& cplSiteName &

HP Cuts More Jobs

Dan O'Shea
5/23/2014
50%
50%

It was business as usual at HP late Thursday, meaning the computing hardware/software company announced another round of job cuts and suffered the embarrassment of news being released earlier than planned.

HP Inc. (NYSE: HPQ) CEO Meg Whitman said during the company's second-quarter earnings call that HP is planning to cut up to 16,000 more jobs on top of 34,000 cuts already announced as part of a corporate restructuring program. This is the second time in two years the number of planned job cuts has jumped -- it started at 27,000. HP launched a major corporate turnaround strategy in October 2012. (See HP to Axe 27,000 Staff and HP Gives 2013 Outlook, Details Revamp.)

It is unclear which units and areas of expertise will be most affected by the latest cuts. HP has been widely criticized for continuing attempts to squeeze more money out of the fading PC hardware market, but it recently has made a concerted effort to become more of an SDN player. Software could remain a point of opportunity if HP doesn't put too many software-related jobs on its cut list. (See HP Shines Brighter on OpenDaylight and HP Beefs Up Its SDN Portfolio.)

HP declined further comment in an email exchange with Light Reading.

The second-quarter results actually met analysts' estimate with earnings of $0.88 per share. Overall revenue slipped about 1% from the same quarter last year to about $27.3 billion. However, if those numbers were not completely overshadowed news of the job cuts, they also were overshadowed by the fact that they became available while stock markets were still open, rather than after the closing bell. This was initially thought to be another of HP's infamous leaks, but later reports suggested the earnings release went public early by accident.

— Dan O'Shea, Managing Editor, Light Reading

(32)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 4   >   >>
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
6/2/2014 | 12:38:51 PM
Re: Happy Memorial Day Weekend HPers
@Susan,  Absolutely, the fact that there are not more specifics, as you and Brian point out, suggest it is not strategic; it may be more tactical.

The cuts can be beneficial if they are building a strategic advantage, not just buying time until we figure out what works.
briandnewby
50%
50%
briandnewby,
User Rank: Light Sabre
6/1/2014 | 10:23:38 AM
Re: Happy Memorial Day Weekend HPers
I think the short answer is that the only way out is to be acquired, or, maybe, acquire.

HP seems to still have panache with servers and printers.  Printers aren't really a growth business, but there's probably a floor to that business that would allow for a long-term viable business.

Servers seem long-termish to me, too.  So, it's not like she doesn't have a business.  It may just be a manufacturing business, though.
Susan Fourtané
50%
50%
Susan Fourtané,
User Rank: Blogger
6/1/2014 | 1:05:44 AM
Re: Happy Memorial Day Weekend HPers
Brian, 

Watch here what she said last year about her five-year turnaround plan, and that she initially thought three years. http://www.cnbc.com/id/100980948

She also said there was not going to be a need for extended the window. So, what's next? 

-Susan

 
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
5/31/2014 | 1:59:03 PM
Re : HP Cuts More Jobs
The announcement of cutting the jobs caught me by surprise. The fact that the news was announced earlier than planned was not a big deal. What worried me the most is the number of people that had lost their jobs and the number of families that would suffer as a result of cutting off the jobs. I think that the HP should clearly state the units and areas and the units that will be greatly affected so that the employees in such units can start looking for an alternative.
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
5/31/2014 | 1:54:29 PM
Re: Happy Memorial Day Weekend HPers
It is so sad that people are loosing their jobs especially at this time. People are always looking forward to work on the Hp Company because they pay well and treat their employees well. People should always be given a notice before they are given such news so that they have enough time to prepare themselves for the inevitable. No one should be hearing about them loosing their jobs from the news. They should hear this sensitive news first from their employers.
briandnewby
50%
50%
briandnewby,
User Rank: Light Sabre
5/31/2014 | 10:13:58 AM
Re: Happy Memorial Day Weekend HPers
Well, Susan, my thought, really, is that if there is ever a five-year plan for a turnaround in anything, it's failed from the beginning.  Directionally, I can sort of see 5 years, but 5 is such a pretty, round, normal number.  I think saying the five-year strategic plan considers a, b, and c, and we hope to achieve these milestones in years 2, 3, and 4 would give me more confidence.

Once she said she had a five-year plan, it seems like it was already game over.
Susan Fourtané
50%
50%
Susan Fourtané,
User Rank: Blogger
5/31/2014 | 5:55:58 AM
Re: Happy Memorial Day Weekend HPers
Not you, Brian. :D She did promise a five-year turnaround plan.

Originally she had thought of three years, she said in an interview last year. Being those three years due this year she went on cutting more jobs. Doesn't that sound like the plan failed/is failing? 

-Susan
Susan Fourtané
50%
50%
Susan Fourtané,
User Rank: Blogger
5/31/2014 | 5:41:09 AM
RE: Happy Memorial Day Weekend HPers
DHagar, 

"If, however, she is just cutting because the plan is not working, it will fall into the "Tried That" bucket."

Maybe that's the reason, that the plan was not working. In an interview last year when asked about the five-year plan she said she had said five, but actually had thought three years.

So, those three years were due this year and she went on with cutting jobs, you see? 

-Susan
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/29/2014 | 2:15:06 PM
Re: Happy Memorial Day weekend, HPers!
I think Microsoft is still a safe choice. 

The interesting thing about IBM's culture is that it really goes back to the 1940s and 1950s and the emergence of the very first business computers. IBM had a choice of viewing itself as an equipment vendor or a business services vendor and they went with business services. It's why their technicians showed up on-site wearing collared shirts and ties rather than coveralls. Coveralls were OK for the guy installing the phones and electrical wiring and mailroom equipment and such, but IBM was above all that. 

So IBM's pivot from a mainframe supplierto business services consulting 20 years ago really had deep roots.
briandnewby
50%
50%
briandnewby,
User Rank: Light Sabre
5/29/2014 | 1:00:21 PM
Re: Happy Memorial Day weekend, HPers!
I thought the oddest thing with the recent IBM letdown (other than the fact that I was surprised it didn't happen long ago--I never knew how IBM really pulled off its transformation to a services company) was that in my years in business, the cliche phrase was, "No one ever got fired for picking IBM."

That seems to be something that cannot be said anymore.

I'm not even sure there is a company right now that has that same street cred today--maybe in certain niches, like Google for search, but overall in IT, I can't think of the "safe choice" anymore.
Page 1 / 4   >   >>
From The Founder
The time has come for a telecom app store to save the industry.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
BCE 2017: Intel's Take on Network Transformation

5|24|17   |     |   (0) comments


In this BCE 2017 keynote, Lynn Comp discusses Intel's vision for areas such as analytics, automation and service assurance. For more videos and BCE coverage, see http://www.lightreading.com/bce.asp.
LRTV Documentaries
Order From Chaos: The Steve Saunders BCE Keynote

5|24|17   |   17:27   |   (0) comments


Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability testing.
Think of this as the video sequel to the recent columns he's written about NFV and the prospect of a telecom app store. (See

LRTV Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
LRTV Documentaries
Agent of Change: A Q&A With AT&T's John Donovan

5|18|17   |     |   (0) comments


Carol Wilson talks with the man leading AT&T's transformation efforts about the challenge of change.
LRTV Documentaries
BCE Service Provider Panel: The New Business Realities

5|18|17   |     |   (0) comments


For virtualization to happen, the telecom industry first has to grapple with key functional aspects of SDN and NFV that need to be universal, such as onboarding of virtualized network functions and federation of software-defined networks.
LRTV Interviews
BCE Service Provider Keynote: CenturyLink

5|16|17   |   22:32   |   (0) comments


Aamir Hussain leads the Product Development and Technology organization at CenturyLink, which includes the company's information technology function. He is an experienced senior technology executive with more than 25 years of proven success in the implementation of global technology operations, operationalization of complex technology, infrastructures and business ...
LRTV Interviews
CenturyLink CTO on Transformation

5|16|17   |   7:43   |   (0) comments


The 80-year-old telco has already gone through several transformations, including every time it made an acquisition, but its purchase of Level 3 coupled with changes in technology and customer expectations necessitates its biggest transformation yet.
LRTV Documentaries
Light Reading Hall of Fame 2017

5|15|17   |   5:05   |   (1) comment


Find out who made it into Light Reading's Hall of Fame this year.
LRTV Interviews
Site Visit: AT&T's Tel Aviv R&D Center

5|15|17   |   09:58   |   (1) comment


Nir Shalom, general manager and VP of application development at AT&T Israel, talks about the key service developments undertaken at the AT&T R&D facility in Tel Aviv and how the team there has adopted new ways of working.
Telecom Innovators Video Showcase
Act on Your Intelligence With Amdocs aia!

5|15|17   |     |   (0) comments


Amdocs CMO Gary Miles explains how communications service providers can seize the AI opportunity with Amdocs real-time digital intelligence platform.
LRTV Interviews
Logtel CEO: Making Sense of IoT

5|15|17   |   09:48   |   (0) comments


Jacques Bensimon, founder and CEO of Tel Aviv-based training and consultancy Logtel, talks about the need to make IoT more than just a buzzword.
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
AT&T's Donovan: Women Adapt Faster Than Men
Sarah Thomas, Director, Women in Comms, 5/18/2017
Cities Clamor for More Clout at FCC
Mari Silbey, Senior Editor, Cable/Video, 5/23/2017
What's Blocking 4K TV Today
Alan Breznick, Cable/Video Practice Leader, Light Reading, 5/22/2017
Sonus & Genband Finally Combine to Form $745M Company
Dan Jones, Mobile Editor, 5/23/2017
Fright Wigs & Cocktails: BCE 2017 in Pics
Mitch Wagner, Editor, Enterprise Cloud, 5/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
What Brogrammers Look Like to the Rest of Us Click Here
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.