So, the restructuring will cost them 1 billion. They're going to save 1 billion also. Wow. And that statement, 'lead with innovation and execute with purpose' - they really should tone down on those big words. They had no purpose till now?? 🙄
Not to be harsh, but the writing of this story is pretty bad. This is what HP actually said…
"Lores told analysts at the meeting the layoffs could yield annual savings of about $1 billion for the company. It will also take a $1 billion hit in charges related to the plan, including $100 million in the current quarter, $500 million in fiscal 2020 and the rest split between fiscal years 2021 and 2022."
So the 1 billion dollar saving is expected every year.
I mean this: "At the end of 2011, the combined company had 349,600" compared to "HP, which had about 55,000 employees worldwide as of October 31, 2018, intends to reduce its workforce by 7,000 – 9,000 employees"
Incompetent management is the biggest problem for public corporations.
I don't know how accurate the given number in internet is but today the two entities have pretty similar headcount 60k for HPE and 55k for HP Inc. After the workforce cut we are talking about more pronounced headcount difference between the two.
When I seen the Title I thought yep we are approaching the Christmas season so this is to be expected since most of these big companies like to lay off employee's about this time of year.
This part is just me being sarcastic because of the timing this happens every year. Share holders and exec's want to reap in a nice Christmas bonus for themselves so they put the lower level workers on the chopping block to get that big bonus cheque of coarse this is probably just one of many reasons this happens and might not be it at all but it does make me stop and wonder about it. I know there are other reasons for it like company mismanagement etc etc but I wonder how much truth there is to it.
They are laying off finance and administration, sales and sales support - and replacing with contractors. It saves on pension and retirement plans, less health insurance etc. And this kind of workforce can be easily replaced/hired, since it doesn't command specific R&D skills, or jeopardize IP. Benefits plans for next year are usually signed off in the Oct-Nov time, so it makes sense to get rid of employees before that. The management collect bonuses related to the cull a lot later, usually after the next fiscal year's financial results are posted. This is pretty standard practice among any large corporation today.
It looks like it will save money, then the contractors start raising their prices once they have you hooked. The starting bids are below cost, but after a few years they'll be paying significantly more than they do now. This sort of extreme short-term thinking is one of the things that ends up tanking failing large corporations like HP.
Considering that there are two Hp’s, the beginning of the article, and title should state which one it’s about, rather than us finding out nearer the end of the article. Some may say that it was obvious, but it really wasn’t, and I’m familiar with both.
In a move to cut costs under a restructuring plan, US computer and printer maker HP (Hewlett-Packard) Inc. On October 3, it announced that it would cut its labor force by 16%. ..
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Teckk - Friday, October 4, 2019 - link
So, the restructuring will cost them 1 billion. They're going to save 1 billion also. Wow.And that statement, 'lead with innovation and execute with purpose' - they really should tone down on those big words. They had no purpose till now?? 🙄
smartthanyou - Friday, October 4, 2019 - link
Not to be harsh, but the writing of this story is pretty bad. This is what HP actually said…"Lores told analysts at the meeting the layoffs could yield annual savings of about $1 billion for the company. It will also take a $1 billion hit in charges related to the plan, including $100 million in the current quarter, $500 million in fiscal 2020 and the rest split between fiscal years 2021 and 2022."
So the 1 billion dollar saving is expected every year.
Teckk - Friday, October 4, 2019 - link
Ah, ok.Just wish that companies hire sensibly instead of firing on such a scale.
Anton Shilov - Friday, October 4, 2019 - link
Thanks for the sharp eyes, Fixed!Smell This - Monday, October 7, 2019 - link
**...lead with innovation and execute with purpose...**____________________________________________
Oh. You mean the polar opposite of Carly Fiorina?
peevee - Friday, October 4, 2019 - link
MBAs have been trying to kill HP for two decades now, no wonder it implodes.peevee - Friday, October 4, 2019 - link
I mean this:"At the end of 2011, the combined company had 349,600"
compared to
"HP, which had about 55,000 employees worldwide as of October 31, 2018, intends to reduce its workforce by 7,000 – 9,000 employees"
Incompetent management is the biggest problem for public corporations.
haplo602 - Friday, October 4, 2019 - link
HP split in the meantime ... into HP Inc (the HP of today) and HP Enterprise ...The main headcount went to HPE.
Eliadbu - Friday, October 4, 2019 - link
I don't know how accurate the given number in internet is but today the two entities have pretty similar headcount 60k for HPE and 55k for HP Inc. After the workforce cut we are talking about more pronounced headcount difference between the two.peevee - Monday, October 7, 2019 - link
Still far cry from what it once was.rocky12345 - Friday, October 4, 2019 - link
When I seen the Title I thought yep we are approaching the Christmas season so this is to be expected since most of these big companies like to lay off employee's about this time of year.This part is just me being sarcastic because of the timing this happens every year. Share holders and exec's want to reap in a nice Christmas bonus for themselves so they put the lower level workers on the chopping block to get that big bonus cheque of coarse this is probably just one of many reasons this happens and might not be it at all but it does make me stop and wonder about it. I know there are other reasons for it like company mismanagement etc etc but I wonder how much truth there is to it.
Jorgp2 - Friday, October 4, 2019 - link
Wasn't HO working on memresistors?Or did they shut that down already?
Ananke - Friday, October 4, 2019 - link
They are laying off finance and administration, sales and sales support - and replacing with contractors. It saves on pension and retirement plans, less health insurance etc. And this kind of workforce can be easily replaced/hired, since it doesn't command specific R&D skills, or jeopardize IP. Benefits plans for next year are usually signed off in the Oct-Nov time, so it makes sense to get rid of employees before that. The management collect bonuses related to the cull a lot later, usually after the next fiscal year's financial results are posted.This is pretty standard practice among any large corporation today.
Flunk - Wednesday, October 9, 2019 - link
It looks like it will save money, then the contractors start raising their prices once they have you hooked. The starting bids are below cost, but after a few years they'll be paying significantly more than they do now. This sort of extreme short-term thinking is one of the things that ends up tanking failing large corporations like HP.melgross - Friday, October 4, 2019 - link
Considering that there are two Hp’s, the beginning of the article, and title should state which one it’s about, rather than us finding out nearer the end of the article. Some may say that it was obvious, but it really wasn’t, and I’m familiar with both.atatassault - Monday, October 7, 2019 - link
Hey guys, our shareholders want more money. So we're firing you to give your paycheck to them: Now kindly screw off.alicetaylor - Wednesday, October 9, 2019 - link
In a move to cut costs under a restructuring plan, US computer and printer maker HP (Hewlett-Packard) Inc. On October 3, it announced that it would cut its labor force by 16%. ..
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