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HP announces 25K-30K layoffs as part of split

Original post made on Sep 16, 2015

In anticipation of its split into two separate companies, Hewlett Packard Company, as part of its 2015 Securities Analysts Meeting Tuesday, outlined plans for the future Hewlett Packard Enterprise Company, including tens of thousands of layoffs.

Read the full story here Web Link posted Wednesday, September 16, 2015, 10:20 AM

Comments (13)

Posted by Susan
a resident of Rex Manor
on Sep 16, 2015 at 2:50 pm

I continue to be impressed with HP and its leadership, especially Ms. Whitman as they have the foresight and fortitude to constantly reinvent themselves in an ever changing market and under stricter government protocol and a more demanding corporate culture.


Posted by Color Me Impressed As Well
a resident of Blossom Valley
on Sep 16, 2015 at 3:16 pm

Yes, laying off 25-30,000 employees to cut costs is brilliant. And while Whitman is no Carly Fiorina, she is impressive nonetheless.


Posted by HarvardMom
a resident of Monta Loma
on Sep 16, 2015 at 3:55 pm

I wish all of the layoff-ees the best of luck. I was laid off from HP 10 years ago and received a decent severance package (when Carly Fiorina was at the helm). Gossip now is that HP's generosity leaves a lot to be desired. I'd be curious to know what that means, if anyone can share.


Posted by Color Me Impressed As Well
a resident of Blossom Valley
on Sep 16, 2015 at 4:09 pm

The following is from a Business Insider article from August 27 regarding the HP ES business unit. A small number of employees were offered jobs at another consulting firm in lieu of severance.

"HP told employees affected by this arrangement that they are being "terminated" and will not be offered the standard one week of pay for each year of employment, our source told us. HP will pay for unused vacation time only in states that require such payments by law, we were told."

So it appears that the standard severance package is one week per year of employment.


Posted by I blame Carli
a resident of Castro City
on Sep 16, 2015 at 4:53 pm

I blame Carli Fiorina for this mess.


Posted by You blame "Carli"???
a resident of Blossom Valley
on Sep 17, 2015 at 9:27 am

How exactly is this "mess" the fault of Carly Fiorina? The vast majority of the new layoffs will be in Enterprise Services (ES), which was formed when Mark Hurd acquired EDS -- long after Fiorina left the company. If anyone is to blame, it's Hurd for making a poor acquisition, and subsequent leadership for failing to recognize the market shifts that led to this. These cuts should have happened 5+ years ago, but HP's current issues are hardly Fiorina's fault. Could it be that you just don't like her politics?


Posted by Experienced her
a resident of Bailey Park
on Sep 17, 2015 at 10:41 am

Carly does not have much credibility in the Valley strictly because of the mess she made w/ HP and then Compaq when she was in charge. The company never fully recovered. Carly's lack of support in these parts is really NOT based on politics at all. Silicon Valley watched with bulging eye and saw up close how she runs a ship, that's why many are not fans.


Posted by You blame "Carli"???
a resident of Blossom Valley
on Sep 17, 2015 at 11:24 am

I'm not claiming that Fiorina was either a good or bad CEO. I just don't think any of HP's current issues can be directly pinned on her. Mark Hurd gutted the R&D and innovation engines of the company and saddled HP with the boat anchor of the EDS acquisition and the useless acquisition of Palm. And Leo Apotheker embarked on an utterly schizophrenic Software strategy, culminating in the disastrous acquisition of Autonomy.

I know Carly was deeply unpopular (for some valid reasons), but the root causes of the current challenges started well after she departed.


Posted by Resident
a resident of another community
on Sep 17, 2015 at 11:31 am

If there's anyone to blame it would be HP's board of directors.

After they let Mark Hurd go, they brought in Leo Apotheker in September 2010. Apotheker's idea was to spin off the personal computing division and focus on software services, much like IBM had done. The board did not like this and they sacked Apotheker with barely ten months of service.

The board then hired Meg Whitman who pretty much ran the business as usual, with little innovation and no strategic direction. Three years later, what did the company decide to do? They decided to split services from hardware.

Since Apotheker's exit, HP has underperformed the S&P 500 by about 60%. Having Whitman at the helm has not increased shareholder value.

If I were an HPQ shareholder (I am not), I'd be calling for her ouster.


Posted by kathy
a resident of Sylvan Park
on Sep 17, 2015 at 1:25 pm

Hiring an outsider as CEO was a fatal mistake. Carly (Style over substance), Hurd (Ellison's buddy) , Apotheker (where's Leo?) and now Whitman (trying to clean up the mess). Bill and Dave must be rolling in their graves.


Posted by Techie outsider
a resident of Waverly Park
on Sep 17, 2015 at 2:43 pm

@Susan and @Color me impressed as well

Are your comments serious or sarcasm? As a reader who is not part of the computer/business world I can't tell what you meant.


Posted by Color Me Impressed As Well
a resident of Blossom Valley
on Sep 17, 2015 at 3:07 pm

Mine was definitely sarcasm.


Posted by Color Me Impressed As Well
a resident of Blossom Valley
on Sep 17, 2015 at 3:14 pm

BTW, if Meg and the BOD have the foresight to reinvent themselves, why didn't they see this coming? There's no foresight involved here. It is a reaction, and that reaction is to cut jobs. Anyone can do that...provided they have no empathy for others. And before anyone jumps down my throat, (1) I have had the good fortune to never have been laid off, yet I still empathize with those who have and (2) I have more than one acquaintance who run small companies and took massive hits to their personal wealth during the dot com bust in order to save their employees jobs. No respect for Whitman and the current BOD.


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