HP to Cut 6400 Jobs This Year
It’s been a while since we wrote about major job losses.
Hewlett Packard yesterday said that the company would cut 6,400 jobs. InformationWeek reports that HP disclosed the cuts on Tuesday after reporting a 3.2 percent drop in revenue and a 17 percent decline in profits for the fiscal quarter ended April 30. The AP cites HP's chief financial officer Cathie Lesjak as telling analysts that the new cuts will be "targeted actions to structurally change and improve the effectiveness of our product businesses," but didn't provide more details.
The cuts are reportedly not part of HP’s planned cuts of nearly 25,000, announced after the company’s acquisition of EDS was finalized in the fall of last year. In September, HP announced that the company would cut 24,600 jobs as the company attempts to integrate Electronic Data Systems into HP and streamline business. At the time the company said the cutbacks would be carried out over three years, while replacing half of the jobs with positions in new areas of its services business. In all the layoffs would save HP $1.8 billion every year, but with a $1.7 billion charge for a goodwill adjustment and other costs connected to the restructuring.
HP announced the acquisition of Electronic Data Systems in May of last year. When it was closed, HP estimated that the $13 billion deal would give the company roughly 7 percent of the technology service market as well as increase IT Services revenue by over 50 percent (to more than $38 billion), placing them second only to IBM.
The freshly announced cuts will happen over the next year.
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Im not surprised... my mother was recently cut from the EDS portion. She did receive six months of severance though... so its not all bad.
Come on guys, the economy is getting better. Have " HOPE "
Anything to doll up the numbers for shareholders. HP really makes nothing of their own anymore anyways so your just buying the name.
They bought the EDS name then cut the people that make EDS what it is. Good Job HP.
Roger Rabbit?
Im not surprised... my mother was recently cut from the EDS portion. She did receive six months of severance though... so its not all bad.
I wouldn't mind getting a 6 months severance pay.
6 months to find a new job with more free time sounds like I could do it.
Information is a little misleading. HP is letting going about 2% of its work force, mostly from its printing and personal computing groups. These groups have been showing losses where other groups like EDS and Technical Services groups have been making a profit. Over all the company made 4% profit last quarter and 3% this quarter adjusted for US$. Thats still not good cause that is -3% profit. TSG nearly doubled its profit from last year. So those mergers with EDS and Compaq have really paid off and kept the printing and personal computing groups afloat.
6,400 jobs lost to 25,000 low wage employees off-shore.
Please note that none of the jobs to be cut will affect India or the Phillipines.
That is a LOT of job losses. I feel sorry for anyone that has lost thier job during this recession.