Workforce reductions will impact game development studios, the publishing business, and group-wide services.

Coolers News Scythe Solvency Update, "Scycopter" Liquid Cooler, New $45 Air CoolersJune 10, 2025Last Updated: 2025-06-10We looked at Scythe’s Scycopter liquid cooler, Magoroku air cooler, Big Shuriken 4, and moreThe HighlightsScythe showed off its liquid cooler, which is currently going by the working name “Scycopter”The Magoruku is a $50 CPU cooler that’s supposed to be relatively high performing with 6x6mm heat pipes coupled with a nickel-plated copper cold plateWe talked to Scythe about the news of its European branch closing downTable of ContentsAutoTOC Grab a GN Tear-Down Toolkit to support our AD-FREE reviews and IN-DEPTH testing while also getting a high-quality, highly portable 10-piece toolkit that was custom designed for use with video cards for repasting and water block installation. Includes a portable roll bag, hook hangers for pegboards, a storage compartment, and instructional GPU disassembly cards.IntroWe visited Scythe’s booth at Computex 2025 and the company showed off several new coolers, including a mockup of a liquid cooler. Our visit comes off the heels of the news that Scythe will be closing its European branch, which we discussed with the company.Editor's note: This was originally published on May 22, 2025 as a video. This content has been adapted to written format for this article and is unchanged from the original publication.CreditsHostSteve BurkeCamera, Video EditingMike GaglioneVitalii MakhnovetsWriting, Web EditingJimmy ThangScythe Liquid CoolerTo our knowledge, we saw Scythe’s first liquid cooler at the show. We spoke with Kitagawa-san, lead designer at Scythe, who told us that he spent about the last year studying liquid coolers. The company also showed us a 3D-printed prototype peg with a piece of tape underneath it, which allows you to essentially stick it to any fan you want. A fan can then socket on top of the cooler and be angled to shoot air down toward the VRM or RAM, etc. The working name of the liquid cooler is the “Scycopter,” which is really cool and is a combination of Scythe and helicopter. Currently, the radiator thickness is pretty standard at 27mm, but that might change. The standard pump block will have an option that will allow you to install a fan on top of it. For the fins, the pitch is .1mm. That makes them pretty close together. Scythe also tells us that the total height of the copper coldplate is 1.6mm. Magoruku Grab a GN15 Large Anti-Static Modmat to celebrate our 15th Anniversary and for a high-quality PC building work surface. The Modmat features useful PC building diagrams and is anti-static conductive. Purchases directly fund our work! (or consider a direct donation or a Patreon contribution!)We showed Scythe’s Magoruku CPU cooler at last year’s Computex, but it’s coming out now. It’s supposed to be $50, but the company tells us that it might be able to bring it down to $44 in the US depending on market conditions. The Magoruku is supposed to be a relatively high-performing, mid-range/budget cooler. Scythe is going with a flat nickel-plated copper for its cold plate coupled with 6x6mm heat pipes. The company is using 2x120mm “Wonder Tornado” fans as Scythe calls them. They are 25mm-thick fans and use metal brackets to adjust the fan height. Mugen 6 TUFThe Mugen 6 TUF is an ASUS-themed version of the CPU cooler. Big Shuriken 4Scythe also showed off its Big Shuriken 4 CPU cooler, which the company also showed last year, but is now about final. It has cut-outs on the side of the fan, which Scythe says helps with performance as it allows air to escape from the sides. One of the things that Scythe is trying to figure out with the Big Shuriken 4 is whether to make it all black or ARGB. Scythe Closing Its European Branch Visit our Patreon page to contribute a few dollars toward this website's operation (or consider a direct donation or buying something from our GN Store!) Additionally, when you purchase through links to retailers on our site, we may earn a small affiliate commission.In regards to Scythe’s closed European branch, it sounds like the company is restructuring and moving operations to Taiwan. Scythe tells us it will still ship and sell to European customers.

For the past two years, it’s been a ghost in the machine of American tech. Between 2022 and today, a little-noticed tweak to the U.S. tax code has quietly rewired the financial logic of how American companies invest in research and development. Outside of CFO and accounting circles, almost no one knew it existed. “I work on these tax write-offs and still hadn’t heard about this,” a chief operating officer at a private-equity-backed tech company told Quartz. “It’s just been so weirdly silent.”AdvertisementStill, the delayed change to a decades-old tax provision — buried deep in the 2017 tax law — has contributed to the loss of hundreds of thousands of high-paying, white-collar jobs. That’s the picture that emerges from a review of corporate filings, public financial data, analysis of timelines, and interviews with industry insiders. One accountant, working in-house at a tech company, described it as a “niche issue with broad impact,” echoing sentiments from venture capital investors also interviewed for this article. Some spoke on condition of anonymity to discuss sensitive political matters.Since the start of 2023, more than half-a-million tech workers have been laid off, according to industry tallies. Headlines have blamed over-hiring during the pandemic and, more recently, AI. But beneath the surface was a hidden accelerant: a change to what’s known as Section 174 that helped gut in-house software and product development teams everywhere from tech giants such as Microsoft (MSFT) and Meta (META) to much smaller, private, direct-to-consumer and other internet-first companies.Now, as a bipartisan effort to repeal the Section 174 change moves through Congress, bigger questions are surfacing: How did a single line in the tax code help trigger a tsunami of mass layoffs? And why did no one see it coming? For almost 70 years, American companies could deduct 100% of qualified research and development spending in the year they incurred the costs. Salaries, software, contractor payments — if it contributed to creating or improving a product, it came off the top of a firm’s taxable income.AdvertisementThe deduction was guaranteed by Section 174 of the IRS Code of 1954, and under the provision, R&D flourished in the U.S.Microsoft was founded in 1975. Apple (AAPL) launched its first computer in 1976. Google (GOOGL) incorporated in 1998. Facebook opened to the general public in 2006. All these companies, now among the most valuable in the world, developed their earliest products — programming tools, hardware, search engines — under a tax system that rewarded building now, not later.The subsequent rise of smartphones, cloud computing, and mobile apps also happened in an America where companies could immediately write off their investments in engineering, infrastructure, and experimentation. It was a baseline assumption — innovation and risk-taking subsidized by the tax code — that shaped how founders operated and how investors made decisions.In turn, tech companies largely built their products in the U.S. AdvertisementMicrosoft’s operating systems were coded in Washington state. Apple’s early hardware and software teams were in California. Google’s search engine was born at Stanford and scaled from Mountain View. Facebook’s entire social architecture was developed in Menlo Park. The deduction directly incentivized keeping R&D close to home, rewarding companies for investing in American workers, engineers, and infrastructure.That’s what makes the politics of Section 174 so revealing. For all the rhetoric about bringing jobs back and making things in America, the first Trump administration’s major tax bill arguably helped accomplish the opposite.When Congress passed the Tax Cuts and Jobs Act (TCJA), the signature legislative achievement of President Donald Trump’s first term, it slashed the corporate tax rate from 35% to 21% — a massive revenue loss on paper for the federal government.To make the 2017 bill comply with Senate budget rules, lawmakers needed to offset the cost. So they added future tax hikes that wouldn’t kick in right away, wouldn’t provoke immediate backlash from businesses, and could, in theory, be quietly repealed later.AdvertisementThe delayed change to Section 174 — from immediate expensing of R&D to mandatory amortization, meaning that companies must spread the deduction out in smaller chunks over five or even 15-year periods — was that kind of provision. It didn’t start affecting the budget until 2022, but it helped the TCJA appear “deficit neutral” over the 10-year window used for legislative scoring.The delay wasn’t a technical necessity. It was a political tactic. Such moves are common in tax legislation. Phase-ins and delayed provisions let lawmakers game how the Congressional Budget Office (CBO) — Congress’ nonpartisan analyst of how bills impact budgets and deficits — scores legislation, pushing costs or revenue losses outside official forecasting windows.And so, on schedule in 2022, the change to Section 174 went into effect. Companies filed their 2022 tax returns under the new rules in early 2023. And suddenly, R&D wasn’t a full, immediate write-off anymore. The tax benefits of salaries for engineers, product and project managers, data scientists, and even some user experience and marketing staff — all of which had previously reduced taxable income in year one — now had to be spread out over five- or 15-year periods. To understand the impact, imagine a personal tax code change that allowed you to deduct 100% of your biggest source of expenses, and that becoming a 20% deduction. For cash-strapped companies, especially those not yet profitable, the result was a painful tax bill just as venture funding dried up and interest rates soared.AdvertisementSalesforce office buildings in San Francisco.Photo: Jason Henry/Bloomberg (Getty Images)It’s no coincidence that Meta announced its “Year of Efficiency” immediately after the Section 174 change took effect. Ditto Microsoft laying off 10,000 employees in January 2023 despite strong earnings, or Google parent Alphabet cutting 12,000 jobs around the same time.Amazon (AMZN) also laid off almost 30,000 people, with cuts focused not just on logistics but on Alexa and internal cloud tools — precisely the kinds of projects that would have once qualified as immediately deductible R&D. Salesforce (CRM) eliminated 10% of its staff, or 8,000 people, including entire product teams.In public, companies blamed bloat and AI. But inside boardrooms, spreadsheets were telling a quieter story. And MD&A notes — management’s notes on the numbers — buried deep in 10-K filings recorded the change, too. R&D had become more expensive to carry. Headcount, the leading R&D expense across the tech industry, was the easiest thing to cut.AdvertisementIn its 2023 annual report, Meta described salaries as its single biggest R&D expense. Between the first and second years that the Section 174 change began affecting tax returns, Meta cut its total workforce by almost 25%. Over the same period, Microsoft reduced its global headcount by about 7%, with cuts concentrated in product-facing, engineering-heavy roles.Smaller companies without the fortress-like balance sheets of Big Tech have arguably been hit even harder. Twilio (TWLO) slashed 22% of its workforce in 2023 alone. Shopify (SHOP) (headquartered in Canada but with much of its R&D teams in the U.S.) cut almost 30% of staff in 2022 and 2023. Coinbase (COIN) reduced headcount by 36% across a pair of brutal restructuring waves.Since going into effect, the provision has hit at the very heart of America’s economic growth engine: the tech sector.By market cap, tech giants dominate the S&P 500, with the “Magnificent 7” alone accounting for more than a third of the index’s total value. Workforce numbers tell a similar story, with tech employing millions of Americans directly and supporting the employment of tens of millions more. As measured by GDP, capital-T tech contributes about 10% of national output.AdvertisementIt’s not just that tech layoffs were large, it’s that they were massively disproportionate. Across the broader U.S. economy, job cuts hovered around in low single digits across most sectors. But in tech, entire divisions vanished, with a whopping 60% jump in layoffs between 2022 and 2023. Some cuts reflected real inefficiencies — a response to over-hiring during the zero-interest rate boom. At the same time, many of the roles eliminated were in R&D, product, and engineering, precisely the kind of functions that had once benefitted from generous tax treatment under Section 174.Throughout the 2010s, a broad swath of startups, direct-to-consumer brands, and internet-first firms — basically every company you recognize from Instagram or Facebook ads — built their growth models around a kind of engineered break-even.The tax code allowed them to spend aggressively on product and engineering, then write it all off as R&D, keeping their taxable income close to zero by design. It worked because taxable income and actual cash flow were often notGAAP accounting practices. Basically, as long as spending counted as R&D, companies could report losses to investors while owing almost nothing to the IRS.But the Section 174 change broke that model. Once those same expenses had to be spread out, or amortized, over multiple years, the tax shield vanished. Companies that were still burning cash suddenly looked profitable on paper, triggering real tax bills on imaginary gains.AdvertisementThe logic that once fueled a generation of digital-first growth collapsed overnight.So it wasn’t just tech experiencing effects. From 1954 until 2022, the U.S. tax code had encouraged businesses of all stripes to behave like tech companies. From retail to logistics, healthcare to media, if firms built internal tools, customized a software stack, or invested in business intelligence and data-driven product development, they could expense those costs. The write-off incentivized in-house builds and fast growth well outside the capital-T tech sector. This lines up with OECD research showing that immediate deductions foster innovation more than spread-out ones.And American companies ran with that logic. According to government data, U.S. businesses reported about $500 billion in R&D expenditures in 2019 alone, and almost half of that came from industries outside traditional tech. The Bureau of Economic Analysis estimates that this sector, the broader digital economy, accounts for another 10% of GDP.Add that to core tech’s contribution, and the Section 174 shift has likely touched at least 20% of the U.S. economy.AdvertisementThe result? A tax policy aimed at raising short-term revenue effectively hid a time bomb inside the growth engines of thousands of companies. And when it detonated, it kneecapped the incentive for hiring American engineers or investing in American-made tech and digital products.It made building tech companies in America look irrational on a spreadsheet.A bipartisan group of lawmakers is pushing to repeal the Section 174 change, with business groups, CFOs, crypto executives, and venture capitalists lobbying hard for retroactive relief. But the politics are messy. Fixing 174 would mean handing a tax break to the same companies many voters in both parties see as symbols of corporate excess. Any repeal would also come too late for the hundreds of thousands of workers already laid off.And of course, the losses don’t stop at Meta’s or Google’s campus gates. They ripple out. When high-paid tech workers disappear, so do the lunch orders. The house tours. The contract gigs. The spending habits that sustain entire urban economies and thousands of other jobs. Sandwich artists. Rideshare drivers. Realtors. Personal trainers. House cleaners. In tech-heavy cities, the fallout runs deep — and it’s still unfolding.AdvertisementWashington is now poised to pass a second Trump tax bill — one packed with more obscure provisions, more delayed impacts, more quiet redistribution. And it comes as analysts are only just beginning to understand the real-world effects of the last round.The Section 174 change “significantly increased the tax burden on companies investing in innovation, potentially stifling economic growth and reducing the United States’ competitiveness on the global stage,” according to the tax consulting firm KBKG. Whether the U.S. will reverse course — or simply adapt to a new normal — remains to be seen.

Meta (Nasdaq:META) is restructuring its AI division into two distinct units, AI Products and AGI Foundations, marking its most significant internal overhaul as it races to compete with OpenAI and Google. The move, detailed in an internal memo from Chief Product Officer Chris Cox and reported by Axios, appoints Connor Hayes to lead AI product integration while Ahmad Al-Dahle and Amir Frenkel will co-direct long-term AGI research. The restructuring comes amid mounting crises, including the delayed Llama 4 Behemoth model and the departure of key Llama architects to competitors like Mistral AI. This marks Meta’s second major AI reorganization since CEO Mark Zuckerberg’s 2023 attempt to “turbocharge” generative AI efforts, which saw the company fall further behind rivals despite early promise. “Structural changes alone won’t solve Meta’s AI challenges,” said Amandeep Singh, practice director at QKS Group. “While the new AGI Foundations unit creates clarity, retaining elite talent requires a seamless pipeline from research to real-world deployment. Meta has struggled with fragmented pipelines and unclear priorities,” added Singh. Talent exodus and technical setbacks The restructuring follows talent losses that have exposed fundamental weaknesses in Meta’s AI strategy. Only three authors remain from the original 14-person Llama research team, according to Business Insider. Internal surveys cited by The Information reveal plummeting morale in Meta’s AI division, where employees cite resource constraints and sluggish progress. “Talent follows momentum, and right now, momentum lives where research decisions directly shape deployed capabilities,” noted Singh. This talent drain coincides with technical setbacks, most notably the underperforming Llama 4 model, which has struggled with reasoning and mathematical tasks. These combined challenges have left Meta playing catch-up in the race toward artificial general intelligence, despite its early open-source advantages. The company’s strategy, bolstered by initiatives such as Llama for Startups and the recent Llama API launch, aims to attract developers and differentiate it from competitors’ proprietary models. But analysts caution these initiatives alone may not be enough to win enterprise trust. The enterprise adoption dilemma While Llama’s cost advantages remain attractive to businesses, growing concerns about its governance controls and the looming copyright lawsuit over training data are giving enterprises pause. “Companies love Llama’s affordability but expanding safety gaps and legal risks are becoming hard to ignore,” Singh said. “For mission-critical applications, many will ultimately choose more reliable, if more expensive, options like GPT or Gemini.” These cost benefits can lose their appeal when weighed against operational risks. Meta’s reorganization attempts to mitigate these concerns through specialized teams, one deploying generative AI across products, another advancing AGI research, but analysts remain skeptical about whether structural changes alone can solve deeper issues. Unlike Microsoft’s turnkey OpenAI integration or Google’s enterprise-ready Vertex AI platform, Meta lacks both the sales infrastructure and compliance pedigree for regulated industries. As Singh argued, “Enterprise AI adoption hinges on proven compliance frameworks, operational reliability, and mature support systems. Meta still needs to build that trust at Fortune 500 scale.” Meta’s race to close the AGI gap “Meta’s AGI push focused on models with reasoning, multimedia, and voice capabilities aligns with the broader industry trend toward multimodal AI as a catalyst for enterprise transformation,” said Surjyadeb Goswami, research director for AI and Automation at IDC Asia Pacific. He noted that open-source models are critical to enabling cost-effective, transparent, and customizable deployments, especially as organizations deepen their GenAI investments. For Meta to truly capitalize on this opportunity and succeed in its AGI bid, it must rebuild trust especially for enterprise adoption. Singh highlighted the need for Linux-like community stewardship, OpenAI-level safety protocols, and robust enterprise tooling. “Balancing openness with responsibility is Meta’s real challenge, especially as models approach general-purpose cognitive capability.” Meta now needs to show this reorganization yields meaningful improvements in model performance, talent retention, and enterprise adoption to validate its new approach. “Meta’s open-source vision is bold, but execution is everything,” Singh concluded.

Tech layoffs have continued in 2025. Much of that is being blamed on a combination of a slower economy and the adoption of automation via artificial intelligence. Nearly four in 10 Americans, for instance, believe generative AI (genAI) could diminish the number of available jobs as it advances, according to a study released in October by the New York Federal Reserve Bank. And the World Economic Forum’s Jobs Initiative study found that close to half (44%) of worker skills will be disrupted in the next five years — and 40% of tasks will be affected by the use of genAI tools and the large language models (LLMs) that underpin them. In April, the US tech industry lost 214,000 positions as companies shifted toward AI roles and skills-based hiring amid economic uncertainty. Tech sector companies reduced staffing by a net 7,000 positions in April, an analysis of data released by the US Bureau of Labor Statistics (BLS) showed. This year, 137 tech companies have fired 62,114 tech employees, according to Layoffs.fyi. Efforts to reduce headcount at government agencies by the unofficial US Department of Government Efficiency (DOGE) saw an additional 61,296 federal workers fired this year. Kye Mitchell, president of tech workforce staffing firm Experis US, believes the IT employment market is undergoing a fundamental transformation rather than experiencing traditional cyclical layoffs. Although Experis is seeing a 13% month-over-month decline in traditional software developer postings, it doesn’t represent “job destruction, it’s market evolution,” Mitchell said. “What we’re witnessing is the emergence of strategic technology orchestrators who harness AI to drive unprecedented business value,” she said. For example, organizations that once deployed two scrum teams of ten people to develop high-quality software are now achieving superior results with a single team of five AI-empowered developers. “This isn’t about cutting jobs; it’s about elevating roles,” Mitchell said. Specialized roles in particular are surging. Database architect positions are up 2,312%, statistician roles have increased 382%, and jobs for mathematicians have increased 1,272%. “These aren’t replacements; they’re vital for an AI-driven future,” she said. In fact, it’s an IT talent gap, not an employee surplus, that is now challenging organizations — and will continue to do so. With 76% of IT employers already struggling to find skilled tech talent, the market fundamentals favor skilled professionals, according to Mitchell. “The question isn’t whether there will be IT jobs — it’s whether we can develop the right skills fast enough to meet demand,” she said. For federal tech workers, outdated systems and slow procurement make it hard to attract and keep top tech talent. Agencies expect fast team deployment but operate with rigid, outdated processes, according to Justin Vianello, CEO of technology workforce development firm SkillStorm. Long security clearance delays add cost and time, often forcing companies to hire expensive, already-cleared talent. Meanwhile, modern technologists want to use current tools and make an impact — something hard to do with legacy systems and decade-long modernization efforts, he added. Many suggest turning to AI to will solve the tech talent shortage, but there is no evidence that AI will lead to a reduction in demand for tech talent, Vianello said. “On the contrary, companies see that the demand for tech talent has increased as they invest in preparing their workforce to properly use AI tools,” he said. A shortage of qualified talent is a bigger barrier to hiring than AI automation, he said, because organizations struggle to find candidates with the right certifications, skills, and clearances — especially in cloud, cybersecurity, and AI. Tech workers often lack skills in these areas because technology evolves faster than education and training can keep up, Vianello said. And while AI helps automate routine tasks, it can’t replace the strategic roles filled by skilled professionals. Seven out of 10 US organizations are struggling to find skilled workers to fill roles in an ever-evolving digital transformation landscape, and genAI has added to that headache, according to a ManpowerGroup survey released earlier this year. Job postings for AI skills surged 2,000% in 2024, but education and training in this area haven’t kept pace, according to Kelly Stratman, global ecosystem relationships enablement leader at Ernst & Young. “As formal education and training in AI skills still lag, it results in a shortage of AI talent that can effectively manage these technologies and demands,” she said in an earlier interview. “The AI talent shortage is most prominent among highly technical roles like data scientists/analysts, machine learning engineers, and software developers.” Economic uncertainty is creating a cautious hiring environment, but it’s more complex than tariffs alone. Experis data shows employers adopting a “wait and watch” stance as they monitor economic signals, with job openings down 11% year-over-year, according to Mitchell. “However, the bigger story is strategic workforce planning in an era of rapid technological change. Companies are being incredibly precise about where they allocate resources. Not because of economic pressure alone, but because the skills landscape is shifting so rapidly,” Mitchell said. “They’re prioritizing mission-critical roles while restructuring others around AI capabilities.” Top organizations see AI as a strategic shift, not just cost-cutting. Cutting talent now risks weakening core areas like cybersecurity, according to Mitchell. Skillstorm’s Vianello suggests that IT job hunters should begin to upgrade their skills with certifications that matter: AWS, Azure, CISSP, Security+, and AI/ML credentials open doors quickly, he said. “Veterans, in particular, have an edge; they bring leadership, discipline, and security clearances. Apprenticeships and fellowships offer a fast track into full-time roles by giving you experience that actually counts. And don’t overlook the intangibles: soft skills and project leadership are what elevate technologists into impact-makers,” Vianello said. Skills-based hiring has been on the rise for several years, as organizations seek to fill specific needs for big data analytics, programing (such as Rust), and AI prompt engineering. In fact, demand for genAI courses is surging, passing all other tech skills courses spanning fields from data science to cybersecurity, project management, and marketing. “AI isn’t replacing jobs — it’s fundamentally redefining how work gets done. The break point where technology truly displaces a position is when roughly 80% of tasks can be fully automated,” Mitchell said. “We’re nowhere near that threshold for most roles. Instead, we’re seeing AI augment skill sets and make professionals more capable, faster, and able to focus on higher-value work.” Leaders use AI as a strategic enabler — embedding it to enhance, not compete with, human developers, she said. Some industry forecasts predict a 30% productivity boost from AI tools, potentially adding more than $1.5 trillion to global GDP. For example, AI tools are expected to perform the lion’s share of coding. Techniques where humans use AI-augmented coding tools, such as “vibe coding,” are set to revolutionize software development by creating source code, generating tests automatically, and freeing up developer time for innovation instead of debugging code.  With vibe coding, developers use natural language in a conversational way that prompts the AI model to offer contextual ideas and generate code based on the conversation. By 2028, 75% of professional developers will be using vibe coding and other genAI-powered coding tools, up from less than 10% in September 2023, according to Gartner Research. And within three years, 80% of enterprises will have integrated AI-augmented testing tools into their software engineering tool chain — a significant increase from approximately 15% early last year, Gartner said. A report from MIT Technology Review Insights found that 94% of business leaders now use genAI in software development, with 82% applying it in multiple stages — and 26% in four or more. Some industry experts place genAI’s use in creating code much higher. “What we are finding is that we’re three to six months from a world where AI is writing 90% of the code. And then in 12 months, we may be in a world where AI is writing essentially all of the code,” Anthropic CEO Dario Amodei said in a recent report and video interview. “The real [AI] transformation is in role evolution. Developers are becoming strategic technology orchestrators,” Mitchell from Experis said. “Data professionals are becoming business problem solvers. The demand isn’t disappearing; it’s becoming more sophisticated and more valuable. “In today’s economic climate, having the right tech talent with AI-enhanced capabilities isn’t a nice-to-have, it’s your competitive edge,” she said.

The Swiss Federal Railways’ repair works in Zürich are being lightly transformed for new commercial uses Workers at the Swiss Federal Railways’ (SBB) central repair works in Zürich used to climb the roof of its halls and practise handstands. It was as good a place as any to do gymnastics: out in the open air, with a view to the Käferberg rising across from a tangle of railway tracks and the river Limmat. A photograph from 1947 survives in the SBB archives, showing a light turf growing on the roof – most of the buildings that make up the works had been constructed about 30 years earlier, between 1906 and 1910 – and a group of young apprentices exercising under the stern supervision of a foreman. The photograph captures the beginning of the repair works’ heyday. SBB was formed in 1902, the result of an 1898 referendum to nationalise the nine major private railway companies operating in Switzerland at the time. The construction of the Zürich repair works began soon after, with an office building, a workers’ canteen, shower rooms, workshops, stores and carriage halls laid out across a 42,000m2 site flanked by Hohlstrasse to the south‑west and the railway tracks connecting Zürich Central and Altstetten stations to the north‑east. Here, rolling stock could easily be redirected to the works, and transferred into its functional, skylit brick halls with the use of a lateral transfer platform.  In the postwar decades, the works came to employ upwards of 800 staff, and served as the SBB’s main repair works, or Hauptwerkstätte – there were smaller ones in Bellinzona, Chur, Yverdon-les-Bains and other locations, established by the private railway firms before nationalisation. In the same period, SBB gained international fame for its early electrification drive – the landlocked confederation lacks fossil fuel deposits but has hydropower aplenty – and modern industrial design. The Swiss railway clock, designed in 1944 by SBB employee Hans Hilfiker, is now used in transit systems around the world, and the network’s adoption of Helvetica for its graphic identity in 1978 contributed to the widespread popularisation of the typeface – long before the first iPhone.  At the turn of the millennium, SBB was turned into a joint‑stock company. All shares are owned by the state and the Swiss cantons, but the new company structure allowed the network to behave more like a private enterprise. Part of this restructuring was an appraisal of the network’s sizable real-estate holdings, which a new division, SBB Immobilien, was set up to manage in 2003. Around the same time, the Hauptwerkstätte in Zürich was downgraded to a ‘repair centre’, and plans were drawn up to develop the site, which was vast, central and fashionably post‑industrial – and so ripe for profitable exploitation. The revenue generated by SBB Immobilien has only become more important to the network since then, as its pension fund – long beset by market volatility and continuous restructurings – relies heavily on it. When, in 2017, SBB and the city and canton of Zürich organised a competition for the redevelopment of the old repair works, Swiss architecture practice Baubüro In Situ was selected as winner ‘for its expertise in adaptive reuse, sustainable circular practices and participatory approach’, says an SBB Immobilien spokesperson. For SBB, it was important that the redevelopment, now dubbed Werkstadt Zürich, made use of the railways’ enormous catalogue of existing materials and components. (SBB even has its own online resale platform, where, for example, four tonnes of gravel, a disused train carriage or a stud welding machine can be acquired for a reasonable sum.) For the canton, it was imperative that the scheme make room for local manufacturing in line with a broader drive to bring production back into a city dominated by services.  Founded in Basel by Barbara Buser and Eric Honegger in 1998, Baubüro In Situ (previously Baubüro Mitte) was in a unique position to meet such a brief, as it operates alongside what it terms its three ‘sister companies’: Unterdessen (founded in 2004, to organise ‘meanwhile’ uses for buildings and sites), Zirkular (established in 2020, focusing on materials and circular construction), and Denkstatt Sàrl, an urban think tank run by Buser and Honegger together with Tabea Michaelis and Pascal Biedermann. All informed the masterplan for Werkstadt Zürich, which will complete its first phase this year.  The Zürich offices of the four companies have been housed in various spaces on the repair works site since 2017, while the project has been ongoing. For the past year, they have had a permanent home on a new mezzanine level constructed around the internal perimeter of the works’ cathedral‑like carriage hall. This level is accessed via two central staircases composed of reused components from SBB’s network – I‑beams of various profiles, timber, metal tube railings – which, as has become a trademark of Baubüro In Situ’s work, come together in an artfully mismatched whole. ‘The main thing this office does is as little as possible,’ says Vanessa Gerotto, an interior architect at the firm. SBB still uses parts of the site, as is evident from train tracks that crisscross it. ‘They do repairs in some of the halls,’ explains Gerotto. ‘But they have reorganised, relocated and compacted their repair sites,’ so that approximately 18,450m2 have been freed up for commercial use at Werkstadt Zürich, including a swathe of units in the carriage hall. Here, as in other areas where they are no longer needed, SBB’s tracks have been retained but filled in with concrete and smoothed over.  Businesses have slowly filled Werkstadt Zürich as new units have been completed, and are mostly rarefied, small‑scale producers of luxury consumables: there is a chocolatier, a granola‑maker, a micro‑brewery, a gin distillery and a coffee roastery, as well as a manufacturer of coffee machines. The first commercial tenant, however, was somewhat more in keeping with the original programme of the site: the Swiss outdoor equipment brand Transa moved its repair workshop into one of the spaces in Werkstadt Zürich’s magazine building, to the south of the site, in 2023. Here, a team of 13 craftspeople repair and waterproof Gore-Tex clothing, backpacks, tents and sleeping bags that individual customers either drop off or mail to them, or that official partnering brands send directly to the centre.  ‘The Transa team is currently working on a new set of curtains for the Baubüro In Situ’s offices across the yard’ This part of Werkstadt Zürich was also the first to be renovated. Baubüro In Situ, working closely with colleagues at Zirkular, undertook a substantial interior fit‑out of the triple-height space, located in the western part of the magazine wing. A new timber mezzanine was added to maximise use of the space for the client, who did not require a double-height ground floor space. This was designed to be structurally independent from the shell of the building, so that the listed structure was not impacted.  However, the weight of the mezzanine necessitated new foundations, which needed to support a load of 100kN per timber support. There were not any suitable concrete elements available on site at Werkstadt Zürich, so the teams opted for what Zirkular architect Blanca Gardelegui admits was an ‘experimental’ move, reusing concrete from a demolition site in Winterthur. Here, slabs were cut using a diamond blade saw and stacked on site using a crane. ‘Additional work,’ explains Pascal Angehrn, architect at Baubüro In Situ, ‘came from the temporary storage of the blocks,’ and their transport. Once the blocks had been fitted into place, new concrete nevertheless had to be poured around the timber supports. This meant that, although efforts were made to reuse a wide variety of components and fittings – heaters, doors, plumbing fixtures, lights and stone windowsills – the fit‑out did not meet the architects’ own best‑case scenario of 50 per cent greenhouse gas savings, compared with using new materials and components for the renovation. Instead, they calculated the savings to sit at around 17 per cent. ‘Concrete is one of the most challenging materials to recycle,’ says Gardelegui. ‘The idea is not to do something perfectly, but to learn from the process.’ Finally, the teams introduced a wide staircase into the centre of the space, using the timber from the cut-out mezzanine flooring to make up its steps. Upon moving in, the staff at Transa’s repair centre embraced the architects’ spirit of reuse, creating their own furniture from pallets, and uplholstering with insulation cut‑offs. Tobias Stump, a member of staff at the centre, explains that their team is currently working on a new set of curtains for Baubüro In Situ’s offices across the yard.  ‘The idea is not to do something perfectly, but to learn from the process’ Werkstadt Zürich has the atmosphere of a creative testing ground, where materials get shifted around and reconfigured as needs and uses change. There is genuine camaraderie among the new commercial tenants: they make curtains for each other; organise monthly ‘open factory’ days; and have even recreated the 1947 photograph of the gymnasts on the roof. But antics on the roof may not be viable much longer. The next phase of Werkstadt Zürich involves the construction of vertical extensions atop the halls and magazine wing, densifying the site for further financial gain. Bland, brand new residential towers loom just off site, a little further up Hohlstrasse. Altstetten is gentrifying rapidly, part of the city’s continual remaking of itself.