HP isn't being shy about spending cash and taking big steps to reinvent itself lately: it just
spent $1.2b on Palm in order to strengthen its consumer device portfolio, and now it's announcing another billion-dollar outlay designed to streamline its enterprise services business and fully consolidate its
$12.5b acquisition of EDS. Part of the process will involve laying off some 9,000 workers over several years as HP moves to automate more and more of its data centers and integrate more of EDS, but the company is planning to add some 6,000 jobs in different areas over the same period of time, so the hurt isn't too bad. Taken together with the Palm acquisition, this means that both HP's enterprise and consumer divisions will undergo some radical changes in the next few months -- we'll see how things pan out.
I'm not sure that's good news for WebOS lovers :/
@sweet greggo It's dropping 9,000 over a couple of years, but at the same time adding 6,000 new positions.
Maybe this means more work to go to WebOS???
@sweet greggo is dropping 9,000 americans and getting 2,000 chinese, 2,000 indians, and 2,000 mexicans.
It's all about the benjamins.
@sweet greggo
Please read the article, instead of just trying to be "FIRST!!!!!!111111" in disguise.
@Very Powerfull Codfish
I read it. Stop trying to be the first douche and pay attention.
@Very Powerfull Codfish please read the comment before complaining about trolls... I hope this reorganisation will make HP better...
@Dking7
Vegeta, what does the scouter say about HP's job cuts?
@bigdonny It's OVER NINE THOUSAAAAAAAAAAAAAAAAAAANNNNDDDD!!!!!
*crushes scouter*
@sweet greggo I just supposed you didn't... because I happened to read the words "...planning to add some 6,000 jobs in different areas over the SAME PERIOD OF TIME..." (my caps).
@sweet greggo
the Enterprise Services division has NOTHING to do with the people who will be developing WebOS
@sweet greggo It's over nine thousand!!!!
@Ridgecity
the politically correct term is "natives"... and there aren't 2000 left...
(to far?)
HP Slate.... commmonnnnnnn!
@Almo
isn't the slate dead? I assume you mean a WebOS tablet though. It took over 2 years for the market to put something together which could come close to competing with the iPhone. If that's the case for the iPad, good luck waiting on that slate/webOS tablet / iPad killer, if / when it comes. Not gonna happen before christmas of this year, though - aka, millions more iPad sales.
@TomSawyer
I'm running an iPad at the moment, I'm just curious to see the new tech that'll take over it.. Can't believe there's been nothing solid yet. I do hope the HP Slate ends up coming in a non-webos version, not everyone wants it...
I can't for the $$ to start being pumped into Palm!!
I wonder if these are US based jobs?
@Quick6
US based jobs... How passé
"the hurt isn't too bad" It's 3000 job losses, that's a huge hurt!
@jamesb94
1% of their workforce over several years - not quite a dent.
@TomSawyer I'm not saying it's a dent to HP, i'm saying it's a dent to 3000 employees who will be unemployed.
@jamesb94
I'm sorry but these job losses are overrated. If you weren't incompetent you won't lost your job. You should have been carrying bricks or something in the first place.
@Kurian are you fucking serious? *sigh* nevermind your probably just a 15yr whose never knows nothing about the world or just a troll. carry on
@Kurian These job cuts aren't due to 9,000 workers randomly acting a fool. It's more complex; job shifting, cutting unnecessary or risky projects to reduce company spending,
@TomSawyer That 9k is in addition to what they've laid off since taking over EDS. And those 6k jobs won't be going to American workers.
Not to mention the salary cuts that EDS employees took before being laid off.
I got the notice in March. But I'm not bitter. I'll take my severance and take the rest of the year off. Concentrate on my rental units and on-line retail and see what happens (yeah, I've been planning on something like this happening for years).
I worked for EDS prior to the takeover by HP. It's been layoffs ever since. Those who were not laid off have undergone paycuts, some upwards of 40%. It's sad really, because many of the people getting paycuts were underpaid by industry standards as it was.
@thrlride I don't believe you more than another commenter known as "RedmondInsider"... why should I believe you?
@Very Powerfull Codfish
Honestly, I don't care if you believe me or not. I worked for EDS from 1998 until 2007 at their SMC, formerly IPC in Charlotte, NC.
I left them prior to being laid off but all but one of my team members was laid off due to outsourcing or their jobs were altogether eliminated. Since I worked there so long I am still in contact with many people there and have been told of the further layoffs and paycuts.
All that being said, the 9000 layoffs does not surprise me one bit. EDS was a sweatshop that didn't think twice about laying people off while giving their CEO's 55 million dollar going away presents. HP just further helped morale with the paycuts.
HP needs new designers across the board. HP.com is a good example of how poor they are at the delivery of a good user experience.
Makes me wonder how many jobs were held by Palm employees.. "Thank's for the IP, here's the door!"
the new phone will be called
HP- W 9000
So they'll lay off these people, and then turn around and rehire a some of them for the new positions at a lower salary. If they take it fine, if not no worries for HP.
I feel sorry for all the Singapore workers.
Jobs growth comes primarily from new businesses, not incumbents.
What HP is doing is nothing compared to IBM's leaked plans to obliterate most of its workforce and rehire them as contract workers. Yikes.
More Asian suicides?
since HP has 310,000 workers 9000 is not a lot.
when a small company fires that % of the workforce it dose not appear anywhere.
@DrScope
Tell that to the 9,000 jobless people...
By Craig Zarley, CRN
12:39 PM EST Tue. Nov. 01, 2005 Hewlett-Packard (NYSE:HPQ) said Wednesday that it is laying off employees in its Colorado Springs, Colo., direct-marketing call center as part of a broader workforce reduction.
An HP spokeswoman confirmed reports from channel sources that the Palo Alto, Calif.-based IT giant plans to restructure its call center operations. She said there would be layoffs in HP’s call center but declined to specify the number of employees involved.
HP also aims to consolidate and align the call center with its Technology Solutions Group (TSG), Imaging and Printing Group (IPG) and Personal Systems Group (PSG) business units, she added.
The spokeswoman provided no further details on the realignment. However, she said the layoffs are part of the 14,500 jobs that HP aims to eliminate under a plan announced in July.
By Rob Kelley, CNNMoney.com staff writer
August 14 2006: 4:49 PM EDT
NEW YORK (CNNMoney.com) -- For years, Hewlett-Packard was going nowhere fast on Wall Street.
Though HP dominated the printing market, briefly held the title of No. 1 personal computer maker and expanded its services division, its stock price languished because of lackluster margins and its messy 2002 acquisition of Compaq Computer.
Enter turnaround prince Mark Hurd, who took over from Carly Fiorina, the maligned architect of the Compaq deal, in April 2005.
Hurd, who had a reputation as a master of cost cutting from his days as CEO of ATM maker NCR (Charts), quickly went to work to slash expenses at HP. Shortly after he was hired, the company announced it would lay off 14,500 workers - or 10 percent of HP's workforce - in order to boost profits.
HP cutting IT workforce 58% by 2008
By Dan Farber | September 27, 2006, 9:27pm PDT
HP Slashes Pay For Entire Workforce
By Damon Poeter, CRN
5:50 PM EST Thu. Feb. 19, 2009 Hewlett-Packard (NYSE:HPQ) is cutting the base pay for all its employees in the aftermath of a disappointing first-quarter performance coupled with a belief that there's no light at the end of the tunnel through the end of 2009.
HP CEO Mark Hurd spelled out the details in an e-mail to employees:
* Hurd takes a 20 percent pay cut to his base pay.
* HP executive council members take a 15 percent cut to their base salaries.
* Other executives take a 10 percent cut.
* Exempt employees take a 5 percent cut.
* Non-exempt staff take a 2.5 percent cut.
Hurd's 2008 base salary was $1.45 million, according to SEC filings. His total compensation, including bonuses, stock awards, options and other forms of compensation, was $42.5 million for the year. Four HP executive vice presidents listed in the filing made $20 million or more in total compensation on base salaries ranging from $690,000 to $820,000.
And now this? Great track record HP!
@commonman The sad part about that pay 5% pay cut is that was one of two pay cuts. The second cut was much much larger. Normally between 15% - 40% for most regular (former EDS) employees.
What's even sadder, EDS overall was profitable while HP was loosing money.
But I guess that's the way it goes.
@Captain Caveman
Exactly. I couldn't imagine taking a paycut like that. With how raises are done at EDS, it will take them the rest of their career to get back to where they were.
I have friends who work for the former EDS, hopefully they won't be included in this round of layoffs.
wow...guess they were not making a good enough cut for the first rate citizens...the stock holders...so they just have to cut down all these low life common workers. Because work is not like a right or something, it's a blessing that can be taken away from you, second class folks
Maybe they've finally faced the fact that non-American/Canadian tech support representatives can not help worth a damn and decided to cut the jobs of outsourced customer service representatives...
@MysticLeviathan Many of the times there is nothing that can be done, people just dont understand all companies have business rules and as an american or a non american worker they have to follow them. Also when you reach a call center that is somewhere outside the US the companies have different business rules and the employess aren't allowed to do certaim stuff. I talk from experience.
Now you really know who paid for palm...
social bloodbath for Compaq / EDS / Palm
and US government closes their eyes who' next ? 3com?
All you guys that keep saying that the extra money will be pumped into Palm are wrong. The enterprise division has nothing to do with Palm's acquisition. They're laying off 9,000 employees and hiring 6,000 more that are mainly Indian and don't have as near as much experience as their American counterparts that have been in the business 20 years. Mark Hurd wants to lower salaries, cut pensions and expect people to do extra work all to fulfill his million dollar cash bonus on top of his $30 million salary. He might as well be Hitler, by the way he was hired into the position and hasn't worked for any of it.
Great, waste over a billion on Palm, in a futile effort to compete with Apple, Microsoft and Google. Then fire almost 10,000 people. Awesome job HP.
It's sad, and i feel bad for the folks who took pay cuts, and lost their jobs.. But it's not terrible. Like people getting mad at apple for the workers who commit suicide.. 9 out of 400 000 isn't that horrible.. And remind me why it's apple fault? Why not sony's, or hp's?
(this is coming from someone who hates apple as a company, and has a ps3, a compaq laptop, and a palm pre...)
It's not the company,it's the system...