Feeds

HP to drop 3,000 staff in fiscal '05

And for just $236m

  • alert
  • submit to reddit

The Power of One Infographic

HP will finish laying off close to 3,000 workers by October, the company said today in a regulatory filing.

The printer company dropped 1,600 workers by April 30 with many of its staffers taking voluntary severance packages. Another 1,400 employees will be let go by the end of HP's fiscal year in October. These moves forced HP to take up to $236m in charges through its first two fiscal quarters of 2005, according to a filing with the US Securities and Exchange Commission.

The layoffs may be the beginning of a long firing cycle for HP once new CEO Mark Hurd firms his agenda. The King of Ink warned in May that some of HP's underperforming units would have to lower their breakeven point, leaving layoffs as an obvious out for management. A prominent analyst estimated that HP could cull 15,000 workers in its bid to boost earnings.

Hurd gained a fearsome reputation for his efficient, cost-cutting moves at NCR, which included offshoring work, shrinking support staff and offering retirement packages to longtime employees. Such moves will not go over well at HP where many employees already feel beaten down by previous CEO Carly Fiorina's tenure.

HP's purchase of Compaq resulted in thousands of workers losing their jobs and plenty of bad blood between rival corporate cultures. Hurd must try and revive morale while still improving HP's operations in the eyes of Wall Street. Not an easy task. ®

Related stories

Sun critics hear the sound of two garbage trucks colliding
IBM UK workers in the dark as firing crunch time hits
15,000 HP workers get nervous as analyst predicts massive job cuts
UK job cuts as HP outsources support to India

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.