Roblox tells employees they have to come to office three days a week or take severance package
David Baszucki, founder and CEO of Roblox, presents at the Roblox Developer Conference on August 10, 2019 in Burlingame, California.
Ian Tuttle | Getty Images
Roblox employees who don’t want to work at the gaming company’s physical office at least three days a week will need find a job elsewhere.
David Baszucki, Roblox’s founder and CEO, told employees in a memo on Tuesday that remote workers have until mid-January to decide whether they want to starting coming into the office from Tuesday through Thursday, adding that relocation expenses will be provided if needed.
“We did not make this decision lightly, as we understand that the decision to move is significant, both for our employees and for their families and loved ones,” Baszucki wrote in the memo, which he posted as a blog titled, “The Future of How We Work Together at Roblox.”
Baszucki said the company will be contacting a number of remote employees — though he didn’t specify how many — and asking them to report to work in the company’s headquarters in San Mateo, California, by next summer.
Roblox, which went public in 2021 after seeing its business boom from kids stuck at home during the Covid pandemic, joins a growing list of companies, including Google, JPMorgan Chase and law firm Davis Polk & Wardwell that have instituted strict return-to-office mandates.
Tuesday’s announcement marks an about-face for Roblox, which told employees in May of last year that it was giving “employees the option to either come to the office regularly a few days a week, or to primarily work remotely,” coming in for “quarterly get-togethers.”
“We’ve put together a new work model powered by personal responsibility that gives teams and leaders the flexibility to decide how they work best given their goals,” Barbara Messing, the company’s chief marketing officer, wrote at the time.
Baszucki said in the latest post that he “personally hoped” for Roblox to “imagine a heavily hybrid remote culture,” extending past the pandemic. Ultimately, however, he said working in an office strengthens the company culture and results in more innovative and productive employees.
“A three-hour Group Review in person is much less exhausting than over video and brainstorming sessions are more fluid and creative,” Baszucki wrote. “While I’m confident we will get to a point where virtual workspaces are as engaging, collaborative, and productive as physical spaces, we aren’t there yet.”
As of Dec. 31, Roblox had over 2,100 full-time employees.
Those opting not to come back to the office can take a severance package “based on their individual level and term of service, along with six months of healthcare coverage for everyone on their policies,” Baszucki wrote. They will also have an extra three months, lasting until mid-April, to “transition out of their roles as full time employees,” he added.
“This means all employees, regardless of whether or not they chose to relocate, will receive both the November and February quarterly vestings, in addition to any other vestings they have during that time,” he said.
Roblox will still employ some remote employees with roles that require them to be offsite, such as data center operators, content moderators and call center workers.
Additionally, Roblox will let some “individuals who have niche skill sets or significant institutional knowledge” also continue to work remotely, Baszuki said. The company will not extend new offers to remote employees, except for those who work in off-site positions or have particular skills.
“This is an extremely difficult decision because where we live is a personal choice and it affects all aspects of our lives,” Baszucki wrote. “We have done everything we can to make this process as systematic and fair as possible. Unfortunately, I know that some employees will decide not to join us at headquarters.”
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Alex Karp, chief executive officer of Palantir Technologies Inc., speaks during the AIPCon conference in Palo Alto, California, US, on March 13, 2025.
David Paul Morris | Bloomberg | Getty Images
Tech stocks have struggled in 2025, as recession and trade war fears sap investor appetite for riskier assets.
Palantir is the exception.
Against a volatile market backdrop, the software maker’s stock has gained 45% and is the best performer among companies valued at $5 billion or more, according to FactSet. The closest tech names are VeriSign, up 33%, Okta, up 30%, Robinhood, up 29%, and Uber, up 29%.
President Donald Trump‘s frenzy of government department overhauls is partially to thank for the pop.
“When you think about macroeconomic concerns, you as a company need to be more efficient, and this is where Palantir thrives,” said Bank of America analyst Mariana Pérez Mora.
Palantir has set itself apart in the software world for its artificial-intelligence-enabled tools, gaining recognition for its defense and software contracts with key U.S. government agencies, including the military. In the fourth quarter, its government revenues jumped 45% year-over-year to $343 million.
Companies have faced immense volatility in 2025 as tariffs threaten to jeopardize global supply chains and halt day-to-day manufacturing operations by hiking costs. Those fears have brought the broad market index down about 7% this year, while the tech-heavy Nasdaq Composite has slumped 11%.
Tech’s megacap companies — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla — are all down between 7% and 31% so far this year.
At the same time, the Trump administration has clamped down on government spending, giving Tesla CEO Elon Musk‘s Department of Government Efficiency freedom to slash public sector costs. Some administration officials have touted shifting dollars from consulting contracts to commercial software providers like Palantir, said William Blair analyst Louie DiPalma.
“Palantir’s business model is highly aligned with the priorities of the Trump administration in terms of increasing agility and being very quick to market,” he said.
That’s put Palantir in the league with major contractors such as Lockheed Martin and Northrop Grumman, which have outperformed in this year’s downdraft. Many companies in the space are also looking to partner with the firm and tend to flock to defense during recessionary times, DiPalma said.
Palantir vs. the Nasdaq Composite
CEO Alex Karp has also been a vocal supporter of American innovation and the company’s central role in helping prop up what he called the “single best tech scene in the world” during an interview with CNBC earlier this year. Karp also told CNBC that the U.S. needs an “all-country effort” to compete against emerging adversaries.
But the ride for Palantir has been far from smooth, and shares have been susceptible to volatile swings. Shares sold off nearly 14% during the week that Trump first announced tariffs. Shares rocketed 22% one day in February on strong earnings.
Its inclusion in more passive and quant funds over the years and the growing attention of retail traders has added to that turbulence, DiPalma said. Last year, the company joined both the S&P and Nasdaq. Palantir trades at one of the highest price-to-earnings multiples in software and last traded at 185 times earnings over the next twelve months. That puts a steep bar on the stock.
“There really is no margin for error,” he said.
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Kurt Sievers, chief executive officer of NXP Semiconductors NV, during the Federation of German Industries (BDI) conference in Berlin, Germany, on Monday, June 19, 2023.
Liesa Johannssen-Koppitz | Bloomberg | Getty Images
NXP Semiconductor Inc. fell about 8% on Monday after the chip company announced that CEO Kurt Sievers will step down as part of its latest earnings.
Here’s how the company did, versus LSEG consensus estimates:
- Earnings per share: $2.64 adjusted vs. $2.58 expected
- Revenue: $2.84 billion vs. $2.83 billion expected
Sievers will retire at the end of the year, with Rafael Sotomayor stepping in as president on April 28, 2025.
The company beat expectations on the top and bottom lines but cited a “challenging set of market conditions” looking forward.
“We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects,” Sievers said in an earnings release.
Sales in NXP’s first quarter declined 9% year over year.
The company posted $1.67 billion in auto sales during the first quarter, trailing analyst estimates of $1.69 billion.
NXP Semi said that second-quarter sales would come in at a midpoint of $2.9 billion, ahead of the $2.87 billion that analysts were projecting. Second-quarter adjusted EPS will be $2.66, in line with analyst estimates.
The company logged first-quarter net income of $490 million, which was a 23% year-to-year drop from $639 million.
NXP’s net income per share was $1.92 compared to $2.47 during the same time a year ago. A drop of 22%.
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Microsoft President Brad Smith speaks during signing ceremony of cooperation agreement between the Polish Ministry of Defence and Microsoft, in Warsaw, Poland, February 17, 2025.
Kacper Pempel | Reuters
The U.S. cannot afford to fall behind China in the race to a working quantum computer, Microsoft President Brad Smith wrote Monday.
President Donald Trump and the U.S. government need to prioritize funding for quantum research, or China could surpass the U.S., endangering economic competitiveness and security, Smith wrote.
“While most believe that the United States still holds the lead position, we cannot afford to rule out the possibility of a strategic surprise or that China may already be at parity with the United States,” Smith wrote. “Simply put, the United States cannot afford to fall behind, or worse, lose the race entirely.”
Microsoft’s position is the latest sign that research into quantum computing is starting to heat up among big tech companies and investors who are looking for the next technology that could rival the artificial intelligence boom.
Smith is calling for the Trump administration to increase funding for quantum research, renew the National Quantum Initiative Act and expand a program for testing quantum computers by the Defense Advanced Research Projects Agency, or DARPA. The Microsoft executive is also calling on the White House to expand the educational pipeline of people who have the math and science skills to work on quantum machines, fast-track immigration for Ph.D.s with quantum skills and for the government to buy more quantum-related computer parts to build a U.S. supply chain.
Microsoft did not detail how China surpassing the U.S. in quantum computing technology would endanger national security, but a National Security Agency official last year discussed what could happen if China or another adversary surprised the U.S. by building a quantum computer first.
The official, NSA Director of Research Gil Herrera, said that if such a “black swan” event happened, banks might not be able to keep transactions private because a quantum computer could crack their encryption, according to the Washington Times. A working quantum computer could also crack existing encrypted data that is usually shared publicly in a scrambled fashion, which could reveal secrets on U.S. nuclear weapon systems.
In February, Microsoft announced its latest quantum chip called Majorana, claiming that it invented a new kind of matter to develop the prototype device. Last year, Google announced Willow, a new device the company claimed was a “milestone” because it was able to correct errors and solve a math problem in five minutes that would have taken longer than the age of the universe on a traditional computer.
While the computers people are used to use bits that are either 0 or 1 to do calculations, quantum computers use “qubits,” which end up being on or off based on probability. Experts say that quantum computers will eventually be useful for problems with nearly infinite possibilities, such as simulating chemistry, or routing deliveries.
But the current quantum computers are far away from that point, and many computer industry participants say it could take decades for quantum computers to reach their potential.
Microsoft’s chip, Majorana, has eight qubits, but the company says it has a goal of least 1 million qubits for a commercially useful chip. Microsoft needs to build a device with a few hundred qubits before the company starts looking at whether it’s reliable enough for customers.
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