financetom
Business
financetom
/
Business
/
Exclusive-FDA staff reviewing Musk's Neuralink were included in DOGE employee firings, sources say
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Exclusive-FDA staff reviewing Musk's Neuralink were included in DOGE employee firings, sources say
Feb 17, 2025 4:03 PM

(Reuters) - U.S. Food and Drug Administration employees reviewing Elon Musk's brain implant company Neuralink were fired over the weekend as part of a broader purge of the federal workforce, according to two sources with knowledge of the matter.

The cuts included about 20 people in the FDA's office of neurological and physical medicine devices, several of whom worked on Neuralink, according to the two sources, who asked not to be identified because of fear of professional repercussions. That division includes reviewers overseeing clinical-trial applications by Neuralink and other companies making so-called brain-computer interface devices, the sources said.

Both sources said they did not believe the employees were specifically targeted because of their work on Neuralink's applications.

The loss of roughly 20 employees will hamper the agency's ability to quickly and safely process medical device applications of all sorts, including Neuralink's, according to the sources and outside experts.

"It's intimidating to the FDA professionals who are overseeing Neuralink's trial," said Victor Krauthamer, a former FDA official for three decades, including a stint as acting director of the office that reviews human-trial requests for brain implants.

"We should be worried about the whole trial, and the protection of the people in the trial."

The FDA, White House and Musk did not immediately respond to comment requests. Trump has said that Musk will excuse himself from any conflicts of interest between his various business interests and his efforts to cut costs for the federal government.

Similar to other government agencies, the cuts affected scientists reviewing medical device applications who were probationary, one of the sources said. Probationary employees typically have less than one year or in some cases less than two years of service and have fewer legal protections.

Neuralink is currently testing its device, which allows paralyzed people to use digital devices solely via thought, in a small number of disabled patients. The company is also working on an implant aimed at restoring vision. Last year, the FDA gave that device a designation aimed at speeding up development and federal review, the company has said.

After spending more than $250 billion to get President Donald Trump re-elected, Musk has been leading a sweeping effort to cut government spending, including at agencies that regulate his companies, such as Tesla and SpaceX.

The dismissal letters sent to the FDA reviewers cited performance reasons, even though the employees had no issues on their prior performance, and had received top-notch rankings several weeks ago, according to the two sources familiar with the matter. The supervisors of the cut employees weren't consulted before the mass layoffs and found out from their employees, the sources said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Cosciens Biopharma Says Phase 3 DETECT-Trial Top-line Results Show Efficacy Standpoint Not Met
Cosciens Biopharma Says Phase 3 DETECT-Trial Top-line Results Show Efficacy Standpoint Not Met
Aug 29, 2024
08:13 AM EDT, 08/27/2024 (MT Newswires) -- Cosciens Biopharma ( CSCI ) on Tuesday said that top-line results of its Phase 3 DETECT-trial evaluating macimorelin to diagnose Childhood Onset Growth Hormone Deficiency (CGHD) show that the primary efficacy endpoint has not been met. The macimorelin test was compared to current standard growth hormone stimulation tests (arginine and clonidine). Top-line data...
Archrock Clears Anti-Trust Hurdle in Acquisition of Total Operations and Production
Archrock Clears Anti-Trust Hurdle in Acquisition of Total Operations and Production
Aug 29, 2024
08:10 AM EDT, 08/27/2024 (MT Newswires) -- Archrock ( AROC ) said Tuesday it has cleared a regulatory hurdle in its acquisition of Total Operations and Production Services with the expiration of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to close this quarter. Price: 20.00, Change: -0.38, Percent Change: -1.86 ...
EchoStar's Hughes, Boost Mobile Demonstrate Multi-Transport Network Management for US Navy
EchoStar's Hughes, Boost Mobile Demonstrate Multi-Transport Network Management for US Navy
Aug 29, 2024
08:08 AM EDT, 08/27/2024 (MT Newswires) -- EchoStar ( SATS ) subsidiaries Hughes Network Systems and Boost Mobile said Tuesday that they demonstrated multi-transport network management for the US Navy earlier this year. The companies said the demonstration tested remote network orchestration, wide area network resiliency, and secure Radio Access Network sharing between private 5G networks at the US Navy...
Why Is Woodside Energy Stock Trading Higher Tuesday?
Why Is Woodside Energy Stock Trading Higher Tuesday?
Aug 29, 2024
Woodside Energy Group Ltd ( WDS ) shares are trading higher premarket Tuesday after the company reported its first-half FY24 results. Operating revenue fell 19% Y/Y to $5.99 billion. The company delivered half-year production of 89.3 MMboe (-2% Y/Y), with gas production of 60.9 MMboe (-4% Y/Y) and liquids production of 28.4 MMboe (+2% Y/Y). EBITDA excluding impairment declined 11%...
Copyright 2023-2026 - www.financetom.com All Rights Reserved