Business News at a Glance
Posted May 8, 2018 9:55 p.m. EDT
5 More Nike Executives Are Out Amid Inquiry Into Harassment Allegations
A sweeping investigation into workplace behavior at Nike has resulted in the departures of five more top-level executives, raising to 11 the number of senior managers to leave the company as it continues to overhaul its upper ranks amid widespread allegations of harassment and discrimination against female employees. Together, the departing executives oversee some of the most important business categories at the sports footwear and apparel company. In a companywide address last week, Mark Parker, Nike’s chief executive, apologized to employees and said that departures related to the company’s broad investigation into workplace behavior would be completed by this week.
Facebook to Reorganize After Scrutiny Over Data Privacy
Facebook on Tuesday overhauled its structure into three new divisions and shuffled the leadership of its key products, in one of its biggest reorganizations. The moves happened at the direction of Facebook’s chief executive, Mark Zuckerberg, said a person with knowledge of the changes, who asked not to be identified because he was not authorized to discuss them. The reorganization was intended to streamline the company and clarify who oversees what after a long period of growth and numerous acquisitions, according to another person involved.
Disney’s Strong Quarter Is Shadowed by Comcast’s Maneuvers for Fox
The Walt Disney Co. reported its strongest quarterly results in two years on Tuesday, streaking past expectations thanks in large part to the success of “Black Panther.” But that strong performance was shadowed by maneuvering by Comcast to upend Disney’s pending acquisition of Twenty-First Century Fox assets. At the very least, the possibility of a Comcast bid seemed to hang over Disney shares, which edged slightly down despite the strong quarterly report. For the quarter, Disney reported net income of $2.94 billion, or $1.95 per share, an increase from $2.39 billion or $1.50 a share a year earlier.
Why AI and Cryptocurrency Are Making One Type of Computer Chip Scarce
Two technology booms are combining to turn a once-obscure type of microprocessor into a must-have but scarce commodity. Artificial intelligence systems rely heavily on a computer chip called a graphics processing unit, or GPU. The chips are also very useful in mining digital currencies like Ethereum, a bitcoin alternative riding the same wave of hype as its more famous cousin. With people and companies involved in the two tech niches buying up the same chips, GPUs have been in short supply over the past several months. Prices have increased as much as 50 percent, according to some resellers and customers.
Denver Post Journalists Go to New York to Protest Their Owner
A dozen sign-wielding employees from newspapers across the country chanted slogans outside the New York headquarters of Alden Global Capital on Tuesday. Alden, which owns more than 90 publications nationwide, including The Denver Post, The Orange County Register and the Pioneer Press of St. Paul, Minnesota, has angered many employees by making deep cost cuts, including layoffs. Journalists at The Post have taken the lead in making public their displeasure with Alden. In its April 8 issue, The Post published a six-page opinion section critical of management.
Nordstrom Rack Apologizes to Black Men in St. Louis Falsely Accused of Stealing
The president of Nordstrom Rack flew to St. Louis to apologize on Tuesday to three black friends who were falsely accused last week of trying to steal clothing at one of the company’s stores. The teenagers had stopped into a Nordstrom Rack in suburban St. Louis on Thursday to look for last-minute deals before a high school prom. Two employees followed them throughout the store and reported them to police. For many minorities, what happened at Nordstrom Rack illustrated a disheartening everyday truth about racial discrimination in the United States, where merely entering a store is enough to draw suspicions.
Valeant, Distancing Itself From Its Past, Will Change Its Name to Bausch Health
Valeant Pharmaceuticals International, the company whose enormous price increases on old drugs helped fuel public outrage over high drug costs, is changing its name, the company announced Tuesday. The new name will be Bausch Health Cos., to reflect the company’s better-known and more respected subsidiary, the eye care company Bausch + Lomb, which it acquired in 2013. The company announced the change, which will take effect in July, as part of its first-quarter earnings. Joseph C. Papa, the chief executive of Valeant, said the new name invokes the rich history of Bausch + Lomb.