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Bloomberg is confirming much of what we heard.
The key things we heard:
- Our source said HP wants to trim its workforce by 10%-15%. Given that HP has 320,000 employees, a 10% reduction would be 32,000 workers gone. However, that would include an early retirement program. We’d guess that this would include attrition, too, where new hires don’t come in when employees leave. That number sounds high and we don’t expect HP to promise it next week, because HP will also want to shift some jobs offshore. So, HP’s total workforce numbers won’t reflect all of the cuts.
- We’re hearing that manufacturing staff won’t be hit as hard as others. That makes sense to us given that HP is more of a product company than a software or services company.
- Speaking of services, keep an eye out for HP Services results, which one insider said is expected to have another abysmal quarter. HP’s outsourcing units could be particularly hit hard with whatever layoffs come and many of their jobs moved offshore. We’re hearing that people with 8-10 years of experience—or are at the top of the salary charts — are the most vulnerable.
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