US firm sacks 700 employees, 200 laid off on 'ethical grounds'

VIJAYAWADA: The latest layoffs by US federal company Fannie Mae have once again brought Telugu organisations in the country under scrutiny. According to sources, Fannie Mae laid off about 700 employees in the last two days.



While some layoffs were expected as part of the company's organisational restructuring, about 200, majority of them Telugus, were sacked on "ethical grounds".

The alleged violation of ethics is said to be related to irregularities and misuse of the 'matching grants program'. Some employees are alleged to have colluded with non-profit organisations like Telugu Association of North America (TANA) to deceive companies.

One of the employees who was laid off on Thursday held the position of regional vice president in TANA, while another is the spouse of a former president of American Telugu Association (ATA). Sources said TANA is not alone in this, and other organisations are also involved.

In Dec last year, the Northern District of California court issued a subpoena to TANA to testify before a grand jury. The subpoena called for records of donations received, amounts spent, and details of the representatives who worked in the organisation at various levels from 2019 to 2024. Earlier this year, Apple also sacked over 100 employees with similar allegations.

According to those working with the Federal National Mortgage Association, commonly known as Fannie Mae, the layoffs on Wednesday and Thursday happened on ethical grounds.