Investing.com-- The U.S. Food and Drug Administration (FDA) has dismissed around 20 employees, including reviewers overseeing Elon Musk’s brain implant company Neuralink, as part of a broader federal workforce reduction, Reuters reported on Monday citing sources familiar with the matter.
The firings affected the FDA’s office of neurological and physical medicine devices, which regulates brain-computer interface (BCI) technologies like Neuralink’s implant. according to the report.
While the Reuters report stated the employees were not directly targeted for their work on Neuralink, the loss of personnel could slow the agency’s ability to assess medical device applications, raising concerns about trial oversight.
Victor Krauthamer, a former senior FDA official, told Reuters that the dismissals create an “intimidating” environment for those still overseeing Neuralink’s trials.
Neuralink, which is testing its implant to help paralyzed patients control digital devices via thought, also received an FDA designation last year to fast-track a separate implant designed to restore vision.
With fewer reviewers, experts fear regulatory bottlenecks that could impact not only Neuralink but other companies developing BCI technology, the report stated.
The report also stated that the terminations were framed as performance-related, despite the employees receiving strong prior evaluations.
Tesla (NASDAQ:TSLA)owner Musk, who has been a vocal supporter of cost-cutting in government agencies regulating his businesses, reportedly played a role in the broader downsizing efforts, Reuters reported.