HP executives - like many other terrible corporate executives - are continuing to use the old style of slash and burn economics. Instead of supporting their employees during hard economic times they are going to cut jobs.
Yes, the bottom line will improve but now they are hurting people. But don't worry if you live in China because your job will probably be spared (NY Times, 2012). The actual number differs between publications. Bloomberg suggests 8% (25,000). Business Insider predicts "significant layoffs" as large as 32,000 people.
The bulk of the layouts may come from Hewlett-Packard’s enterprise services group (Bloomberg, 2012). Business Insider is reporting the same (May 17, 2012).
Bluntly - HP executives are screwing up. They should be stabilizing HP Services so that it can grow rather than panic people.
Shame on HP. Shame on Meg Whitman.Shame on hiring McKinsey & Co - a group that can't even get their webpage loaded correctly. Here is a morning snapshot of their index page on their website. Worse, they don't even take their own advice from 2009(McKinsey Quarterly, 2009). Ha - Forbes top 10 list needs a reality check.
it is laughable to suggest Ms. Whitman is trying to
build a company by harming people. If she were building then she'd invest in HP Labs. She'd make sure there was a head of that division.
Why would anyone want to work at HP? Your job is unstable. Go to another company.
Sources:
NY Times,
Bloomberg,
Business Insider (May 16),
Business Insider (May 17),
McKinsey Quarterly
