Author: Charlotte Gill

Reddit’s Pao resigns after “sickening comments”

Posted on by Charlotte Gill

Reddit has finally bowed to the great and growing pressure on Ellen Pao and announced that the now-former chief executive has resigned by mutual consent – though reportedly not because of the recent uproar, according to the site. Having only last year taken to the top job, Pao is to make way for Steve Huffman, founder and original Reddit CEO.

[I]t was sickening to see some of the things redditors wrote
about Ellen

“We are thankful for Ellen’s many contributions to reddit and the technology industry generally,” said Reddit Board member Sam Altman in a post. “She brought focus to chaos, recruited a world-class team of executives, and drove growth. She brought a face to reddit that changed perceptions, and is a pioneer for women in the tech industry. She will remain as an advisor to the board through the end of 2015.”

Pao’s eight-month term in charge brought much in the way of controversy. Recently, the sacking of the site’s director of talent Victoria Taylor riled the site’s users, who responded by shutting down almost 10,000 discussion boards in protest. Worse was a Change.org petition calling for Pao to step down, which, as of the time of her resignation, had garnered over 200,000 signatures on the basis that “a vast majority of the Reddit community believes that Pao, “a manipulative individual who will sue her way to the top”, has overstepped her boundaries and fears that she will run Reddit into the ground.”

Altman expanded on the site’s commitment to moderators moving forwards, by introducing better moderation tools, improved communication and more clarity about the company’s content policy. The statement also condemned the opinions held by certain segments of the Reddit community, and said, “it was sickening to see some of the things redditors wrote about Ellen. The reduction in compassion that happens when we’re all behind computer screens is not good for the world. People are still people even if there is Internet between you.”

Three other victims of trolling

Emily Thornberry, MP
Last year, the Labour MP upset the Twitter community after posting a photograph of a house in Rochester kitted out with St George’s flags. Many accused her of snobbery, and she was eventually forced to resign.

Brendan Eich, Mozilla former chief executive
In 2004, workers at Mozilla discovered Eich had donated to a political campaign to limit marriage to something that is only between man and woman. So outraged were his colleagues that the executive felt he had no choice by to resign.

Sir Tim Hunt, scientist
Earlier this year, the internet community caught wind of comments Nobel Prize winner, Sir Tim Hunt, had made about female scientists in a talk. Hunt said: ‘Three things happen when girls are in the lab – you fall in love with them, they fall in love with you, and when you criticise them, they cry.’ The scientist eventually resigned from his university post after the comments were heavily circulated.

Oil prices may fall further, says IEA

Posted on by Charlotte Gill

Hopes that the bottom had been hit in the last 12 months of plunging oil prices may be misguided, says the International Energy Agency (IEA). According to the global energy regulator, prices may stay low well into 2016, when supply starts to tighten in the market.

The news comes after a year where members of OPEC, led by Saudi Arabia, have maintained high levels of production, despite the falling price of crude. This has been done to hold onto their global market share in the face of a growing US shale industry and challenges from countries like Russia. Prices are currently around 45 percent lower than they were this time last year, but with considerable supply in the market, further falls are expected.

The cost of solar power has dramatically fallen in recent years

The IEA says that production has halted in non-OPEC markets because low costs have made it financially unviable. However, with OPEC still churning out crude at high rates, the bottom of the market will not likely come in the next six months. “The bottom of the market may still be ahead. Non-OPEC supply growth is expected to grind to a halt in 2016, as lower oil prices and spending cuts take a toll.”

While the oil industry undergoes difficulties because of geopolitical events – not least in Russia, Syria and Iraq – it is also under threat from a resurgent renewable energy sector. After years of struggling to transform potential into actual results, renewables, led by the solar industry, are finally beginning to offer a serious alternative to fossil fuels.

The cost of solar power has dramatically fallen in recent years. Compared to 2009, solar photovoltaics are 75 percent cheaper to produce. During the same time, the cost of producing solar energy has halved. The potential for the industry has even be seen by traditional oil producing nations like Saudi Arabia, which has started to invest heavily in solar power production. In May, the country’s oil minister, Ali al-Naimi, is reported to have told a conference that he expected solar power to surpass oil within the next 25 years.

IAG bid for Aer Lingus finally goes ahead

Posted on by Charlotte Gill

Months after International Airlines Group (IAG) made its last offer to purchase Aer Lingus, Ryanair gave its consent on July 10. Although the Irish government had accepted the €1.36bn offer back in May, approval was also required by majority shareholder Ryanair before the acquisition could proceed.

Given that Ryanair has blocked the takeover from happening three times in the past, it was largely assumed that history would once again repeat itself

Under the deal, Aer Lingus has been valued at approximately €2.50 a share.

Given that Ryanair has blocked the takeover from happening three times in the past, it was largely assumed that history would once again repeat itself. This time around however, the UK Competition and Market Authority (CMA) had been applying increasing pressure on Ryanair to reduce its 29.8 percent stake in Aer Lingus to five percent – even threatening court action.

Despite contesting the request, the CMA maintained its argument that the majority shares owned by Ryainair was anti-competitive and off-putting for potential investors. “It’s not good for competition when one company holds such an influence over the future of one of its major competitors,” CMA chair of the enquiry, Simon Polito, told Business Insider.

In a statement released by Ryanair following the announcement, Ryanair CEO Michael O’Leary maintained that the decision to accept the offer aligned with the new direction that Ryanair is heading in. “This sale of our stake is timely given that our original strategy for Aer Lingus (to use it as a mid-priced brand to offer competition to flag carriers at primary airports) has been overtaken by the successful rollout -since Sept 2013- of Ryanair’s “Always Getting Better” strategy,” O’Leary said in the press release. This new approach has seen Ryanair successfully grow its network by entering into many more primary airports within Europe.

One final obstacle remains now for Aer Lingus, approval by remaining shareholders and European antitrust authorities. If accepted, the long-awaited acquisition will bolster IAG’s transatlantic operations considerably, as well as its capacity at Heathrow Airport.

Microsoft makes job cuts as Nokia mobile unit suffers

Posted on by Charlotte Gill

Microsoft is to continue making aggressive cuts to its Nokia mobile phone unit, this time by axing a further 7,800 jobs and effectively reinventing the business. The cuts follow the company’s decision last year to shed 18,000 jobs, and falls in step with Microsoft’s wider attempts to restructure the phone hardware business to better focus and align resources.

Alongside the job cuts, Microsoft is writing down approximately 80 percent of the Nokia deal

“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” said Satya Nadella in an email to Microsoft employees. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

The announcement follows another in June in which the company said it would part with the former Nokia chief executive Stephen Elop, who joined Microsoft as part of the acquisition.

After struggling for years to gain traction in the mobile market, Microsoft’s latest move is proof that the company has yet to get to grips with the fast-changing handset business. Alongside the job cuts, Microsoft is writing down approximately 80 percent of the Nokia deal, for which it parted with $9.4bn last year, taking an impairment charge of $7.6bn and a restructuring charge of $750m to $850m. Each of the proposed actions is to be completed before the end of the company’s fiscal year, that’s according to a company statement.

“I am committed to our first-party devices including phones. However, we need to focus our phone efforts in the near term while driving reinvention,” said Nadella, who is currently tasked with capturing a greater share of the market and driving developments in the mobile computing domain.

Logi-no more: Logitech loses half its name in massive rebranding

Posted on by Charlotte Gill

Logitech – famous for designing and manufacturing PC peripheral devices such as keyboards, mice, headphones and speakers – is experiencing something of a renaissance.

In a statement, it has announced intentions to create products that “have a place in every aspect of [one’s] daily life”.

The redesign is intended to reflect the rapid evolution of Logitech’s products

As part of a massive rebranding strategy, Logitech is to ditch half of its name to ‘Logi’ – as well as opting for a more vibrant colour scheme.

“We’ve been reinventing Logitech, creating products that strive to blend advanced technology and design to bring you amazing experiences,” said Bracken Darrell, Logitech President and CEO. “We’ve built a world-class design team, led by chief designer Alastair Curtis. We’re putting Design at the centre of everything we do.”

“Logitech has undergone huge changes, so we’ve created an identity that is an expression of who we are today and who we will be moving forward,” Curtis continued.

The redesign is intended to reflect the rapid evolution of Logitech’s products. The new name and branding can be seen on a recent Logitech blog.

Over the coming year, the company will implement the new design into its website, social media channels, product packaging and devices.

Five facts about Logitech

1. The company was founded in Switzerland
2. The computer mouse was the product Logitech became originally famous for
3. Approximately half of Logitech’s manufacturing operations take place in China
4. Logitech goes by other names including LifeSize, Logicool and Ultimate Ears
5. The proliferation of tablet devices hurt Logitech’s profits in 2013

Kenya to build Africa’s biggest wind farm

Posted on by Charlotte Gill

Construction of the Lake Turkana Wind Power project has begun and plans to provide 310MW of clean energy to Kenya’s national grid – equating to approximately 20 of the country’s current energy capacity. Located in the northwest of the country, the site will take advantage of the wind power available near Lake Turkana, the world’s largest permanent desert lake. Covering 40,000km with 365 turbines, the wind farm is poised to be the largest on the African continent.

Covering 40,000km with 365 turbines, the wind farm is poised to be the largest on the African continent

The farm will use the Vestas V52-850 kW, a pitch-regulated upwind turbine that is designed to harness high-speed winds, without causing damage to the equipment. The structure has a three-blade rotor and uses active yaw to maximise energy capture, while reducing the structure load.

The Vestas V52-850 kW has a 52-metre rotor diameter and uses the innovative OptiSpeed generator, a recent advance in wind turbine technology that can vary rotor speed. By using variable rotation speeds, OptiSpeed generators have the ability to store excess wind energy and fully exploit temporary gusts. Through the use of this technology, the Vestas V52-850 kW boasts less noise pollution and longer durability. OptiTip technology will also be included, a regulating system that can pitch and vary blade angles to optimal degrees for wind conditions.

The $690m project is being funded by a syndicate of seven investors from Africa, Denmark and Finland, while being overseen by the European Union and the African Development Bank. An agreement has been signed with Kenyan authorities to purchase electricity at a fixed price for two decades once the project is complete, in order to offer citizens affordable prices.

The Lake Turkana Wind Power farm, which is scheduled to be completed by 2017, is just one of several projects that are unfolding across the continent as African governments begin to tap into renewable energy sources. At present, the region’s continued development is threatened by a lack of electricity, which stunts business growth, foreign investment and state infrastructure. By investing into alternative energy that can provide consistent, low cost and clean electricity, African nations can escape energy poverty and maximise the untold economic potential of the region.

MasterCard scraps passwords for selfie and finger authentication

Posted on by Charlotte Gill

For a number of years, experts and commentators alike have warned that the humble password is no longer fit for purpose.

This autumn, in a bid to bolster security, MasterCard will launch a new app that allows customers to approve online payments using facial or fingerprint recognition.

[C]ustomers are asked to blink during the verification process

“Passwords are a pain,” explains Ajay Bhalla, Chief Product Security Officer at MasterCard in an interview with CNN Money. “When consumers shop on the Internet their banks need ways to verify their identify, so this particular product seamlessly integrates biometrics into the overall payments experience.

“This app allows you to choose your fingerprint or your face. All you need to do is tap and it asks you to verify the amount, you tap it [again] … and you’re done.”

The app will ask users to take a photo of their face, but the image will not be saved. Instead, the scanned image will be mapped and transformed into a unique ID for MasterCard to use as verification.

In order to prevent would-be thieves stealing your identity and holding up a printed photo of the user, customers are asked to blink during the verification process.

“The new generation, which is into selfies … I think they’ll find it cool. They’ll embrace it,” added Bhalla.

He even hinted at the possibility of adding voice recognition to the app, which would allow users to make payments online simply by speaking into their smartphone or tablet.

Biometrics refers to technologies that are capable of analysing human body characteristics for the purpose of authentication.

Companies like Apple have been at the forefront to this technology, with it being one of the first companies to integrate fingerprint recognition into their range of smartphones and tablets.

‘Thank you for the best years of my professional life’: Intel’s No 2 resigns

Posted on by Charlotte Gill

In a letter sent to staff at Intel, the firm’s president, Renée James confirmed that she will be leaving the company in pursuit of a CEO position elsewhere. The move comes at a critical juncture in Intel as it continues to struggle with falling sales of its microprocessors and unsuccessful ventures into new markets. Along with James’s departure, CEO Brian Krzanich announced a series of other “leadership changes” in a company statement published on July 2.

James’s appointment as President in May 2013 made her one of the most influential and highest paid women in Silicon Valley

Throughout her 28 years at Intel, James has held numerous high-ranking roles, including COO of Intel Online Services and more recently, executive vice president of the Software and Services Group. James has also headed strategically significant acquisitions in the group’s expansion efforts, including the purchase of online security firm McAfee for $7.6bn and embedded system software producer Wind River Systems for $884m. James’s appointment as president in May 2013 made her one of the most influential and highest paid women in Silicon Valley, as indicated by her ranking in Fortune’s World’s 100 Most Powerful Women list.

“When Brian and I were appointed to our current roles, I knew then that being the leader of a company was something that I desired as part of my own leadership journey”, James wrote in the letter. “Now is the right time for me to take that next step.” James will stay on at Intel until January in order to help with the transition.

As part of the drastic organisation overhaul aimed at boosting sales, Intel veteran Arvind Sodhani will retire from his role as President of Intel Capital in January. Wendell Brooks will replace Sodhani, while also continuing to lead the group’s mergers and acquisitions. Also leaving is Hermann Eul, head of Intel’s mobile business arm and Mike Bell, General Manager of the New Devices Group segment.

Falling PCs have had a drastic impact on the sale of Intel’s microprocessors in recent years, leading to arduous efforts to branch out into chip manufacturing for mobile devices and the wearables market. So far, neither project has proven successful, while chip production for mobile tablets has even incurred a loss of revenue in recent months.

Given the latest management reshuffle and June’s $16.7bn acquisition of chipmaker and electronic system designers Altera, it appears that Intel is going to great lengths to ensure a turnaround of its current downward trend. Whether this drastic approach work is yet to be seen.

Toyota exec resigns over drugs scandal

Posted on by Charlotte Gill

Toyota’s recently appointed managing officer Julie Hamp has tendered her resignation after she was arrested in June on suspicion of importing illegal substances into the company’s native Japan. The drug in question, a powerful painkiller called oxycodone, is legal in both Japan and the US though may only be brought into the country with a prescription and government approval.

The appointment of Hamp was significant in that it marked the introduction of the company’s first senior western female executive

The company released a statement on July 1 confirming that they received news of Hamp’s resignation on June 30, adding that they accepted her terms shortly after given the “concerns and inconvenience that recent events have caused our stakeholders.” The statement goes on: “Because the investigation of Ms Hamp is ongoing, there is little Toyota can say at this time. However, we intend to learn from this incident to help ensure a secure working environment for everyone at Toyota around the world as we continue to take the steps necessary to become a truly global company. We remain firmly committed to putting the right people in the right places, regardless of nationality, gender, age and other factors.”

US citizen Hamp was appointed to the chief communications officer role little over a month ago as part of Toyota’s diversification drive. Currently, the automaker’s executive line-up is made up of mostly male, mostly Japanese individuals and the appointment of Hamp was significant in that it marked the introduction of the company’s first senior western female executive and its first female managing officer.

The company statement confirms also that it will continue with its efforts to diversify its executive team, asserting that Hamp’s position became untenable given her particular situation. Toyota’s Senior Managing Officer Shigeru Hayakawa will take up the role as the company continues in its search for a permanent replacement.

Two other drug scandals to hit firms

  • Co-op Bank found itself in difficulty in 2013 when former chairman, Paul Flowers, was accused of buying and using Class-A drugs, including crystal meth and cocaine. He was also said to have boasted about taking ketamine. The bank lost around 38,000 customers in the first half of 2014.
  • In 2012, GlaxoSmithKline was ordered to pay $3bn (£1.9bn) for marketing two drugs for unapproved uses, as well as failing to report safety data about a diabetes drug to the Food and Drug Administration (FDA). It became the largest healthcare fraud settlement in US history.

Xiaomi appoints new CFO

Posted on by Charlotte Gill

China’s premier smartphone maker Xiaomi has appointed Shou Zi Chew to the role of CFO as it prepares to expand its footprint beyond Asia. The appointment of the former DST Global partner follows that of Qualcomm’s Greater China President Wang Xiang to head of strategic co-operation in May, and many more are expected to follow as the firm, for the first time in its five-year history, looks to expand its influence overseas.

Xiaomi has been without a CFO for two years now

Xiaomi has been without a CFO for two years now, after Yu Ming-to, of Mediatek fame, departed for personal reasons, and the addition of the Singaporean national greatly enhances the diversity of its senior management team. The company’s founder, chairman and CEO Lei Jun said in a statement: “Shou Zi was a successful investor with unique investment insights and financial skills, who recognized Xiaomi’s value early on and helped DST complete its investment in the company. I believe that with his appointment, Xiaomi’s finance and investment team will provide greater support to Xiaomi’s technical innovation, ecosystem development, and international expansion plans.”

The company debuted a new smartphone in Brazil the day before Shou Zi’s appointment, and the company’s overseas expansion looks only to continue under his watch. Originally founded with a view to disrupting Apple’s premium pricing strategy, the company’s model has since evolved considerably and was recently voted among the smartest company of the year by MIT, second only to Tesla Motors.

The smartphone maker made waves late last year when it was named the world’s most valuable technology start-up, with a valuation of $405bn only four years after it was founded. Trailing Samsung and Apple only in terms of smartphone sales, the company’s new look senior management team looks set to extend its influence beyond the Asian continent in the years and months ahead.

EU abolishes data roaming charges

Posted on by Charlotte Gill

In a big step towards the adoption of the Digital Single Market in Europe, the commission has reached a preliminary agreement to end data roaming charges for citizens travelling across the 28 member states. “This means the end of roaming charges as Europeans experience them today in their daily life,” it wrote in a press release.

For a 14-month period beginning April 2016, telecom operators will be permitted to add surcharges, but roaming charges for calls and data will be capped at 25 percent. Then as of June 15 2017, no extra fees will be charged for using mobile devices when travelling throughout the EU.

Adopting a clear set of rules regarding net neutrality throughout Europe is essential in the functionality of the EU’s Digital Single Market strategy

European-wide net neutrality rules have also been outlined for the first time; thereby obligating operators to treat all internet traffic equally and barring paid prioritisation. Blocking or throttling online content will only be allowed in cases that present a cyber threat. “This is also very important for start-up businesses that commercialise their products and services via the Internet and need to be able to compete on an equal footing with larger players,” reads the statement.

The deal also outlines greater consumer protection in order to ensure that users are fully informed of their roaming rights and enabling them to detect breaches of open internet rules.

Moreover, the new regulations also protect mobile operators from common abusive practices, such as customers using a domestic subscription plan while living abroad or using SIM cards brought in other EU countries that are cheaper than domestic tariffs.

Currently, mobile users tend to switch off roaming when travelling abroad due to excessively high charges and unpleasant surprises when returning home from a trip. The aim of the new agreement hopes to abolish this fear and encourage EU citizens to use their devices fully when in other EU countries, thus providing far greater opportunities for online businesses and services across the region.

Adopting a clear set of rules regarding net neutrality throughout Europe is essential in the functionality of the EU’s Digital Single Market strategy, which was adopted on May 6 2015. The EU estimates that the Digital Single Market can contribute €415bn a year to the European economy, while creating an estimated 3.8 million jobs and transforming internet services.

Sony gives CEO another chance

Posted on by Charlotte Gill

Sony shareholders have agreed to look beyond a turbulent year for the struggling company and re-elect Tokyo-born chief executive Kazuo Hirai to his post. At the company’s annual general meeting, 88 percent of shareholders voted in favour, despite a string of heavy losses, dismal shareholder returns and a cyber security scare in the last 12 months.

The support suggests that the overwhelming majority are confident in Hirai’s ability to turn things around

The re-election was made to seem all the more important in light of a new corporate governance code, introduced recently to preserve shareholder value and make companies more accountable for their actions. The likes of Sony, Sharp and Sumitomo Mitsui Financial Group are bracing for a new era of transparency, and for greater repercussions across the board for any failure to comply with the new rules. Already the code has shown itself to be successful on one front, with more than 90 percent of those listed on the Tokyo Stock Exchange’s first section having appointed at least two external directors, up from 74 percent the year previous.

Some critics are of the opinion that Sony has failed to deliver shareholder value as best it could, and went on to assert that Hirai was unfit to lead after the company’s recent showings. Proxy advisory firm Institutional Shareholder Services encouraged shareholders to vote against Hirai in light of the company’s failings, and noted that, in the last five yeas, the company’s average ROE was minus 7.7 percent.

Still, the 88 percent vote in favour was only one percentage point short of last year’s outcome, suggesting that the overwhelming majority are confident in Hirai’s ability to turn things around. Sony recently created separate divisions for its personal computer and electronics divisions and has pledged to focus on profitability ahead of volumes in a bid to overturn its losses.