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This Is Why Hewlett Packard Just Announced Another 16,000 Job Cuts
The biggest scandal in today's release of Hewlett Packard Q2 earnings was not that it hit 30 minutes prematurely, catching algos unaware and unable to BTFD when the stock tumbled on what was a revenue miss and 1% decline from last year, nor that the company guided below estimate, pushing its stock some 3% lower in the last minutes of trading.
The biggest scandal was this disclosure in the second quarter results press release: "As HP continues to reengineer the workforce to be more competitive and meet its objectives, the previously estimated number of eliminated positions will increase by between 11,000 to 16,000." This is in addition to the 34,000 layoffs already noted previously, meaning HP will fire a total of 50,000 in the near future.
Want to know why HPQ is forced to fire so many well-paying jobs it once again makes a mockery of anyone who claims there is some economic recovery going on?
The chart below, which compares the company's quarterly CapEx, declining (so no, not increasing as some clueless sellside analyst hacks claim) by 16% from last quarter and down 4.5% from a year ago to $840 million and thus leading to less growth opportunities for the company and resulting in tens of thousands of pink slips, and the soaring amount of stock buybacks, which rose by nearly 50% in Q2 from Q1 to $831 million and by 27,600% (!) from a year ago, the most since 2011, should provide all the answers.
So dear soon to be laid off Hewlett Packard employees, if you want to direct your anger somewhere, please direct it at the company's "activist" shareholders who have forced management to invest not in growth for the future, and thus you, but to reward its shareholders immediately, right now with what otherwise would have been your future salary.
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Eating their seed corn. HP is gone.
Who is gong to buy a printer or computer these days? A small business? Good luck with that.
i traded a 12 pack of beer to my accountant neighbor for a HP printer last week... and was shocked to realize that i had to buy color ink, with a black ink cartridge, just to print black and white documents... wtf? but it gets better... also the half empty black cartridge had a chip in it with an expiration date... which is of course past. so just to get thing to work, i need to spend almost $100 for 4 cartridges of ink... not hard to see why this company might be having issues.
btw, did go on line and figured out how to buy ink refills and defeat the expiration date... but still, most are not going to go through that trouble.
go get your beer back.
bastard drank it staight away.
Lol I guesss you can have him pee in the snow what you want printed and then take a picture of it and send it as your document. With that much beer I am sure he is good for a few snow coverd fields worth of Piss Printing.
It was a good prank though. You'll just have to get over the fact that he profited from that bit of information asymmetry.
The Peeples need to be "Repurposed."
Dats all.
Cue Obozo saying "And I'm mad as hell about it!" in 3... 2... 1...
Hope & Change! O-ba-ma... O-ba-ma... O-ba-ma...
"Small business," someone above said? Forget that. Of the three 'small businesses' I know the owners of, two went under this year due to postal rate increases, internet sales tax and higher health insurance costs.
I don't see much of a demand for this stuff anymore.
Look online you can buy replacement ink you inject into the cartridges, walmart has it also. And most printers you can overide the empty cartridge setting by holding on to one of the keys for a few secs, go online and do some searching.
I have a cannon, bout a bunch of refill ink for eight dollars, been using it for two years no problem, and I can overide the empty ink cartridge deal after i refill it by holding on one of the keys. Works great for me.
What keys?--and on the printer or the computer? TIA.
Laser printer is the way to go, toner cartridge is $72 and lasts 2,500 pages instead of 250.
Toner refill for $26.
Oh, and the software default to photo quality every time you hit print. You have to go through a menu tree to get to draft or another non ink-wasting quality. I did that for a year, bought a Canon, and never looked back.
Fuck HP.
I still own a working 24-pin Citizen dot-matrix printer (GSX-130). They're still used whenever you gotta print out a form with multiple copies, so printer ribbons are also still available, runing around $8/ribbon.
I heard that National Public Radio is laying off a bunch of people too. I guess all that cheerleading was for nothing...
All the liberals gone over to Fox ....
(snark)
Well, I noticed there are no longer any Oscilloscopes at Office Depot anymore either.
Miffed;-)
Yeah, but at my local Rite-Aide they now have about a dozen different dildos on sale at the prescription counter*.
Bread and Circuses, Daaahling
* With them funny plastic security caps on them the cashier has to remove, like on booze bottles.... "Hey Maude, let's take some-a these funnies and a bottle to the little boy's room before we git our groceries, huh?"
nothing wrong with sexual entertainment. Think of how dealing with those women will be if they're constantly aggravated at not getting it.
Well, you may be right but personally, as in all things, I prefer the real deal to second best fakery. ;-)
Miffed;-)
I would hope so or that eliminates a heck of a lot of our purpose on this side of the gender divide!
Then again... from personal experience I can say one doesn't necessarily exclude the other. That can get interesting. You ever seen a pic of one of those crazy sybian things? It's like a damned engine. Shake a house. Not a hand-held appliance if you know what I mean.
GMO
seed corn..?
I didn't think HP still had 16,000 jobs left in the US.
My last printer was a Brother HL2240. I bought it for $50 on sale at Staples. You can buy refill kits for it for cheap. I will NEVER need to buy another printer, any time soon.
FGB
As long as they keep writing drivers for it for newer operating systems lol
And you can be sure that the majority of the 16,000 are engineers, R&D staff etc. The untoucheed ones will be in sales and Diversity Management.
I'd bet they let go of a number of the engineers and R&D staff, most of whom will never, ever be hired by Google or Apple (they're over 35).
HP will replace them with E-1,2,3 Visa holders from India and China for 1/2 the cost and no benefits.
Google and Apple mainly hire over-35 types. But most of them, are, of course, toast because of all the H-1B holders glutting up the Silicon Valley and elsewhere.
Whaddya mean "will" replace? Have you walked around their Cupertino or Palo Alto campuses lately?
They replaced most American-born staff with these visa holders > 10 years. Even back then the white guys were < 40% of the staff.
I'm all for giving people and "minorities" and opportunity. But given China's and India's populations, exactly WHO is the "minority"? Dumbass liberal HR assholes!
Yeah, well, white Anglo-Saxon, Christian, English speaking males are now one of the smallest minorities in Kalifornia and you think any "diversity" laws being enforced... Oh Fuck Me No!
Corporations putting dividends before people? < shocker >
LawsofPhysics Corporations putting dividends before people? < shocker >
---
We had something like that. It's called unions. Then the unions became corrupted too.
What's even more of a shocker is that one would think corporations would put people before profit and dividends. And aren't those people receiving dividends people? Oh yea, this is a facist society. Corporations are there to provide jobs, not profit for the owners.
fucken a, its a recovery
Hewlett the dogs out!
Numbers "accidently" (?) released by Meg Whitman during a conference call.
http://blogs.marketwatch.com/thetell/2014/05/22/h-p-fiscal-second-quarte...
asset deflation dogs
If you no longer actually manufacture....it's all contract...so no manufacturing CapEx....then what percentage would you expect to see...things like R&D (I thought) are Expense....
NOT saying that HP is not a POS company since Bill & Dave left...it is....but my question about CapEx is real.
Seems to me that HP is more like Broadcom than Intel.
Software and services are no more free to develop than hardware is, so even if HP went that route it wouldn't eliminate capex. However, even assuming the premise implied in your question is correct, it should still manifest as a gentle downtrend in capax, not the worst drop in three quarters.
HP ought to know by now that nobody is buying its junk. Capex is the most important thing for them to spend money on if they want to remain viable over the long term, but they've already decided not to do that. The strip mining of the company has begun.
Another one bites the dust.
I have to disagree...development is MUCH less capital intensive (in my experience)....high volume automated manufacturing is not cheap...but to your point I would have expected CapEx to have been relatively low for the last decade...so if it has taken a dive in the last few years like you I wonder why.
Agilent actually produces all the measuring instruments that Hp is famous for.
So the borrowing of the future chart is going hockeystick?
HP is the worst ever! I got one of their laptops for Christmas and its total junk, inoperable.
You know my family has bought over the years three of their desktops and four laptops and have been very pleased. They all still run just upgraded for more computing power and newer CPUs. I would buy an HP over a Dell or Acer anyday.
Eating themselves alive.No ketchup.
Remember the last ceo who got fired just after 11 months on the job got a 8 figure severance package. His idea was to divest the core hardware business to focus on software BS.
Meanwhile he had them buy a software company that had to be written off due to its fake valuation. People made billions on it yet nobody went to jail.
...and then they hired Meg Whitman. Goodbye frying pan, hello fire.
+ 1 Fiorina
I heard Carly didn't know squat about running the company but could suck a brick through a garden hose. ;)
Failed at Lucent; and presided over a dirty Coup over the Packard Family.
Some Bad Mgmt decisions just keep cascading down over the years.
"I don't know you, and you don't know me."
HP's core problem is its rotten core: the BOARD!
Those fuckers are really bad at picking or keeping CEOs, and it is the Board that needs to be replaced en masse.
E.g., As I recall, the GOBs (Good Ol' Boys) ganged up and turfed Carly because her profit stats "were good, but not good enough". They then hired Mark Hurd from NCR (who was eventually fired for Misconduct). Mark was supposed to help HP beat IBM, given that NCR and IBM had a 100 year war. He did not succeed, and was eventually fired for violating Standards of Business Conduct (SBC). The same SBC crap that everyone else had to "refresh twice a year". Before he did, he shut down profitable sections that were "not a good fit" or "not profitable enough". And so on, and so on.
It might interest you that the "grey mouse" among the execs, who made like a fucking Bandit, was their EVP of Finance: the guy double-dipped on salary while he was Interim CEO, and they were hunting for a new one. Doubled his salary for... doing fuck all, little more than he did before. What a cesspool of GOB cronyism! The Founders are spinning in their graves, while the many descendants are pissing away the Trust Funds in petty squabbles and ego-indulgences.
How many of those 16k sheep just bought a house or new car? Pays to have a f u kkng clue what's going on in the world.
Now you're just expecting a little personal responsibility.
shit, HP still exists????
o_O
Yes...it's called Agilent.
They are splitting that too, Keysight Technologies, for the test and measurment division. "tax-free spinoff of Keysight to Agilent shareholders and is targeted to be completed in early November 2014."
Thank You...that is news to me....did not know that...
Hmmm, so if your company was letting go 50k people you might wanna touch up the old CV.
pods
The talk about the lack of jobs has been going on for some time now, but perhaps it's time to approach it from another angle.
When this is how companies treat their employees, who the hell wants a job?
HP employee #50,001: Please turn the lights out when you leave.
The lights have been out there for a long time.
How does Carly' s trickle feel ????
Seasmoke How does Carly' s trickle feel ????
---
Odd question since Carly hasn't been with HP in almost a decade. Maybe you should ask Meg Whitman, the current chief.
Dunno, some girls have long legs. Fiorina got the company all hot and bothered, or took on a lot of water.
Funny how IBM made the same mistakes, sold off PC's to Lenovo, whose sales are up 25% this year.
Meg's too busy managing her illegal house-help.
It's really sad what America has turned itself into in the name of fighting "terrorists." The downsizer in chief has much more of this to look forward to as well I'm afraid.
If you don't stand up to them they stand on top of us. Legal arguments brook no quarter with them...and now they're rejoicing as the Generals...and Admirals...get blamed for what clearly was Wall Street's war from Day One.
"The Taliban." Give me a break. Screw you Brian Williams. Your fired.
why in the hell the military hasn't turned on these fuckers and their political puppets in D.C. is beyond me.
Given our extensive experience in coups around the globe especially.
The military has not turned on the politicians because the military is very fat and very happy....that might change if they have to fight the Russians.
because the military as a whole is about as dumb (and morally/fiscally broke) as the american citizenry who support the current power balance within the political economic system?
The US military has become a home for same sex couples, single moms and Muslim terrorist allowed to wear the uniform of a once great country. Obama cured me of any residual patriotism I felt after leaving the military.
The US military has become a home for same sex couples, single moms and Muslim terrorist allowed to wear the uniform of a once great country. Obama cured me of any residual patriotism I felt after leaving the military.
The US military has become a home for same sex couples, single moms and Muslim terrorist allowed to wear the uniform of a once great country. Obama cured me of any residual patriotism I felt after leaving the military.
TPTB have been actively cleansing the upper ranks of men that would take action for the past couple decades.
On rare occasion one sneaks through, but when the time comes, the coup will be supported by someone(s) far away from the pentagon, and their rank won't be general.
"My mental faculties remained in suspended animation while I obeyed the orders of the higher ups. This is typical with everyone in the military."
- Smedley Butler, United States Marine Corps, Major General, 2-time winner of the Medal of Honor, 1935
i believe this is good.. not bad - adds to the shitstorm
In addition I would like to see student loans instead of $1.2 Trillion balance currently - go to $3 Trillion - my understanding a majority of student graduates have no job nailed down after graduation which is three days away - every $35,000 in loans is $1,000 per month payment - with no jobs these people are all kindling for a major fire
the system needs to be on tilt to reach the chaos stage
the kids stoppped the war in Vietnam not the politicians or the military - everyone was on the street from University Place to Berkley - 1A sooner or later and "hell no we wont go" was the standard - let somone else get murdered -
they stopped the draft was the result and the war was over
the kids are the catalyst for major change especially those with an education - no matter how limited
republican or democrat is the same system we need totally different paradym to effect change
kids get it started and the rest of the demographic will follow
blow it up!
CIA/NSA will take care of these kids. I expect rather some kind of fake "blow it up" to give more power to the banksters and deep state.
Those kids would have to wake up from the facebook dream, it is not going to happen.
I concur.
Possibly if things get hot with Russia or they start some shit anywhere else again they will have to have bodies to put guns on. I believe that young people will NOT report and then the domestic shit will really start to happen, then full on police state!
I never was a big gun person, but I will be standing against a criminal government when the time comes.
If only... I'll be surpised if the brainwashed socialists can pull thier eyes off thier iphones long enough to cross the street much less rebel. Can't afford your iphone? No prob big O's got free phones for you too courtesy of the few of us still working and the financial future of the US thanks to QE/endless deficits...
So, how well did those former 60's radical hippies support the OWS movement?
Strange how becoming part of the establishment changes you priorities...
Would be nice to see companies start caring about their people again. Businesses need to consider all stakeholders, not just shareholders if they want to succeed in the long run. This is bullshit, but I guess Meg's got a number she's gotta hit...at least she'll be able to consult all those laid off on how to sell their possessions on eBay.
This is just a blip due to the weather. . .
This is Recovery Summer v. 5.0 (or is it 6.0??), so I'm sure they'll be hiring 'em all back soon.
How many of those 16k sheep just bought a house or new car? Pays to have a f u kkng clue what's going on in the world. Good One, Carpenter1 +10000000000000
4 Rules to live by:
1) True Money is gold.
2) True Money is Freedom.
3) Debt is Slavery.
4) Make sure you have a marketable skill that is in demand.....
Thaaaaaats all folks.....
5) Government is a plague on humankind.
If people without jobs wouldn't buy your products well into the foreseeable future, then what is the point of capex?
Yep - even outsourcing is getting automated.
50,000 cut - ouchie!!!!!!!!
Maybe they need to start marketing in Belgium. Someone's using a lot of printers there. . .
May has been quiet around here. The concerning part is usually we don't feel recessions hard. Looking like another subpar month. Along with Q2 looking worse than Q1.
One other thing to note - I've heard things like "This is the toughest/worst quarter in all my years in business."
I'm actually starting to get a bit worried about how much money is returned to share holders. If they could grow the business and make it more profitable, they would. Giving money back to share holders means the company looks at the economy and can't find anywhere to grow.
Think of it on a small scale. Imagine you run a lemonade stand. Your lemonade stand is doing well and the business sits on a lot of cash. If you think there is a market to grow your business, you might hire someone so two people can sell lemonade instead of just you selling lemonade. If things are very good, you might invest in a second lemonade stand to double your cash flow. If there is no market for a second lemonade stand and demand is not high enough to justify hiring someone, you'll pay the cash to yourself as a dividend (because it's more tax efficient than giving yourself a salary raise).
They have a word and half for those details : non gaap
Its better for them to admit they can't grow, than to try and grow and kill margins in the process. Which is the big problem with most of the big brand-name social media companies -- they can't grow, yet they pretend they can and hoard/destroy shareholder value trying to.
Hey, don't fret. They can all get government jobs.....
"Communism works. If you give everybody a good government job, there’s no crime.”
Because we all know how honest government is.
http://dailycaller.com/2014/05/21/dem-congressman-weve-proved-that-commu...
"....if you give everybody a good govt job....no crime...."
More proof that the politicians are proud of their gangster state....and if you don't agree, a highly paid LEO will break your kneecap.....
Politicians - the Peter Principle in action.
PTCs have one foot in the OPM biz and one foot in making real stuff. In this environment extracting cash flow is what they're supposed to do.
Future salaries? Capex? If there are all these wonderful opportunities for making real stuff, STEP AWAY FROM THE KEYBOARD. Invest your time and money and ingenuity.
There's a video on the Internet where two Indian HP employees are asked about the origins of the name "HP", and say, and I shit you not, they responded by saying "Happy People".
The company has been thoroughly infested with low-quality H-1B guest workers, at least in the roles that remain in the United States.
The mismanagement and offshoring of HP is a national disgrace. If Carly Fiorina and friends tried the same crap in China on a Chinese company, they would've had a date with the lethal injection bus a long time ago.
as an hpq shareholder i approve of this message
Sad, been a customer of Packard Bell/ HP since the heathkit/zenith days when my father spent the money to buy a computer. My favorite computer is my HP intel i7. That can rip time wasting in ms.
Typing on a Dell POS. Two other HP laptop computers are dormat. One has win7, the other has win8. She never uses the laptops anymore. Loves the HP i7 desktop processor speed. Neither one of us play computer games. Getting to one website to another is wickly quick.
Looks as if my boycott of HP is starting to bite. I haven't given HP a dime since Meg Whitman ran for Governor of California and brutalized the good people of California with an endless assault of political ads. Thank goodness Jerry Brown won.
The good people of California keep returning the brutish Diane Feinstein to office to so they deserve whatever crap they get.
Stock buy backs remind me of bulimics and people who have to donate plasma to pay rent.
The PC market (of which HP fights with Lenovo now for the #1 spot) is at near free-fall velocity, especially in notebooks where HP made a lot of effort to differentiate itself. The Q1 numbers are down something like 20% on year, ala Q4 2008. And China, the emerging market that had been propping everyting up, is heading down fast.
Ironically nearly every vendor says high-end desktops are doing great. Kids living in basements have disposable income for gaming systems, but businesses of all sizes aren't refreshing, and small busines is dying, killing corporate sales, too. Add in the lost BRIC consumer business and HP is toast, and I doubt Dell or Lenovo are too far behind.
Oh, and here I thought it was due to the incompetence of the overpaid wealth-extracting CEO, Meg "Troll Teeth" Whitman. She tanked E-Bay, looks like she's doing a good job here too.
Bad weather?
I blame it on Global Whoring.
WTF!?!?
Pretty sure I just heard Meg Whitman on the conference call say HP may lay off 50,000!
Shut up meg!
Better get used to her fat incompetent ass as it will undoubtedly have a high position in the coming Clinton admisitration.
The absolute brilliance of Dave Packard and Bill Hewlett's employee stock purchase plan was that it continued to give a hefty discount, even in times of bad economic performance. The employees kept the company capitalized during downturns. They were rewarded for their investment during the good times.
At the same time, there were never layoffs. Before all the outsourcing "stuff" started in the early '90s, it was cheaper to keep good employees in place to be ready for the upturn. Everyone, everyone, took a nine-day fortnight (i.e. one day off in ten) without pay.
No, I blame the graduates in Medieval French History that subsequently think that an M.B.A. from a major school somehow prepares you for reality. I also blame the managers that neither taught, nor instilled, the corporate culture in the new hires.
Right. It used to be an amazing place.
(by the way, the new buzz-phrase is: "we're only hiring engineers at the beginning of their careers". weasle words.)
P.S. My employee number is in the low 30,000 range. I've witnessed it all.
the new CO2 pistol is putting away squirrel in the freezer what with the cost of beef. Wild game. It's what's for dinner. YUM
Maybe they should have directed their CapEx and efforts at manufacturing a printer that isn't designed to ripoff the consumer?!
I wonder if that mindset, of designing to ripoff, then also infests the rest of the company?!
A certain Mrs J.Yellen will be unhappy if they can't keep the printers going - thanks HP, keep up the good work
"please direct it at the company's "activist" shareholders".....
I'd also include all those in top management who make the big bucks from their stock options and I'd also question their board of directors.
HP at one time was the cutting edge of digital test equipment but when fiber optics came online it's like they ceded the market and then they bought Compaq. Following the Compaq model they wrote drivers to make up for cheap hardware and expect primo prices for basically garbage. HP! I knew you when!!
It's all just part of the crazy squeeze out boom-bust economical model. 2008 Is just being posponed by the Masters of Craziness. Please fasten your seat belts. Seat belts??? Who has got gold and or silver? 95% Is in India, China and Russia ...
Caterpillar, IBM, HP, overpriced elitist expensive hardware.
Not always good.
Ten years, wait ten years (if anything left over).
Apple, Google (maybe) and others will pro bag (Microsoft included).
Maybe get Intel and AMD.
hehe.
HP is known for bulky and buggy softwares (inkjet printers, laser printers, fax machines, digicams etc etc)
HP laptops used to be loaded with all kinds of crappy trial softwares.
I have never had much respect for HP printer/fax/imaging programmers, and their hardware designers. So while the firing is sad, there is some element of justification due to the longstanding incompetence of HP employees.
Who the hell uses HP?
Mrs Atomizer and I do. we even have two HP wifi printers. Just like a cat spraying her terriory, she left her laptop for the i7 deskstop.
Who needs jobs? We have PRINTED prosperity now!