Work in Progress

Welcome to the Severance era of work—where the lines between professional and personal life have never been blurrier (minus the mind wipe and brain chip, hopefully).

The job market is cooling, VC money is shifting, and corporate culture is being rewritten in real time. Some of it signals real progress. Some of it feels like a desperate attempt to hit undo.

This week, we’re diving into what’s working (and what’s really not) in the world of work—so you can stay ahead without getting stuck in the breakroom.

20,000 Federal Employees Are Taking the Money and Running

The government is downsizing—voluntarily. At least 20,000 U.S. federal employees have accepted an early exit package to leave their jobs by September.

The Highlights

• The voluntary buyout program aims to cut government spending and reduce headcount.

• The White House initially aimed for a 5-10% reduction in federal workers but fell short.

• Unions are pushing back, questioning the legality and reliability of the deal.

Why it Matters

Fewer federal employees could mean longer wait times for government services and shifts in policy execution. It’s a preview of what a leaner government workforce might look like.

Our Take

This isn’t just about budgets—it’s a cultural shift. If more workers take the deal, expect increased privatization efforts and a new wave of hiring outside government agencies.

Hiring Rebounds in January

The job market isn’t dead yet. U.S. companies added 183,000 jobs in January, outpacing expectations and signaling renewed hiring confidence.

The Highlights

• Service sectors, including healthcare and transportation, led the way in job growth.

• The six-month hiring average hit its highest since early 2023.

• Job openings, however, dipped at the end of last year, suggesting a shifting labor market.

Why it Matters

While hiring is up, job seekers still face a more competitive landscape than in past years. Businesses should focus on retaining top talent as the market recalibrates.

Our Take

Sustained hiring momentum is a good sign, but companies should be strategic. Growth for growth’s sake won’t cut it—hiring the right people at the right time is what matters.

AI Keeps VC Money Flowing

AI is eating the venture capital pie. In January, AI startups accounted for 60% of all U.S. VC investment, continuing their dominance.

The Highlights

• The U.S. expanded its share of global venture capital, surpassing 60%.

• AI-focused startups, particularly in enterprise and automation, are drawing the biggest rounds.

• China’s DeepSeek, a budget rival to OpenAI, is making waves despite securing no VC funding.

Why it Matters

AI is still the hottest ticket in town, but funding volume alone doesn’t equal innovation. The next big thing might not come from the most well-funded player.

Our Take

If your startup isn’t at least AI-adjacent, you’re going to have a harder time raising capital. The real winners? Those using AI as a tool, not a gimmick.

The End of the Job-Hopping Era?

Employees are staying put. The rate of U.S. workers switching jobs fell 11% last year and is now 22% below its 2022 peak.

The Highlights

• Fewer people are quitting, largely due to a cooling job market.

• Job openings have fallen from a 2022 peak of 12.2 million to 7.6 million in December.

• Layoffs remain low, but hiring is sluggish in finance, tech, and business services.

Why it Matters

Workers aren’t jumping ship like they used to, which means companies need to rethink retention strategies. Employees, on the other hand, might need to adjust their expectations.

Our Take

The era of job-hopping as a power move is fading. Stability is back in vogue, which could mean better long-term career planning—for both employees and employers.

Zuck Wants More "Masculine Energy" in the Workplace

Yes, that’s a direct quote. On a recent podcast, Mark Zuckerberg claimed corporate culture is "neutered" and needs to embrace aggression.

The Highlights

• He argues that workplaces have overcorrected in favor of inclusivity.

• Critics say his remarks reflect a broader backlash against DEI (Diversity, Equity, and Inclusion) efforts.

• Meta has previously promoted gender diversity but now seems to be shifting its stance.

Why it Matters

Zuckerberg’s comments could influence corporate culture at a time when DEI initiatives are already under fire. Some view it as an endorsement of outdated workplace norms.

Our Take

Leadership isn’t about being more "aggressive." It’s about setting a culture that values effectiveness and empathy over outdated dynamics. Time will tell how this plays out at Meta and beyond.

The Wrap-Up

Work isn’t what it used to be. Hiring isn’t either. As companies rethink how they build teams, we’re seeing more businesses embrace trial periods before committing.

Through Matic Teams, we help partners implement a three-month ramp period before extending full-time offers, ensuring the right fit for both sides.

Got a take on the future of work? We’re all ears. Reply to this email and let’s talk shop.

That’s a wrap for Wave 3. If you liked this, share it. If you didn’t, pretend your Innie read it for you.

See ya,

— Your Friends @ Matic