- In today’s CEO Daily: Diane Brady on why more CEOs are thinking small.
- The big story: Korean workers caught up in ICE’s Hyundai raid make it home.
- The markets: Asia is up, particularly for AI and tech.
- Plus: All the news and watercooler chat from Fortune.
Good morning. Novartis CEO Vas Narasimhan said something to me recently that has stuck in my mind: “If you want an organization that’s able to navigate complexity in the external world,” he said, “you have to radically take out complexity internally.”
That’s prompted Narasimhan to focus on taking out layers of leadership, eliminating roles and reducing headcount to create a leaner and simpler organization. “We underestimate the cognitive load on our management and leaders when they have to spend time figuring out who’s responsible for what.” He believes simplicity and fewer direct reports enable leaders to focus on what matters in driving growth.
I thought of that when reading Allie Garfinkle’s terrific profile of David Krane, the CEO and managing partner of Google Ventures. Among other things, Krane argues that “we are having a bit of a renaissance of the power of small teams.”
Says Krane: “I remember looking at teams across the Valley with hundreds of employees working on a fairly narrowly-defined problem and not succeeding. And then in early Google, there were two or three of the right researchers and engineers working on the exact same problem. Time and again, Google would find success.”
Smaller and simpler is an intriguing management strategy in a world where we’ve been taught to equate success with being bigger and more complex. AI is even enabling two-person companies to scale, thanks to digital agents. Of course, fewer people can also mean fewer opportunities for the next generation of aspiring leaders. Curious to get your thoughts.
More news below.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top news
South Korea’s detained workers return home
The hundreds of South Korean workers detained in last week’s immigration raid on a Hyundai factory in Georgia are now back home. The saga threatened a bilateral relationship between Washington and Seoul already strained by U.S. President Donald Trump’s trade war. Hyundai CEO José Muñoz said Thursday that the ICE raid will set back construction of the Georgia battery factory by as much as three months.
Musk and Altman's feud escalates
The conflict between Tesla CEO Elon Musk and OpenAI CEO Sam Altman has intensified after Musk amplified a conspiracy theory that an OpenAI whistleblower, whose death had been officially deemed a suicide, was actually murdered. Altman maintained that he believed the suicide ruling during an interview this week with media host Tucker Carlson, though Musk contradicted Altman publicly on X with the post “he was murdered.”
Inflation still a worry
The Consumer Price Index (CPI) increased by 2.9% in August, marking the fastest pace since the beginning of the year. This surge takes place as market watchers carefully await the Federal Reserve’s meeting on Tuesday and Wednesday of next week, where a rate cut is widely expected.
Report: Paramount Skydance’s plans bid for Warner Bros
Fresh from their merger, Paramount Skydance is reportedly preparing a bid for a majority interest in Warner Bros. Discovery, according to the Wall Street Journal. Warner Bros. Discovery is itself looking to split its cable and streaming businesses, though Paramount Skydance’s bid would be for the whole company, combining two already massive media studios.
Figure debuts on the Nasdaq
Figure Technology became the latest crypto company to take advantage of the hot IPO market with its Thursday debut on the Nasdaq, raising $787.5 million. Shares of the blockchain lender rose almost 30% by the afternoon.
The markets
S&P 500 futures are down by 0.1%, after the U.S. market index closed at a record high on Thursday. Asian markets rose, with Japan’s Nikkei 225 up 0.9%, Korea’s KOSPI up 1.5%, and Hong Kong’s Hang Seng Index up 1.2%. Asian tech and semiconductor-related shares surged today: Alibaba rose 5.2% in Hong Kong trading, while Nvidia supplier SK Hynix jumped 7%. India’s NIFTY 50 is up 0.4% in afternoon trading; the STOXX Europe 600 is currently flat. Bitcoin rose 0.8% over the past day to hover around $115,000.
Around the watercooler
Tunneling halted at Boring Company job site in Las Vegas after ‘crushing injury’ of worker reported by Jessica Mathews
Congressional Budget Office says Trump’s immigration crackdown will shrink U.S. population faster than expected, a threat to inflation and GDP growth by Sasha Rogelberg
Expert biochemist says a daily exercise that takes less than an hour is the ‘gold standard’ for reversing your age by decades by Dave Smith
Google got caught saying the open web is in ‘rapid decline,’ and publishers are up in arms about its AI ‘content theft’ by Nick Lichtenberg
Today's edition of CEO Daily is compiled and edited by Joey Abrams and Nicholas Gordon.
