HP has an attrition rate of 7%, compared to an industry that enjoys 20%.
Getting rid of 25,000 DEDICATED employees is both short-sighted and foolish. You will lose 25,000 good folk, you will lose a few more thousand others due to fear that they may be offered up next; thus they will leave on their terms.
So, what have you accomplished? You have disrupted your teams, you have devasted 25,000 families in a time when it’s tough to find another job - and what have you really gained?
When Carly Fiona pulled this stunt, she bought 3 Lear jets for the executive staff. In the grand scheme of the business, the payroll drop is insignificant to the total business expenses. When business picks up a few percentage points - you will have to re-hire and re-train people all over again. But, the point that really irritates me is that HP is NOT breaking even - they repored $9.7 Billion in profit in 2011.
BUMP
“But, the point that really irritates me is that HP is NOT breaking even - they repored $9.7 Billion in profit in 2011.”
That’s interesting...