Friday headlines include: Technology turnover preceding the hacking at JP Morgan, Starbucks testing new stores, details about Nevada's winning bid for Tesla's gigafactory, BP found negligent in the 2010 Gulf of Mexico oil spill and Kroger hiring 20,000 permanent workers.
Financial giant JP Morgan (JPM) replaced its head of information security in the month before hackers stole data and reportedly transmitted it to Russia. Greg Rattray had just been installed in the position when the attack occurred. He replaced Anthony Belfiore, who resigned, along with at least five other executives from the company to go to work at First Data Corp.
Coffee retailer Starbucks (SBUX) is testing two new kinds of stores as it tries to expand its reach to deal with growing competition from both the high and low end. On the high end, the company is opening a 15,000 square foot location in Seattle's Capitol Hill neighborhood. That location will roast the company's small-batch reserve coffees and will also include a store, a tasting room and a café devoted to reserve coffees. At the other end, the company is opening an “express” store in Manhattan, this store will have a limited menu and will allow mobile payment an ordering to speed up service.
Nevada's ultimately winning bid to get Tesla Motors' (TSLA) gigafactory to build batteries included up to $1.3 billion in tax breaks and other incentives that are spread across 20 years. Lawmakers in the state still need to approve the package. The gigafactory will cost about $5 billion and Tesla hopes will provide the scale needed to produce an more affordable electric car.
A federal judge found that BP plc (BP) was “reckless” and “grossly negligent” in the 2010 Gulf of Mexico oil spill. The ruling could add close to $18 billion to the more than $42 billion the company has already spent in connection with the spill. The company said it will appeal the ruling.
Grocer Kroger (KR) plans to hire 20,000 permanent employees as it continues expanding its footprint. The company has also been expanding through acquisitions recently, with the company buying both VitaCost.com and the Harris Teeter chain of grocery stores.