SDN Technology

HP Cuts More Jobs

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

Page 1 / 4   >   >>
Mitch Wagner 5/23/2014 | 2:29:28 PM
Happy Memorial Day weekend, HPers! "The good news is you're all getting a long weekend. The bad news is some of you are getting a VERY long weekend."

Interesting timing given Cisco Chairman John Chambers' prediction that HP is of the current IT leaders not long for this world.
DOShea 5/23/2014 | 2:33:27 PM
Re: Happy Memorial Day weekend, HPers! Can't believe I forgot to mention that bit from Chambers about HP. It turns out he can see the writing on the wall just as well as everyone else.
Mitch Wagner 5/23/2014 | 3:05:35 PM
Re: Happy Memorial Day weekend, HPers! Cisco may well follow HP down the hole -- something that Chambers is keenly aware of. 
MikeP688 5/23/2014 | 5:01:23 PM
Re: Happy Memorial Day weekend, HPers! I nearly fell out of my chair in shock as I saw the reports.    What Chambers noted about how the leadings lights of today will have a challenging time has to be noticed.  I remember how back in the mid 90's how Cisco could not hire fast enough--Cisco was a client of ours and I flew up to San Jose on Saturday to deliver a Raid Subsystem because of a critical system delay.  Yet, I could not help but wonder about those days as I saw how the mighty have fallen ever more.

DHagar 5/23/2014 | 7:07:02 PM
Re: Happy Memorial Day Weekend HPers @MikeP688, the question I have is - are they transitioning effectively with their scaled down workforce and strategically positioning themselves as stronger players, in their new markets, or simply cutting?

Susan Fourtané 5/24/2014 | 2:47:39 AM
Re: Happy Memorial Day Weekend HPers DHagar,

Whitman is probably not very popular with 50.000 job cuts on her back. Whenever I read news like this the first thing I wonder is if according to what it should be excellent leadership all the possible solutions were considered. Cutting jobs is easy. Having creative ideas to solve financial problems requires a little more effort. 

An analyst commented that if this trend continues it might affect morale and this being bad at the end of the day, of course. Working in fear is not precisely the best for enterprise efficiency. 

Shares in HP also closed down ... 

briandnewby 5/26/2014 | 9:38:29 AM
Re: Happy Memorial Day Weekend HPers I agree that cutting jobs is easy, but Whitman may be remembered for keeping something afloat that should have gone down long ago.  It's probably a credit to her that we're even still typing about HP, John Chambers comments aside.
MarkC73 5/27/2014 | 3:11:22 AM
Re: Happy Memorial Day Weekend HPers Hah, count me in as part of the herd, I thought HP was going to be gone by now.  But agree with Whitman's doings or not, your point is valid, she's still there and so is HP.
Susan Fourtané 5/27/2014 | 3:31:38 AM
Re: Happy Memorial Day Weekend HPers Brian, 

Whitman promised a five-year turnaround as part of her startegy, from which she has used three of those years already. Do you see a big positive change happening in the next two years?  

briandnewby 5/27/2014 | 8:16:07 AM
Re: Happy Memorial Day Weekend HPers Hi, Susan.

Of course, not :-)

I didn't promise a 5-year turnaround plan. 

Such a promise should have been the first sign she would fail.  However, again channeling John Chambers, the average CEO tenure is 5 years according to him.  So, maybe she just thought she'd be out before the 5 years are up.

I live in Kansas City, home of the Chiefs and the Royals.  I believe each team is on year 20 of their five-year plans towards relevance.
Page 1 / 4   >   >>
Sign In