by 755, putin says diplomatic staff u.s. must reduce

1
U(D54G1D)y+@!?!#!#!/ For years, American companies have been saving money by “off- shoring” jobs — hiring people in India and other distant cubicle farms. Today, some of those jobs are being outsourced again — in the United States. Nexient, a software outsourcing company, reflects the evolving ge- ography of technology work. It holds daily video meetings with one of its clients, Bill.com, where team members say into the cam- era what they accomplished yes- terday for Bill.com, and what they plan to do tomorrow. The differ- ence is, they are phoning in from Michigan, not Mumbai. “It’s the first time we’ve been happy outsourcing,” said René Lacerte, the chief executive of Bill.com, a bill payment-and-col- lection service based in Palo Alto, Calif. Nexient is a domestic out- sourcer, a flourishing niche in the tech world as some American companies pull back from the idea of hiring programmers a world away. Salaries have risen in places like South Asia, making outsourc- ing there less of a bargain. In addi- tion, as brands pour energy and money into their websites and mo- bile apps, more of them are decid- ing that there is value in having developers in the same time zone, or at least on the same continent. Many of these domestic out- sourcers are private, little-known companies like Rural Sourcing, Catalyte, Eagle Creek Software Services and Onshore Outsourc- ing. But IBM, one of the country’s foremost champions of the off- That Job Sent to India May Now Go to Indiana By STEVE LOHR Apprentices in a program in- tended to nurture local talent. RYAN DAVID BROWN FOR THE NEW YORK TIMES Continued on Page A11 On one of Brooklyn’s busier commuter streets, bicycles now outnumber cars. The two-wheelers glide down a bike lane on Hoyt Street, which links Downtown Brooklyn with thriving brownstone-lined neigh- borhoods. There are so many bikes during the evening rush that they pack together at red lights and spill out in front of cars. It is the kind of bike hegemony that was once hard to imagine in New York City, where cars and taxis long claimed the streets and only hardened cyclists braved the chaotic traffic. “New York has really become a biking world,” said Jace Rivera, 42, a former construction worker who so enjoyed riding his bike to work that he changed careers last year to become a bike messenger. “The city has gotten a lot more crowded, and the trains have got- ten a lot more expensive. By bik- ing, you spare yourself the crowds, you save a lot of money, and you can go to work on time.” Biking has become part of New York’s commuting infrastructure as bike routes have been ex- panded and a fleet of 10,000 Citi Bikes has been deployed to more than 600 locations. Today, there are more than 450,000 daily bike trips in the city, up from 170,000 in 2005, an increase that has out- paced population and employ- ment growth, according to city of- ficials. About one in five bike trips is by a commuter. Tim Weng, 30, a nurse, traded the subway for a bike after train delays kept making him late for work. It takes just 25 minutes to bike to his job, compared with an hour on two trains. He bought a second bike as a spare. “Now that I have a bike, I go places more of- ten because it’s more convenient,” he said. Citi Bike alone accounted for a record 70,286 trips last Wednes- day, which the program called “the highest single-day ridership of any system in the Western world outside of Paris.” The bike- sharing system in New York has signed up 130,000 riders for annu- al memberships, up from nearly 100,000 last year. In New York, Rush Hour Comes to the Bike Lane By WINNIE HU Continued on Page A18 CHINA DAILY, VIA REUTERS Chinese soldiers before a parade on Sunday in Inner Mongolia. The display, a celebration of the army’s 90th anniversary, was part of President Xi Jinping’s effort to solidify his power. Page A8. Power From the Barrel of a Gun MOSCOW — President Vlad- imir V. Putin announced Sunday that the American diplomatic mis- sion in Russia must reduce its staff by 755 employees, an ag- gressive response to new Ameri- can sanctions that seemed ripped right from the Cold War playbook and sure to increase tensions be- tween the two capitals. In making the announcement, Mr. Putin said Russia had run out of patience waiting for relations with the United States to improve. “We waited for quite a long time that, perhaps, something will change for the better, we held out hope that the situation would somehow change,” Mr. Putin said in an interview on state-run Rossiya 1 television, which pub- lished a Russian-language tran- script on its website. “But, judging by everything, if it changes, it will not be soon.” Mr. Putin said the staff reduc- tion was meant to cause real dis- comfort for Washington and its representatives in Moscow. “Over 1,000 employees — diplo- mats and technical workers — worked and continue to work to- day in Russia; 755 will have to stop this activity,” he said. “That is biting,” Mr. Putin add- ed. The measures were the harsh- est such diplomatic move since a similar rupture in 1986, in the wan- ing days of the Soviet Union. It was also a major shift in tone from the beginning of this month, when Mr. Putin first met with President Trump at the G-20 sum- mit meeting in Hamburg, Ger- many. Mr. Trump had talked dur- ing his campaign of improving ties with Russia, praising Mr. Putin, and the Kremlin had anticipated that the face-to-face meeting of two presidents would be the start of a new era. The immediate as- sessment in Moscow was that the two leaders had set the stage for better relations. But then, in quick succession, came the expanded sanctions pas- sed by Congress, Mr. Trump’s indi- cation that he would sign them into law and Moscow’s forceful re- taliation. Washington’s response on Sun- day was muted. “This is a regret- table and uncalled-for act,” the U.S. MUST REDUCE DIPLOMATIC STAFF BY 755, PUTIN SAYS RESPONSE TO SANCTIONS Russia Escalates Dispute by Using Tactic That Evokes Cold War By NEIL MacFARQUHAR Continued on Page A5 President Trump and Republi- cans in Washington have shaken the confidence of their supporters after a punishing and self-inflicted series of setbacks that have an- gered activists, left allies slack- jawed and reopened old fissures on the right. A seemingly endless sequence of disappointments and blunders has rattled Mr. Trump’s volatile governing coalition, like Mr. Trump’s attacks on Attorney Gen- eral Jeff Sessions; a vulgar tirade by his new communications chief, Anthony Scaramucci; and the col- lapse of conservative-backed health care legislation. Mr. Trump remains overwhelm- ingly popular with Republicans, but among party loyalists and pro- Trump activists around the coun- try, there are new doubts about the tactics he has employed, the team he has assembled and the fate of the populist, “drain the swamp” agenda he promised to deliver in partnership with a Re- publican-controlled Congress. “There is a significant amount of justified frustration, particu- larly with the Senate,” said Robin Hayes, the chairman of the North Carolina Republican Party, allud- ing to the health care defeat. “I don’t want to use any Scaramucci language this morning, but it’s their inability to function as a team, to work together and come up with a responsible win.” Some Republican grass-roots activists cheered the ouster on Friday of Reince Priebus, a for- Trump Turmoil Is Confounding G.O.P. Agenda Loyalists Point Fingers, but Not at President By ALEXANDER BURNS and MICHAEL D. SHEAR Continued on Page A12 Late Edition VOL. CLXVI . . . No. 57,675 © 2017 The New York Times Company NEW YORK, MONDAY, JULY 31, 2017 LONDON — Up an alley, be- yond some hoarding, through what can feel like Harry Potter’s secret portal, the underworld of an unfinished Crossrail station sprawls beneath the traffic and commotion of Tottenham Court Road. Escalator banks descend through a sleek, silent black ticket hall where towering, empty, white-tiled passageways snake toward the new, vaulted train plat- form, curving like a half moon into the subterranean darkness. Crossrail is not your average subway. London’s $20 billion high- speed train line, which plans to start taking passengers late next year, is Europe’s biggest infra- structure project. It will be so fast that crucial travel times across the city should be cut by more than half. The length of two soccer fields, with a capacity for 1,500 people, its trains will be able to carry twice the number of passengers as an ordi- nary London subway. While Lon- doners love to moan about their public transit network, by com- parison New York has barely managed to construct four sub- way stops in about a half-century and its aged, rapidly collapsing subway system now threatens to bring the city to a halt. But standing one recent morn- ing on that empty Crossrail plat- form, where construction workers in orange gear and hard hats hauled shiny metal panels to line the walls, I still couldn’t help won- dering whether the new train leads toward another glorious era for this city, or signals the end of one. Before Britain voted last sum- mer to leave the European Union, Crossrail was conceived for a Lon- don open to the world and speed- ing into the future. Now, with Brexit, the nightmare scenario is that this massive project, to pro- vide more trains moving more Brexit Clouds New Subway’s Promise By MICHAEL KIMMELMAN A Crossrail tunnel under Tottenham Court Road in London. At $20 billion, Crossrail is Europe’s biggest infrastructure project. ANDREW TESTA FOR THE NEW YORK TIMES Continued on Page A6 LOSING LONDON New Era, or End of One SAN ANTONIO — In one truck, the migrants crouched in the dark in a three-foot crevice between the trailer’s ceiling and the top of med- ical-supply boxes. In another, smugglers crammed 73 men, women and children into a trailer filled with rotting watermelons, to try to disguise their scent for Bor- der Patrol dogs. Sometimes, the trailers are comfortable, or as comfortable as a human-cargo operation can be, with water, ventilation and even refrigeration to keep everyone cool. But just as often, especially in the South Texas heat, they can become inhumane. One group of trapped migrants cut their hands trying to rip insu- lation from a trailer’s door to try to get some air and left bloody hand- prints. Others drank their own urine when their water supply went out. Luciano Alcocer, 56, still vividly recalls his 12-hour trip from Chap- arral, N.M., to Dallas packed into an unventilated trailer in 2002. Two immigrants died, and Mr. Al- cocer thought he would, too. “I thought my final moment had arrived,” he said last week. “We were desperate. We were like chickens spinning in a rotisserie.” Last Sunday, a thirsty immi- grant’s request for water at a Wal- mart in San Antonio led to the dis- covery, in the parking lot, of the deadliest truck-smuggling opera- tion in the United States in more than a decade. Ten of the 39 people found in or near the truck died, and others were hospitalized, For Migrants, Peril on 18 Wheels; For Smugglers, a Profit Machine This article is by Manny Fernan- dez, Nicholas Kulish and Susan Anasagasti. Continued on Page A11 An election to overhaul Venezuela’s Constitution was met with civil unrest as many voters avoided the polls. PAGE A8 INTERNATIONAL A4-9 Legitimacy of Vote Threatened A campaign tries to change a custom in which Afghan men use terms like “My Goat” to describe women. PAGE A4 Fighting to Have a Name The path to victory is far from assured for Imran Khan, the top contender for prime minister of Pakistan. PAGE A9 INTERNATIONAL Favored, but No Shoo-In Children who get free lunches at school often go hungry in the summer. Some libraries are filling the gap. PAGE A10 NATIONAL A10-12 Libraries Offer Nourishment With federal aid ending, Jersey Shore towns face financial pain. PAGE A14 NEW YORK A14-15, 18 Hurricane Sandy Recovery Frank Ocean grasped the Panorama festival crowd’s attention in a quiet performance. A review. PAGE C1 ARTS C1-8 Intimacy on a Grand Scale Mark Grotjahn influences his art’s value and controls his career in an uncommon way. PAGE C1 An Artist Who Calls the Shots Infighting among board members has hindered the ride-hailing company’s search for a chief executive. PAGE B1 BUSINESS DAY B1-6 Deep-Seated Divisions at Uber Using Google headsets, a start-up helps psychologists treat patients’ anxieties from the safety of an office. PAGE B1 Therapy via Virtual Reality Paul Krugman PAGE A17 EDITORIAL, OP-ED A16-17 Bud Selig became the first living ex- baseball commissioner to be inducted into the Hall of Fame since 1970, but not everyone was there to applaud. PAGE D1 SPORTSMONDAY D1-5 A Bronx Cheer in Cooperstown As an election nears, how might Ger- man media react to leaks of hacked data? Jim Rutenberg explores. PAGE B1 Lessons of 2016, in Germany Vladimir V. Putin’s bet on Rus- sia’s achieving a new relationship with Washington has backfired. News Analysis. Page A5. A Failed Bid Today, mostly sunny, warmer, low humidity, high 87. Tonight, mostly clear, mild, low 71. Tomorrow, sun- shine much of the time, warm, high 88. Weather map is on Page A13. $2.50

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C M Y K Nxxx,2017-07-31,A,001,Bs-4C,E2

U(D54G1D)y+@!?!#!#!/

For years, American companieshave been saving money by “off-shoring” jobs — hiring people inIndia and other distant cubiclefarms.

Today, some of those jobs arebeing outsourced again — in theUnited States.

Nexient, a software outsourcingcompany, reflects the evolving ge-ography of technology work. Itholds daily video meetings withone of its clients, Bill.com, whereteam members say into the cam-era what they accomplished yes-terday for Bill.com, and what theyplan to do tomorrow. The differ-ence is, they are phoning in fromMichigan, not Mumbai.

“It’s the first time we’ve beenhappy outsourcing,” said RenéLacerte, the chief executive ofBill.com, a bill payment-and-col-lection service based in Palo Alto,Calif.

Nexient is a domestic out-sourcer, a flourishing niche in thetech world as some Americancompanies pull back from the ideaof hiring programmers a worldaway.

Salaries have risen in placeslike South Asia, making outsourc-ing there less of a bargain. In addi-tion, as brands pour energy andmoney into their websites and mo-bile apps, more of them are decid-ing that there is value in havingdevelopers in the same time zone,or at least on the same continent.

Many of these domestic out-

sourcers are private, little-knowncompanies like Rural Sourcing,Catalyte, Eagle Creek SoftwareServices and Onshore Outsourc-ing. But IBM, one of the country’sforemost champions of the off-

That Job Sent to India May Now Go to IndianaBy STEVE LOHR

Apprentices in a program in-tended to nurture local talent.

RYAN DAVID BROWN FOR THE NEW YORK TIMES

Continued on Page A11

On one of Brooklyn’s busiercommuter streets, bicycles nowoutnumber cars.

The two-wheelers glide down abike lane on Hoyt Street, whichlinks Downtown Brooklyn withthriving brownstone-lined neigh-borhoods. There are so manybikes during the evening rush thatthey pack together at red lightsand spill out in front of cars.

It is the kind of bike hegemonythat was once hard to imagine inNew York City, where cars andtaxis long claimed the streets andonly hardened cyclists braved thechaotic traffic.

“New York has really become abiking world,” said Jace Rivera,

42, a former construction workerwho so enjoyed riding his bike towork that he changed careers lastyear to become a bike messenger.“The city has gotten a lot morecrowded, and the trains have got-ten a lot more expensive. By bik-ing, you spare yourself thecrowds, you save a lot of money,and you can go to work on time.”

Biking has become part of NewYork’s commuting infrastructureas bike routes have been ex-panded and a fleet of 10,000 CitiBikes has been deployed to morethan 600 locations. Today, thereare more than 450,000 daily biketrips in the city, up from 170,000 in2005, an increase that has out-paced population and employ-ment growth, according to city of-ficials. About one in five bike trips

is by a commuter.Tim Weng, 30, a nurse, traded

the subway for a bike after traindelays kept making him late forwork. It takes just 25 minutes tobike to his job, compared with anhour on two trains. He bought asecond bike as a spare. “Now thatI have a bike, I go places more of-ten because it’s more convenient,”he said.

Citi Bike alone accounted for arecord 70,286 trips last Wednes-day, which the program called“the highest single-day ridershipof any system in the Westernworld outside of Paris.” The bike-sharing system in New York hassigned up 130,000 riders for annu-al memberships, up from nearly100,000 last year.

In New York, Rush Hour Comes to the Bike LaneBy WINNIE HU

Continued on Page A18

CHINA DAILY, VIA REUTERS

Chinese soldiers before a parade on Sunday in Inner Mongolia. The display, a celebration of thearmy’s 90th anniversary, was part of President Xi Jinping’s effort to solidify his power. Page A8.

Power From the Barrel of a Gun

MOSCOW — President Vlad-imir V. Putin announced Sundaythat the American diplomatic mis-sion in Russia must reduce itsstaff by 755 employees, an ag-gressive response to new Ameri-can sanctions that seemed rippedright from the Cold War playbookand sure to increase tensions be-tween the two capitals.

In making the announcement,Mr. Putin said Russia had run outof patience waiting for relationswith the United States to improve.

“We waited for quite a long timethat, perhaps, something willchange for the better, we held outhope that the situation wouldsomehow change,” Mr. Putin saidin an interview on state-runRossiya 1 television, which pub-lished a Russian-language tran-script on its website. “But, judgingby everything, if it changes, it willnot be soon.”

Mr. Putin said the staff reduc-tion was meant to cause real dis-comfort for Washington and itsrepresentatives in Moscow.

“Over 1,000 employees — diplo-mats and technical workers —worked and continue to work to-day in Russia; 755 will have tostop this activity,” he said.

“That is biting,” Mr. Putin add-ed.

The measures were the harsh-est such diplomatic move since asimilar rupture in 1986, in the wan-ing days of the Soviet Union.

It was also a major shift in tonefrom the beginning of this month,when Mr. Putin first met withPresident Trump at the G-20 sum-mit meeting in Hamburg, Ger-many. Mr. Trump had talked dur-ing his campaign of improving tieswith Russia, praising Mr. Putin,and the Kremlin had anticipatedthat the face-to-face meeting oftwo presidents would be the startof a new era. The immediate as-sessment in Moscow was that thetwo leaders had set the stage forbetter relations.

But then, in quick succession,came the expanded sanctions pas-sed by Congress, Mr. Trump’s indi-cation that he would sign theminto law and Moscow’s forceful re-taliation.

Washington’s response on Sun-day was muted. “This is a regret-table and uncalled-for act,” the

U.S. MUST REDUCE DIPLOMATIC STAFF BY 755, PUTIN SAYS

RESPONSE TO SANCTIONS

Russia Escalates Disputeby Using Tactic That

Evokes Cold War

By NEIL MacFARQUHAR

Continued on Page A5

President Trump and Republi-cans in Washington have shakenthe confidence of their supportersafter a punishing and self-inflictedseries of setbacks that have an-gered activists, left allies slack-jawed and reopened old fissureson the right.

A seemingly endless sequenceof disappointments and blundershas rattled Mr. Trump’s volatilegoverning coalition, like Mr.Trump’s attacks on Attorney Gen-eral Jeff Sessions; a vulgar tiradeby his new communications chief,Anthony Scaramucci; and the col-lapse of conservative-backedhealth care legislation.

Mr. Trump remains overwhelm-ingly popular with Republicans,but among party loyalists and pro-Trump activists around the coun-try, there are new doubts aboutthe tactics he has employed, theteam he has assembled and thefate of the populist, “drain theswamp” agenda he promised todeliver in partnership with a Re-publican-controlled Congress.

“There is a significant amountof justified frustration, particu-larly with the Senate,” said RobinHayes, the chairman of the NorthCarolina Republican Party, allud-ing to the health care defeat. “Idon’t want to use any Scaramuccilanguage this morning, but it’stheir inability to function as ateam, to work together and comeup with a responsible win.”

Some Republican grass-rootsactivists cheered the ouster onFriday of Reince Priebus, a for-

Trump TurmoilIs ConfoundingG.O.P. Agenda

Loyalists Point Fingers,but Not at President

By ALEXANDER BURNSand MICHAEL D. SHEAR

Continued on Page A12

Late Edition

VOL. CLXVI . . . No. 57,675 © 2017 The New York Times Company NEW YORK, MONDAY, JULY 31, 2017

LONDON — Up an alley, be-yond some hoarding, throughwhat can feel like Harry Potter’ssecret portal, the underworld ofan unfinished Crossrail stationsprawls beneath the traffic andcommotion of Tottenham CourtRoad. Escalator banks descendthrough a sleek, silent black tickethall where towering, empty,white-tiled passageways snaketoward the new, vaulted train plat-form, curving like a half moon into

the subterranean darkness.Crossrail is not your average

subway. London’s $20 billion high-speed train line, which plans tostart taking passengers late nextyear, is Europe’s biggest infra-structure project.

It will be so fast that crucialtravel times across the city shouldbe cut by more than half. Thelength of two soccer fields, with a

capacity for 1,500 people, its trainswill be able to carry twice thenumber of passengers as an ordi-nary London subway. While Lon-doners love to moan about theirpublic transit network, by com-parison New York has barelymanaged to construct four sub-way stops in about a half-centuryand its aged, rapidly collapsingsubway system now threatens tobring the city to a halt.

But standing one recent morn-ing on that empty Crossrail plat-form, where construction workersin orange gear and hard hats

hauled shiny metal panels to linethe walls, I still couldn’t help won-dering whether the new trainleads toward another glorious erafor this city, or signals the end ofone.

Before Britain voted last sum-mer to leave the European Union,Crossrail was conceived for a Lon-don open to the world and speed-ing into the future. Now, withBrexit, the nightmare scenario isthat this massive project, to pro-vide more trains moving more

Brexit Clouds New Subway’s PromiseBy MICHAEL KIMMELMAN

A Crossrail tunnel under Tottenham Court Road in London. At $20 billion, Crossrail is Europe’s biggest infrastructure project.ANDREW TESTA FOR THE NEW YORK TIMES

Continued on Page A6

LOSING LONDON

New Era, or End of One

SAN ANTONIO — In one truck,the migrants crouched in the darkin a three-foot crevice between thetrailer’s ceiling and the top of med-ical-supply boxes. In another,smugglers crammed 73 men,women and children into a trailerfilled with rotting watermelons, totry to disguise their scent for Bor-der Patrol dogs.

Sometimes, the trailers arecomfortable, or as comfortable asa human-cargo operation can be,with water, ventilation and evenrefrigeration to keep everyonecool. But just as often, especiallyin the South Texas heat, they canbecome inhumane.

One group of trapped migrantscut their hands trying to rip insu-lation from a trailer’s door to try to

get some air and left bloody hand-prints. Others drank their ownurine when their water supplywent out.

Luciano Alcocer, 56, still vividlyrecalls his 12-hour trip from Chap-arral, N.M., to Dallas packed intoan unventilated trailer in 2002.Two immigrants died, and Mr. Al-cocer thought he would, too.

“I thought my final moment hadarrived,” he said last week. “Wewere desperate. We were likechickens spinning in a rotisserie.”

Last Sunday, a thirsty immi-grant’s request for water at a Wal-mart in San Antonio led to the dis-covery, in the parking lot, of thedeadliest truck-smuggling opera-tion in the United States in morethan a decade. Ten of the 39 peoplefound in or near the truck died,and others were hospitalized,

For Migrants, Peril on 18 Wheels;For Smugglers, a Profit Machine

This article is by Manny Fernan-dez, Nicholas Kulish and SusanAnasagasti.

Continued on Page A11

An election to overhaul Venezuela’sConstitution was met with civil unrest asmany voters avoided the polls. PAGE A8

INTERNATIONAL A4-9

Legitimacy of Vote Threatened

A campaign tries to change a custom inwhich Afghan men use terms like “MyGoat” to describe women. PAGE A4

Fighting to Have a Name

The path to victory is far from assuredfor Imran Khan, the top contender forprime minister of Pakistan. PAGE A9

INTERNATIONAL

Favored, but No Shoo-In

Children who get free lunches at schooloften go hungry in the summer. Somelibraries are filling the gap. PAGE A10

NATIONAL A10-12

Libraries Offer Nourishment

With federal aid ending, Jersey Shoretowns face financial pain. PAGE A14

NEW YORK A14-15, 18

Hurricane Sandy Recovery

Frank Ocean grasped the Panoramafestival crowd’s attention in a quietperformance. A review. PAGE C1

ARTS C1-8

Intimacy on a Grand Scale

Mark Grotjahn influences his art’svalue and controls his career in anuncommon way. PAGE C1

An Artist Who Calls the Shots

Infighting among board members hashindered the ride-hailing company’ssearch for a chief executive. PAGE B1

BUSINESS DAY B1-6

Deep-Seated Divisions at Uber

Using Google headsets, a start-up helpspsychologists treat patients’ anxietiesfrom the safety of an office. PAGE B1

Therapy via Virtual Reality

Paul Krugman PAGE A17

EDITORIAL, OP-ED A16-17

Bud Selig became the first living ex-baseball commissioner to be inductedinto the Hall of Fame since 1970, but noteveryone was there to applaud. PAGE D1

SPORTSMONDAY D1-5

A Bronx Cheer in Cooperstown

As an election nears, how might Ger-man media react to leaks of hackeddata? Jim Rutenberg explores. PAGE B1

Lessons of 2016, in Germany

Vladimir V. Putin’s bet on Rus-sia’s achieving a new relationshipwith Washington has backfired.News Analysis. Page A5.

A Failed Bid

Today, mostly sunny, warmer, lowhumidity, high 87. Tonight, mostlyclear, mild, low 71. Tomorrow, sun-shine much of the time, warm, high88. Weather map is on Page A13.

$2.50