Posts with «business» label

Meta lawyers are reportedly investigating Sheryl Sandberg's use of company resources

Meta’s lawyers are investigating outgoing COO Sheryl Sandberg amid claims she misused company resources, The Wall Street Journal reports. The paper says the investigation goes back “several years” and is scrutinizing Meta employees’ work on Sandberg’s personal projects.

When Sandberg first announced her departure from the company, The Wall Street Journal reported the company was examining whether she had improperly used company resources in planning her upcoming wedding. Now, WSJ has shed a little more light on the investigation.

Meta lawyers are reportedly looking at Facebook staff’s involvement with Sandberg’s foundation Lean In, and their work to help her promote her most recent book, Option B. The company is also investigating reports that Sandberg used Facebook staffers in an attempt to kill a negative story about her former partner, Activision CEO Bobby Kotick. The company could be looking to head off regulatory concerns that could arise if such work wasn’t properly disclosed to the Securities and Exchange Commission. Sandberg eventually “could be asked to repay the company for employee time spent on her personal work,” according to the report.

Meta declined to comment to The Wall Street Journal.

The investigation is indicative of just how much Sandberg’s status within the company has changed in recent years. As The WSJ points out, both Sandberg and Mark Zuckerberg’s personal lives have been closely tied to the company. Meta spends millions of dollars every year on their personal security and travel expenses, and both executives have tapped Facebook employees to help with personal projects. That Sandberg is now facing scrutiny for these actions shows how much her influence has waned.

IBM begins laying off its entire Russian workforce

IBM will begin an “orderly” wind-down of its operations in Russia, according to a memo from CEO Arvind Krishna that was released publicly today. The company suspended business operations in the country back in March, joining a wave of other Western companies that chose to either halt sales or pull out of Russia completely following its invasion of Ukraine. Despite no longer doing business in Russia, IBM kept paying its Russia-based employees. But US sanctions on Russian banks have made it harder for the company to pay its Russia-based workforce, Reutersreported last month.

The wind-down means that IBM will also terminate the employment of its Russia-based workforce. “This process will commence today and result in the separation of our local workforce. Our colleagues in Russia have, through no fault of their own, endured months of stress and uncertainty. We recognize that this news is difficult, and I want to assure them that IBM will continue to stand by them and take all reasonable steps to provide support and make their transition as orderly as possible,” wrote Krishna in the memo.

The company told investors that no longer doing business with Russia will have very little impact on its bottom line. “Russia is a very de minimis part of IBM,” the company’s finance head Jim Kavanaugh said during a first-quarter earnings call in April. Russia accounted for roughly 0.5 percent of IBM’s total revenue last year, or $300 million out of its total revenue of $57.4 billion. 

IBM has a number of high-profile customers in Russia, including federal banks, energy companies and Russian Railways. The company even held its Think Summit in Moscow back in 2019, where it highlighted its many Russian clients. But since March, the company has stopped providing “goods, parts, software, services, consulting and technology” to Russian companies, according to Reuters.

Winkelvoss twins' crypto exchange faces lawsuit over $36 million theft

The Winklevoss twins might soon head to court. The Vergenotes retirement savings firm IRA Financial Trust has sued the twins' crypto exchange Gemini over allegations the business didn't adequately protect customers against a February 8th breach where intruders stole $36 million in Bitcoin and Ethereum assets. The company didn't have "proper safeguards" to prevent the theft, according to IRA, and didn't freeze accounts quickly enough to block the thieves from transferring money.

The trust firm specifically rejected claims that Gemini's protections prevented a "single point of failure." Gemini made IRA the parent account for its customers (who use sub-accounts), and gave it a "master key" that was reportedly exchanged in numerous insecure emails. Combine that with security flaws in Gemini's system and you probably know what happened next — hackers got control of IRA's key, moved the crypto into a single user's retirement account, and withdrew the digital cash. The perpetrators also appear to have swatted Gemini during the February incident, making a fake kidnapping call to police. 

Gemini's other security measures didn't hold up, the IRA added. It supposedly shouldn't have been possible to transfer money between accounts if the exchange had either properly implemented two-factor authentication or prohibited transfers between retirement funds. The trust noted that it didn't have the power to freeze accounts itself, and that it took six emails to lock down all affected users. We've asked Gemini for comment.

This adds to mounting problems for the Winkelvoss' outfit. It recently laid off 10 percent of staff to deal with a plunge in the cryptocurrency market, and the Commodity Futures Trading Commission sued Gemini for purportedly misleading customers in parts of its exchange and futures contract. While none of these problems may necessarily be fatal, they suggest the Winklevii could face financial trouble for a while to come.

BioWare's quality assurance testers form the first video game labor union in Canada

Bioware's quality assurance testers working on Dragon Age: Dreadwolf have voted to form the first unionized workplace for the video game industry in Canada. The United Food and Commercial Workers Local 401 applied to become the certified bargaining agent for Keywords Studios, the contracting company through which the testers are employed, back in April. Now, Kotaku says the election has resulted in a 16-0 vote in favor of unionization. Before working on the fourth major game in the Dragon Age franchise, they also supported the development of Mass Effect: Legendary Edition and Legacy of the Sith, an expansion for Star Wars: The Old Republic.

The testers, who work out of BioWare's Edmonton office, started organizing after Keywords Studios announced that they'll be required to return to office, whereas direct BioWare employees were give more options. Keywords took back its return-to-office order, but the testers told Kotaku that they're working to prevent it from being reinstated and to get the company to increase their pay. At the moment, their base pay is around US$13 an hour, roughly equivalent to the area's minimum wage. They argued that the amount they're being paid isn't commensurate with the skills needed for the job and that BioWare employees doing the same work are being paid a lot more.

The union that's now representing the workers are expected to bargain with the studio's bosses sometime this week. In an email the QA testers sent out, they wrote: "We are excited to move into bargaining with the employer and start towards a more equitable working situation."

In the US, QA workers at Activision Blizzard studio Raven Software voted to unionize last month. That came after they went on strike following layoffs that affected 12 testers and after the studio split the remaining workers among various departments, perhaps in an effort to make unionization efforts hard to organize. Xbox head Phil Spencer announced that Microsoft will recognize the union after the tech giant's acquisition of Activision Blizzard is complete.

Texas AG investigates Twitter over bot counts

Texas's Attorney General, Ken Paxton, has launched an investigation of Twitter over concerns of "potentially false" reports related to the number of bots and other fake accounts on the social network. In a press release Monday, Paxton claims inauthentic accounts may be helping to "inflate the value" of Twitter — thus he intends to pursue the investigation under the state's Deceptive Trade Practices Act, which protects against misleading advertisers, businesses and everyday users. 

Paxton's office is pursuing the case just as Tesla CEO Elon Musk is seemingly attempting to scuttle his own bid to purchase Twitter. Musk has, for several weeks, been suggesting the platform's bot numbers may be far greater than its current leadership are reporting. It's interesting timing for Musk and Paxton's interests to align: Tesla just opened a Gigafactory in Texas, and is moving its headquarters to the region. That's a lot of potential business, and it comes as the state has offered tax breaks to companies building local facilities. For whatever it's worth, Paxton has previously been accused of abuse of office over allegations of bribery, but was eventually cleared by his own office.

Twitter has been ordered to provide unredacted documents detailing the company's active user counts since 2017, the volume of "inauthentic" accounts over that period and the methods used to calculate the ratio of fake accounts. It also has to outline its advertising model, including the revenue it generates in Texas.

It's also notable that Musk's hopes of boosting free speech on Twitter sync with Republic aims to reverse alleged censorship of conservative viewpoints on the site. Twitter has long rejected claims of ideological bias, and sued Paxton over claims of political retaliation that infringed its First Amendment rights. 

We've asked Twitter for comment. The company has previously maintained that fake accounts represent less than five percent of users, but Paxton echoed Musk's currently unsupported concerns that fakes might represent 20 percent or more of all Twitter accounts.

The Attorney General has sued multiple tech companies over their practices, including Google (for its ad business) and Meta (over facial recognition). It's not clear yet if Paxton intends to pursue a lawsuit against Twitter as well.

Google settles Photos facial recognition lawsuit for $100 million

Facebook isn't the only one compensating Illinois residents over alleged privacy violations. The Vergenotes Google has agreed to pay $100 million to settle a class action lawsuit accusing the company of violating Illinois' Biometric Information Protection Act (BIPA) through Photos' "Face Grouping" feature. The settlement will let you claim between $200 and $400 if you appeared in a picture on Photos between May 1st, 2015 and April 25th, 2022.

Google supposedly broke the law by collecting and analyzing faces without appropriate notice, asking for "informed" consent or sharing data retention policies with the public. Face Grouping is meant to help you find photos of given people by detecting faces and automatically organizing them into collections.

You have until September 24th to submit a claim, and can object to the settlement terms before August 10th. The final approval hearing is slated for September 28th.

We've asked Google for comment. In a statement to The Verge, the company defended Face Grouping by stressing that collections were only visible to you and can be disabled.

The settlement is relatively modest. In 2021, Facebook agreed to pay $650 million to settle a lawsuit over its defunct face-based Tag Suggestions feature. This might not be the last big payout in the near future, though. Snap is dealing with a class action suit over purportedly illegal collection of face and voice data for its augmented reality effects, and it might face a similar expense if the plaintiffs prevail.

Activision Blizzard faces unfair labor practices complaint over staff unionization efforts

The Communications Workers of America has filed an unfair labor practices complaint against Activision Blizzard, accusing the company of retaliating against workers over their unionization efforts. If you'll recall, the quality assurance workers at the Activision studio Raven Software announced their plans to unionize in January. That's after Activision laid off 12 of its QA contractors despite Raven asking to keep them on. Workers at the studio went on strike following the event, demanding that all contractors be hired as full-time employees. 

In its complaint filed with the National Labor Relations Board, the CWA accused the company of violating federal law by terminating those QA workers. The group also pointed out that Activision reorganized the studio by disbanding the QA team and embedding testers in other departments just mere days after they requested union recognition. In addition, Activision Blizzard allegedly withheld pays and benefits in April in response to the workers' unionization efforts. 

According to previous reports, the company also actively and strongly discouraged workers from voting to unionize. Union organizer Jessica Gonzalez revealed on Twitter back in January that Activision VP of QA Chris Arends posted a message on a locked Slack channel diminishing the benefits of unionization. "A union doesn't do anything to help us produce world-class games, and the bargaining process is not typically quick, often reduces flexibility, and can be adversarial and lead to negative publicity," Arends wrote

A piece by The Washington Postalso said that company leadership held town meetings to dissuade workers from organizing and sent out emails with a message that says "Please vote no." Those efforts had failed, and CWA won the election to unionize at Raven with a vote of 19 to 3. Xbox head Phil Spencer reportedly said before the vote that he would recognize a Raven union once Microsoft's acquisition of the developer is complete.

Game Workers Alliance/CWA organizing committee members Erin Hall, Lau Nebel-Malone and Marie Carroll said:

"The reorganization and withholding of pay raises and other benefits and the company's failure to rehire laid off QA testers were clearly attempts by Activision to intimidate us and interfere with our union election in violation of the National Labor Relations Act."

Meanwhile, an Activision spokesperson disputed the allegations in a statement sent to Bloomberg:

"We respect and believe in the right of all employees to decide whether or not to support or vote for a union, and retaliation of any kind is not tolerated."

As the news organization notes, complaints filed with the NLRB are investigation by regional offices. In case they're found to have merit and aren't settled, they can be prosecuted by the agency's general counsel.

Elon Musk is reportedly looking to cut the Tesla workforce by 10 percent

Tesla CEO Elon Musk wants to cut around 10 percent of jobs at Tesla, according to a report from Reuters. In an email to executives, he wrote that he has a "super bad feeling" about the economy. Including its subsidiaries, Tesla employed around 100,000 people as of the end of 2021, so any layoffs could be substantial.

Tesla has struggled with production more than some automakers, as most of its vehicles bound for Asian and European markets are manufactured in China at its Shanghai factory. Like other firms that manufacture in the nation, it has had difficulty restarting production following COVID-19 lockdowns.

On top of that, investor sentiment has been down due to inflation and the war in the Ukraine. However, the US jobs market is as good as it's ever been, with unemployment holding steady at a 3.6 percent, the lowest level since the start of the pandemic. Demand for Tesla vehicles remains strong as well, according to Reuters

Musk recently told SpaceX and Tesla employees that they had to return to the office full-time or leave the company. His uncompromising stance on remote work contrasts with other major tech companies that have allowed workers to request work-from-home permanently, including Salesforce, Slack and Facebook. Tech talent agency founder Jason Stomel told Reuters that Musk's stance could be a "disguised layoff" because he "knows there's a percentage of workers who are just not going to come back." 

Apple attempts to appease union efforts with scheduling improvements

Apple will make a number of changes to scheduling rules for its retail employees that the company believes will result in more flexible working hours, reportedBloomberg. The move arrives as Apple retail stores in Maryland and New York City are slated to hold union elections in the coming weeks. The changes will include changes to limits on the number of late shifts worked, consecutive days worked and the minimum amount of time that must pass before an employee is eligible to work a new shift.

According to staff who spoke to Bloomberg, Apple will make some of the following changes over the next several weeks. Others will not arrive until later in the year. Shifts must be scheduled at least 12 hours apart (up from 10 hours.) Choosing a weekend day to not be scheduled, and a maximum of five consecutive scheduled days in a row also appear to be among the concessions. And unless they opt to pick up late shifts, retail workers won't work more than three shifts per work that run past 8pm.

Apple retail workers over the years have spoken out about the demanding work schedule and low wages. The company expanded benefits for all full-time retail employees earlier this year, increasing the number of paid sick days and offering paid parental leave. It also set a new floor of $22 per hour for its retail employees last week. Still, Fruit Stand Workers United — the group in the midst of organizing Apple’s Grand Central Store — is pushing for a $30 minimum wage, tuition reimbursement and more options for retirement plans.

Claims process begins in $18 million Activision Blizzard harassment settlement

The US Equal Employment Opportunity Commission (EEOC) has begun accepting claims related to Activision Blizzard’s $18 million settlement with the agency. Starting today, current and former US employees of the publisher who believe they experienced sexual harassment or gender discrimination while working at its offices from September 1st, 2016 to March 29th, 2022 can file for an award. Those who decide to take part in the claims process can also make specific non-monetary requests of Activision Blizzard and the EEOC. For instance, they can ask that the publisher remove harmful documents such as disciplinary notices from their personnel file.

It will be interesting to see how many workers apply for an award. When the settlement was first approved by a federal judge in late March, many current and former Activision Blizzard employees criticized the EEOC for not going nearly far enough to hold the company accountable. The fact claimants won’t be able to take part in future litigation against Activision Blizzard, including the ongoing lawsuit from California’s fair employment agency, may also make some workers reluctant to file. Then there’s the amount itself. Former employee Jessica Gonzalez is appealing the settlement on the basis that $18 million is insufficient redress for everyone who may come forward with a claim against Activision Blizzard.