HP ups layoffs count by two thousand; 29,000 positions gone by 2014 | webOS Nation
 
 

HP ups layoffs count by two thousand; 29,000 positions gone by 2014 9

by Derek Kessler Mon, 10 Sep 2012 7:31 pm EDT

HP ups layoffs count by two thousand; 29,000 positions gone by 2014

In HP's seemingly unending quest to quell the bleeding, the company's employees have been in the firing line since May. Back then, CEO Meg Whitman announced that HP was looking to cut its 300,000-man workforce by 27,000. Today brought the news that another 2,000 positions are on the chopping block, as per a 10-K filing HP sent to the SEC. The new 29,000 total reduction count will reduce HP's workforce by over eight percent.

HP hopes that a portion of those employees will leave HP as part of a "voluntary enhanced early retirement" program in the U.S. Given the current economic and jobs climate, getting enough workers to voluntarily depart HP (even in spite of HP's ongoing issues) and lose their benefits like healthcare coverage to make a dent in the expected layoff count has and will continue to be an ongoing hurdle.

The restructuring plan and accompanying workforce reductions are expected to result in a total of $3.3 billion in accounting charges resulting from costs relating to the early retirement and severance packages from the layoffs. An additional $400 million in restructuring costs will come from consolidations in HP's real estate assets and data centers.

Source: SEC; Via: Engadget

Category:

9 Comments

hp could have avoided all this if they would have bought palm to get in the smartphone market and fire Jon Rubinstein after the acquisition was complete.

...or just not invest in things they don't have the stomach for. Who knew it at the time, but HP is a bigger train wreck than Palm.

I'm always astounded that people here take a look at these huge layoffs and declining revenues, then prescribe that the cure was HP spending several billions more to double down on webOS when it has never showed one sign of making money for anyone.

A behemoth like HP can't ever be nimble. It is their nature to move forward in one direction with overwhelming power and strength, which is why it critical that the management at the top set the right direction from the outset and follow through.

Unfortunately, HP has changed direction how many times in the last few years? And the result is predictable. They have fallen down.

There were three "about faces", each worse than the last. First, there was the original HP Slate which was supposed to be an iPad competitor perfect for eReading, games, and the Web. it wasn't, so they lied and said it was really just for corporate customers - who didn't buy it either.

Then, there were the about faces on webOS - understandable given the huge losses - and then most bizarrely, them announcing publicly that they were "considering" getting out of the hardware business altogether. It's a legitimate deliberation to have, but why announce it when you haven't arrived at a decision? You're just asking for the stock to bomb. Which it did.

On balance, however, their core business remained unchanged, which is actually more of a problem than their myriad stuttersteps. There's a way for a PC manufacturer to embrace mobile in a relatively low-risk fashion that makes sense. Lenovo is a prime example. They're not a content/ecosystem creator and don't try to be. But they have some better-than-average ultrabooks, better-than-average Android slates, and might have some awesome Windows 8 hybrid products. No one's faith in them is shaken, Their business and marketshare is actually growing across sectors.

That COULD be HP, but not with the current management and, sorry to say, not with webOS. If you can't develop and maintain a multibillion dollar content ecosystem, you don't need to own an operating system.

At this rate, if one assumes linear progression continues, HP will be 100% free of costly US Employees by 2025. Great turn around plan.

I hope they can buy another jet now.

One news article yesterday noted that HP was losing customers because people are moving to tablets and smartphones.

Interesting how HP managed to be so far out of synch with the tech world......

I took early retirement from AT&T (yes, the one in CAPS) back in '98 in spite of being a highly rewarded member of the R&D community (from MY perspective, of course ;-) because the company was under great pressure to reduce their cost structure. WorldCOM was eating AT&T lunch... after a whole series of down-sizings (mine being one of the last) WorldCOM's management was convicted of cooking the books and the company went away!
Too late... too bad... too dumb... and just too big for their own good.

I've come to the conclusion, after half my career working inside the government and the other half working outside... always in massive bureaucratic systems... BIG is BAD!-
(I know, I was a slow learner when it came to anything non-technical. I just didn't care.)

I think the more productive approach for society is the way Apple and Microsoft came to be, NOT the way they are. If we could design a snippet of corporate-DNA that caused growth to stop and eventual death, we could maintain the true inventiveness and creativity that makes life interesting! ...maybe that's why "Nature or nature's God" created us all with that snippet of DNA, encoded somewhere in there.

More seriously, we need some innovative changes in the legal systems that will allow these laid off workers to easily create new, small, start-up businesses. The last thing we need is to pay for them to waste their brains on the dole while government chooses to stimulate the dinosaurs to the tune of billions only to see them act like the dinosaurs they are!

Creative destruction! Tally-ho!