Skip to comments.Hewlett-Packard To Lay Off 27,000 Employees; 2Q Profit Down 31%
Posted on 05/23/2012 2:05:15 PM PDT by matt04
Hewlett-Packard Co. (HPQ) unveiled plans to lay off 27,000 employees as the technology giant also reported its fiscal second-quarter earnings slumped 31% amid relatively flat revenue in its personal computer business and lower sales in its printing segment.
However, shares were up 7% at $22.46 in recent after-hours trading as earnings beat the company's expectations and as the company raised its full-year view.
The company said it plans to lay off about 8% of its workforce by the end of fiscal 2014. Its restructuring plans are expected to generate annualized savings of between $3 billion and $3.5 billion by 2014, most of which will be reinvested back into the company. It plans to use the savings to boost investment in cloud, big data and security.
"These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business," said Chief Executive Meg Whitman in a statement. "While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company."
(Excerpt) Read more at online.wsj.com ...
Summer of Recovery III (or is it IV? I’ve lost count).
How is that change coming along for you?
It’s an enormous hint that the economy has yet to show real recovery.
HP laid a huge egg with their attempt at a tablet using their own OS instead of Android 4. That was as bad a debacle as the RIMM tablet. Let me add from personal experience HP Laptops are crap. One died because the motherboard “melted”, a common problem with the model I had, and the other one I owe works but you can hear the cooling fan reeving up all the time.
Newsflash! “Evil Republican CEO’s at HP trying to hurt Obama’s job numbers.. Film at 11.”
That dang Whitman is a republican! g rrrrr! /sarc
Its all good Obama will say tomorrow that he created another 30,000 jobs out of thin air to account for this staggering loss. Something about shovels and such.
They may have laid an even bigger egg by flushing their tablet inventory at sub-$200 prices, and playing stop and go with their PC business. I still can't figure out what the last chairman (Apotheker) was thinking.
Meanwhile, the clown prince of Bill Ayers is off for another fund raiser in Colorado.
Are you kidding?!? These folks will be able to get on unemployment which, everybody knows, stimulates the economy!
As someone who has to deal with their application support at work, I’m not surprised. They’re horrible. Try to open a ticket with them, and the response that you get is from someone in Mexico who has difficulty understanding and expressing themselves in English. A lot of time is wasted trying to clarify what they’re telling you. And the end result is no resolution at all, just a suggestion to upgrade to the next version (which may or may NOT help the issue, but also has new ones of its own that make the situation worse).
Are the positions being moved to India? I hope the portion of HP that used to be EDS completely falls apart.
Pelosi said it, it muct be true.
Chief Executive Meg Whitman: “While some of these actions are difficult because they involve the loss of jobs, they are necessary”.
Ms. Whitman went on to say those losing their jobs will be replaced by illegal aliens, in an effort to maintain productivity and the bottom line.
Desktops no better . Trouble from Day 1 . Sent back to Tokyo for 3 major repairs ( within the first year ) and they would not replace the computer . Working okay now but I’ve had to disenable the touchscreen , wireless mouse , and a few other things in order to have stability . Never again .
I don't think it's so much that they used their own OS, as they used an OS that did not include many of the basic functions that Android and Apple users take for granted. Putting out hardware based on a feature-starved OS that was essentially crippleware was not a smart move.
That was as bad a debacle as the RIMM tablet. Let me add from personal experience HP Laptops are crap. One died because the motherboard melted, a common problem with the model I had, and the other one I owe works but you can hear the cooling fan reeving up all the time.
I've had terrible experiences with HP desktops and laptops alike. One laptop used an Nvidia chip that needed to be compressed with several heat-resistant faucet washers sandwiched between the keyboard cover and the motherboard in order for the chip to make contact with the motherboard - a post-warranty repair dreamed up by some enterprising end user. This was supposedly a business class laptop.
Summer of Recovery III (or is it IV? Ive lost count).
If re-elected, Obama will go to the old Soviet “Five Year Plans”.
“Never again .”
I also will not buy HP printers. Anything HP is against my religion. :)
Hope all 27,000 are foreign employees but know that they’ll be U.S.
Each of those 27,000 folks should simply contact Obama or a democrat politician and ask how they go about getting one of those “shovel ready” jobs in this “recovering economy”.
Hang in there folks, maybe this is another “Summer of Recovery”.
Just be sure to check the air in your tires and get you some “Hope and Change”... you’ll be fine.
Remember... we be moving “Forward”.... sure thing, we be moving Forward.
I had an HP Deskjet printer that was a disaster from the start.
Here at work I had to send back a faulty printer for the third time! The guy I was helping me got angry with me after I repeatedly told him to let me speak to his manager. (I bought a warranty on it). After the guy finally let me speak to his manager, the manager told me he would have one shipped over night to me. We will see if this remanufactured peice of garbage works this time.
I have that won’t even make a good boat anchor.
Geeez. Just think what she could have done for California!
The economic “recovery” continues, it seems. /sarc
All because of that improving Obama economy! LOL!
So...when the UNEMPLOYMENT numbers come out will we see a DROP?
I’ve had similar experiences with HP laptops. Their printers used to be good, too, but I’ll never buy one again. I just replaced a not-old (only four years old, maybe?) OfficeJet Pro that couldn’t print for crap with an Epson that cost about half of what I paid for the HP and it works perfectly.
Phew, thank gawd the economy is in recovery or this could be detrimental to the health of our free enterprise system.
Were these two company's down sizing already in the making or were they status quo and "unexpected"?
“I still can’t figure out what the last chairman (Apotheker) was thinking.”
He was a software CEO and thought he could remake HP into a software company and drop the hardware.
This is like GM deciding to build planes.
“Their printers used to be good, too,”
There old LaserJets were the best thing ever made. We had two of thev11x17 five series that were over 4 million pages each. My then boss said to get rid of them because he “wanted to see something new.” We donated one to a local charity that uses it to this day - probably past 10 million pages.
Anything in the new back and white scheme - not worth carrying home if it is for serious use.
More improvements to the economy....
Yea... I wonder what proportion of the 27K will be in this country. Probably all.
I participate in am OEM relationship with HP. We resell ~$50M a year in HP servers. The only thing HP has left (IMO)that's worth a tinkers damn is Compaq heritage product and process and some DEC lineage. "HP" as we know it from the old days brought nothing to today's HP; it was all sold w/ Allegiant (sp). The consumer grade HP laptops are just OK; my Pavillion dm4 is nice, quiet and cool. The Compaq lineage commercial laptops much better, but lagging in leading edge features. The DL3XX series servers are still high quality; best price to value in commercial grade servers. Imaging products are all made by Flextronics and as good as most.
HP laser printers are the best in the world for small shops and home. I own three now. Have owned probaly 7 total. Better than anything else. Printer support is great too.
I dont know about their computers but their printers are well engineered and reliable.
This should help Barry and the Feddies lower their “unemployment rate” to 7% before the election.
HP screwed the pooch when they got out of the Test Equipment business. That market will always be there. Agilent, the company that bought HP’s Test Equipment division has crappy customer support and the quality of the gear has gone down significantly.
Not surprised at all. I bought a fancy HP laptop $1400+ about 3 years ago, huge beautiful screen and it was slow!... some of the LEDs (lights) are not functioning anymore... and this is a machine that was expensive and I treated it like baby, just for home. Then I bought another “cheapo” laptop to hull around (Dell Inspiron, close to $600) and that little thing has been a giant of a performer... Who would have thought.
I also bought an HP printer about 3 years ago as well, and the “Wireless” antenna/transmitter broke down recently so I can only use connected with wires.
So, I will definetely stay away from HP. Again, very light use on both of those machines. I can see if you really put them through their paces for a couple of years... Then I would say, ok... but with such a light use???? NO, no way.
So, not surprised at all the are going down the tube. Shitty products in my experience.
That Gloria Allred looks like a load o’ laughs, doesn’t she?
I recently got an HP with an AMD quad core laptop. I love the thing. It has quad speaker, fingerprint scanner, an IOS system and more. I paid less that $400 for it. It’s about two months old and works like a champ.
And yet they are bringing in contractors.
Most of what home stuff I deal with for others is HP. The other makes give little or no trouble except for the once in a while HD change.
I subcontracted out with HP/BofA/Roelker/Net-Tech/Whoever last year. The HP stuff was poor, the paperwork absurd (40 sheets faxed nightly), weirdly paying and ultimately ripping off and most of the crews I don’t know where they found them.
When I saw and got a taste of being a lead/supervisor, I opted for the not much better Van driver. It was unreal. The caliber of people I generally work with were way more intelligent than that bunch. Explain and explain over and over and get nothing.
Some would have literally mountains of trash piled up in the middle of the site and not bother doing anything about it for hours, milking the clock. All well and good but I couldn’t clear until all sites for night were done.
There was other stuff but I’d rather keep my blood pressure low and try not to think about that crooked confab.
Somehow more H1B’s will magically appear on the payroll. Only US citizens are on the block for this no doubt.
I too just bout an HP with an AMD dual core processor laptop. I’ve never had any trouble with HP products. I did have my old HP laptop die on me only because I was stupid, and left the laptop running on my bed without a cooling pad underneath. What hurts is I knew better! I have a HP Photosmart printer, and have had it for 5 years now. It still works great.
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