Let's Get Real: HP's Layoffs Won't Fix This Company, Employees Warn

young employees

Photo: iz.mendoza via flickr

We were the first to tell you about HP’s massive layoff.  Now that HP has come clean with some details, we’ll be the first to tell you why it’s not going to fix HP.HP says that by getting rid of 27,000 jobs (9,000 of them by October), it will save about $3 billion a year. This will supposedly fund “innovation.” But HP could do a lot of damage with this layoff, too, by getting rid of some of its best employees.

We’re hearing …

  • 1. HP is laying off the wrong people, employees who still work at the company tell us. Management is targeting people purely based on salary, not skills or performance or the profits employees generate for the company. Plus, HP is full of cronyism, particularly in the troubled HP Enterprise Services unit, we’re told. This is the unit targeted to take a big hit in layoffs, as we’ve previously reported.  Many HP managers get promoted because of who they know, not what they know, employees tell us. “HP needs to hire management consultants and do a complete audit of ability of managers—do a complete management restructuring,” an employee told us.
  • 2. HP has been restructuring itself almost continuously for YEARS. “We note that past restructurings (~50K headcount reduction over 5 years under Hurd) have done little to improve HP’s competitive position or reduce its reliance on declining or troubled businesses (printing, PC, Itanium, etc), nor improve its market-share trajectory in storage or servers,” Deutsche Bank analyst Chris Whitmore said in a research note, reports ZD Net. “Barring a significant change in strategic direction, we anticipate protracted declines in HP’s three major businesses (services, printers, PCs).”
  • 3. Employees at HP are not upset. Most have known that layoffs were coming since March. Those who have the political connections feel safe, we’re told. Those who don’t have been worried about their jobs for months, or longer.

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