Intel CEO Paul Otellini says he had no idea one of his employees was being investigated for fraud — At least that’s what he told the Wall Street Journal. “It is not clear whether these people were just bragging or whether they were in it for the money,” Otellini said of Intel treasury department executive Rajiv Goel, now facing conspiracy and securities fraud charges for allegedly providing inside info to hedge fund manager Raj Rajaratnam (pictured). Otellini seems to want to make it clear that Intel did not cooperate in the investigation.
Don’t write off Galleon Group yet. They’ve still got $2.4 billion to throw around — Investors disgusted and/or panicked by the actions of co-founder Raj Rajaratnam, arrested on fraud charges last week, have filed paperwork seeking to withdraw $1.3 billion from the $3.7 billion in assets that Galleon manages. Bank of America Merrill Lynch and Barclays have publicly stated they won’t do trade securities with Rajaratnam. The guy has already been nicknamed “Master of the Rolodex” for his alleged habit of getting his information from leaky colleagues, rather than doing any external research. He’s got a future as a reporter.
For Windows 7, Microsoft broke down its own internal silos — The newest version of Window hits store shelves on Thursday. The Wall Street Journal reports today on ways that software developers for Windows 7 were ordered to work more closely with other people both inside and outside Microsoft. The article mentions new Windows development chief Steven Sinofsky, but doesn’t recount Sinofsky’s aggressive takeover of the Windows org chart, replacing existing staff with his own hand-picked team. Employees sent off to other groups joked about being “Sinosfkyed.” Yet, it seems to have worked.Windows 7 feels much less unready than Vista.
[Disclosure: I got a free copy of Windows 7 from Microsoft. And you didn’t!]
Employers are still holding off on new hires — There are two reasons companies everywhere are learning to do without additional headcount they’d love to have. First, many employers worry they’ll have to lay off new hires within a few months. Second, many employers have learned to do without the people they laid off. Jim D’Addario, CEO of the popular guitar string maker he founded in 1973, told the Journal that he has learned to make the same quality strings with 950 employees that he used to make with 1100. Through a set of efficiency moves, D’Addario expects to product up to 20 percent more quality product with the same number of people.
The New York Times says it will cut 100 newsroom jobs, leaving 1,250 more — The newspaper of record’s editorial headcount peaked at 1,330 last year. No other American newspaper has more than 750 editorial staff on the job. The Times syndicates VentureBeat somewhere around the middle of its Technology home page, so we’re conflicted. The past few years have proven that bloggers are a welcome addition to current events coverage, but the NYT is still much, much better at getting foreign correspondents to file the real news from the other side of the world.
“All is good until something comes along that tries to get the whole Internet to flow through it” — Software developer and opinion generator Dave Winer slaps social networks for trying to route everything on the Internet through their brand one way or another.
By locking in users to one domain, Facebook, Twitter and other social networks keep those people from perusing the Internet. They keep other people from finding Facebook users by requiring them to sign up to do a really good search.
Twitter doesn’t block external searches of its content, but it does give away a lot of Internet attention juice to celebrities, friends of the founders, and random tweeters. I feel like my iPhone with its 100,000 apps is doing that, too. I’ve been sucked into iPhone Land, a place that isn’t the Internet.