HP Plans To Cut Up To 4,000 Jobs Over Next 3 Years Amid PC Slump (bloomberg.com)
Yesterday, it was reported that the PC industry is on a two-year downslide as PC shipments have declined for eight consecution quarters. Today, HP announced it will cut between 3,000 and 4,000 jobs over the next three years due to the PC slump. Bloomberg reports: The company will eliminate positions across the board, Chief Executive Officer Dion Weisler said on Thursday. The comments came as HP held its analyst meeting in New York. The reductions could include 1,000 jobs being outsourced if the number of positions edges close to 4,000, Chief Financial Officer Cathie Lesjak said. Weisler is searching for additional ways to drive profitability after his PC company gained independence last year from Hewlett Packard Enterprise, which sells corporate tech gear. Earlier this year, Weisler said HP would need to accelerate a plan announced in 2015 to eliminate about 3,000 positions over three years. Instead, those reductions are to be completed this fiscal year. HP has about 50,000 employees now. HP said the newest job cuts will generate cost savings of about $200 million to $300 million annually starting in fiscal 2020. The Palo Alto, California-based computer maker expects to take $350 million to $500 million in charges in connection with the plan, and of that tool about $200 million will be labor costs, according to a regulatory filing.
This is the consequence of the death of Moores Law. A lot of people won't be happy to hear this, but Moores Law is dead and won't be coming back. Digital computers are reaching an endpoint and there are no more leaps to be made technologically here. Essentially digitial computing is hitting a dead end. The computer you have today will look a lot like the one you will have 10 years from know. I know people will go on about 3D microchips, atomic transistors, exotic materials, but that isn't going to bring back Moores Law. We have been spoiled for decades, but the party is over.
Note that "across the board" does not refer to the board of directors.
I can't call them "layoffs" because that term is reserved for employees who are welcomed back at some point. Meg and her cronies also drastically reduced HPE's contribution toward benefits, particularly for the NewCorp spinoff people - meanwhile, the plans offered have become more expensive as well, with prescription copays as much as $50 for 30 day supplies. It's effectively a huge pay cut. They are daring the remaining employees to quit, by bringing morale to an all-time low with employee-hostile policies.
Meg actually had the nerve to cheerfully tell the people watching/attending an all-employee town hall how great it was that they were moving so many jobs from high cost countries (i.e. US, Canada and Europe) to low cost countries. Sociopath much?
fire h1b's first!
How many employees do you actually need to sell PCs? If this was their servers I might agree.
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It's pretty much a "day in the life" for HP to make people redundant. I'm convinced they only do it to boost their stock price.
If you look at the HP Origins movie which they show to all new hires, HP brags of a company that cares about it's employees.
https://www.youtube.com/watch?...
Excuse me while I feel violently ill. Maybe that used to be the case when Bill and Dave were alive..... but now....?
How the mighty have fallen. It's very sad watching that video.
The real problem for HP is that they now make "Made in China" crap and ride on their brand name and it's past glories. I can't think of a worse brand for computers now. Quality seems to be an afterthought in the drive to produce stuff that only barely just scrapes past the warranty period. Every HP I have come across has had some lingering issue with it. Dead and dying keyboards, broken hinges off the bottom of laptops, laptops that fall apart, random blue-screens on their business docks, glitchy displays, Windows 10 upgrades that cause serious display issues, their custom HP BIOS that blocks third party hardware from being used (forcing the consumer to endure phone support to buy HP parts at greatly inflated prices), their printers from barring 3rd party ink through firmware updates, etc. etc. etc. and that's just what I've seen.
Sure all brands have the occasional bad egg, but HP seem to create more than others.
And yet, HP equipment floods the market where I live, and given the choice... it's just cheap and nasty. ... and heaven help you if you have to deal with their support.
So these days they're almost irrelevant in the consumer space. Microsoft pushed people away from Windows with Windows 8 and has been scrambling to bring them back. Then of course most computers these days are good enough for most people and don't need to be upgraded constantly. ...and then you have Windows PCs for most everyone else who hasn't got the memo yet - but yet relies on office and the like.
Then, you have iPads for most people who just want email and to surf the internet
Then you have Macs for most people who want to do stuff rather than wrestle with a computer
That said, Windows computer issues keeps most home IT techs in business.... as they'd otherwise be working for HP.... if HP didn't send their jobs overseas.
READY.
PRINT ""+-0
I am a 63 years old young man and I think my brain may need a software upgrade :) Or do I need to step into a Tesla coil and give my self a control alt delete reboot? :)
Who was HP? I have an HP 202C Audio Oscillator. It's one of those instruments that have the tubes (little glass bulbs that glow dimly in the dark) inside it and creates audio tones. I truly wonderful piece of test equipment. :)
Now, please remind me, who are HP now? I don't think they make test equipment; isn't it computers now? Or is it printers? I forgot. Or do they only manufacture layoffs now?
Most Respectfully Yours Mark Allyn Bellingham, Washington
Well, if you get past their impossible interview process....
Don't bother applying unless you can answer the following vague. open-ended question that you could not possibly prepare for during the limited time of an interview:
"If you were to build amazon.com today, how would you do it?"
READY.
PRINT ""+-0
I got a kick out out of the use of the word 'slump'. It suggests a temporary drop, as opposed to a permanent decline in demand for a new computer.
HA! I just wasted some of your bandwidth with a frivolous sig!
Years ago i was tasked with sorting out a hp computer for a friend so i used the live chat in windows help. Alas i was not an american - no help. Years later the phone line support (charged) gave me the wrong phone number when the windows key became invalid.
Since i dont need or want a windows license, and can buy linux computers without the microsoft tax why would i want to buy hp internationally ?
That old hp computer is still working but now has linux on it, hp wont be supplying the replacement.
When this [nanometer transistors] is ready for mass production, we're about to see a boom in computing that will make the 80s and 90s look like nothing.
No it wont, it will just make my system unit smaller, or rather the microchips in my system unit smaller. For which I don't give a toss because my system unit is already small enough to fit unnoticed in a corner under my desk, and can already do more than I need it to as a computer despite being over 10 years old.
If you are talking about microchips getting smaller (and cheaper) enough to be put into more and more things, then that revolution is already happening (or has happened already - credit cards for example); but I would not define that as "computing". So the processor in my credit card will be smaller, but it will still be a credit card.
I've got to give credit to Microsoft and Intel for making it easy to create a PC company. Intel produces a reference PC design, and a large number of chips. So, the design can get minor tweaks, for putting the design into manufacturing. So, you have to manufacture, sell, and provide warranty support for the PC. Today, manufacturing can be outsourced .....
I missed where Microsoft came in.
It was IBM who made it easy to create a PC company. When they introduced the PC they did not think it important enough (a passing fad, they preferred mainframes) to make most of the stuff themselves so they contracted it out. Intel and Microsoft were just two of those contractors. And IBM did not stop those contractors from selling the same stuff to third parties - other computer makers. So a cottage industry of PC clone makers sprang up using Intel chips and of course MSDos, among other things.
In fact Microsoft made things hard for those other PC makers - and still do - like charging silly prices and stopping them from pre-installing OS/2, Beos or Linux. Alan Sugar (of Amstrad) said of the price of Microsoft's software : "... as a computer manufacturer we are really a servant of Microsoft ... the bill of material content of our computers, the highest price ticket item in there, is the royalty we pay them [Microsoft] to put Windows in the box"
HP and all the other manufacturers are caught in the perfect storm of:
- PCs having enough power for almost anything an end user can throw at them (including games) for a much longer period of time
- Tablets cannibalizing the "information consumer" side of the market
- Nothing really exciting and new in the PC space for years
The industry in general is hyping the cloud as well, which basically reduces PCs to thin clients...even though all those JavaScript front ends require at least a full processor core and 16 GB of RAM to run efficiently (sarcasm...in case you didn't notice.)
I do end user computing in the business world. Yes, Millennials are bringing their phones and tablets in, but outside of a few niches, most of the real work gets done on PCs or Surface-esque full PCs in a tablet form. I sure hope HP is using these 4,000 layoffs to refocus on providing a rock-solid line of business PCs and dumping all their consumer junk down the toilet. That's the side of the industry that is falling off a cliff...you can't make margin on $300 PCs, and consumers don't need them as much as businesses need $700 PCs with real warranties and support.
Gotta feel for the employees of Samsung's printer/MFP division, who HP purchased. I bet a LOT of them will get terminated also.
are mostly in America. IOW, this is just more BS.
I prefer the "u" in honour as it seems to be missing these days.
If the workers of the world all lose their jobs and become unemployed, are they still being exploited? Communism is about addressing worker exploitation issues. In this case, the chains - binding them to their jobs - are all gone. Unfortunately, w/ that goes the chains of their wages to them.
Well both of those things probably attributed to the issue, I think this probably has more to do with profitability and short term stock returns than any actual "trend" in PC sales.
I heard very recently that HP was spinning off the most profitable part of the company into another one. I've heard that the largest investor of HP with something like a 6% stake is suing the company because he will be with the with the less profitable PC and Printer business which is being held up by the other. This could be simply a way to make the company look more profitable in the short term so the CEO doesn't get sued for hobbling the company's share prices.
Tried looking for the news online, but can't find it... It could be that HP has just been sued so many times and that this is very recent news so it is like a needle in a online haystack.
Warranty support? Barely 1-3 years, when nothing happens to your PC. After that, good luck. Better idea - have an annual contract w/ the Geek Squad, if you're not technically inclined.
Actually, fire Meg, and replace her w/ whoever is running Quanta or Compal or Arima. Move headquarters to Taipei, and let HP headquarters provide office space for the coders who they wanna kick out of downtown Palo Alto (the story on this on /. some weeks ago)
Patent single-click purchases, like it worked so successfully for you....
Someone who is in the industry probably has more insight than myself, but if money into PC desktops goes down, will r&d also go down and slow future progression in technology such as VR? Seems to me the office environment could benefit from AR or VR.
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