H-P to Cut 9,000 Jobs, Spend $1 Billion in Restructuring

WSJ Online ^ | 1 June 2010 | MATT JARZEMSKY

[NautiNurse]

Hewlett-Packard Co. said it plans to spend $1 billion through automating data centers and other functions, resulting in the shedding of 9,000 jobs over several years.

The world's largest personal-computer maker expects to take a $1 billion charge during a multiyear period. It anticipates the restructuring will generate the same amount in annual savings, or $500 million to $700 million in net savings after reinvestment.

[NautiNurse]

3% RIF. Just another day during Obama's reign.

[Ghost of Philip Marlowe]

Cutting?

Or relocating to India?

[NautiNurse]

Automating data centers

[ClearCase_guy]

It sure is a funny looking Recovery.

[bikerman]

Obama’s fault

[bikerman]

Obama’s fault

[TSgt]

Mark Hurd is thinning the herd.

[omega4179]

Another 9000 tech jobs gone forever. This country is screwed.

[RightFighter]

Could be their way of absorbing Palm with no ultimate net effect on workforce size.

[Le Chien Rouge]

With Obama care along with Cap and Trade proposals I would expect to see more companies start making plans to cut costs now.

[tacticalogic]

Whan you have to start paying the cost of health care for 3 people in order to hire 1, it changes the ROI on automation to reduce your work force. DUH.

[SmokingJoe]

And paying himself a lot in the process:

” For 2008, Hurd’s total compensation reached $43 million, which made him the fourth highest paid CEO in America for 2008. Hurd’s total compensation increased 73% from his $25 million in 2007, even though H-P's stock price declined 29% in 2008. “

http://www.thestreet.com/story/10601820/h-ps-hurds-pay-troubling-activist.html

[NautiNurse]

Was wondering how the Palm factor influenced this decision. Not enough info to know for sure.

[Non-Sequitur]

Palms been cutting for years. I’m not sure they have 9,000 left.

[CarmichaelPatriot]

And paying himself a lot in the process:

So what? Don't like it? Buy up a majority of HP stock and vote him out.

[Moonman62]

Could be their way of absorbing Palm with no ultimate net effect on workforce size.

EDS was a much larger acquisition as far as labor goes.

[pburgh01]

Maybe they need more commercials of some vapid looking high yella black girl meandering down the street playing with her already obsolete Palm. Is anyone else annoyed by this commercial.

Annoying!

[Non-Sequitur]

Maybe they need more commercials of some vapid looking high yella black girl meandering down the street playing with her already obsolete Palm. Is anyone else annoyed by this commercial.

Or that nitwit Aussie wandering around showing his technological illiteracy?

[mlocher]

resulting in the shedding of 9,000 jobs over several years.

Bad for morale, customers and the company -- for several years.

HP needs to do what it needs to do, but get the job done quickly -- don't drag out the agony.

[mlocher]

With Obama care along with Cap and Trade proposals I would expect to see more companies start making plans to cut costs now.

Good point. Part of the reason companies are not hiring right now is the exact reason you stated.