Policies to Be Restructured
The layoffs coincide with the recent appointment of new Commerce Secretary Howard Lutnick, who clearly stated during last month’s congressional hearing that he would reassess the Biden administration’s AI and chip initiatives. What is currently certain is that:
– The AI regulatory policies established during the Biden era have been abolished, with a future focus on encouraging the development of the AI industry.
– The semiconductor subsidies and research programs will be reevaluated, with the possibility of further adjustments in funding allocation.
– The size of the government continues to shrink, with not only NIST but also other federal agencies’ probationary employees facing a wave of layoffs.
Industry Concerns Over Talent Drain and Potential Legal Challenges for the White House
This wave of layoffs has drawn significant attention, particularly as high-tech talent in AI and semiconductors at NIST will be affected. Industry concerns include:
– A potential mass exodus of talent from federal research institutions, leading to a gap in technology R&D.
– Government cuts to subsidies impacting the competitiveness of the U.S. semiconductor industry.
– Executive orders from the Trump administration potentially triggering legal challenges, with several lawsuits already emerging.
NIST has not yet responded to media inquiries, but it is certain that this government streamlining plan will continue, leaving the future of U.S. AI and semiconductor policy fraught with uncertainty.
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