Business news in brief

U.S. probes Alibaba accounting methods

HONG KONG -- Alibaba Group, the China-based e-commerce giant, said it is under investigation by U.S. securities regulators over its accounting practices.

The investigation -- disclosed Wednesday in a stock filing -- appears to focus on how Alibaba deals with a web of companies in which it owns stakes or has some say in the operations. The company said the Securities and Exchange Commission is investigating how Alibaba accounts for affiliated companies, including a logistics venture, and how it treats related-party transactions.

It also puts under scrutiny Alibaba's handling of Singles Day, a one-day shopping event in China that the company said gave it the world record for online sales volume in a day. Alibaba said it had provided the commission with information about how it reported data from that event.

Alibaba said it is voluntarily cooperating with the commission and that the investigation is not an indication it had violated any law.

-- The New York Times

Shell set to slash 2,200 more positions

Royal Dutch Shell Plc will cut 2,200 more jobs, raising the tally of losses to 12,500 since the start of last year, as Europe's biggest oil producer continues to adjust to the slump in prices.

At least 5,000 jobs will be cut this year, the company said in an emailed statement. The reductions are the result of oil prices staying "lower for longer" and the acquisition of BG Group Plc earlier this year, said Paul Goodfellow, Shell's vice president for the U.K. and Ireland. Shell and BG employed about 94,600 people at the end of 2015.

"These are tough times for our industry," Goodfellow said in the statement. "We have to take further difficult decisions to ensure Shell remains competitive through the current prolonged downturn."

The industry is cutting deeper despite a recent rise in oil prices, which remain about half the level of two years ago. Producers' earnings have been pummeled, credit ratings have been cut, and borrowing has been increased to maintain dividend payouts. To help protect their balance sheets, companies have deferred or canceled billions of dollars of projects, renegotiated contracts with suppliers and eliminated thousands of jobs.

"Oil has recovered but is still below $50, and companies aren't able to cover their dividends at that level," said Jason Gammel, a London-based analyst at Jefferies International Ltd.

-- Bloomberg News

Ford to recall F-150s over fluid leaks

DETROIT -- Ford is recalling some of its top-selling vehicles in the U.S. to fix a fluid leak that can reduce braking power.

The recall covers about 271,000 F-150 pickups in North America from the 2013 and 2014 model years that have 3.5-liter V6 engines.

Ford said brake fluid can leak from the master cylinder. That could reduce the ability of the front brakes to stop the trucks.

The company reports nine alleged crashes with no injuries, but one person was said to have suffered a knee injury while applying the brakes.

Dealers will replace the brake master cylinder for free. They'll also replace the brake booster if they find leaks from the master cylinder. Ford said it's working with suppliers to get parts to dealers and will begin notifying customers in mid-July.

-- The Associated Press

Microsoft to cut jobs in phone division

SEATTLE -- Microsoft is making further cuts to what is left of its smartphone business, as sales of the devices continue to fade.

The company said Wednesday that it would eliminate up to 1,850 jobs, about 1,350 of them in Finland, where the mobile business that Microsoft acquired from Nokia a couple of years ago originated. Microsoft will take an accounting charge of $950 million related to the cuts, it said.

In an email sent early Wednesday to all Microsoft employees, Terry Myerson, executive vice president of the company's Windows and devices group, described the cuts as "incredibly difficult" but said Microsoft needed "to be more focused in our phone hardware efforts."

-- The New York Times

Exxon investors spurn climate measures

DALLAS -- Shareholders at Exxon's annual meeting rejected several resolutions backed by environmentalists that would have pushed the company to take a stronger stand in favor of steps to limit climate change.

Chief Executive Officer Rex Tillerson said the company was balancing environmental considerations and its responsibility to produce more energy to meet growing demand.

Over the board's opposition, shareholders voted to ask directors to adopt a proxy-access rule, which would make it easier for shareholders to propose board candidates and remove directors.

Wednesday's meeting occurred as Exxon Mobil Corp. faces volatile crude prices. After the price drop that began in mid-2014, Exxon earned $16.15 billion last year, its smallest profit since 2002. Crude prices have rebounded this year but remain about half of what they were before the slump.

Exxon is also dealing with investigations in several states into whether the company lied in the past about oil's role in climate change.

In afternoon trading, Exxon shares rose 59 cents to $90.26.

-- The Associated Press

New York Times to offer worker buyouts

In a bid to continue aggressive digital expansion while controlling costs, The New York Times will offer voluntary buyout packages to members of the newsroom and several business departments at the end of the month, the company announced Wednesday.

Members of The New York Times' executive committee, including Publisher Arthur Sulzberger Jr. and Executive Editor Dean Baquet, said in a memo to employees that the buyouts were a part of the company's mandate to build a more digitally focused newsroom and to reach its stated goal of doubling digital revenue by 2020.

"These plans will no doubt lead to new initiatives and investments," the memo said. "At the same time, we will also need to make tough decisions about what to stop doing."

The announcement Wednesday did not specify the number of buyouts that would be offered, but it said packages would be distributed electronically Tuesday to all eligible employees, who would then have until mid-July to consider the offer.

-- The New York Times

Business on 05/26/2016

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