Hewlett-Packard CEO Meg Whitman has quantified the painful price that
must be paid for the missteps of her predecessors as she tries to turn
around the Silicon Valley pioneer. The bungling will wipe out 27,000
jobs so HP can save enough money to lift its earnings and invest in the
development of more profitable products and service.
The streamlining announced late Wednesday amounts to the largest
payroll purge in Hewlett-Packard Co.'s 73-year history. About 8 percent
of HP's nearly 350,000 employees are to be gone by October 2014.
The announcement came eight months after HP hired Whitman to turn the
company around. The company expects to save $3 billion to $3.5 billion
annually from the job cuts and other austerity measures. HP will try to
reduce the number of layoffs by offering early retirement packages.
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1 comment:
If anyone remembers Digital Equipment Corporation, I was laid off from them. They were eventually bought by Compaq Computer who eventually laid off a bunch of people and was bought by HP. The same thing happened to many other former computer companies. The computer industry has matured and become commoditized. Meg Whitman's chances of turning things around are slim without a new product line and strategy. HP killed off their investment in tablets and PDAs. They nearly shut down PCs too. They layoffs by themselves just buys more time before she's out of there too.
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