Design Con 2015
Breaking News
News & Analysis

HP Plans 16,000 More Layoffs

Whitman's comments
5/22/2014 07:30 PM EDT
21 comments
NO RATINGS
1 saves
< Previous Page 2 / 3 Next >
More Related Links
View Comments: Threaded | Newest First | Oldest First
Susan Rambo
User Rank
Blogger
Wow
Susan Rambo   5/22/2014 7:58:05 PM
NO RATINGS
Wow, 16,000 more people out of work...that's stunning. What divisions will they mostly be in and did Whitman talk much about the plan to get back to profitabiliity?

AZskibum
User Rank
CEO
Re: Wow
AZskibum   5/22/2014 9:13:29 PM
NO RATINGS
It seems like HP is the last tech company still doing mass layoffs. How unfortunate -- not only for the affected employees, but for what this says about this once great tech icon.

zeeglen
User Rank
Blogger
Re: Wow
zeeglen   5/22/2014 11:23:22 PM
NO RATINGS
From other recent discussions, I have to wonder - just what categories of workers got the boot? Engineers, middle management, production workers to name but a few?

Did any lawyers get laid off?

wilber_xbox
User Rank
Manager
Re: Wow
wilber_xbox   5/23/2014 12:24:46 AM
NO RATINGS
With a total of 50,000 planned layoffs, i wonder how many more will be affected such as temporary contractors. Also this kind of layoff will mean that HP will exit or shut some of the divisions. 

zeeglen
User Rank
Blogger
Re: Wow
zeeglen   5/23/2014 12:31:39 AM
NO RATINGS
@wilber_xbox  i wonder how many more will be affected such as temporary contractors.

Funny you should mention this, back around 2006 I was a temporary contractor for Hewlett-Packard, my 6-month contracts were renewed 3 times because they liked my work.  Then word came down from on-high that all contractors were to be let go at the end of their contract periods to reduce expenses.  Back to the bread line...


elctrnx_lyf
User Rank
Manager
Re: Wow
elctrnx_lyf   5/23/2014 1:25:49 AM
NO RATINGS
1 saves
This is inevitable. After companies grow they lose a structure and to bring it back it is important to restructure.

boblespam
User Rank
CEO
Re: Wow
boblespam   5/23/2014 2:19:19 AM
NO RATINGS
She's being zealous but it's not enough. She should lay off another 16000 employees to save another billion. Then another batch of 16000 for another billion to save, then another....

 

boblespam
User Rank
CEO
Re: Wow
boblespam   5/23/2014 2:35:03 AM
NO RATINGS
It's funny to see that she doesn't count in term of employees (16000 is not exactly a nice round number), but in billions: Hello board members, you need one more billion, no problem, I pull out my HP calculator... $1B / CostOfOneEmployee = 16000 there we are !

rick merritt
User Rank
Author
This is it?
rick merritt   5/22/2014 8:48:26 PM
NO RATINGS
Meg says she has no more layoffs planned from her corporate turnaround plan announced in May 2012 and I believe her.

She says revenues have stabalized and I can see that.

But will the company comeback to top and bottom line growth?

TBD 4 HP.

wilber_xbox
User Rank
Manager
Re: This is it?
wilber_xbox   5/23/2014 12:22:34 AM
NO RATINGS
You can never trust the management when they say that the revenues are up or no more layoffs. Only thing that they care about is shareholders or boardmembers to who they have to report and they will go to any extent to satisfy the market.

rick merritt
User Rank
Author
HP 3.0
rick merritt   5/23/2014 2:30:47 AM
NO RATINGS
I still haven't heard what HP should be in its next phase.

IBM is pretty far down the road to being the software and services company. Oracle is the wholoe bundled software and hardware optimized package.

HP? The s/w and servcies are still weak. The hw is too much like Dell and Lenovo off the shelf stuff. There's no mobile busienss outside notebooks. It's a lot of legacy and not too mich future.

I don't think you can get to the next HP by cutting the last one.

alex_m1
User Rank
CEO
Re: HP 3.0
alex_m1   5/23/2014 9:34:37 AM
NO RATINGS
Hp has some long term research in memristors and photonics. But it seems that the current leader in memrisotrs is a startup called crossbar, they already have a prototype and they talk about production in 2015, when hp is talking about 2018.

And hp has their new servers called moonshot , but they compete with the reletivley new ocp open server standardby facebook , which lets taiwanese manufactueres offer low-margin servers. So it would be a tough battle for hp.

Another possible strategy for HP would be the google "moonshot products" strategy , but it doesn't fit well for hp's financials , because it's quite risky and long term.

They're also starting to sell 3d printers for enterprise(which could be a huge market, disrupt many supply chains) , which they can do since many technologies have gone off patent, but hp still has technologies to optimize 3d printers and reducing cost of prinrting material, and has a lot of relevant organizational capability for that market. They will announce a product in november, talk about big boost in speed.

HangLai
User Rank
Rookie
HP planned layoff is hardly a bad omen for HP
HangLai   5/23/2014 7:28:19 AM
NO RATINGS
Most analysts on Wall Street took the planned layoff at HP as negative news; they were fast to trade off the HP stock as soon as the news hit the tape in the afternoon on 5/22/2014.  But the news is not all bad as it seems, especially for HP for the following reasons:  As Meg Whitman explained, the turnaround effort is on track at HP, it is just a process to eliminate inefficiency.  Viz. that: HP just signed a contract with Foxconn to make low level servers for HP, that alone will at least eliminate 5K manufacturing jobs at HP ( that is to shift the HP employees from HP to Foxconn), plus the sale force, management associated with this manufacturing, that could be as high as 7K work force.  HP recently enhance it channel sale force in the world, it shifted most of their effort to their channel partners, that will eliminate 10K job at HP; all they need now is just to manage the channel partner inventory requirements, that requires far fewer HP employees.  These channel partner forces are very large; some of them are more than 50 persons each.  There are hundreds in North America; multiply that in Europe, Latin America, Far East and Africa, you can see this is indeed a large number.  HP still has 300+K work force, that is far more than Apple ( about 30 -50K employees), yet the revenue is less than Apple's.  I am glad that HP is holding onto the manufacturing business, still making large portion of its revenue in hardware; comparing with IBM ( at IBM, everybody wants to wear blue suites, making "big bucks", unwilling to get their hands dirty), it is far better in the fundamental sense.  IBM has lost its mojo in hardware design or manufacturing, it is far less competitive in business fundamentally.  Although most of the HP's manufacturing facilities are partners outside of US,  but there are still many HP engineers participating in the design, doing the IR&D and making the product that will keep the knowledge in HP.  It is in far better shape than Apple ( Apple is just assembling someone else products in the factory other than its own) or IBM for that matter.  If you understand this, you will not question Meg Whitman's argument HP is on the mend.   On the other hand, the job lost from HP is not good news for HP employees or the US middle class, it shifts the jobs to Foxconn or to China.  That is the result of high US cost and inflated wages compared with employees in the developing countries.   In summary:  layoff is not bad news for HP, or a bad omen for the future, it is a necessary survival measure for HP presently, one should applaud its effort (or to buy the stock?!).

mostadorthsander
User Rank
Rookie
specializations
mostadorthsander   5/23/2014 11:44:45 AM
NO RATINGS
motherboard creations to digital energy bus cards are bleeding edge products...hp needs to invest in more avant garde technologies and engineerings...

larussell
User Rank
Rookie
Repercussions of Carli continue
larussell   5/23/2014 2:21:11 PM
NO RATINGS
This goes back to 2000 when they sold off the high margin Agilent business and bought Compaq to focus on the supposed high growth computer business. It was a questionable move then, and HP is still paying for it. Not the great company anymore that Hewlett and Packard founded.

AZskibum
User Rank
CEO
Re: Repercussions of Carli continue
AZskibum   5/24/2014 2:34:03 PM
NO RATINGS
Although the sell-off of the test equipment business and the acquisition of Compaq might have been questionable moves, the more recent acquisition of Palm for $1.2B and the nearly immediate killing of it and exiting the mobile business didn't help HP either. I was amazed that such a large company could make such moves so quickly -- buy a company for that kind of money, launch new mobile products based on Palm's WebOS, then exit the business entirely -- all in less than a year. If you make the analogy of a business as a feedback control system, it was as if HP in 2010-2011 saw its phase margin disappear and began rail-to-rail oscillations.

johnspeth
User Rank
Rookie
HP, Who?
johnspeth   5/23/2014 2:24:10 PM
NO RATINGS
I fortget now.  What does HP produce? :)

Sheepdoll
User Rank
Blogger
Re: HP, Who?
Sheepdoll   5/23/2014 3:18:51 PM
NO RATINGS
@johnspeth - fortget now.  What does HP produce? :)


I prefer the HP steak sauce in the plastic squeeze bottle to the glass ones.  Not sure if there is a relationship to the A1 sauce here in the US of A.  I think technically these are raisin sauces.

 

_hm
User Rank
CEO
How about Quality?
_hm   5/24/2014 4:12:00 PM
HP also needs to improve quality of its product. Will this layoff will help them imporve product quality too?

TFCSD
User Rank
CEO
Re: How about Quality?
TFCSD   5/26/2014 1:39:58 PM
Imporve? ;-)

gtookus
User Rank
Rookie
Battle between the tech titans
gtookus   5/28/2014 9:04:45 PM
NO RATINGS
So it is a battle of two of the femails CEO's of the tech titans of the IT industry, IBM and HP. Who will win the battle? Who will claim the title of laying off the most people by 2015? Ginny or Meg? At least Meg is up front about HP's plan, while Ginny plays the role of "snake in the grass."

Flash Poll
Like Us on Facebook

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Times on Twitter
EE Times Twitter Feed
Top Comments of the Week