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

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Mitch Wagner 5/28/2014 | 3:55:41 PM
Re: Happy Memorial Day weekend, HPers! sam masud - Cisco's situation now is very analogous to IBM's 20 years ago. IBM bet its business on the proprietary mainframe. It switched to a business services model, continued to provide mainframes, but also pushed open source and open systems, particularly when that gave IBM an opportunity to undercut its adversaries. 

That worked splendidly for IBM until recently. 

Cisco can do similarly, and seems to be doing so: Emphasize its ability to build or operate whole networks for its customers, continue to sell proprietary switches when it can, use SDN, NFV and other open standards to undercut the competition. 
Mitch Wagner 5/28/2014 | 3:35:38 PM
Re: Happy Memorial Day weekend, HPers! MikeP688 - Cisco seems to be following the same path that served IBM well for 20 years after pulling back from the brink in the early 1990s: Focusing on providing the full stack from hardware to software to services. Of course, it remains to be seen whether they can execute. 
SachinEE 5/28/2014 | 11:58:02 AM
Re: Happy Memorial Day weekend, HPers! Happy Memorial Day to all. First I would like to commend HP for the good performance they have had in a long time. It is quite unfortunate that there are going to be more employees retrenched from their jobs at HP, but I believe that this is also a technological advancement since with the dawn of Management Information Systems (MIS); an organization does not need the huge workforce the Traditional System used. This especially holds for the HP Company, a giant in Information technology and computer engineering. The step this management is taking is for the better. It is now upon individuals in the entire workforce to upgrade their IT skills so that they get the few jobs remaining done effectively. 
DOShea 5/28/2014 | 11:46:14 AM
Software So, should HP just commit to being a software company, or as much a software company as possible? Should it stop trying to sell tablets, laptops, printers, etc?
briandnewby 5/28/2014 | 10:17:54 AM
Re: Happy Memorial Day weekend, HPers! Cisco's run of the last few years was as much tied to acquisitions as anything.  Once a public company goes down the acquisition route as a primary strategy (as opposed to an occassional one-off) that company must continue acquiring.  If not, much of the financial warts that can be hidden with the blending of financial statements start becoming much more evident.  I think Cisco has a ways to go before those get unsurmountable, but the acquisition fuse is lit and Cisco must continue to look outside for ways to improve its financials now.
sam masud 5/27/2014 | 3:25:29 PM
Re: Happy Memorial Day weekend, HPers! Cisco has had a great run, but don't see how it can embrace the new "open" paradigm and a software-centric architecture and still be Cisco.
DHagar 5/27/2014 | 3:23:49 PM
RE: Happy Memorial Day Weekend HPers @MikeP688, I am with you on that.  Cisco is struggling, but "may" pull out of it if they can transition and find their "nitch"; as they are trying to do with IoT.

MikeP688 5/27/2014 | 2:36:38 PM
Re: Happy Memorial Day weekend, HPers! I remember those days and remember how we could fulfill Sun and Cisco gear fast enough.   Our industry is better for it, though, because the embrace of open collaborative technology is what it takes to really be transformational.    I would not, though, count Cisco out if it is able to somehow leverage its' expertise and transform itself especially with the interent of things..but it is going to be a challenging process for sure.
MikeP688 5/27/2014 | 2:34:12 PM
Re: Happy Memorial Day Weekend HPers The verdict is still out becuase they are suffering in all their lines of businesses and what their traditional bread and butter has been is also suffering.    
Mitch Wagner 5/27/2014 | 1:58:28 PM
Re: Happy Memorial Day weekend, HPers! Cisco and Sun were lifted high up by the rising tide of the dotcom boom, and fell far. Sun never recovered, and Cisco is struggling.
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