HP to cut 6400 more workers, local impact uncertain
- 20 May, 2009 11:18
- Comments 1
HP has made plans to tighten its belt by culling an additional two per cent of its workforce, but has refused to disclose local implications.
HP’s results for the second quarter, ending April 30, showed revenues declined across the board. In the Asia-Pacific region, revenue was down 10 per cent to $US4.7 billion. The company’s overall revenue fell three per cent and net earnings dropped 17 per cent to $US1.7 billion.
In a conference call to analysts to discuss its second quarter results, the vendor said it would implement structural changes to its product business.
“These actions will result in the elimination of approximately two per cent of the HP workforce, as we further streamline and simplify our organisation and our supply chains,” HP CFO, Cathie Lesjak, said. “These actions will be implemented over the next 12 months, after consultation with employee representatives, where required.”
ARN contacted HP Australia but the company declined to comment on local financial results or operational numbers.
The news of further cuts follows on from a headcount cull announced in September last year that involved 24,600 employees globally, or about 7.5 per cent of the vendor’s workforce. Shortly thereafter, HP cut 75 staff from its local EDS workforce.
The vendor’s services sector had a global 99 per cent jump in revenue to $US8.5 billion mainly due to its acquisition of EDS. This sector also experienced a growth in HP’s first quarter.
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Comments
Damian Saunders
Don't believe the spin.
So, that’s six thousand living, breathing, educated, tax and mortgage paying, children raising, men and woman, cast out into a world racked with recession and rapidly rising unemployment, because HP only made $1.7bn nett profit in the last twelve weeks is it?
HP is not struggling, quite the contrary, HP is a highly profitable company sitting on cash reserves of $13.0bn having made $3.7bn net profit in the past two quarters, which is supposedly justification for cutting the salaries of the entire workforce, and putting off 6000 people.
The founding fathers of HP would be turning in their graves if they could see what their company has become under Mark Hurd. Sure, I agree that there was a strong need for fiscal reform when Mark Hurd came along but I don’t see why HP had to be turned into a black hearted, ugly beast who’s own mother wouldn’t recognize it.
The strong fiscal discipline has come at the cost of HP’s heart, it’s inventiveness, creativity, and energy, and it’s soul , the HP shared values, the HP way.
The figures are a short term illusion created by the acquisition of EDS and the systemic exploitation of HP's people.
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