This page has been archived and commenting is disabled.
This Is Why Hewlett-Packard Is Firing 58,000
The biggest scandal in today's release of Hewlett Packard Q1 earnings was not that, just as the Nasdaq is knocking on 5000's door, it reported revenues of $26.8 billion missing consensus expectations of $27.3 billion, while beating non-GAAP EPS by 1 cent to $0.92 (up from $0.90 a year ago) entirely due to a massive reduction in outstanding stock and some truly gargantuan non-GAAP addbacks (GAAP EPS declined from $0.74 a year ago to $0.73) pushing the stock down 7% after hours.
The biggest scandal was the company announced that having cut 44,000 workers so far, it will cut 58,000 jobs by the end of 2015. From Bloomberg:
- HP SAYS HAS CUT 44,000 JOBS TO DATE
- HP SAYS EXPECTS TO CUT 58,000 JOBS BY END OF FISCAL 2015
Incidentally, just 10 years ago Hewlett Packard employed a total of 58,000 people in the entire US.
So why is the company axing 58 thousand workers? Simple: so it can cut enough costs on top and continue to fund its now exponential surge in stock buybacks, which in the just concluded quarter was a record $1.6 billion, an increase of 178% from a year ago, and 66% more than the company spent on CapEx, in the process making its shareholders even richer while its management team get massive equity-linked bonuses.
Rinse. Repeat.
»
- 79523 reads
- Printer-friendly version
- Send to friend
- advertisements -
Hold on!
Our Goal is Full Soviet!
We have many moar to fire here in the USSA!
Bullish. They will have to hire a bunch of people to find the 58,000 to lay off...
HP can either:
Pay Obamacare for its 58,000 employees or fire all 58,000, maybe take back 25,000 as part timers and buy back stock.
I was thinking of purchasing a new HP but now I'm reconsidering another brand. Let them eat their stock portfolio.
except the Dell has imploded their customer service faster than HP has.
ive been running this toshiba laptop since 2009. ive called customer service exactly zero times.
Why not auction off the people on Ebay? There are people at Hp with Ebay experience.
that ended in 1865.
supposedly...
Tell that to Wall-Mart workers.
No one will have a job soon, only CEOs and government workes, no one will buy anything...
It's game over and death spiral
But government is hiring! 3 guys sharing one job. It's been done before and the bosses in the Politbureau were reporting strong employment numbers!
mosquito can have blood too, but he is not a human
Sun Tsu?
"It's game over and death spiral"
But stocks keep going up.
Good for them. The company will cannibalize itself and the fired people can make their own competing company and IPO it. What's the problem. The whole economy is based on looting, raiding, and theft. IF the company dies, so what. That's their purpose.
News Flash: They've relocated off-shore in China along with Intel, [HP], AAPL etc., etc...
here, read this by Pepe Escobar at Tom's Dispatch:
http://atimes.com/atimes/China/CHIN-01-230215.html
jmo
Ps. It's all about turning a quick buck, and caring little about America as Reagan, Bush #41& #43, CLINTON {esp. Clinton!!!} and now Obama Kowtowing to Xi?
Just think what will be left of America by 2030 once Hitlary {Age 69 }is elected as Dictator and Chief of the 'USSA`Atlantist`Communist Party', in a skirt'ed-pant-suit dress'd for hiding a cock-a-doodle-due?
I've watched jobs go offshore to 'save money' and the people that they employ can't do the work. Thus they are saving money getting nothing done. I'm certain there are some serious bonus dollars for such a thing.
Capitalism, whats left of it is eating it self.
And.... it's gone. This is the mother of all pump and dumps where executives gut the company to drive up the stock price and cash in themselves, and then the empty shell crumples and blows away in the wind.
Who is Bob Nardelli and why are there so many damn Home Depots where I live?
Home Depot & grocery stores galore. I wonder how 7/11 stays in business. But I want to know -Why are there so many hospitals around here?
Thing that sucks is that they dump the stock on pension funds who are left holding the emperor's clothes.
Which is the beauty of the scheme. Who cares if the retirees get screwed five or ten years from now. What are they going to do - stage a riot with their walkers and scooters? It's just like Enron. They'll bitch a lot about being screwed, and then go home and obediently eat their can of dog food (if they can afford it).
+1000 Another looting of a once great company, only to reward and enrich an incompetent, selfish, greedy, self-serving management and board of directors, at the expense of and on the backs of the employees, who built it.
Fuck you HP! RIP
Its screwed when they all hit the street at about the same time. The remaining employees get the message: "STFU and work your ass off or you're next MOFO!"
This stock buyback trend is completely idiotic. These schmoe's know they're buying their stock at a premium, and when the market corrects, which it will, these companies will still be left with all the debt they created. In my crystal ball, I see a wave of CXO's jumping out of the rockets with their golden parachutes, just before the entire thing falls apart, leaving the idiotic shareholders and Cramer-sheep, holding a bunch of worthless paper.
What a bunch of dicks.
Well, when all is lost and nothings left to lose, we go find these shmoes and beat them to death.
Good luck with that. They will all be clustered along with our lovable Congress in fortified Blackwater guarded homes; those 20,000 square Foot, 10 acre fenced in lots the less fortunate of us call compounds.
"Think of thousands of fires breaking out simultaneously over a circle of forty miles in diameter for every bomb dropped,"
http://www.theatlantic.com/technology/archive/2011/04/old-weird-tech-the...
http://www.prestigecostaricaproperties.com/content/papagayo-real-estate
More likely they will be behind walled compounds in Costa Rica with armed security ready to dispatch your corpse in some unmarked grave in the Costa Rican jungle.
I was suffering from insomnia again, when I thought I would start one of those kickstarter or crowd sourced funding projects...
Help me manufacture a nuclear weapon. Because why should governments have all the fun?
Still working out my costs... I figure I should ask for a couple of million to get it off the ground.
You left out the small black helicopters.
How many people here own an iPhone or an HP laptop? I can say with shame that I do. I/We can complain about these sheisters but until I/we vote with my/our wallet(s) and stop buying stuff from these crooks, nothing will change.
I just had a moment.
In the workstation laptop world, there's Lenovo (Chinese spyware), HP (everything that is wrong with corporate America), and Dell (everything that is wrong with private equity). Which computer sucks worse is a matter of which month you buy it, as engineering and support staff are disappearing at all three. I have a Dell that spontaneously reboots (which I'm told is normal), so I'm thinking HP next time, but I don't want to feed the beast.
I use an HP Workstation and their 60" plotter at work too. Honestly, nice laptop. They have good processors; only the hard-drive and RAM like to fail (happens about once a year). Everything's backed-up in the cloud so whatever.
What do 58,000 people do at HP? All the laptops say "made in China"; they certainly don't need any assemblers; they certainly don't need a sales force that big. Judging by the new products they've recently put out (none), they don't need an R&D department. 15 years ago, this'd be known as "right-sizing".
IMO, they probabably would have done well to spearhead the 3-D printer revolution. They will go the way of Tandy, Gateway, Compaq, and Cray, which has less than 1000 employees.
I still think they should sue the shit out of windows for ruining the PC.
How much do you think the materials cost for all the shit that goes into their mini tower?
$.25? Maybe a $1.00? Everything else is just software. And those people only make money because people are still dumb enough to buy an OS.
Believe it or not, I wonder why they even bothered with the $1bn in CapEx they did spend. This entire tech industry is totally f-ed.
In other words, HP is not just shrinking, it's imploding.
Big Bubble strikes again.
Move along! Nothing to see here!
Move along bystanders!
Move along!
Hewlett-Packard Co. Chief Executive Meg Whitman received $19.6 million in compensation last year, up from $17.6 million the year earlier.
Ms. Whitman, whose base salary is $1, saw her compensation boosted by additional stock awards and incentives, according to a regulatory filing. For example, she received awards ranging from about 50,000 shares to about 100,000 shares twice in December.
Ms. Whitman is scheduled to receive additional share awards in March and December of this year.
The problem we got here is these top-suite guys are ashamed to get their hands dirty doing actual work, like maybe pushing a broom or tightening up a loose water hose under the sink.
They have no dignity, and do not understand the working man.
Soon, some CEO is going to the main factory. He will find nobody there.
"What's going on?"
"You guys fired 99% of the workers. I just stay here to turn the lights on and off, myself."
"Well, what do we make?"
" Today, Nothing at all. But, hey, we're at an ATH on the Dow!"
"Hell's Bells! Let's buy back Moar Stawk!"
And you thought Carly Fiorina was bad!
No Obamacare, more money to buy back stocks, letting QE manipuflation be your tail wind .... it's a wind wind situation ?
Modern big business/Wall Street /Fed life is based upon the exploitation of loopholes, bribery,corruption and confusion to steal money- not to produce wealth.
These buyback policies are gong to make the stock market shenanigans of the 1920's look benign.
America is gone
Stick in a fork.
But it's so much better in Russia or China or most of Europe or Brazil or Mexico. What a bunch of pajama boys. Merka haters as a result of too much 0bammie talk pumped over the air waves?
Another hollowed out publicly listed company
HP used to be great, then made some stupid purchases, then issues with forward growth in the HP9000 IA64 II systems, with the losses in other areas, they've just become a self liquidating trust fund. Another good company down the drain. They spun off HP INC (Ink) for pc's and printers, they will make minimal money, they should spin back the Compaq systems and still kick IBM, Cisco and Dell's ass there. But no, they'll buy back stawks. Fucking market. Fucking public companies. Balderdash!!
If it wasn't for the ink business HP would have died off long ago. Anyone who at any time worked in Silicon Valley knows this to be a fact. To think otherwise you are deluding yourself.
I hear it's pretty easy to get an EBT card and an Obama Phone these days - no worries for those 58K
HP had 58k black employees?
My god what is Obama going to say.
Fire ALL the employees...
Buy back all outstanding stock...
<something>...
PROFIT!
What is even more scandalous is how the layoffs are being implemented. The CEO, who is 58 years old, has been heard to say "we will only hire engineers at the start of their carreers". This has been echoed by the *VPs to the troops. Many of the layoffs are also "no more telecommuting" oriented, a policy copied from Meg's friend at Yahoo. The issue is that the demographics work out too well for the company: resulting in age discrimination, because the telecommuters are more often than not older workers that are unwilling to move to places like Texas or Colorado because of family, houses, or other ties. The other interesting fact about "no telecommuting" is that management (of course) is exempt, as are numerous other "valuable" employees who just happen to be younger or have a friend somewhere. I would suggest to Meg that she should only hire "managers at the start of their careers" and she should replace herself and the rest of the management with new college graduates who would cost the shareholders a lot less money -- they certainly couldn't screw things up any worse than the present lot.
"Look, boys, if we cut another 10,000 workers, our bonuses will go up by 15% !"
"Yeah, but who will do the work?"
"Ha. That's what buybacks are for. We don't need to actually make anything anymoar!!"
thing is, younger engineers lack the experience. i am seeing this in my industry. and designs and technical managment is falling to shit as all the talent retires. it's a really fucked up situation...
thing is, younger engineers lack the experience. i am seeing this in my industry. and designs and technical managment is falling to shit as all the talent retires. it's a really fucked up situation...
Younger engineers don't know shit... Just had that conversation with the senior test engineer at work today.
58k Chinese employees being laid off? Now, that's serious! /s
I have never owned a HP shitbox computer. When I saw the proprietary power supply in one I ran. I haven't bought an HP printer in 15 years.
I have a Brother multifunction, VAIO laptop, and Asus desktop. Very happy with all of them.
Lenovo stuff is pretty good.
new-egg-dot-com has all kinds of stuff.
(I am not a stockholder).
Re Lenovo stuff: just make sure, if you get one of their laptops, that you get the recently released tool to remove Superfish, the malicious adware that Lenovo was adding to their laptops at no additional cost to the consumer.
LOL, and thats just whats been made public.
Just imagine what kind of things APPL products might be hiding. It is way easier for NSA to advice Apple to put few lines of code somewhere in there than NSA asking Lenovo to do such thing.
In the process of stripmining we had to liquidate some folks.
Yep, looks like the good ole USA will end up like a Giant Strip Mine!
But thru pen and phone, Chalky will order the serfs to re-fill the hole.
Integrity, leadership, future?
How low can we go?
Sad days for Amerika.
How can U imagine someone with 26-27 billion reveneue has to cut jobs? Total insane! Total greed!
Going out on a limb here: imagine they had > $26-27 billion expenses.
Someone has to fight for our freedumb, Brwando and free burrito toppings. 58,000 is about how many were killed in our venture in Vietnam. Go team Amarca
That's "burrito wrappings" not toppings.
Boring and did anyone on this site expect anything else. The most of yo have missed the the news cycle
Talk about full circle. By the time Meg Whitman exits HP with another golden parachute worth a couple billion there will probably be three people left at the company working out of a Palo Alto Garage, just like when HP started.
Don't worry, HP Israel has positions for Java programmers in the city of Yehud. Take advantage!
http://h30631.www3.hp.com/il/israel-jobs
Downsizing and outsourcing never include the C levels or VPs. They could replace the CEO and CFO with an accountant for $100k pa and save a buttload of cash, but that was never the goal. HP lost it after they went fro being an engineering company to a financial engineering company and snatched up that useless cunt Carly F for a $50M+ package. What a bargain.
AMD is the same way... and you can see where they are heading.
AMD is the same way... and you can see where they are heading.
58,000 layoffs should raise Obama's approval to 60%. Hope and Change!
wait til obama see's this on the news, he's gonna be pissed. Pelosi on the other hand said these 58,000 are no longer job locked
Plus, they can collect unemployment, which I heard is good for the GDP.
And lower the unemployment rate by a couple of tenths. It's counterintuitive. You need to be really fucking smart to understand how it works. And those sharp eggs have been snatched up and work at the Bureau of Labor and Statistics.
(Bloomberg) -- Kansas and Kentucky may borrow billions to invest in cash-strapped pension funds, undeterred by warnings the practice risks driving up taxpayers’ bills to retirees.
The states’ lawmakers are considering following a strategy used more than a decade ago by Illinois and New Jersey, which sold bonds to bolster retirement systems that have since fallen further behind. In January, with stocks close to record highs, a group of state and local-government officials advised against speculating with borrowed money, saying it may backfire if investments sour.
http://finance.yahoo.com/news/pension-bond-warnings-unheeded-kansas-1518...
Layoffs? Layoffs?? Layoffs! You wana talk about layoffs?!
And now Meg can run for President!
I remember when Carley Fiorina ran for governor.
People remembered she had cut 30,000 at HP.
She lost.
When my upgraded 08 MacBook dies guess I will finally go the "build your own" route. As a complete novice I think it will be fine. Thanks to distributed knowledge, aka, youtube.
Build it with security in mind. Finally go vpn too. All the hidey hole shit...
As a complete novice, you've deluded yourself if you think you can really be secure. Sorry.
It's simple. Mothball all the ametorized real assets, eliminate the high earning pensioned and health insured workers, trash the bondholders, and then liquidate the remaining shell. Then, go out and repurchase the good assets for pennies on the dollar, hire cheaper workers without the high cost of pensions and healthcare, and take huge bonuses for restructuring the company into a viable healthy concern!
It's called restructuring, just like Hostess did last year.
So easy a caveman can do it.
Blame Meg, Blame Carly, Blame Capitalism, Blame Democracy,Blame the Jews, Blame the Bankers, Blame the Blame Game ..... Adore Putin, Mao, Obama, ISIS .... that's a lot to remember !
KISS: Bush's fault.
Jobs are Soooo old school; the wave of the future = printing presses and EBT cards - Are we or are we not, Bozos On This Bus?...
Hewlett Packard: You know someone that has been fucked over by them.
"The Council is worried about the economy heating up. Can they fire 500,000 from one of the smaller companies, like one of the cab companies?"
"Fire one million."
Nice "Fifth Element" reference. You have to say it like Gary Oldman when you do.
Soon to be replaced by 60,000 HB1 guest workers with eighteen page resume full of made up crap from the slums of Mumbai at 1/3 the cost.., it'll be a circle jerk on paper of 'green' status reports for at least six months, with significantly decreased quality and productivity covered up by brown-nosing middle managers working their shitty LinkedIn contacts to escape the inevitable crash of real results.
Then enter the $300-400/hour turn-around consultants to rebound it just enough to sell the putrid remains to the Red Chinese, just like IBM.
Seen it before. I'll see it again.
The anger is strong with this one. I like.
Still... a good post.
I wish some state or the federal government would cut that many employees. I bet no one would notice.
Problem is, their Platinum Pension Plans pay as much or more than salary, and we "civilians" don't get the benefits of their hard work.
I prefer a total collapse of the entire fucked up system. Yes, it is cutting of nose to spite face, but I am so tired of producing value in the private sector so these fucks can cruise, I'll take the trip.
Best post.
People need to start boycotting these companies. It's the only way the general public can fight back.
I've been boycotting HP ever since Meg Whitman was hired as CEO. I couldn't stand Meg after she carpet bombed California with her political advertising in an effort to buy the office of Governor. Looks as if my boycott is starting to have an effect.
"I don't know you and you don't know me."
Step 1- Collect underpants
Step 2 - ?
Step 3- Profit
Obama says all those people on unemployment are good for the economy.
The more interesting and relevant part with ALL the 58K jobs that will be cut ... will how many will get rehired in other jobs, and what impact it will have on the "average hourly wage" which was up .5% last month, with Hoorahs from wall st. hypsters.
I would guess that in todays economy, the wages lost from those 58K jobs - will need over a 100K jobs to replace the same consumption power in the consumer economy. So many will have two jobs, selling shoes and delivering pizza!
http://www.businessinsider.com/hp-separation-will-cost-about-2-billion-2...
Sad, my computer history.
Beta tested vista, on HP. It was a classic ME version of pissing in the wind.
I dislike Dell and Apple. If HP goes under, we’ll just build our own computer. It’s not rocket science.
you should have it sooner hp and windows?
shit and double shit
lol
It was MS-DOS shell, basic language in the early years. C prompt commands only. Dick & Tracey were battling over iExplorer or Netscape. Sorta like beta or VHS technology. Seagate vs Winchester drives.. etc, etc.
Contrary to the sentiment of the herd, does it ever occur that the best thing to do when there is no demand due to the fact that the customer base is top offed with boxes, laptops, servers, printers, and marginal product improvements are not worthy of dumping gear that works, that the next best thing to do is return wealth to the owners to redeploy the capital to other more potentially lucrative investment returning ventures? What doe the herd want the company to do, just spend money cause it's not patriotic to let it sit on the sidelines, despite the lack of demand? You sound like a bunch of fuggin 0bammies. Do you really want the owners to just give money to employees when there is no demand for their product line just because...well because they're workers of the world and by gosh, they're united?
Right - o Who gives a flying F about America and the American worker. After all, it's all about the money trail as evidenced by all the off shore jobs. Screw the American worker, taxpayer etc... Bravo for the 1%. Go GS, Yellen etc. You're disgusting.
overmedicatedun,
Offshoring: see competitive advantage. China labor costs increasing, their advantage eroding, Asian and European auto companies in the US. Econ 101 much?
sTls7,
Open a taco stand, pay your workers at least $15/hour, and when you run out of money because there are no profits, borrow against the equity in your house to keep losing money. Or, open up a business making a product no one wants to buy but give money to your workers, again from money borrowed from someone foolish enough to lend it to you, because you want to give money to your workers because they're united. It's called capitalism, it's much less disgusting than the alternatives which always fail, and you are either stupid or typing from Russia or some OWS encampment that didn't get the news.
Duke, may I call you Duke?
I am not an economist, i did have a small business..I come from the POV that
1. Fed gov was run on tariff tax for years, then came fed and income tax
2. free trade means free for others for us business not so much, I did my own review few yrs ago on tariff rates across the world, many countries had 20% or more on USA stuff but we had at the time less than 2% and dropping.
3. so in my less than NWO correct mind, think: add tariffs back to 20% and watch jobs flow back to us..
4. so what you complain about is because the rules of trade make it all a win win for international corps and elite nwo reptiles at CBanks
5.get it?
Duke you do understand the eviceration of american jobs by off shoring, with the added bonus of those still making products in usa get to compete with slave labor? the NWO reptiles fill the halls of .gov and international mega corps and they are winning ..these workers jobs are like the dead at the battle of verdun, killed by our traitor leadership.
"Do you really want the owners to just give money to employees when there is no demand for their product line just because...well because they're workers of the world and by gosh, they're united?"
Carly Fiorina and her fine AT&T diversity grooming directed this company on the track of self destruction. The others after her kept it going on the same track.
Eventually the track runs out and it's off the cliff.
Com'n!
Carly is a fine lady, compared to Meg.
The tech. company was Digital Equipment Corp.
The marketing part was Compaq Computers (after the aquisition of DEC)
The Enron-Style company is now HP (after Aquisition of Compaq)
The others? Look at Sun and Oracle he's dead Jim!
Now the spying agenda of US government will kill others, likw Google MS Fu*k Book, and recently also the HDD manucacturers get hit.
I buy my HW (every board, if video, if network) in China.
China spying on me is irelevant for my business and absolutely irelevant for my private life. But US Gov sniffing arround, exchanging data with EU Shengen, EU governments, this is what I do not like.
Everybody in the EU shold boycot any US product/service. Fullstop.
We’ll just fuck over the net neutrality law by bundling a phone line and tie it up 24/7 running a BBS internet network site. Just like the old days. No graphics are needed. Pure text.
2400 baud Modem noise
Who is going to get this bride,
- no burden of employees,
- lot of cash
- high stock value
looks like any aquisition or any merger or any spin off
Yo Bitchez!
Most only learn how to grow companies.
The other side of the coin is how to down size and still hold it together until opportunity offers growth again.
Removed flash from my computer late December. OS 10.3.1.1581 has been nagging me all day. Good-bye flash phone video, HTML5. Just back out when internet news story forces you to dl flash. No ad revenue for you. Thank you Blackberry for new update. Will play with tomorrow. Crackberry already covered in depth on what to expect.
I am not seeing this headline in the MSM
Aftermath of 1929 - 20,000 companies went bankrupt, 23,000 committed suicide in one year,1600 banks closed. This is when population was only 121,000,000. There Is A Payday At The End Of The Road (old gospel song)
58.000 is really not a bad haircut.
I wonder what job they are doing today, I mean, if they dont need the employees, why didnt they shave em off earlier?
My first modern PC was an HP and when Win95 came out HP refused to support it on my machine, telling me to buy a new PC. I did....from Dell, and never looked back. Haven't bought an HP product in a very long time.
HP just announces that they will be laying of 58,000 employees in the US. They will now be training their H1-B visa replacements.
this was early 2000's. now those 58,000 are expired H1-B visas and expired OPT visas that were not able to obtain H1B status. HP is making room for the new graduates with unexpired OPT visas. This is basically a non-event for American citizens other than what to do with more illegals.
I am forced to use HP stuff every day, and every day I cuss them. I feel sorry for the people who are getting fired, but Ms. Whitman and the rest of her ilk can die in a fire for all I care.
BULLY for HPQ.
If there is really a concern about the health of the US economy, look to the number of businesses that are closing their doors VS the number of businesses that are being created.
Meg Whitman--need anything more be said???