Several analysts on the call asked about the layoffs. Although Whitman seemed slightly off balance at the first question, which took an unusually challenging tone, she quickly regained her footing and provided increasingly confident answers, including the following:
This company has been through a lot -- the acquisitions of Compaq and EDS, the acquisitions of 11 to 20 software companies. Part of what we are doing is integrating, streamlining the system, automating processes which have not been done in a while
No company likes to decrease the workforce. I think our employees live it every single day. Our employees know we can be more efficient. They are our biggest sources of ideas.
I don't think anyone likes this, but I think we've done a good job of explaining where we are at.
My outlook has actually not changed in where we are at in our turnaround and our return trajectory. I'm feeling more confident because we have seen a stabilization of revenues and I really like our product road maps.
Many people said this is the best product line up we have had in a decade. We need to run this co more efficiently in terms of ease of doing business and being faster, nimbler in decision making.
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 !
@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...
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.