HP

16,000 more employees at HP to be shown the door

16,000 more employees at HP to be shown the door
HP has been able to stabilize its PC business which is a feat in this current day and age, but the rest of the business is lagging, an indicator that HP is still facing significant problems.

On top of the 34,000 layoff announced about the time that Meg Whitman took over as CEO, HP announced that another 11,000 to 16,000 positions would be eliminated. The company currently employs just shy of 320,000 employees.

The announcement came during the company’s 2nd quarter earnings call, where HP outlined an increase in revenues and higher net income, but a decline in sales overall. PC sales were up 7%, but software sales fell 4% and enterprise server and networking sales dropped 2%. Peripherals sales also declined by 4%.

Despite the increase in revenues, the $27.3 billion missed estimates of $27.4 billion, with net income of $1.27 billion. Because the wider expectation is that PC sales will inevitably slow down, HP's outlook is not being looked at with rose colored glasses, hence more layoffs as restructuring continues.

The new round of layoffs will be across all business units, in all regions, and extends HP’s restructuring effort as it tries to be more efficient. We have not seen anything ground breaking from the company on the tablet front, aside from some affordable, if unremarkable, tablets, and nothing on the smartphone front since the company butchered webOS.

source: The Wall Street Journal

FEATURED VIDEO

14 Comments

1. mrblah

Posts: 577; Member since: Jan 22, 2013

What a c***.

3. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

Say what you want about her, she gets results! I wish she got elected governor of California. Imagine that megab!tch working for us! She would stop the exodus of business from CA thats for sure. I wonder how the HP android tabs are doing...

5. JC557

Posts: 1919; Member since: Dec 07, 2011

HP was doing much better under Mark Hurd until his scandal was made known to the public. Léo Apotheker and Meg Whitman really didn't give HP much of a direction in terms of preparing for the future. Palm's WebOS shouldn't have been wasted on the likes of these morons.

2. fzacek

Posts: 2486; Member since: Jan 26, 2014

I'm not switching from my HP laptop to a tablet any time soon...

4. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Americans out Indians in.. ....

6. abhi12345

Posts: 14; Member since: Sep 16, 2013

in my country india we are getting laptops with weak specs when compared to other laptops from dell, lenovo in the same price range. Lenovo is especially a hot favourite right now.

7. techperson211

Posts: 1280; Member since: Feb 27, 2014

Being lay off from your job is the worst thing especially if you have a family to feed.

8. Just.Saying

Posts: 132; Member since: Apr 04, 2013

As a worker with a family i agree with you 100%. As a manager, sometimes, just sometimes, the needs of the majority who's jobs will be saved out weigh the "worst" of laying off a few. Its hard, but its business. everybody can lose their jobs if there where no such thing as retrenchment.

9. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Layoffs are often the sign of a mediocre CEO who is not capable of leading the innovation process and growing a business.

12. Gawain

Posts: 438; Member since: Apr 15, 2010

Are you even aware of what HP has done to itself? Do you even know who Meg Whitman is? Employees are the single most expensive part of a business, and ever since the HP BoD hired Leo Apotheker, the company has been paying the price for a series of total misteps with him at the helm. If anything, Whitman is the only person managing the keep the lights on.

13. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

Apotheker was a crook, but he wasn't the first problematic CEO at HP. Arguably, the HP CEO that first started drilling giant holes in the bottom of the ship was Carly Fiorana. For what ills HP, Meg Whitman is not the cure. Everything Meg Whitman does is to maximize the value of her stock options, not build a strong HP that will grow and thrive in the years ahead.

14. Gawain

Posts: 438; Member since: Apr 15, 2010

The company is beholden to the stock-holders, and if you take the time to look at proxy statements, you'll see that executive stock ownership, while large barely registers in the grand scheme. What do you expect? Given Whitman's track record at eBay, if there is one person that can steer a ship that big, it would be her.

10. snowgator

Posts: 3621; Member since: Jan 19, 2011

I helped stabilize them, as I went back to HP for my new laptop with a touch screen. It is a fine laptop, though nothing fantastic. I think we need to see more from HP in the R&D lab. They need some innovation, or at least something fun.

11. sonisoe

Posts: 440; Member since: May 06, 2009

nothing outstanding about their products, especially on the hardware design front...ugly...

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.