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."

Comments

It seems they lost the HP way long ago

[dejitaru]

I've owned two HP computers, basically my first one that wasn't a hand-me-down in 1997 (HP Pavilion 8140) and my most recent one I got this year (Envy Pheonix). So I decided to read up on the history of HP's CEOs and it seems that they have really lost their way after Lewis Platt resigned back in 1999. It says a lot on what happened to the company based on the Wikipedia entry on Platt's page:

"Late in his tenure, Platt was often criticized by investors and some HP executives for focusing on progressive values and long-term results. Platt's detractors said that company needed a more cold-blooded competitiveness and higher octane leadership to succeed, that his "pragmatic, nothing-fancy approach" seemed out of touch with the "go-go demands of the late 1990s," and that he had failed to capitalize on the Internet boom."

So the investors and executives cared more for the quick buck instead of long-term growth of the company. What a shame...

spinning off Enterprise?

[Anonymous Coward]

"The purge announced Tuesday will occur within the newly formed Hewlett Packard Enterprise, a bundle of technology divisions focused on software, consulting and data analysis that is splitting off from the company's personal computer and printing operations."

Wha? They are keeping consumer business, spinning off the Enterprise business, and it will be moving to low wage nations?!?! I thought enterprise was the high paying american jobs, and consumer was the cheap, crappy stuff that would get outsourced to China?

Re:Get out there and shop!

[turbidostato]

"Hmm, what happens when you have no customers left in the "high-cost countries" to buy your kit?"

Well, you'll sell them to the high-grow countries, which happen to be those where you outsourced to.

Think of it: where would you want to be selling printers in ten years? A country already full of printers, where you can only sell for those that break and less paper is used at home, or to a country which is growing and basically doesn't have one?

Do you think HP gives a damn if it's selling devices and services to USA or the new generation of growing companies and middle class in India?

And even if it ended up utterly wrong in ten years, do you think the high executives that will get their ginormous bonuses in less than five will give a damn?

Re:To the other Republicans...

[unixisc]

Actually, there are a lot better grounds to attack Carly. Like today, she rails against the Iran agreement, but as HP CEO, she authorized a foreign subsidiary - Redington Gulf - to sell HP products into Iran, in order to get around the sanctions. She criticizes Trump for his immigration stance, but as HP CEO and even as McCain's advisor (when he ran for president), she supported amnesty, just like McCain did.

For the record, I do agree w/ most of the GOP platform. I just think that Carly would be as bad as Bush or Gramm if she was elected.