Light Reading

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.

Hewlett-Packard Co. (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   >   >>
Flash Poll
From The Founder
The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
LRTV Huawei Video Resource Center
Du Puts Its Faith in Huawei's Routers

4|9|15   |   3:42   |   (0) comments


Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
LRTV Huawei Video Resource Center
Huawei Gets Active in the Data Center

4|9|15   |   3:17   |   (0) comments


With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
LRTV Huawei Video Resource Center
Blue Consult & Huawei for a Better Solution

4|8|15   |   4:01   |   (0) comments


Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
Upcoming Live Events
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
Hot Topics
Verizon Scores New OTT Content Deals
Mari Silbey, Independent Technology Editor, 4/16/2015
What if the Comcast Merger Fails?
Mari Silbey, Independent Technology Editor, 4/20/2015
Nokia & Alcatel-Lucent: What's Going On?
Ray Le Maistre, Editor-in-chief, 4/15/2015
Huawei P8 Launch: Cue Applause!
Ray Le Maistre, Editor-in-chief, 4/16/2015
Nokia + AlcaLu: What the Analysts Say
Ray Le Maistre, Editor-in-chief, 4/14/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Cats with Phones
Stig's Big Decision Click Here
Stig's big decision for the day was to decide which item would be more fun to chew: the smartphone or the Rubik's Cube.