HP to Invest $1 Billion, Cut 9,000 Jobs in a Few Years CNBC staff and wire reports | June 01, 2010 | 07:59 AM EDT Hewlett-Packard will invest $1 billion to relaunch its enterprise services as it consolidates various aspects of the division, the company said in a press release Tuesday. The world's biggest PC maker said it expects to make annual savings of about $1 billion after reinvestment of $500-$700 million. It will consolidate its enterprise services' commercial data centers, management platforms, networks, tools and applications, the company said. The $1 billion charge associated with the development will be spread over a multiyear period, the California-based company said. As part of the re-launch, Hewlett-Packard expects to cut roughly 9,000 positions over several years. HP will now move to "fully automated, standardized, state-of-the-art commercial data centers," according to the press release. Shares of Hewlett-Packard [ HPQ 46.01 +0.00 (+0.00%) ] were 1.3 percent lower in pre-market trading.
Yet another example of the "surplus of labor" we face in the US.... which has not been addressed in any form other than to "extend unemployment benefits".
The increased cost of Obamacare is likely the REAL reason for the consolidation. They SHOULD have mentioned it... that is if they are pro-America. Obamacare has nothing to do with "decency" or "fairness", nor "cost savings" (yet another BALD-FACED LIE!).... it's all about Leftist power and control.
It's ok, the last guests on CNBC said China will take care of us. China won't let us go back into recession, they won't let war happen in the Mid East, or with N. Korea. Unless of course it works to their advantage. China is our new best friend to listen to these guys. While what they say makes sense on a simpleton level, it is far from reality with China, and only a fool believes they have our country's welfare at heart. What goof balls CNBC puts on.
the surplus of labor is the result of extended benefits. without the benefits the "unemployed" would become entrepreneurs or work for entrepreneurs at reduced wages.a friend of mind hires lawyers at 30 to 50 hr. and bills them to clients at 300/hr.the work was formerly billed at 1000/hr by mainstream firms.
Actually HP has a big glut of middle managers,fatcats,etc.. When they come to a meeting they have like 9 folks with one person knowing answers to questions and the other 8 just people with titles collecting salaries who just spend time at meetings and lunches. HP is full of non productive driftwood. They need to cut way more than 9000 people. 21st century economy means no more inter-corporate fiefdoms and the days of having 40 employees under you so you can justify your fat VP title and salary are coming to an end.
Much more than that. At least for the USA, it's a negative unintended consequence of globalization/outsourcing.
Teldar Paper, Mr Cromwell, has 33 different vice presidents... ...each earning over $200,000 a year. Now, I have spent the last two months analyzing what all these guys do. And I still can't figure it out. One thing I do know is that our paper company lost $110m last year. And I'll bet half of that was spent in all the paperwork between all these vice presidents! Gordon Gekko, Wall Street 1987
Yea when times are good and the economy is growing anything goes when hiring individuals, its all about giving someone a title to make them feel better about themselves. I just find it funny how much some of these lead people make working for these companies.