More HP Layoffs Rumored

Rumors are rife regarding layoffs at HP.

What’s yet to be determined is whether these represent new layoffs or a continuance and execution of previously announced layoffs.

Based on a back-of-the-envelope calculation, I’d estimate that most of HP’s recent job shedding is occurring in Europe, where HP faced bureaucratic, institutional, and cultural resistance to its across-the-board salary-reduction gambit, announced earlier this year.

HP also quashed perks for private executive jetting, but that, like nominal remuneration reductions to upper-echelon executives, was more about the appearance of probity than about serious cost containment.

It’s difficult to get a firm handle on just how severe the cuts have been at HP’s offices in Silicon Valley and elsewhere in North America. There have been reductions in employee numbers in Oregon and Colorado, but those were apparently modest.

What’s more, as a story by Tom Sullivan of InfoWorld noted earlier this year, it’s hard to know how many announced layoffs are consummated.

Apparently corporate executives try to deceive bloodthirsty investors into thinking employee pogroms are worse than they actually turn out to be. Investors and Wall Street types respond favorably to layoffs, which reduce operating costs and therefore have the potential to increase near-term profits.

This bait-and-switch layoff ruse was explained pithily by Forrester Research analyst Natalie Petouhoff in the aforementioned InfoWorld article:

“It’s smoke and mirrors, to tell shareholders they’re doing what they need to do.”

Feel better now? I didn’t think so.

4 responses to “More HP Layoffs Rumored

  1. They are still doing layoffs. I know someone who was hit at the end of July. August’s bad news at EDS an HP company is the upcoming paycuts for 9/1.

  2. The employees of HP seem to be receiving blows one after another. On an average HP seemed to have laid of 25,000 employees, which is now followed by 30% plus salary cut.

    Looks like this is just the beginning.

    Joe

  3. In Houston, where Compaq’s headquarters used to be, layoffs continue. Speaking as one who was affected by this last round, I know at least two groups have been hit and have heard of more underway. What surprised some of us was how early this year Mark Hurd announced the across-the-board pay cut that amounted to 5% for most salaried employees; this following yearly reviews with no pay raise. Then in only a few months they announce over 6000 more jobs will be cut.

  4. And still doing layoffs. I was hit October 1st. I heard through the grapevine that some offices were told to expect to lose one person per quarter.

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