—— MIT Cuts Graduate Enrollment and Staff; Chanel Owners May Forgo Dividend After Profit Drop; Families of Boeing 737 Max Crash Victims Oppose DOJ Deal; US Probes Google-Character.AI Deal for Possible Antitrust Violation; Uniqlo Founder Tadashi Yanai to Buy Milan Flagship Building; Trump’s Sweeping Tax Bill Passes House by One Vote
1. MIT Cuts Graduate Enrollment and Staff
The Massachusetts Institute of Technology (MIT) is reducing graduate student enrollment and laying off employees as federal funding cuts under President Donald Trump threaten the financial stability of research-focused universities.
MIT spokesperson Kimberly Allen confirmed Wednesday that the university plans to enroll about 100 fewer graduate students in its research programs for the 2025 academic year — an 8% drop compared to the current year — as it anticipates a decline in federal research grants.
The cuts follow hiring freezes and a university-wide cost-saving initiative. MIT had previously announced plans to slash central budget allocations to academic and administrative departments by up to 10% for the coming school year, prompting some units to lay off staff. Allen did not specify the number of employees affected. Departments without significant external funding are especially vulnerable.
The tightening of support comes as the Trump administration slashes funding and reimbursement channels through key agencies such as the National Institutes of Health — lifelines for institutions like MIT. The university also faces higher endowment taxes under legislation recently passed by the US House of Representatives.
“There could be more damage to MIT and to universities all across America, and to the entire American research ecosystem,” MIT President Sally Kornbluth warned this week. “While we do everything in our power to prevent that, we’ll also be working to prepare the Institute and our community for a range of outcomes.”
Source: Bloomberg – MIT Cuts Grad Student Slots by 8% as Trump Cuts Weigh on Budget
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2. Chanel Owners May Forgo Dividend After Profit Drop
The billionaire Wertheimer family, owners of Chanel, may forgo a dividend from the luxury house’s 2024 earnings as the global luxury market shows signs of strain.
According to a recent filing, London-based Chanel did not pay an interim dividend or propose a final one for 2024 — the first time since the pandemic year of 2020 that no payout was earmarked for the family’s Cayman Islands-based holding company. The decision follows a 30% drop in profit amid slowing sales in China and heavy spending on marketing and property.
A Chanel spokesperson confirmed that the board will decide on any potential 2025 dividend in the months ahead.
The muted payout contrasts sharply with the prior three years, when the Wertheimer brothers, Alain (76) and Gerard (74), collected $12.4 billion in dividends as global demand for Chanel’s signature products — from quilted handbags and tweed suits to fragrances — surged. The windfall helped drive their combined net worth to $85 billion, according to the Bloomberg Billionaires Index.
The pause in dividends underscores the mounting challenges faced by even the most elite fashion houses as consumer sentiment weakens in key markets like China and spending growth in the luxury segment begins to cool.
Source: Chanel Billionaire Owners Set to Forgo Payout Amid Luxury Slump
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3. Families of Boeing 737 Max Crash Victims Oppose DOJ Deal
Family members of victims killed in two fatal crashes involving Boeing Co.’s 737 Max jets are urging the US Department of Justice (DOJ) to reject a potential nonprosecution agreement that would allow the aerospace giant to avoid criminal charges.
In a letter sent Thursday to the DOJ and reviewed by Bloomberg, attorney Paul Cassell, representing the families, called the proposed deal “a remarkably bad and unprecedented resolution” and a “miscarriage of justice.” The letter called on the department to proceed with the criminal trial scheduled for June 23 in Texas.
“Rather than engage in further discussions about a pre-trial resolution, the Department should simply take the case to trial,” Cassell wrote, while also requesting a meeting with US Attorney General Pam Bondi.
The DOJ met with victims’ families on Friday to discuss options, including the possibility of prosecuting Boeing for criminal conspiracy or negotiating a plea deal. A court filing on Saturday confirmed that a nonprosecution framework remains under consideration.
Any agreement must be approved by US District Judge Reed O’Connor, who is overseeing the case in Texas. Cassell stated that the families would formally object to any nonprosecution deal if it is presented in court.
The legal proceedings stem from two 737 Max crashes — Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019 — which killed a total of 346 people and led to global grounding of the aircraft model.
Source: Bloomberg – Families of 737 Max Crash Victims Urge US to Prosecute Boeing
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4. US Probes Google-Character.AI Deal for Possible Antitrust Violation
The US Department of Justice (DOJ) is investigating whether Google’s agreement with chatbot developer Character.AI may have violated antitrust laws, according to people familiar with the matter.
Antitrust officials have recently informed Google that they are examining whether the structure of its deal with Character.AI was deliberately designed to avoid formal regulatory merger review. The probe centers on whether Google used its market dominance to suppress potential competition from the emerging AI company.
Under the 2023 agreement, Character.AI’s founders joined Google, and the tech giant received a non-exclusive license to use the startup’s artificial intelligence technology. The arrangement did not involve Google taking an equity stake in Character.AI, which remains an independent company.
Such “acquihire” deals are common in Silicon Valley and often celebrated as a way to acquire talent and technology. However, regulators are increasingly scrutinizing them as potential vehicles for dominant firms to stifle innovation and skirt traditional antitrust oversight.
Google spokesperson Peter Schottenfels said in a statement, “We’re excited that talent from Character.AI has joined the company but we have no ownership stake and they remain a separate company. We’re always happy to answer any questions from regulators.”
Although the DOJ has not formally accused Google of any wrongdoing, the early-stage probe could eventually lead to enforcement action depending on its findings.
Source: Bloomberg – Google Faces Antitrust Investigation Over Deal for AI-Fueled Chatbots
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5. Uniqlo Founder Tadashi Yanai to Buy Milan Flagship Building
Tadashi Yanai, founder of Uniqlo and chairman of Fast Retailing Co., has agreed to purchase the historic Milan building housing the brand’s flagship store for more than €300 million ($339 million), according to people familiar with the deal.
The 161,000-square-foot property, known as Cordusio 2.0, is located in Piazza Cordusio — a prominent square in central Milan near the famed Piazza Duomo. The 19th-century building was previously acquired by real estate firm Hines in 2016 and has served as Uniqlo’s Italian flagship since 2019.
The purchase underscores the Japanese billionaire’s long-term commitment to the European market. Yanai, whose net worth is estimated at $50 billion by the Bloomberg Billionaires Index, is making the move at a time when Milan’s real estate market is undergoing a transformation.
Recent high-profile investments in the city include Gucci owner Kering SA’s €1.3 billion acquisition of a landmark property on Via Monte Napoleone in 2023. The area around Piazza Cordusio has also become a prime retail destination, with Starbucks opening its first Italian store there.
Source: Bloomberg – Uniqlo Founder Tadashi Yanai to Buy €300 Million Milan Building
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6. Trump’s Sweeping Tax Bill Passes House by One Vote
The US House of Representatives has narrowly passed President Donald Trump’s flagship tax bill, securing his administration’s first major legislative victory of his second term in office.
After intense negotiations among Republicans, the House voted 215–214 early Thursday morning in Washington to approve the sprawling, 1,000-plus-page legislation. The bill includes sweeping tax cuts, major reductions in social spending, and a projected increase in federal debt.
“This is arguably the most significant piece of Legislation that will ever be signed in the History of our Country!” Trump declared on his Truth Social platform. “Now it’s time for our friends in the United States Senate to get to work, and send this Bill to my desk AS SOON AS POSSIBLE!”
Dubbed the “big, beautiful bill” by Trump, the legislation has become a flashpoint within the Republican Party. In recent days, internal divisions over tax treatment, spending caps, and deductions — including on state and local taxes (SALT) — led to heated negotiations before a final agreement was reached.
The bill now moves to the Senate, where it faces further debate but is expected to be taken up quickly given the White House’s push for momentum.
Source: Financial Times – US House passes Trump’s showpiece tax bill
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7. Federal Reserve to Cut Workforce by 10%
The Federal Reserve plans to reduce its workforce by approximately 10% over the next couple of years, largely through attrition and a voluntary deferred resignation program offered to retirement-eligible employees.
Fed Chair Jerome Powell announced the initiative in a memo to staff, stating that the move aims to modernize operations and ensure the central bank remains appropriately sized to meet its statutory mission.
“I have directed the leadership of the Federal Reserve, here at the Board and across the System, to find incremental ways to consolidate functions where appropriate, modernize some business practices and ensure that we are right-sized and able to meet our statutory mission,” Powell said.
The voluntary deferred resignation program will be available to Board of Governors staff who are fully eligible to retire by December 31, 2027, similar to a program the Fed used in 1997.
As of 2023, the Fed reported 23,950 employees across its system. The 2024 budget had anticipated increasing staff to 24,553 — a 2.5% rise — making this a sharp reversal in hiring trajectory.
Source: Bloomberg – Fed to Shrink Staff By About 10% Over Next Several Years
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