HP CFO indicates more layoffs after it finishes cutting 55,000 people
HP
This shouldn't be a shock.
As soon as HP started talking about its plans to split itself from one ginormous company into two enormous ones, people started asking about layoffs. Both Lesjak and CEO Meg Whitman have been hinting for months that the separation would probably involve more cuts.
HP is so big, with more than 300,000 employees, that when it separates it will create two Fortune 50-sized companies. Any such reorganization normally includes job cuts.
Plus, HP is already in the midst of a headcount reduction that began in 2012 and has grown from an initial target of 27,000 to 55,000.
On Tuesday's earnings call, Lesjak said 2,800 people had "exited the company" during the quarter that ended in January. Not all left via layoffs: We know long-term HP employees who have taken early retirement packages or left for new jobs.
So far, 44,000 people have been cut under HP's 2012 plan. By October, when HP's fiscal year ends, "55,000 people are expected to exit. However, we do anticipate incremental opportunity for operational improvements identified through the separation process," said Lesjak on the call.
In other words, she doesn't know - or isn't saying yet - how many people the company will cut as it splits but it sees an opportunity to cut more.
We've talked to some HP employees, and they aren't particularly worried. That's because while cutting, HP is also investing in hot areas like cloud, networking, and advanced systems, and there are long-term career options for many people in those business units.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market