Feeds

Merged HP will send 16,000 staff Paqing

As Wall Street wipes out Don's bonus

  • alert
  • submit to reddit

The essential guide to IT transformation

At a news conference yesterday HP CEO Carly Fiorina said ten per cent of the combined workforce of HP and Compaq would be shed if the proposed merger clears the usual statutory and shareholder hurdles. That adds up to between 15,000 and 16,000 staff who'll be sent Paq-ing.

But it may be slightly less, as the real head count at each company is fuzzy. Compaq has shed up to 9000 posts this year, and HP 6000, although the official numbers tend to underplay the real, human losses. For example, HP has been reassigning senior staff to trivial or inappropriate jobs, in the expectation that they'll take the hint and bugger off.

Don Capellas sounded the more relieved of the two at the press conference. At that moment, he'd earned Compaq shareholders a tidy premium, and the alternative - given that he's thrown the proprietary crown jewels overboard - was a steady slide into insignificance.

However, by the end of trading HP's stock price had fallen by 18 per cent, almost exactly canceling out the bonus. The pair boasted how Hewlett-Paquard would become the world's biggest PC manufacturer, which was the angle adopted by the trade press. However, apart from Dell, no one else is making any money from PCs right now, and the two could profitably withdraw entirely - and simply rebadge no-name clones.

(Dell and Compaq already share support facilities in Texas, as we discovered when we tried to get our Presario notebook repaired. Or rather when we tried to get it shipped back to the right address, and not to Florida, but that's a different story.) ®

Related Stories

Princess Fiorina kisses the Ugly Frog
HP/Compaq should corner 26.4% of Euro PC market

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.