Microsoft to cut 18,000 employees
Microsoft announced the biggest layoffs in its 39-year history Thursday, outlining plans to cut 18,000 jobs in a move that marked the CEO’s sharpest pivot yet away from his predecessor’s drive for the company to make its own devices.
Although some cuts had been expected ever since Microsoft acquired Nokia’s mobile-device unit, the number amounted to 14 percent of the Microsoft workforce — about twice what analysts had estimated.
The cuts will include some 12,500 jobs associated with the Nokia unit — nearly half of the 28,000 employees Microsoft brought on board in April through the acquisition.
FedEx charged with assisting illegal pharmacies
Federal authorities on Thursday charged FedEx with assisting illegal pharmacies by knowingly delivering painkillers and other dangerous drugs to customers without prescriptions.
The indictment was filed in federal court in San Francisco, and the Department of Justice announced the charges in Washington, D.C. The indictment alleges that FedEx Corp. conspired with two related online pharmacies for 10 years ending in 2010.
The Memphis, Tenn.-based delivery company is accused of shipping powerful sleeping aid Ambien, anti-anxiety medications Valium and Xanax, and other drugs to customers who had no legitimate medical need and lacked valid prescriptions.
FedEx insists it did nothing wrong.
Jet downing, weak earnings rattle stocks
The downing of a passenger plane flying over Ukraine rattled U.S. financial markets Thursday, deepening a slide set off by a batch of disappointing company earnings and a weak home- construction report.
All three major stock indexes ended lower for the first time in a week but remained near record highs and positive for the year.
Ukrainian officials said a Malaysia Airlines passenger plane carrying 295 people was shot down over war-torn eastern Ukraine, although both the government and pro-Russia separatists fighting in the region denied responsibility. The situation raised concerns of wider geopolitical instability and an escalation of tensions between Russia and the West.
Investors responded by seeking refuge in U.S. government bonds. The yield on the 10-year Treasury note fell to its lowest level since May. Gold and oil prices rose.
Ore. sues 5-Hour Energy over ads
Oregon’s attorney general has sued the companies responsible for the popular 5-Hour Energy drink, alleging they engaged in deceptive advertising.
The lawsuit filed Thursday in Portland contends 5-Hour Energy falsely claims customers get extra energy and focus from a unique blend of ingredients, when the boost actually comes from a concentrated dose of caffeine.
The suit also targets claims that users don’t experience a crash when the effects subside and that the product is OK for adolescents.