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HP to Layoff 15,000 Employees
William Robinson writes "ZDNet reports that HP is planning to layoff 15000 employees. IT, sales and services will be among the areas particularly hit, although the sweeping cuts will be felt throughout the company, according to a close source to the company." From the article: "HP is expected to announce the layoffs as early as Monday, but employees are not expected to be immediately notified of their status, the source said, noting such a practice is common in corporate America. More high-level discussions on the layoffs will occur late next week and employees may get a greater sense of their specific status sometime thereafter."
The "indispensible" ones usually have the attribute of time urgency to get things done... and getting another job is now on their list.
The "useless" ones lounge around.
When the managers get around to announcing exactly who is gonna be affected, they get to choose among the useless ones, as the "indispensable" ones by that time already have jobs... working for their competitors.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]
That would be Carly, and she's already been affected. Affected to the tune of a $40M payout package, but since getting rid of her caused HP's total market cap to go up several billion dollars, getting rid of her was money well spent.
How badly did Carly's golden parachute skew that number though?
HP is firing 15,000 employees on top of the 3,000 jobs they already have cut since November.
IBM announced cutting 10,000 to 13,000 jobs in Europe just last month.
Ford and General Motors can't sell cars and are at risk of defaulting on their debt -- their credit rating has been cut down the minimum by ratings agencies.
So is this the freight train of a bull economy everyone is raving about? I'm an amateur financial enthusiast but I strongly suggest anyone thinks twice before buying any mutual funds in this climate. Stocks are at 4 year highs and future prospects don't look positive at all
As for the layoffs... well... I really believe in free, borderless markets. I really really do. But I think we can take a lesson from the EU, and require an adherence to a minimum set of criteria before granting full trade privileges. Giving other markets power without responsibility is a bad thing; without some sort of market synchronization we're just shooting ourselves in the foot.
What if we could say "Okay, India, we'll have completely free trade with you if you become a member of WEFTA (World-Encompassing Free Trade Agreement) and have your economy up to minimum standards within five years."
Maybe a four-tiered system could be made:
This is a bit more complicated than the current EU system, but the idea is the same: Don't let our jobs, our money, our very economy go to those who aren't gonna play by the rules. Small economic variations in WEFTA would exist and would be allowed (it's cheaper to live in a small town in Ithaca, NY than it is in Beverly Hills, CA) for free-trade regions but this $1-an-hour-factory-in-Mexico phenomenon wouldn't exist to pull jobs from the lower rungs of the U.S. (or any full WEFTA member) economy.
If only we could get our Congress to get their charbon and acier together.
I hope my kids don't have the future I think they will. A small studio, with advertising inside the apartment that can't be turned off. Working 6 days a week, 10 hours a day, and still not having enough to eat good food. And having a police that exists not to protect people, but to keep the poor out of the rich neighborhoods.
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I'm from the USA (native balding white guy, mid 30's), and know it pretty well - as I spent 2001-2004 living in a RV traveling the states working internet job via cell phones.
I have spent the last year living in Chile in a decent site city (200,000 people).
You pretty much describe Chile and MUCH of the world "outside the USA" from what I have studied
Have you considered that maybe this is just the natural rebalance of wealth?
Frankly, the USA as it was from WW2 - 2000 could prove to be unsustainable... at least without some form of rebalance. Even if the average person in the USA were knocked down by 50% income... still better off than MANY places in the world.
And JAPAN in the 1980's and 1990's took a lot of the real wealth... cherry picked Hollywood, etc. Turned Tokyo into a city more expensive than NYC as quick as they could.
BTW, here in Chile the latin american tradition of close family is more responsible for the 'small studio' part... they actually share a house with many generations of the same family living under one roof. More family ties, less stress, more simple pleasures. The point is, there are cultural reasons too - not just financial.
I don't work for, near, or against NCR in any market, I just live here. My perception has been that Hurd took NCR and focused them on ATM machines, their core business. Lots and lots of other unrelated things were shed, including long-term employees and facilities. Most recently, NCR has turned over maintenance of their world-class headquarters to a local office-real estate company (Miller Valentine). Their ATM sales, by the way, are in competition with the infamous Diebold, Inc. And in that market, Diebold is innovating with ways to keep banks coming back to them. NCR just never seemed to get the hang of it.
Now back to HP and the recent high speed printing invention , and I would have to say we can all expect HP to shed all the unprofitable businesses and focus heavy on the printing. Well, heavier than they already do.
I expect that if HP is in some select-contract, highly-profitable, niche market that they will stay there. NCR has their TeraData database. HP had, during the merger claimed that Compaq's worldwide sales and services forces would allow them to dominate global industries, but I don't think that really every took foot they way they wanted to. So, unless they drum up something other than calculators and home PCs, those segments are likely to get hit hard. Hurd likely won't wait for the home PC market to do something unique because they've had a couple of dozen years to find a niche and haven't. I'd better say goodbye to the calculator segment too before Cringely goes around saying something stupid like "you saw it here first."
So that leaves the saturated inkjet market. Since the DMCA cannot be used, and since we're already paying $3,800US per gallon of ink, increasing profitability will be difficult to do without large customer outbursts. Of course, NCR was so full of waste, those of us in Dayton didn't think they could ever shed all of it and yet they did.
Socialism scares me. The direction of America scares me. Patton said ``America loves a winner. America will not tolerate a loser. Americans despise a coward. Americans play to win. That's why America has never lost a war, for the very thought of losing is hateful to an American.'' I wonder if now this is no longer true; Americans love losers and cannot tolerate a winner. And it's sad, really, because Americans have the opportunity to become winners. We're just choosing to bring everyone down to the loser level, making sure nobody gets ahead, so that nobody will be left behind.
I agree, in the pre-1990 era, America did love a winner. So did I. When a freind of the family succeeded and got a great job, or got accepeted to medical school, or did something really good, everyone was happy. People would celebrate, there would be large meals, everyone felt good.
What has changed?
Those are a few reasons why America no longer loves a winner. The avarage American is not greedy. We want a nice house, a yard for the kids to play in, a car, food in the fridge, money for a vacation, and a retirement fund. The problem is, that lifestyle is not middle class anymore, it is becomming upper class.
Is it any suprise that parents are threatening teachers, that if their kids don't get "A"'s in all their classes, get accepted to the best schools, that parents will sue teachers, or get a gun and kill a teacher. I think in Texas some mom killed another cheerleader so her daughter could get on the team and have less competition. In the papers, at a youth baseball game a father beat up an umpire for calling a third strike on his son, when the father thought it was a ball.
Think about this very carefully. People are scared there will be no future. They are fighting like 10 wild hyinas over a found carcus. We are loosing our humanity when we degrade ourseleves to fight for a basic survival.
Rosco: "If brains were gunpowder, Enos couldn't blow his nose."