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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."

82 of 448 comments (clear)

  1. Vox populi, vox dei by Gothmolly · · Score: 2, Insightful

    "Starting this year, HP will strive to build every one of our consumer devices to respect digital rights."

    I guess the market has spoken, where's Carly now?

    --
    I want to delete my account but Slashdot doesn't allow it.
    1. Re:Vox populi, vox dei by mcgroarty · · Score: 3, Funny
      "Starting this year, HP will strive to build every one of our consumer devices to respect digital rights."
      Man. Now if only HP would respect my rights. I'll take the right to working PSC 2175 drivers for Tiger for one thing, or the right to scanner software that doesn't require an XP admin account. (Hello, vulnerability!) And here's hoping 99% of those layoffs come from the printer-scanner-copier division and the remainder consists of whoever team chose the jet engine for the ZD7000 notebook fan.
  2. Severance by superpulpsicle · · Score: 5, Funny
    Severance expenses averaged $78,000 per person

    I guess this averages out with management's planned $10 million per executive along with the $1000 normal employee package.

    1. Re:Severance by PygmySurfer · · Score: 4, Interesting

      How badly did Carly's golden parachute skew that number though?

    2. Re:Severance by Neoncow · · Score: 2, Funny
      here's what will happen in 2030.

      America will have fifty megacorporations. All of them will have one employee, a CEO. Everything else will be outsourced to other countries, and the CEO will bring in 150-200million a year as salary, without benefits.

      Those poor CEOs. How will they feed themselves when they are only paid enough to buy a loaf of bread?

    3. Re:Severance by dspisak · · Score: 5, Insightful

      Sure, CEOs should make more then the average workers at a corporation but exactly at what gross multiple of average salary wages is too much for a CEO to be making?

      It has been shown that european CEOs salrays are often a much smaller multiple of median workers salaries I recall. BusinessWeek, which has tracked executive pay for half a century, figures that CEOs of the country's largest corporations last year (2003) were paid about 300 times the average factory worker. In Europe, in contrast, chief executive pay tops out at 30 times the average worker. Americans might defend this disparity by declaring that U.S. companies are better run, but are these companies more than 10 times better run?

      Additionally according to Kevin J. Murphy, E. Morgan Stanley Chair in Business Administration, Marshall School of Business, University of Southern California: 'Since 1970, cash compensation for CEOs has gone from 25 times the pay of the average worker to about 90 times the pay of the average worker. Total compensation, including stock options measured at grant value, went from just over 25 times average worker pay in 1970 to a peak of almost 600 times average worker pay in 2000, and has now (2004) dropped down to about 360 times average worker pay.'

      I dont know about you but I have to say I am sure that being a CEO is a hard job and requires a variety of skills and risks to be taken, but it is not such a specialized set of skills that warrants 600:1 pay disparity I think. Yes, capitalism exists to reward those who take the greatest risk but if you are a CEO making multi-millions a year regardless of company performance all one needs to do is survive for a few years and then then bail out on your disgustingly obscene Golden Parachute(tm) and be set for life while the company you leave lay in ruins and the common worker gets the shaft.

      At least thats how I see it in the light of what that bitch Carly did to Hewlett-Packard (oh, and dont call it HP, then your parodying Carly's attempt to make everyone forget how Walter Hewlett spoke out against the merger between Companq and Hewlett-Packard http://news.com.com/2100-1001-858499.html?legacy=c net )

    4. Re:Severance by patio11 · · Score: 5, Informative

      $21 million over 15,000 employees = $1400 of the average severance cost was as a direct result of her package. Not an insignificant number, also not a huge number compared to $78,000. Note that expenses associated with laying off an employee aren't limited to severance pay, though (just like costs associated with hiring aren't limited to salary).

    5. Re:Severance by dspisak · · Score: 2, Interesting

      Going into business for yourself is possible in this country still but it is not an easy thing by any stretch of the imagination. Being a little guy gives you huge advantages in some of the risks that one can take, and if you are lucky will find a niche or even better latch onto the next big thing by mistake and be taken for a great ride.

      That being said however, I completely understand your argument with regards to what is the percieved value of that which the workers ultimately create verse what they actually are paid.

      However I think one factor that is perhaps changing the face of small business opportunities is the recent rash of patent stupidity over the past few years. All it takes to clobber your small biz startup is some Amazon or worse a pure IP-lawsuit generating company to wipe away any semblance of profit as well as progress what with the time now having to be spent to have your legal work taken cared of not to mention extremely high legal fees necessitated by your representation.

      All things being equal however, not everyone in America is capable of starting a new business per se. Either they don't have necessary capital to get started or they might not be able to come up with a sufficently good enough idea and business plan to get traction. The major issue as I see it is this:

      Everyone in America CAN NOT become a "knowledge worker" or their own boss by means of starting their own business. The fact of the matter is that you have a bell curve distribution of intelligence anywhere in the world. The reason this is a problem is because depending on a persons intelligence determines what types of education and learning will end in positive results. Positive results meaning that person can function normally in society and contribtue to it positvely in some way. If we allow our education system to not properly account for this reality (which currently the Leave Every Child Behind is accelerating for us, thank you Bush and the DOE) then we as a country are going to be saddled with a greater societal burden for these people who we have left unprepared and unable to properly integrate into society and economy. Those of us who are able to contribute to the economy and society in a positive way will see our burden of support increase unless we do something to ensure a maximal number of people in our society are functional contributors to the economy and society at large.

      Yet I rarely ever see anyone on Slashdot here recognize this fundamental truth. Instead people are quick to say "You don't have to take that job" or "Just go into business for yourself" or "Go back to school and learn the *new* hot thing". The problem is, as manufacturing jobs got replaced by technology jobs what is replacing the technology jobs are jobs that to me at least seem less and less tied to specific locality and only end up increasing the number of people I compete for positions, worldwide as well as forcing median salries to come to a median level for certain positions that are great money in other countires not as highly developed as the US or the UK for example.

      I don't know, I just get a feeling that a true free market economy is only going to bring everyone down to the same level, the issue is that the new median level is an unsustainable living wage in many well developed countries. I could be wrong about some of this, but this is how it feels to me in my gut at least.

      And yes, I know what a plumber makes in a year. It's my Plan C. Can't outsource clogged plumbing repairs, thats for sure.

  3. In related news... by MrDyrden · · Score: 5, Funny
    HP to hire 15,000 new outsourced workers in Bangalore, India

    Remember folks, outsourcing is good for the economy!

    1. Re:In related news... by servognome · · Score: 2, Insightful

      Remember folks, outsourcing is good for the economy!

      It is for the economy of India.
      And if history is any indication, it is for the US as well.

      --
      D6 63 0D 70 89 81 BB 8E 7B 7C 5F 5D 54 EA AB 73
    2. Re:In related news... by dada21 · · Score: 4, Funny

      Don't you mean 60,000 people hired in India? :)

    3. Re:In related news... by subhagho · · Score: 3, Interesting

      How do you think US became an economic power? A completely internal enconomy can never make profit because the net of spending and earing will always remain constant. To have capital gains an ecomony will have to profit at the expense of other economies. Over the last 100 yrs. you guys were the better off. And in being better off you created a standard of living which has come back to haunt you. Your world turns upside down if you can't get hold of the latest gizmos and spend billions on celluloid stupidity. While the other guys you, who you are so incensed about, can live on pennies to your dollar and if they can produce similar if even slightly inferior output companies will jump for it.

      BTW all the SEs screaming about Software jobs being outsourced, how many of you drive american cars or use US made TV? Software like anything else is a product, just like Japanese cars and gizmos flood the market so does software from the third world coutries. If you consider a job to be your undeniable previlage no matter the cost you should go and start putting back the berlin wall.

    4. Re:In related news... by Travoltus · · Score: 2, Insightful



      Your statement is wrong.
      We now have 6 billion people competing for a few million jobs. No new major jobs-creating industries are going to come up in the US any more; as soon as the potential appears, the jobs will be sent overseas. Prove your assertion; show me one example to the contrary.

      I can prove my point, however. We've already lost the tech industry and we are now losing the biotech industry. Recent job growth has been heavily weighted toward the low paying service industry.

      --
      --- Grow a pair, liberals... stop letting the Republicans bully you!
    5. Re:In related news... by servognome · · Score: 2, Informative

      I can prove my point, however. We've already lost the tech industry and we are now losing the biotech industry. Recent job growth has been heavily weighted toward the low paying service industry.

      Back in the day people said the US was doomed because textile jobs moved, then steel making, then auto industry, then electronics manufacturing. The same issues of globalization came up in the late 1700's, and early 1800's with Federalism. States tried to tax each other because they were worried about their own industries.
      We've lost industries before, and then utilized cheaper goods to create higher value jobs.

      --
      D6 63 0D 70 89 81 BB 8E 7B 7C 5F 5D 54 EA AB 73
  4. TGI Friday.. by wfberg · · Score: 4, Funny

    Bob: "We find it's always better to fire people on a Friday."

    Bob: "Studies have statistically shown that there's less chance of an incident if you do it at the end of the week."

    --
    SCO employee? Check out the bounty
    1. Re:TGI Friday.. by bladesjester · · Score: 2, Insightful

      Not really. It gives you the weekend to deactivate their access cards, alert the police to possible violence, and time to hire extra security in order to make absolutely certain that the only people comming into the building are cleared to do so. It also gives you time to get paperwork together and/or think up "legitimate" reasons should you expect wrongful termination suits

      I never bought the theory that it gave the fired person the weekend to calm down. What I see are the opportunities listed above.

      --
      Everything I need to know I learned by killing smart people and eating their brains.
  5. The HP way by XNormal · · Score: 3, Interesting

    HP is getting rid of anything that might distinguish it from a box-mover like Dell. Just look what it did with the technology assets it got from DEC and Compaq.

    In the short term it should improve profitability. I'm not so sure about the long term, though.

    --
    Stop worrying about the risks of nuclear power and start worrying about the risks of not using nuclear power.
    1. Re:The HP way by GuitarNeophyte · · Score: 2, Interesting

      Man, I hope that they get rid of the right ones. I've talked to their CRS's while lookin' to buy two different laptops and about 80% of the ones that I talked to were really knowledgeable... just that one that wasn't seeming to know what he was doing, but he at least passed me to someone who did, so I'd still count it as a good call.

      There's too many other companies that I don't buy from specifically because of the fact that their Customer Service Representatives don't fully understand their own product (not talkin' about down-to-the-chip, but at least be able to tell me positives and negatives about using this technology over that one that the competitor has).

      I'm about a month from being able to buy myself a new laptop (wanting them specifically, because their stuff is linux-friendly), so I hope they still have someone useful by the time I want one.

      Luke
      ----
      "Help your stupid friends not be so stupid. Send 'em to ChristianNerds.com."

  6. No Management Cuts by ElNonoMasa · · Score: 5, Insightful
    HP's management team and business units will remain in their current form, with the restructuring mainly focusing on the workforce...
    Makes you wonder what management team let it get non-competitive in the first place, and why are they not affected by the cuts?
    1. Re:No Management Cuts by Will_Malverson · · Score: 4, Interesting
      Makes you wonder what management team let it get non-competitive in the first place, and why are they not affected by the cuts?


      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.
    2. Re:No Management Cuts by aaronl · · Score: 2, Insightful

      You forget most of the big things. Firing people to cover for her incompetence. The merger with Compaq being such a foolish decision. Outsourcing and firing thousands of people. Throwing HP money at personal amusements. Selling of parts of the company to the tune of billions in losses. She was yet another CEO talking about "innovation" while eliminating anything slightly resembling it and anyone who might be able to supply it.

      HP has gotten out of all the markets they were good at, except for printers. Not exactly like that will keep them afloat. There was the elination of much of the scientific computing, PA-RISC, calculators, and all of their instrumentation products.

      She had no idea how to do her job and you only have to look at the position she put HP in to see it. People used to consider the company to be made of solid rock. Now they wouldn't buy anything they make.

      This is not including the burning hatred so many people have for her politics and personal leanings.

  7. Those kind of lay offs are bad news by anubi · · Score: 4, Interesting
    An employees "usefulness" ranges from damn near useless to damn near indispensable.

    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]

    1. Re:Those kind of lay offs are bad news by MvD_Moscow · · Score: 2, Insightful
      You might not like what he is saying and the GP is a bit rash, but that's not enough to call his post dumb. Don't you find it insane that in this age we still have 800 million people suffering from malnutrition while CEOs are getting multi-million dollar pay packages? Don't you feel sorry for all the victims of poverty? I mean you can't just let a person die because of the free market.

      And do you really believe that you can get rich fairly? I mean come on. The rich class essentially controls the government to suit their own needs.

      Have some understanding for all the have-nots of the world. Isn't that what makes different from animals? That we can have compassion and ignore the free market to make people's lives better. I am not saying that we should all revert to communism, but a stronger social net with and more regulation (e.g. if someone dies due to greed (rushing a medicle product to soon, environmental polution) then shareholders go to prison) would be useful.

  8. HP is the walking dead by randall_burns · · Score: 3, Interesting

    Yes, they still employ 150,000 folks. However, the company is fundamentally addicted to H-1b/L-1 visas and has a lackluster recent record at serious technical innovation. For a company like HP to seriously thrive, they _must_ innovate. At this point, HP is more the preserve of bean counters than inventors.

    1. Re:HP is the walking dead by be-fan · · Score: 3, Funny

      There is a recent HP commercial that I think is precious. They do this big commercial about the "HP Apple iPod" (ie: the product Apple developed and HP is merely reselling), then at the end the HP tagline chimes in: "HP - Invent".

      --
      A deep unwavering belief is a sure sign you're missing something...
  9. 30% Work Force Reduction by premii · · Score: 5, Informative

    Thy are no planning, its already been started month ago, my team got laid off couple weeks ago. and before us, atleast 15-20 people got laid off out of around 200 people at Dearborn, MI location. and thy are planning to reduce atleast 30% of work force, and off shoring to Toronto, Malasiya and India, and replacing with cheap contract.

    1. Re:30% Work Force Reduction by Anonymous Coward · · Score: 3, Funny

      Considering your advanced proofreading and authorship skills, it's no wonder you're looking for a new job.

    2. Re:30% Work Force Reduction by Reaperducer · · Score: 4, Funny

      It looks like they laid off 30% of the keys on his keyboard.

      --
      -- I'm old enough to have lived through six different meanings of the word "hacker."
  10. Re:Here they come. by jbolden · · Score: 4, Insightful

    People had good jobs (that is jobs that paid well relative to the wealth of their countries) before the rise of the modern corporation. Further economic theory indicates that wages will tend to stabilize at roughly the added value that employees bring to an economic enterprise, again this is independent of the existence of corporations or not. Oh and considering that jobs are created by CEOs and shareholders is like arguing that wars are won by kings.

  11. IANACEO by Comatose51 · · Score: 5, Insightful
    I'm not a CEO, but: "HP's management team and business units will remain in their current form, with the restructuring mainly focusing on the workforce, said the source, who declined to further delve into the effect of the layoffs in each division. The source noted none of the existing executives on the management team will be re-assigned to new posts, but members may be added to the team."

    That doesn't make a lot of sense to me. So now you have 15,000 less people to lead/manage but you still have the same number of executives and managers. That seems to create a very top heavy structure and those tend to fall over both in the management world and the engineering world.

    The more cynical side of me tells me that the execs and managers have more pull so would put up more of a fight if laid off. I'm sure the top level execs know the middle level ones at personal level so found it harder to laid them off. Instead, the little peons on the bottom who they barely know or care about can fend for themselves.

    HP Services has roughly 65,000 employees, but analysts are predicting HP will lop off only about 8 percent here because the company is working on edging out IBM Global Services, EDS and Accenture for corporate contracts. "We estimate that HP has roughly 20,000 salespeople, with the majority in (enterprise server group) and Services, and that CEO Hurd is likely to look to streamline the organization, moving away from HP's current 'matrixed' selling organization to focus on more direct accountability," Sacconaghi said.

    I really hate the word "accountability" when used in isolation. From my experience, if accountability is the only method being used to solve problems, people start playing politics and the blame game. Bueraucracy goes through the roof and everything has to be documented in case the problem doesn't get solved. You end up spending more time covering your ass than solving the problem. You also end up taking a toll on teamwork.

    It seems to me that their current strategy is to lower costs so they can lower their margins to compete. Not a bad plan but there are other avenues. I know at my company, we're more than willing to pay more for better service and reliability. The initial contract cost isn't the only factor. We have to think about the cost of downtime.

    Noncritical research and development (R&D) could also be impacted, analysts suggest. HP's R&D spending is nearly $1 billion higher than all of its relevant competitors combined, according to an independent benchmarking analysis done by Sacconaghi's firm. The comparison was designed to mirror the one that Hurd has professed as his method for bringing costs back into line. "We suspect that Hurd might be able to lower HP's annual $3.5 billion in R&D by $250 (million)-$500 million through the elimination of non-core projects, Sacconaghi said. So they're going to gut the thing that made HP great in the first place. I don't know what they consider non-critical R&D but a lot of innovations aren't obviously useful at first. Didn't a division of HP invent the optical mouse? I wonder if that was considered critical at the time.

    Again, I'm not a CEO. I'm all for making an organization more efficient but I wonder if they're making the right cuts. It's sad to see the "Grey Lady of the Silicon Valley", the engineers' corporation get hacked to pieces.

    --
    EvilCON - Made Famous by /.
  12. Direct link to India job listings by reality-bytes · · Score: 3, Interesting

    It does seem to be as the parent post suggests.

    Just making a search using the term 'Service' at HP India produces 192 new positions.

    Job Search HP India

    (Scroll down if you don't have a vertical monitor / insane resolution)

    --
    Ripping an new rectum in the fabric of spacetime.
    1. Re:Direct link to India job listings by fafaforza · · Score: 2, Funny

      Wait... so you're saying that there are sites on the internet that do not fit vertically on a display? Damn! No wonder I had that funny feeling that I was only getting a part of the story when reading online articles. Thanks for the tip!

  13. Re:Here they come. by Jukashi · · Score: 4, Insightful

    Good business plans dont require sacrifice, bad ones do. HP isnt in the shitter because 15,000 employees decided to slack off - management FUCKED UP. But they are in charge, so there is no way they're going to be held responsible.

    A four month CEO is cutting R&D at a TECH company, firing IT workers, and hiring more managers - this is good?? I guess those 120 days on the job does give him the right to slash the pensions on engineers who have been their for 20+ years. After all, those idiots were trying to invent things to make the world better, when they should have been in business school....eck.

    And I love this:

    And they certainly won't celebrate the 150,000 people who still *do* have jobs created by the likes of HP.

    Absolutely, and I'm sure if someone raped your daughter you wouldn't complain - you'd be celebrating that they didnt do it to your wife too!

    Apologist.

  14. Started by Bush Sr, continued by his son by John+Seminal · · Score: 2, Insightful
    HP is planning to layoff 15000 employees... but employees are not expected to be immediately notified of their status, the source said, noting such a practice is common in corporate America.

    This all started with Bush Sr, and his NAFTA, to export jobs to Mexico. I remember the lies, how it would stregnthen the American workforce.

    Now the current Bush is exporting jobs to India.

    Anyone see a pattern of what the republicans are doing? They got the idea, they no longer need American workers. So they started transfering jobs outside of the USA.

    How many more decades do we have before the USA is on par with Mexico in terms of wealth. We will have the likes of Ted Turner owning 2 million acres of land. We will become a nation where 4% of the population lives in gated and gaurded communities, and everyone else will live in an apartment, in places filled with violence, and we will be called sub-human.

    Remember, it was not that long ago when families only needed one person to work, to pay the bills, to feed the family. The past 10 years, most families have both parents working. And in the next 10 years, we will see both parents working multiple jobs. But it is okay, I am sure Sony will have the next generation playstation by then.

    How can any country justify having CEO's that make $10,000,000+ a year, and having janitors who make $5.75 an hour? It is like what happened with the World Trade Center, when the government was cutting checks to families of survivors. The valuable lives got checks in the millions of dollars, the janitors families got 1/10th of that. It is like Baseball, I remember being a kid when it was a big deal for a player to sign a 1 million dollar deal. Tickets were cheap. Hot dogs were cheap. Heck, the ballpark was a cheap evening, and you would get fed. Now players demand $100 million contracts, and there is advertising in every corner of the ballpark and hot dogs cost $4.50, parking is $15, tickets are over $40. Normal blue collar families no longer go to the ballpark, but that does not matter because teams found they can make more money selling the best seats to corporations. I guess it is a nice benifit for salespeople and executives, to go somewhere they believe is popular, even though they know little about the game or players.

    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.

    Money is evil. It makes people do horrible things.

    --

    Rosco: "If brains were gunpowder, Enos couldn't blow his nose."

    1. Re:Started by Bush Sr, continued by his son by jbolden · · Score: 2, Insightful

      Republicans have always been the pro business party. That they would aim to screw the middle class in favor of the rich is nothing new or shocking. The problem is that the Democratic party no longer exists in any meaningful sense.

      I'm starting to think more and more it might be a really good thing if abortion gets overturned. Then maybe the red state people can start voting their interests rather than their god and we can go back to having reasonable politics in this country. Flying to Canada/Mexico once in a lifetime for an abortion isn't a huge deal.

    2. Re:Started by Bush Sr, continued by his son by RoundSparrow · · Score: 4, Interesting

      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.

      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.

    3. Re:Started by Bush Sr, continued by his son by jurt1235 · · Score: 2, Insightful

      On the other hand: It is also ridiculous that in Asia people work 10 hours a day, 6 days a week, earn about $100 a month for that (that is a lot), while at this side of the world a person doing the same mindless job earns 8 to 16 times more. Jobs like janitor. That kind of inequality can not hold up. So something has to go, apparently at this moment it is the richer side going poorer, before the other side cathes up.

      On the bright side: It will all get better once the remaining blue collar work force is automated. Goods will plummet in price, making it affordable for everybody to get all the new playstations they wnat (The games will stay expensive though, human creativity needed).

      --

      My wife's sketchblog Blob[p]: Gastrono-me
    4. Re:Started by Bush Sr, continued by his son by thrillseeker · · Score: 2, Insightful
      If by baby you mean unborn mass of human cells.

      To date, that's how we all started.

    5. Re:Started by Bush Sr, continued by his son by Erich · · Score: 3, Interesting

      How can any country justify having CEO's that make $10,000,000+ a year, and having janitors who make $5.75 an hour?

      Hi, welcome to America. I'll be giving you a brief synopsis of how a free market works.

      In a free and open job market, you have people and you have jobs. Many people have the ability to do more than one kind of job. Likewise, most jobs could potentially be filed by one of a relatively large set of people.

      Some jobs are able to be done by lots of people, like being a cook in a fast food restaraunt. Some people are willing to take that job because they do not have a skill set that enables them to work a different job, or maybe because they like it. Anyway, the worker and the business agree on compensation for the job that is agreeable to both the business and the worker. If there is someone willing to do the same job for less, then the worker should get paied less. If there is nobody that can do as good of a job for the same price, the worker can ask for more money and may get it.

      For a job like a CEO or Baseball player, there is incredible demand to get the absolute best people for those positions. If you are the best baseball player, you can demand a lot of money, because there is demand to have the absolute best player on your baseball team: it would help you win, wins help you sell more tickets and advertisements, and people want their team to win. If your team is a perpetual loser, you won't sell as many tickets. (Unless you are the Cubs, because of Cubs Fans like Me).

      Likewise, Good CEOs can demand a premium. Someone who can manage a business effectively has a skillset that is in high demand. If you can make your company that earns 1 Billion / year, and grow that profit by 20%, you are worth a lot of money. Stockholders are willing to pay these high salaries because there is the perception that a good CEO can lead a company to be more profitable.

      Of course, this is all based on perception. If killing the R&D saves money now, but you lose out on the next major innovation, you've screwed yourself. But that's how the market works, and your competition (who did the right R&D) will beat you. As they should.

      Now you may notice that America isn't exactly a free market. Even when Southwest airlines is making money, the Government gives billions of dollars to airlines who didn't make good business decisions. Unfortunately, the Government has, over the last several decades, gotten more involved with business. This leads to situations where bad businesses are rewarded, in many ways at the expense of better businesses. This makes those better businesses less competitive in the global marketplace. Which means that jobs will flow out of America into places where the work / pay ratio is better.

      The good news is that you have the freedom to do things you think will be successful. Is there demand for baseball games for blue-collar folks? Start up your own baseball league, sell tickets for $5, sell beer and hot dogs for $1 each, and pay amateurs a few extra bucks to come out and play in front of some people. Will people come out to your park? Maybe. But maybe people won't really want to come to your baseball stadium and see fourth-rate baseball played. And that's the risk you take in a capitalistic society. If you want the best baseball players to come and play for you, you'll have to pay them what they demand. And if you have to pay them a lot, you'll have to earn lots of money. It's just the way things work.

      Of course, there's another way to do things, the socialist way. The government makes sure everyone has a good lifestyle, regardless of what they do. The government also tries its best to make sure the best people don't get too far ahead of the worst people. The government has a hand in almost every part of the economy. Europe does this a lot, and the lowest standard of living in Europe tends to be better than the lowest standard of living here. And w

      --

      -- Erich

      Slashdot reader since 1997

    6. Re:Started by Bush Sr, continued by his son by John+Seminal · · Score: 4, Interesting
      I think your post was well thought out, and good.

      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?

      • Enron
      • Motorola lays off 11,000
      • GM lays off 25,000
      • Martha Stewart gets insider information
      • CEO fo Motorola gets million dollar bonus, lays off more people
      • Arthur Anderson looks the other way
      • Families need both parents working, nobody is left at home with the kids, fast food replaces home cooking, eating in front of the TV replaces family dinners and discussions
      • Jerry Sinfield racks up 100+ parking tickets in NYC for parking in handicapped or fire zones. He publicly says "I have enough money to pay those tickets, it is the price of parking where I want. And if I am toed, I have someone else who can bring me another porche"
      • Tuition at schools rises faster than inflation
      • For many, school is not an option, and the US Army is recruiting in highschools (since when is being a mercenary a requirement for an education)
      • Gas prices double, nearly triple the past decade
      • Places require credit checks and personality tests for hiring
      • And workers are looked at as a commodity, like an ox pulling a wagon, not as people

      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."

    7. Re:Started by Bush Sr, continued by his son by arturov · · Score: 2, Informative

      NAFTA passed under the Clinton administration. Its passage was one of the administration's specific goals in 1993.

    8. Re:Started by Bush Sr, continued by his son by John+Seminal · · Score: 3, Insightful
      The valuable lives got checks in the millions of dollars, the janitors families got 1/10th of that.

      Do you have any evidence of this, like a link to support your claim? Didn't think so.

      The 9/11 victims fund had enough money to pay each family 1.6 million dollars, if it was split evenly.

      Instead, they used a formula based on how much income a persom was making.

      It is possible for the family of a janitor to get $300,000, and a stock brokers family to get 4.35 million dollars.

      http://www.csmonitor.com/2002/0104/p11s1-coop.html

      What made it all worse, is the government told all the families if they sued or disagreed with the distributation of funds, they would be denied any government victims money. So what is a poor family to do? They can't hire a lawyer and fight. A few of the ultra rich families decided to sue anyways, they must have felt that getting 10 times as much as everyone else was not enough for their "loss".

      --

      Rosco: "If brains were gunpowder, Enos couldn't blow his nose."

    9. Re:Started by Bush Sr, continued by his son by servognome · · Score: 2, Insightful

      What has changed?

      Nothing, as somebody else pointed out these issues existed in the past.

      Instead of Enron there was the S&L scandal; tech jobs were being taken by the Japanese instead of the India and China; insider trading was legal until the 60's; AT&T and the rail barons existed long before Microsoft; the military has always recruited in high schools; gas prices and inflation exploded in the 70s; and workers have always been looked at like a commodity

      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.

      Last time I checked cars, vacations and retirement funds were not basic survival.

      --
      D6 63 0D 70 89 81 BB 8E 7B 7C 5F 5D 54 EA AB 73
    10. Re:Started by Bush Sr, continued by his son by timeOday · · Score: 3, Insightful
      Have you considered that maybe this is just the natural rebalance of wealth?
      Sure it is. Wealth begets wealth. That's why we had kings and peasants before a middle class.

      But are you using natural as a proxy for desirable? A lot of things are natural. Having cavities in your teeth is natural, is that a good reason not to go to the dentist? We have a lot of people who are such devout capitalists that they think anything explained by market forces must be AOK.

    11. Re:Started by Bush Sr, continued by his son by aussersterne · · Score: 2, Interesting

      America loves a winner. America will not tolerate a loser.

      The problem with this calculus is that there are no winners. EVERY HUMAN will ultimately end in total impoverishment (i.e. death).

      There is no win or lose. There is only "suffer more" or "suffer less"--and the curve is logarithmic with respect to increases in wealth. Past a certain level of capitalization in an individual life, the inverse relationship between dollar quantities and suffering quantities is increasingly shallow, the opposite of what lies at the other end of the curve.

      Or in simple terms, having $11 million instead of $10 million in a personal bank account makes only an infantesimally small difference in the suffering that such an account holder will endure before his/her unavoiadable death. The extra $1 million really doesn't bring the multi-millionaire much. HOWEVER, that same $1 million could relieve a vast quantity of suffering if divided among numerous people who have $0.00 in their personal bank accounts.

      Seeing that all will lose--we are all in this mortality/existential hollowness game together--it is clearly an incredible waste of resources to dedicade so many billions worldwide to making unmeasurably tiny additional improvements to the lives of the already ultra-wealthy when those same billions could make truly massive, world-shattering improvements to the lives of the ultra-poor.

      No, we shouldn't remove wealth from anyone to the point that they themselves are thrust into poverty. However, we should remove wealth to the extent that such redistribution is nominally unnoticable to the wealthy in relation to any day-to-day concern, when the gains at the other end of the spectrum that result from such redistribution are huge.

      --
      STOP . AMERICA . NOW
    12. Re:Started by Bush Sr, continued by his son by Savantissimo · · Score: 2, Insightful

      Look, this is not some sort of abstract intellectual argument. The GP is describing the feelings of the public, not specifically whether the bad situations of today have been around in some form for many years. It is average person's current increased perception of an eroding position which creates the mindset which presently determines public response on economic issues. I think the GP poster expressed the American public's mood quite incisively.

      ***
      Also just to correct one of your irrelevant points above, tuition was of course rising faster than inflation in the late '90s and still is doing so today.

      --
      "Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery?" - Patrick Henry
  15. And to think.. by Ryouga3 · · Score: 4, Insightful

    Hewlett-Packard (HP) was once known for how much they cared about their employees.

    It just goes the show that short-term, bottom-line only thinking really isn't good business sense.

  16. Right on! by John+Seminal · · Score: 2, Insightful
    Good business plans dont require sacrifice, bad ones do. HP isnt in the shitter because 15,000 employees decided to slack off - management FUCKED UP. But they are in charge, so there is no way they're going to be held responsible.

    I don't know what happened to HP the past 15 years. When I was a kid, there was only one King of laser printers, and that was HP. Nobody made better laser printers in the world.

    3 or 4 years ago, a friend purchased a HP computer, it had windows ME on it. She was in college, and she called me a few times while she was writing papers and got the blue screen of death. There was nothing that could be done to save the paper. Hours of work went down the drain. I know... I told her "save your work more often". But that computer was a horrific peice of crap. I did a clean install with the CD's thinking that might help things, but it took me a while to realize that Windows ME did not work well with that HP computer.

    It is too bad HP merged with Compaq, at least Compaq made good computers.

    It seems like there is a pattern. Merge two large companies into a super large company, then fire people and give managers bonuses.

    --

    Rosco: "If brains were gunpowder, Enos couldn't blow his nose."

  17. And of course they fire a lot of skilled workers by ShatteredDream · · Score: 4, Insightful

    It's been my experience that people who do the non-specialized business work tend to think that their "leadership" is invaluable to the company, when in reality it is easily reproduced. An engineer can rise to the occassion and be a good leader, but a person whose formal training is just "business" or a MBA and a liberal arts background cannot just rise to the occassion and be a replacement engineer. Leadership is something that is half nature, half nurture. Most people I've ever known, myself included, who are good at leading have a very strong natural knack for leading and organizing.

    Personally, I would want efficiency-minded former engineers to head an engineering company I was the CEO of. I'd want these former engineers because they'd know what's bullshit and what's not and that'd keep my company's ass farther away from the fire. We're sentient beings, not hive workers. To paraphrase Heinlein, specialization is for insects, there is no reason why someone who spent most of their career as an engineer cannot have a good sense for business and be a good business leader.

    Since the buck clearly doesn't stop at the CEO's desk in most situations, I don't see why stockholders waste tens of millions of dollars of their company's money on them. At a company like HP, the CEO is naturally going to be detatched from most of the company's operations and excuse me, but I just don't see why any company would sacrifice anyone who could contribute to R&D of new products when cuts in middle and upper management employment and salaries would yield decent results.

    Which is more likely to bring a higher ROI: firing many of the people capable of making new products and keeping many of the middle managers and their upper management ilk, or trimming top down? Maybe if HP put many of those people on some good projects, they'd do a lot of good for the company. It'd be ironic if several groups from the 15,000 who get laid off end up founding companies that make the next iPod, Tivo or something like that.

    I'm not saying that many of them shouldn't have been laid off, just that it is incredibly stupid to fire people who can make products if assigned properly, but not cut back severely on upper management's pay and the ranks of the middle managers. When Sun laid off a number of its Solaris and Java developers, but didn't fire McNealey, that loud mouth imbecile, I just shook my head. In order to save money and face, our shiny suit wearing business elite would rather fire people with very hard to find engineering skills that could make or break the success of their products than cull the ranks of their own.

  18. This economy is on fire! by bigberk · · Score: 4, Interesting

    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

    1. Re:This economy is on fire! by joelsanda · · Score: 4, Funny

      So is this the freight train of a bull economy everyone is raving about?

      You're probably critical of Bush, too. Why, Rumsfeld and Bush alone have created more than 130,000 full-time jobs in Iraq.

      --
      The Luddites were ahead of their time.
    2. Re:This economy is on fire! by timeOday · · Score: 3, Funny
      Why, Rumsfeld and Bush alone have created more than 130,000 full-time jobs in Iraq.
      And quite a few of those are lifetime employment!
  19. Re:Here they come. by Momoru · · Score: 2, Insightful

    HP isnt in the shitter because 15,000 employees decided to slack off - management FUCKED UP.

    Do you consider perhaps that management fucked up by creating a bloated personnel heavy organization? Big companies grow out of control during good times by hiring tons and tons of people they may not really NEED. When times get tough expendible employees are just as fair game as other belt tightening measures IMO.

  20. Minor factual correction by TheNumberSix · · Score: 4, Insightful

    I don't want to get in the way of your tear, but I think NAFTA was very much a bipartisan effort.

    The idea had been talked about long before Bush I was in office, he had some discussions about it. President Clinton signed the NAFTA deal on Dec 8, 1993. And I believe it was ratified by a Senate and House, both with Democratic majorities. (57-43 Dems in the Senate, and 258-176 Dems in the House) You can check which party was in government in recent history at this link.

    Cheers.

    --
    Never confuse feeling with thinking.
  21. Re:Here they come. by aussersterne · · Score: 4, Insightful

    That's the brutal logic of capitalism and capitalists for you. I'd bet that 50% of the people on Slashdot see corporations/employers not as social institutions that are a component of the community, but rather as functional institutions that are part of a capital economy. The survival of "the economy" (i.e. capital flows) is seen as important; the survival of people is not.

    Just watch any story about failing companies on Slashdot and you'll see just how many posters argue that a company that isn't profitable right now absolutely should go out of business because it "can't compete" in the "free market." Nevermind whether the company was competitive in the past or could be competitive again in the future with proper (i.e. less greedy and short-sighted) management, or the fact that in that "should go out of business" trope, hundreds or even thousands of lives may be ruined--when the improvement of lives is, ostensibly, the reason for commerce in the first place...

    Capitalism is always short-sighted because the capitalists (in the orthodox sense--those people who have capital) will always see their holdings increase, regardless of the longevity of any particular enterprise. That's where this attitude of "bad business should fail" comes from--it's cultural brainwashing from those who control the economies through their wealth. It is their vested interest that unprofitable ventures should fail immediately, so that capital can be transferred to other ventures, in order to minimize losses and maximize profitability on an ongoing basis. If and investment in B will yield a 50% higher/faster return than an investment in A, capital will shift to B to maximize the profits of those who control, even if A was still nominally profitable, and even if thousands of non-capital-holding lives utterly depend on A. Capitalism is fundamentally anti-humanist that way.

    --
    STOP . AMERICA . NOW
  22. Re:Here they come. by homer_s · · Score: 2, Informative

    Are these workers entitled to those jobs? They took those jobs knowing fully well what the rules of the game were - that the shareholders and management can fire them if they think that is in the interest of the corporation.
    If those workers didn't like that, they could've:
    a)taken different jobs or
    b) started their own businesses or
    b) write to their representatives to change the political system - a workers revolution and to each according to their needs.

  23. Of course they won't know right away by Chris+Snook · · Score: 2, Insightful

    It really ought to be a matter of common sense that employees won't know their status immediately. Someone decides at a high level that they're going to change their priorities, and each division needs to cut their spending by a certain percentage. That percolates down, with managers at each level deciding which portions of their organization are most valuable and efficient. Sometimes whole divisions will be cut or merged (with cuts delegated down) and often the cuts will go down to the individual employee level. As much as it sucks to be uncertain about this, employees now have some warning and time to prepare their resumes and ask their contacts in the industry about positions while management carefully weighs how to do this in a manner that will best serve the company, so that they won't have to do anything else of the sort in the foreseeable future.

    If you think about it, having the CEO and VPs make check marks on a list of people they've never even met and announce that without warning would be far, far more evil.

    --
    There's no failure quite as dissatisfying as a complete and total solution to the wrong problem.
  24. "lay off", not "layoff" by adrianmonk · · Score: 3, Funny

    Being one of the resident curmudgeonly grammar freaks, I feel inclined to point out that "layoff" is a noun, and "lay off" is a verb (phrase). Therefore, it isn't possible to "layoff" someone; instead, you must lay them off.

  25. TFA? by torstenvl · · Score: 4, Interesting
    Has anyone read the article? Because it seems the link is bad. I get "Hurd signs on as new HP chief" as the story, and a quick search for "layoff" fails, as does a search for "15".

    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:
    • Tier 3:
      • We disapprove of counties' economies and market practices
      • Trade is negotiated on a case-by-case basis
      • Superfluous trade is discouraged
    • Tier 2:
      • Friendly trade partners
      • Large-scale trading allowed
      • Protectionism discouraged
      • Reflects current US/EU (e.g., Boeing/Airbus subsidies)
    • Tier 1:
      • Similar to current US/Canada relations
      • Mostly free trade
      • Would be mostly for candidate WEFTA members
      • Expectations of attempted synchronization to WEFTA standards
    • Tier 0:
      • Full WEFTA member
      • All members compliant with WEFTA labor regulations
      • Free movement of goods, services, people, institutions, without visas or import/export taxes
      • Would be like current trade relations between any two US States


    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. ;-)
  26. These headlines have been the norm by Wansu · · Score: 4, Insightful



    ... for the past 5 years. And yet, the smug, smirking, puffy pundits continually tell us what fabulous shape the economy is in. No doubt most of these HP jobs paid well. The US has been hemoraging high paying jobs for 5 years. And I thought the recession of the early 90s was bad. That recesion was characterized by 4 figure layoffs. If headcount is a good measure, this recession is 10 times worse.

    --
    Wansu, th' chinese sailor
  27. Re:Here they come. by jbolden · · Score: 2, Insightful

    Coaching it in terms of wealth "relative to the wealth of their countries" is about the least useful comparison you could make. The second highest quarter in any nation without a US style economy are worse off than our bottom quarter.

    Nonsense. Germany has worker protection and their 3rd quarter is better than our 3rd quarter. Their 2nd quarter is pretty close and their 4th quarter is far far better. Oh and the US hasn't had its major cities destroyed and a good chunk of the male working population killed within the last 100 years; so our economy should be far far healthier than theirs.

    If you're going to compare any two periods, look at people's quality of life, not their wage compared to their neighbors'.

    That's silly, technological improvements overwhelm differences in distribution of wealth. You need to subtract technology off and to do that you need to look at their wealth relative to the wealth of their society.

    Regarding wages stabilizing relative to employees' worth, what you say would only be true without external interference.

    Well yes.

    And comparing CEOs and shareholders to kings? Precious few kings ever brought the seed capital to create their kingdoms or funded quarterly losses in anticipation of future payback.

    And the CEOs and shareholders of HP did do that?

  28. Re:Here they come. by ifwm · · Score: 2, Insightful

    "I guess those 120 days on the job does give him the right to slash the pensions on engineers who have been their for 20+ years."

    And I guess you have the right to comment on the management of an giant international corporation.

    You just sound naive when you boil complex policies down to a few sentences on a web board.

  29. Re:Here they come. by aussersterne · · Score: 3, Insightful

    I love the logic. "If you don't like it, quit. Nobody forced you to take the job. You knew the rules."

    Only the rules are the same anywhere, because we're all a part of the same "free market" capitalist economy.

    So then the idiots say "Well then, don't take a job. Nobody's forcing you to work."

    Only then how is one to eat?

    People like you are effectively arguing that this is utopia. And it's not an uncommon argument, I hear it all the time and see it on Slashdot as well: the free market is perfect. If you don't like it, tough shit, it's because you must suck and not be able to compete.

    So--what's the solution for those who can't compete? Kill them? Let them starve? If you're born IQ 90 and simple, you deserve to be "outcompeted" by everyone else and end up jobless, homeless, and dead (because we don't believe in social welfare in the free market)? How is this different, morally, from the Nazis, eugenics, and the termination of "defective" humans?

    It's 2005. We should be past all of this. People should simply fucking CARE ENOUGH TO BE WILLING TO SACRIFICE SOME OF THEIR OWN WEALTH FOR THEIR FELLOW HUMANS.

    Especially CEOs making more in one year than anyone needs to live comfortably for an entire LIFETIME, in a nation based on a Judeo-Christian faith that claims to believe in sacrifice and brotherhood, that claims to support individual "freedom." Freedom for who? Only the wealthy? Only the perfect? Everyone who isn't defective? Freedom to do what? Be "out-competed" into unemployment, homelessness, the grave, and then to be blamed for it because you just "couldn't compete?"

    --
    STOP . AMERICA . NOW
  30. HP and the Feminist movement by brsmith4 · · Score: 2, Funny

    Board of directors: "That's the first time and the last time we ever let a woman run our company."

    This instance does not speak for all women, but this definitely will not help them either. Thanks, Carly.

  31. It's Bangalore or Bust Baby! by PocketPick · · Score: 2, Interesting

    I'd like to inject a little bit of concrete food for though into the argument. I just took a look over at HP's Job Application Page. It would seem the Indian facilities are constantly in a hiring phase (it's been like this for months, if you check regularly).

    1. Re:It's Bangalore or Bust Baby! by Duncan3 · · Score: 2, Interesting

      turnover is one of the biggest probems in the "outsource" zone, worse then in the valley during the boom.

      Since you can only increase your wage with a new job, and inflation is going nuts... well... it's tunover central.

      --
      - Adam L. Beberg - The Cosm Project - http://www.mithral.com/
  32. How many people does the CEO equal??? by jzarling · · Score: 2, Insightful

    How many people of the lowest here - the sales and support employees could be saved by dumping say the top 3 wage earners at HP.
    Having had to call the support line at HP for a faulty bit of hardware recently I have to say they need more phone agents.

    --
    It is better to be the hammer than the anvil.
  33. i envision that... by KillShill · · Score: 2, Funny

    the price of ink cartridges will skyrocket...

    just a hunch

    --
    Science : Proprietary , Knowledge : Open Source
  34. CEO Hurd Not Going to Build A Success by Midnight+Warrior · · Score: 4, Interesting
    Read more on their new CEO Hurd at The Register. This is not the last layoff. I know the industry reports say that Hurd will do great things just like he did for NCR, but I live here in Dayton, OH, where NCR is headquartered.

    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.

  35. Re:Here they come. by drsquare · · Score: 2, Insightful

    Have you ever considered that maybe they had 15,000 more employees than they needed? I think HP should be congratulated for keeping people in jobs for so long even though they didn't need them.

    If a company hires a thousand workers that they don't really need, then lays them off a year later, should they be condemned for laying off a thousand people or commended for giving a thousand people a year's wages?

    As for your talk about pensions and being there for twenty years, no-one's entitled to a company pension or even a job. In a capitalist society, no company owes you a living, a job is a two-way agreement that either party can end at any time. I'm sure that if you found a better job you wouldn't keep working at your old company out of a sense of loyalty, you'd move to the better arrangement. That's what HP is doing, moving to a better arrangement of fewer employees and thus fewer costs.

    Absolutely, and I'm sure if someone raped your daughter you wouldn't complain - you'd be celebrating that they didnt do it to your wife too!

    That's a terrible analogy, as bad as I'd expect on this site. A company is employing 150,000 people, that's a hell of a lot. Yet you're complaining because you want them to employ 165,000. That's terrible. The company I work for employs about 900 people, should I criticise them for not employing 990? But what would they need the other 90 for? That doesn't matter, it's evil not to hire 10% more people than you need!

  36. Re:Don't blame the corporation... by pete6677 · · Score: 4, Informative

    Western Europe has done an excellent job of achieving a healthy balance between the two extremes.

    Which is why they have double digit unemployment.

  37. Re:And of course they fire a lot of skilled worker by Seumas · · Score: 2, Interesting

    I'm not sure how it works in every company, but in the huge tech corporation that employs me, your manager has nothing to do with your laying off other than telling you about it. Human Resources decideds who is going to be laid off, tells the manager what names are on the list and he relays it to his employees on the morning that the layoffs occur.

  38. Re:And of course they fire a lot of skilled worker by Iloinen+Lohikrme · · Score: 2, Insightful

    First of all, I want to say that you are right about many things, especially hiring former engineers to managers in engineering company.

    The thing that needs to be discussed here is, if HP is or is not an engineering company. They do work with technology, but I would argue that their fields of technology are mature and don't involve as much engineering and innovation than they did before. That's why I categorize them more as marketing and assembly company. If you look at their products: Workstations, Laptops, Servers, Printers, Scanners & Cameras, one can argue that they are all commodized. The technology needed is allmost the same from manufacturer to manufacturer. Only way to add value to these offerings is to use branding and design to create added value in customers mind, the other way is to offer services.

    I think that the problem with HP is that they were first engineering company and were on the edge of the technology cycle. As the times went by, they loosed technology battles and had to retreat from many fields. They had create success with imaging products, but what they did forget todo was to invent new things. As the result of innovating hard, and inventing lazy, they became marketing and assembly company. In away one can say that HP and Compaq merger was the last knot that transformed HP from engineering to marketing. The problem with HP now is that thought they have transformed, they have still lot's engineering. Bigger problem is that all places in the market have been taken by others. Dell is the king of assembly companies and they really can't beat them. Same goes with IBM in the entreprise arena. Most of the real engineering is done by other companies ie. Intel, Microsoft, Sun, Novell, Redhat, Oracle etc.. So the big question is what is HP going to do? I hope that their answer isn't just to trim down, that wouldn't in the long run give them reason to be alive.

    It's a good question how HP could have avoided all this and what went wrong. A good place to put blame is Carly and other MBA's, but that is insufficient. In my view HP just got too big, they lost their concentration times ago. They should have spinned imaging and customer sides of HP away, or transfered the enterprise and engineering sides to a new company. It's very hard to be a company with many faces, and there isn't so many companies in the end product field that have done this with success.

    Maybe all this and other fallen angels of technology industry could have been avoided by better education. As a soon to be graduating economics student (from computer science, don't ask) I have to say that the blame lies in business education. Many people start business studies with idea of doing something cool with customer products (think of likes L'oreal, Coca-cola, Tivo etc..) and they end up in some industrial company with no idea what is going on. The worst thing is that many people that do work industrial area treat these industries as the same as your regular consumer industries. When you have people saying "it's just technology" or "I don't have to know the details" or "just say which one is better" then you know there is much wrong in the picture.

    ...But then again, why should I care that other people ruin many companies. Just more opportunies for those who do know what they are doing ;-)

  39. Bad news for 15,000 and a golden chance to blow it by suitepotato · · Score: 2, Interesting

    for HP.

    What is needed now in PCs/servers AFAIC is someone to drive down the costs of thin-clients, clustering, and modular computing. Given HP's history, this will likely be missed by a full light-year as they retrench in more of the same that got them where they are now.

    What exactly is the cost of HP-UX compared to Linux and what are the comparitive support prices compared to say, Red Hat or SuSE? Or BSD for that matter if you want to put it closer to the System V side? What exactly do they have to offer there?

    What are they going to give me that I can't get cheaper by leaps and bounds from Dell or for that matter Systemax?

    What are they going to offer me for my ongoing needs and is their (*gag*) "vision" going to fit with what I'm doing? Or are they going to follow Redmond's lead not to mention the various hardware standards groups rather than innovating?

    I don't see HP (*cough*) "getting it".

    My wish list is simple, btw. Given I can get fully packed desktops for under $500, I want a blade server where the backplane and hot swap power supplies with one master board costs no more than a standard whitebox server and each blade is under $500 given that it is stripped of unneeded sound, graphics, and other tchotchkes as well as case and power supply. Why should I be paying over $1000 for a blade when I can get a whitebox with a comparable processor for under $750 and that comes with all sorts of things left out of the blade?

    One of the few areas you pay a premium for them to leave something out that you don't need. You're bribing them not to put it in.

    I want a *nix to do load-balancing, failover and load-sharing clustering with remote network boot thin client serving much like I could get for free with a few spare days of recompiling various distributions and project sources. I'm willing to pay but if it is going to cost an arm and a leg and get me less support than asking a couple questions on various web forums does, no dice.

    Given what I am looking for and knowing what I do of HP, I am not holding my breath. This is just one of many many areas HP could have tried to get into where no one else is bothering. Instead we got the Compaq merger, we got Carly Fiorina and the saga of her removal, anything but a forward looking company doing anything to compete. We got craptastic personal PCs that Dell or even the average local whitebox maker could beat. We got Vectras that weren't offering anything that other business box builders couldn't offer and for less. We got a company living on their printer division's glory days while a host of competitors ate away at them, nibbling like carpenter ants.

    We got the HP name and that was it, but we also got the decline in value of the HP name at the same time. So... what was the point? I'm sure that's on the minds of those being laid off as they recount their time at HP. What was the point?

    --
    If my grammar and spelling are off, I am [distracted/tired/careless] (take your pick)
  40. Agilent by geekee · · Score: 5, Informative

    "Hewlett and Packard would be astonished at what their company is doing today."

    The company Hewlett and Packard founded is now called Agilent. What HP does now has nothing to do with what they did originally.

    --
    Vote for Pedro
  41. Re:And of course they fire a lot of skilled worker by HiThere · · Score: 2, Interesting

    If you don't understand what you're doing, then you can't successfully manage it.

    This isn't always true, but it's true such a large percentage of the time that only a fool would bet against it.

    --

    I think we've pushed this "anyone can grow up to be president" thing too far.
  42. I left the 'Prideful Elephant' in May by Leeto2 · · Score: 2, Informative

    I found it interesting that the article noted, "additional cuts may lower morale.." uh...morale was already in the pit. It can't get much lower, even in the divisions that are money makers.

    Part of the reason I ended my eleven-year career in May was layoffs. I simply hated waiting for the other shoe to drop. People would just disappear, and you'd find out later that they'd been laid off. (WFR'd in HP speak.) Being told by my manager that, "We're pretty safe (from lay offs) but NO GUARANTEES..." about drove me NUTS. Also, when the CEO comes to town and makes a specific point that HP has more IT people than sales people, it's time for an IT guy to take serious stock of the situation.

    In the long term I think Hurd will be good for the company, and I wish my former compatriots the best of success. A lot of fat needs to be trimmed, but the question is, "Can he tell the difference between fat, muscle, and bone?" There's a whole lot of fat in middle management right now.

    --



    "That's no moon"... Obi-Wan Kenobi
  43. Re:Here they come. by Anonymous Coward · · Score: 2, Insightful

    You can mutter about Germany's unemployment rate and all of this all you want, but you have to realize that NOBODY defines unemployment the same. Here in the US, anyone that hasn't found any kind of job, regardless of their education in 6 months is considered willfully unemployed, and just plain is not counted!

    Half the working population could up and lose their jobs, and assuming they haven't found jobs in 6 months, they're as good as forgotten. That's almost how bad it was during the great depression, where it was about one in three without a job.

    Of course, they do this so they can put a positive spin on the bullshit that they plan to happen. i.e. the massive re-distrubution of wealth that's set to occour in the world. Instead of some of us doing well, and the the rest just getting by, we'll all be middle class slobs, and the place to put your hands on the money will where the money travels through... i.e. the international banks.

    I don't know how they define it in Germany, do you? So, it's like comparing oranges and grapes.

  44. Re:TGI Friday.. I reported this Friday by davidsyes · · Score: 2, Interesting

    I guess I may be burning karma and grousing, but I'm willing to forfeit ALL my remaining karma, and any Meta Mod points to say the following:

    I reported this FRIDAY, 15 July at 1207 (and I am sure the paper was printed before 6AM Friday, which means ), and even put it in my journal, and even bought the Friday paper to have a hard copy. I think it would have made better excitement than to wait for SUNDAY just to see ZDNet's blurb. I guess ZDN *could* have had a writeup on it first, but I
    "googled" keywords and Google turned up junk from 2 years prior, but not a single word for Friday. I guess nobody reads the papers fast enough to stir things up so Google caches things before the ZDN's word gets priority over Google.

    TFA header/byline as timestamped on ZDN is:

    "HP to slash approximately 15,000 jobs

    By Dawn Kawamoto, and Michael Singer, CNET News.com Published on ZDNet News: July 16, 2005, 8:00 PM PT"

    Saturday NIGHT, no less...

    I suppose it *is* possible someone at /. gave me the benefit of the doubt and tried to pull teeth at HP and failed, or gave up with one, "We don't discuss layoff policy before the PR department has seen a designated newspaper publish it, and even after then, we refer inquiries to the published paper or our website after we've made it official on our website..."

    To get a submission posted before the regulars, is it necessary to add more redundant verbiage and speculation than the FA itself? Or wait for ZDN and on-site papers to display the content?

    Karma Purged/forsaken....

    --
    Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
  45. hellbent on self destruction by bani · · Score: 2, Insightful

    HP seems hellbent on self destruction.

    First the utterly pointless merger with Compaq.

    Then the abandonment of developing HP-PA in favor of developing Itanium.

    Then dissolving the Itanium partnership.

    Now, inflicting DRM on all their consumer products. Woo hoo, because it worked so fucking well for Sony that Apple ground them to dust.

    If I were an HP shareholder, I'd be demanding executives heads on platters about now...

  46. Re:Here they come. by globalar · · Score: 3, Interesting

    Here's a chance to talk about a leftist crackpot idea ;). Let us assume that is it my responsibility - and yours, everyone's - to build and maintain a society where the basic needs of every individual is met. How then do corporations fit into this picture?

    One theory goes that corporations are simply the complications of this "inhumanity" where wealth naturally collects and distribution is thwarted in the name of the great distributive system itself: capitalism.

    Consider, corporations are proxies which have the power of ownership - private property. Corporations have an advantage of efficiency when we consider large resources and complex tasks. This makes them akin to machines. As a body, any task is broken into smaller tasks and responsibility is spread into a chain. The weakest link defines the chain and thus the entire responsibility of this great machine can easily fail. As humans - remember our axiom - we place a huge amount of resources in corporations and therefore a large amount of our ability to fulfill our responsibility in these machines.

    I think of Assimov's 3 laws of robotics - so well interwined and seemingly effective. By breaking one law, the illusion fails and all the laws are broken. But we would love to believe the illusion can be held up, so we repeat the laws to ourselves. We even have the machines repeat the laws. Ultimately, the machines, our proxy workers designed for efficiency, fail to assume our responsibility.

    With a corporation, the general effect is that responsbility is far more difficult to handle than with a more direct ownership model. If you think about it, it's a ridiculous notion to believe that a corporation will have responsibility. Groups have jobs, incentive structures, and rules, but the central responsibility - which we assumed at the beginning - is not delegated evenly. It is not delegated at all, for the most part. How can you regulate humanity to humans? It certainly can't be "cost-effective".

    We are thus back to punishing individuals, only this time we have made the task more complicated. Now corporations get in our way of responsibility, because they allow people to amass great wealth and power, all while hiding behind a corporate curtain. What's more, they allow us all to participate as consumers, share-holders, etc.

    If the machine breaks the laws, are it's part's responsible? No, we attach responsibility to people. But people will always blame the machine - those who stand to gain from the machine's product will always place responsibility on the machine. Ironically, since we all own pieces of this great machine, these individuals are essentially blaming all of us. While citing the virtues of private property, a CEO may very well place the blame of some action on the organization as a whole - "inefficiences" or "the markets" or "competition". In effect, the CEO - a the model of centralized wealth in a capitalist system - is distributing the blame (responsibility-wise) while keeping the money. Thus the machine - and the hive of poorly coordinated machines that make an economy - really is a proxy, but for who's interests?

    Honestly, if we actually take up the responsibility as outlined, I am not sure the answer to that question. Do we get a good trade for owning stock in a corporation? All I know is I'm not quiting my job just yet ;)

  47. Re:Here they come. by aussersterne · · Score: 2, Interesting

    Yes, you're right. And there are arguments that bridge the two, like the one that I usually make, though I didn't this time: in an economic marketplace designed to encourage, reward, and sustain only certain types of behavior (willing all others to be eliminated), we risk ending up in a social and behavioral universe populated by very successful people whom we envy or respect materially but would utterly hate to know personally, left to choosing among a realistically limited selection of very productive tasks that we're tired of doing yet will have to do (as ruthlessly as everyone else) for the duration of essentially meaningless, übercompetitive lives.

    Wealth is only meaningful as the means to an end (comfortable survival, whose end in turn is the ability to carry on a meaningful social existence and interaction, as we are social beings). The moment we turn wealth into an end in and of itself and decide to use the ability to create wealth as our criteria in a darwinistic selection mechanism, we risk creating a world populated with such ruthless, single-minded, or backward characters that it's not worth living in or surviving for in the first place.

    It's the critical theorists' view, essentially: before one adopts methods and positions that are unassailably rational, one should consider carefully the ends that the given type of rationality so successfully produces and whether they are as desirable for society at large and for the individual as a complete, multifaceted being as they are for a single "successful" individual when considered only in the single context of said rationality.

    --
    STOP . AMERICA . NOW