This Is Why Hewlett-Packard Is Firing 58,000

Zero Hedge ^ | 02/25/2015 | Tyler Durden

[SeekAndFind]

The biggest scandal in today's release of Hewlett Packard Q1 earnings was not that, just as the Nasdaq is knocking on 5000's door, it reported revenues of $26.8 billion missing consensus expectations of $27.3 billion, while beating non-GAAP EPS by 1 cent to $0.92 (up from $0.90 a year ago) entirely due to a massive reduction in outstanding stock and some truly gargantuan non-GAAP addbacks (GAAP EPS declined from $0.74 a year ago to $0.73) pushing the stock down 7% after hours.

The biggest scandal was the company announced that having cut 44,000 workers so far, it will cut 58,000 jobs by the end of 2015. From Bloomberg:

• HP SAYS HAS CUT 44,000 JOBS TO DATE
• HP SAYS EXPECTS TO CUT 58,000 JOBS BY END OF FISCAL 2015

Incidentally, just 10 years ago Hewlett Packard employed a total of 58,000 people in the entire US.

So why is the company axing 58 thousand workers? Simple: so it can cut enough costs on top and continue to fund its now exponential surge in stock buybacks, which in the just concluded quarter was a record $1.6 billion, an increase of 178% from a year ago, and 66% more than the company spent on CapEx, in the process making its shareholders even richer while its management team get massive equity-linked bonuses.

Rinse. Repeat.

[baltimorepoet]

You sound delusional.

You sound condescending.

A whole bunch of Westerners are currently fighting against ISIS. Are they delusional, too? At least they have more balls than Obama.

[EQAndyBuzz]

HP is splitting out its companies. There will be a services company and the traditional company.

Whitman will run HP. Not sure who will be running HP services. They also just scored a 1/2 billion dollar contract with Deutch Bank.

[dfwgator]

Whitman will run HP

Into the ground.

[baltimorepoet]

Example to follow, Brian Matson:

[Steve_Seattle]

"This is because HP is getting out of the hardware business"

Good. My last HP printer was a piece of junk. After about three months of light use it would no longer accept paper. It kept saying "add paper" but it would not accept new paper.

[Gen-X-Dad]

In the winner-take-all economy the need to consolidate economic sectors to allow massive strip mining to take advantage of ZIRP FED policies and regulatory capture through financial control of both political parties will lead to the mother of all economic implosions.

Yes, it is all legal and yes the CEOs are milking the system to self-enrich themselves and the investors, but this is a short-term take the money and run strategy. The aftermath is a pile of unusable rubble and the destruction of a healthy economic ecosystem. In the end the current group of financial geniuses will be standing on this rubble trying to figure out how to consolidate the other survivors, unless they manage to collapse everything and then will be proud owners of worthless assets and IOUs on debt that no one will pay back.

[printhead]

Following Carly’s footsteps.

[RayChuang88]

While I'd agree with you (for the most part), IBM has a pretty good track record in recent years of large-scale computing projects for corporate customers. This is why I wonder why the Obama Administration didn't use IBM when it built up the Healthcare.gov web site, which would have saved a LOT of expensive aggravation.

[pas]

Actually Whitman will run HP Services. Not HP.

[dfwgator]

Good. My last HP printer was a piece of junk. After about three months of light use it would no longer accept paper. It kept saying "add paper" but it would not accept new paper.

Only one thing to do then.

[pas]

That is incorrect. The hardware business desktops tablets and such are being split from the services. I believe services is retaining the storage, server and networking aspects of hardware.

[doorgunner69]

Does HP even have American workers these days?

[SecondAmendment]

I’m about tired enough of the abuse of STEM workers in this country to leave, taking as much cash and precious metals with me as I can, and leaving behind as much student loan debt etc as possible.

Methinks this is the plan, displace those who hold on to traditional American values, and are thus a threat to the "New World Oligarchy™".

This started with drying up jobs by elimination (downsizing), exportation, and outsourcing (H1B visas).

And currently a two-pronged attack is under way, one on personal wealth via confiscatory taxation, along with physical and cultural displacement using massive immigration.

All of which will necessarily result in exterminating the traditional American middle class, as both a political and literal entity, since we are the only credible opposition to them.

Did I miss anything ?

[Sam Gamgee]

The bigger scandal is that an index with barely any earnings is reaching 5000 again. Oh and that HP is a viable company considering the pure crap it produces.

[AllAmericanGirl44]

How many, do you have a count? How about going through channels that have structure vs advertising taking your supply and lone wolfing it, sounds rather brash, not to be taken serious.

[Some Fat Guy in L.A.]

Death to them. My HP printer sucks, constantly dropping wireless connection - the software solutions on HP’s website are horrid, and, worst of all, the printer won’t accept refilled cartridges.