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HP To Jettison Up To 30,000 Jobs As Part of Spinoff
An anonymous reader writes: Hewlett-Packard says its upcoming spinoff of its technology divisions focused on software, consulting and data analysis will eliminate up to 30,000 jobs. The cuts announced Tuesday will be within the newly formed Hewlett Packard Enterprise, which is splitting from the Palo Alto, California company's personal computer and printing operation. "The new reductions amount to about 10 percent of the new company's workforce, and will save about $2.7 billion in annual operating costs." The split is scheduled to be completed by the end of next month. "The head of the group, Mike Nefkens, outlined a plan under which it is cutting jobs in what he called 'high-cost countries' and moving them to low-cost countries. He said that by the end of HP Enterprise’s fiscal year 2018, only 40 percent of the group’s work force will be located in high-cost countries."
Here's more of the article around the cuts:
Most of the cuts will occur in HP’s long-troubled Enterprise Services unit and may be offset by new hires in that unit. The head of the group, Mike Nefkens, outlined a plan under which it is cutting jobs in what he called “high-cost countries” and moving them to low-cost countries.
Many companies have layoffs but they don't disappear. The reason is that the layoffs aren't "reductions in force", they are mass firings of people who are expensive due to seniority or bad negotiations from better times. The company then turns around and hires almost the same number of people, but at a lower rate.
This is frequently done by going to cheaper countries (which is what Nefkins is actually quoted here as saying), which means that this is effectively equivalent to an outsourcing. Either they will really outsource those jobs, or they will hire people in "outsource-worthy" labor markets. That makes this an outsource in all but name and perhaps organizational detail.
why? because they are making sane choices to stay cost competitive in a cut throat low margin business? personally I think they are making a smart choice if they want to stay in business in future, quite possibly this is the only way they can hope to survive.
Workers are the consumables.
You are welcome on my lawn.