HP Laying off 27,000 Workers in Restructuring

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It looks like the rumor we reported on last week is true, HP just announced it is laying off 27,000 workers to cut costs. :(

Hewlett-Packard says it's laying off 27,000 workers, 8 percent of its work force, as it restructures the business. The Palo Alto, Calif., company says it'll save $3 billion to $3.5 billion annually from cost cuts, including the layoffs. Hewlett-Packard Co. expects to complete the job cuts by the end of fiscal 2014.
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Haven't seen or used a computer from them in a while that made me say "Wow, this is pretty nice."
 
Wow over $100k per worker?

Wonder how many executives would be required to give the same level of savings?
 
first the Touchpad wasn't really given a chance, and they were talking about leaving the PC market, now they lose 27k jobs... they must really know how to make investors feel confident putting money into HP...
 
Ok... if they cut that many workers, who exactly to the expect to produce anything of value for the company to sell? Sure, it'll turn a profit for the next few quarters until their product quality suffers yet again.

Anyone else where remember when you couldn't go wrong buying a LaserJet for business? Then they went through a round of layoffs, products suffered, now HP is no longer the go-to brand for business printing.
 
Pitabred said:
Ok... if they cut that many workers, who exactly to the expect to produce anything of value for the company to sell? Sure, it'll turn a profit for the next few quarters until their product quality suffers yet again.

Anyone else where remember when you couldn't go wrong buying a LaserJet for business? Then they went through a round of layoffs, products suffered, now HP is no longer the go-to brand for business printing.
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That's only 8% of their work force. So probably the remaining 100+ thousand people they employ? Dunno, just a guess.
 
This is what happens when you bet the farm on tablets and announce to the world that you're giving up on personal computers. Then you change your mind, because it was stupid.

With all these layoffs I keep hearing about, how is the economy doing? Can't be good.
 
sfsuphysics said:
Wow over $100k per worker?

Wonder how many executives would be required to give the same level of savings?
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Honestly, that doesn't compute mathematically in a real-world non-negative sense. Every executive you fire results in a large executive golden parachute actually costing the company money. Thus, you'd need to fire a below-zero amount of executives or a negative amount of executive to get those $5 million parachute bonuses to every add up to $100 million dollars or however much they are saving from laying off 27 thousand workers.

Firing a guy on the front lines(sales?, manufacturing?) and trying to convince the remaining people to take on that employees job duties. Lowering perhaps morale, product quality, etc but who buys HP for product quality :p. Firing an executive, sadly, in this screwed up system would cost HP money.
 
I hope whoever designed the DV2/6/9000 series laptops were axed first. After working on more than 500 of them it gets annoying..

Almost all layoffs are bad though. Hope these people find decent employment elsewhere.
 
Knowing the hiring staff and managers at HP, I'm not surprised. One of the worst recruitment and management ever.
 
saturnine2 said:
I hope whoever designed the DV2/6/9000 series laptops were axed first. After working on more than 500 of them it gets annoying..

Almost all layoffs are bad though. Hope these people find decent employment elsewhere.
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Was that because of the faulty GPU that had to be reflow/ball? Same can be said for my Compaq F572us.:mad:
 
Ashbringer said:
This is what happens when you bet the farm on tablets and announce to the world that you're giving up on personal computers. Then you change your mind, because it was stupid.

With all these layoffs I keep hearing about, how is the economy doing? Can't be good.
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Tablets are a pretty nasty gamble. You could end up with something successful like the iPad or Samsung Galaxy Tab, or you could end up with a flop that seriously damages your company like the HP Touchpad or BB Playbook.
 
restructuring means hiring more cheap chinese workers, right?

they'll do things for 5 cents on the dollar
 
saturnine2 said:
I hope whoever designed the DV2/6/9000 series laptops were axed first. After working on more than 500 of them it gets annoying..

Almost all layoffs are bad though. Hope these people find decent employment elsewhere.
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Yeeeeah... that one wasn't HP's fault. Blame nVidia ;)
 
well all I can say being an HP enterprise costumer is that HP has sucked so bad post there G5 server line we actually went to Cisco UCS, thats how bad our experience was. There QA is fing horrid as of late however they do have some really bright people it will be interesting to see if they can turn the boat in the enterprise space.
 
diredesire said:
Yeeeeah... that one wasn't HP's fault. Blame nVidia ;)
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Sure, it's mainly NVidia's fault the chips failed. But it's also partly HP's fault for the shitty cooling. And those laptops were seemingly designed by a crackhead with the crazy wire routing/plethora of different screws used.
 
diredesire said:
Yeeeeah... that one wasn't HP's fault. Blame nVidia ;)
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nVidia certainly had a hand in it for claiming lower TDPs, but HP is far from innocent in the matter. You have to imagine that someone must have been in charge of product testing before shipping the various notebooks that were afflicted. Beyond that, the heatsink/fan designs from that generation were barely adequate for the CPU, leaving little headroom to add the GPU onto the heatpipe. The problems were exacerbated by the fact that nVidia really dropped the ball on the chipset/GPU design that generation.

The entire chassis from those series were designed poorly. I've replaced a number of LCDs, hinge assemblies, and cover plates on models in those series. They total just about as many as there were chipset/GPU issues. To top it all off, my experience on behalf of my customers when dealing with HP on the matter was terrible. They would go so far as to admit that there was in fact a design problem related to the chipset/GPU, but they would not handle the work for recalled units directly. Even the customers that contacted HP directly met with the same fate. It was a perfect opportunity for HP to make things right and score some points for going above and beyond to help their customers, who were only in the sad shape they were in because of HP or their component suppliers in the first place, but instead they drove people away by playing the "it's nVidia's fault game."
 
saturnine2 said:
Sure, it's mainly NVidia's fault the chips failed. But it's also partly HP's fault for the shitty cooling. And those laptops were seemingly designed by a crackhead with the crazy wire routing/plethora of different screws used.
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You mean the complete and total lack of any type of cooling whatsoever? Yep, I worked on a few of the DV6 laptops... no heatink at all.. if you were lucky you might have a thermal pad that maybe covered half of the GPU and contacted the back of the palmrest.
 
Wow! I believe this about the size of my city. Good luck to all these people that they will find new jobs soon.
 
It is about two to three times the size of my town. Regarding Hp quality though, there laptop quality has gone up recently. There newest round of revisions has actually brought some quality products to the market, even in the DV and GV range. They are at least as good quality as most of the other big laptop manufacturers. Honestly, nowadays most laptops are pretty even when it comes to quality, which is mostly due to the macbook forcing all the pc makers to actually make decent products. I would not just buy from any of them blindly (I always read several reviews before buying), but I actually consider there products now.
 
Beta-guy said:
first the Touchpad wasn't really given a chance, and they were talking about leaving the PC market, now they lose 27k jobs... they must really know how to make investors feel confident putting money into HP...
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HP is too old to have any benefit from investors. After the initial IPO, the sale of Company A's stock for person B to person C doesn't benefit Company A at all.

99.9% of the activity on wallstreet is selling used companies back and forth among other parties with zero financial benefit to the company itself. The only potential benefit is the 'wonderful' leadership new owners might bring if they care and if they acquire enough of the company.
 
HP has been going steadily downhill for many many years now. Glad I left when I did; it doesn't seem like anything has improved in the slightest in the last few years.

HP's problems are far larger than just PC sales and some faulty laptops...

Maybe they will become a bit more nimble after this but I wouldn't hold my breath. Their stock has been a falling knife for quite some time now as well. Glad I dumped all that when I left too.
 
It seems they need to re-evaluate who they are as a company. Being all things to all people isn't sustainable for very long.
The core of the company business gets neglected (printing) while they chase the latest fad that is blinding the eyes of the sheeple.
 
plunger said:
Its probably worldwide so not everyone is a yankee
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It's more likely just US based, as it's too difficult, costly and takes too much time to divest workforce in areas like Europe and Taiwan. Plus the headcount reduction is a combination layoff and early retirement program. Once the retirement numbers are nailed down the remainder will come from layoffs and attrition.
 
The majority of the people they are laying off are their Enterprise Services people. The Tier 1-3 workers who are Desktop repair techs, System Admins, DBAs, Network Engineers. The people making $40K-$120K who keep America running and the economy going.

You think its hard to find a job now if you are in IT, wait till these 27K people hit the street looking for work. Lots of competition from a lot of bright people.
 
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