Future Repub Presidential Candidate!!!!

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HP Says to Cut 25,000 to 30,000 Jobs in Enterprise Business

Hewlett-Packard Co (HPQ) said it expects to cut 25,000 to 30,000 jobs as part of its restructuring and cost-saving efforts at it enterprise services business.

HP is splitting into two listed companies later this year, separating its computer and printer businesses from its faster-growing corporate hardware and services operations, to be called Hewlett Packard Enterprise.

The expected job cuts will result in a charge of about $2.7 billion, beginning in the fourth quarter, HP said in a statement on Tuesday.

“We’ve done a significant amount of work over the past few years to take costs out and simplify processes and these final actions will eliminate the need for any future corporate restructuring,” Chief Executive Meg Whitman said.

Hewlett-Packard had about 302,000 employees globally as of Oct. 31, 2014, according to the company’s fiscal 2014 report.

The enterprise business is expected to report free cash flow of $2.0 billion to $2.2 billion in 2016, at least half of which is expected to be returned through dividends and share buybacks.

Hewlett Packard Enterprise is expected to report adjusted profit of $1.85 to $1.95 per share in 2016.

The stock fell 2.3 percent to $26.50 in extended trading on Tuesday.

I don’t have much to say about this other than to note a couple of things.  Typically, when a company splits into two separate entities, one entity is going to die.  It’s too bad their printer business will be chained to their PC business.  I liked their business printers.  I found them easy to network and use. 

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11 Responses to Future Repub Presidential Candidate!!!!

  1. Lars P. says:

    Typically when 2 companies merge one talks of synergies and reduced workforce. A split would be opposite to that.

    In the end I would say the company is trying to get rid of some of their workforce which to me states that they are not really aware of what this workforce is doing and not really using it efficiently in the first place. Unable to guide the workforce, not having visions or understanding what to do, the management rather busies themselves and the company with mergers & splits (of course making good money out of these).

    On the other hand a company that years after years reduces its workforce gets no more loyalty from it. It is just another job -> which is a change to the way how people used to identify themselves and work for the company.
    Summarizing: it looks to me rather like another giant company on a death spiral downwards whilst some people milk it up…

    btw, did not HP buy EDS some time ago? Was that not a service company and HP and hardware one? Speaking of hardware, where is Compaq? Digital?

    • DirkH says:

      “In the end I would say the company is trying to get rid of some of their workforce which to me states that they are not really aware of what this workforce is doing and not really using it efficiently in the first place. Unable to guide the workforce, not having visions or understanding what to do, the management rather busies themselves and the company with mergers & splits (of course making good money out of these).”

      Splitting off the printer and computer developers means the managers can get rid of the people that they can’t comprehend.
      The desire to sell a SIMPLE product made by simpletons instead of selling a complex product made by autistic geniuses. Every manager would prefer that.
      Especially if you can buy back more of your own shares with the money saved, driving up the CEO’s bonus.

      Also, HP computers and printers are toast from this moment on.

      Remember the crazy Apotheker guy who wanted to turn HP into a software only company? Yes this happened!
      https://en.wikipedia.org/wiki/L%C3%A9o_Apotheker

      HP CEO’s have been waging war on their engineers for years now.

    • cdquarles says:

      EDS was founded by Ross Perot. It was a data processing company. It bought hardware and bought/wrote software for processing insurance claims and other data processing needs. I have no clue what has happened to it post Ross Perot. What I do know is that EDS was a terrible processing company for insurance claims compared to BCBS of Alabama.

  2. kim2ooo says:

    “By Tom Perkins

    RESPONSE TO:

    Andrew Ross Sorkin

    August 17, 2015

    “Carly Fiorina’s Business Record: Not So Sterling”

    The consensus is clear: Carly Fiorina won the first Republican Primary debate. As a result she is climbing the polls and into the top tier of candidates. Her rise has led pundits to speculate about her tenure as CEO of Hewlett-Packard.

    I was a member of the HP Board of Directors much of the time Carly was the CEO. I was in the room for many of the decisions she made. I can attest to the strength of Carly’s leadership, the accuracy of her vision and the quality of her management.

    Carly was an excellent CEO. She led HP through one of the worst economic times in decades. Less than two years into Carly’s leadership, the dot com bubble went bust. Silicon Valley was in chaos. Companies were shedding jobs almost daily. There were so many layoffs The Associated Press ran weekly announcements regarding layoffs at tech companies. And The San Francisco Chronicle declared 2001 “The Year of the Layoff.”

    While other Silicon Valley icons like Sun Microsystems disappeared, Carly’s vision and execution not only helped to save HP but made it a strong, more versatile company that could compete in the changing technology sector.

    I was on the Compaq Board during the HP-Compaq merger and remained a member of the new HP Board once the merger was complete. Both companies knew that we needed something dramatic to inject life back into our companies. The merger, while controversial, was unanimously approved by every member of the HP Board and won approval from shareholders. Thanks to Carly’s leadership there was a path forward for this storied but troubled company.

    Critics questioned the move, but history proves Carly was right. Post merger, HP became the biggest computer company in the world. It positioned HP to compete in integrated systems and allowed us to compete in sectors beyond the core strength of the company, printers.

    Carly was hired at HP because it was struggling. Revenues were down, quarterly earnings were missed, innovation lagged and growth stagnated. HP, once the leader in Silicon Valley, was clinging to the status quo and failing to embrace the new tech era. Silicon Valley companies were prospering by taking advantage of the new technologies; HP was stubbornly clinging to the past. HP needed a change agent and someone who could return the company to its glory days. Carly was the right choice.

    The results of Carly’s transformational leadership? HP revenues doubled to more than $80 billion, innovation tripled to 15 patents per day, the growth rate more than quadrupled 6.5 percent and we grew to become the 11th largest company in the country. Carly did what she was brought in to do: turn the company around make it successful again. Not only did she save the company from the dire straits it was in, she laid the foundation for HP’s future growth.

    Critics often claim was fired at HP because she was unsuccessful. As a member of the board, I can tell you this is not true. In truth, it was the Board I was a part of that was ineffective and dysfunctional. The HP board of directors included family members of the founders. Carly worked with the hand she was dealt as best as one could. While Carly fought to save the company and the employees within, some board members fought for their own power or advancement. You see, some board members wanted to micro-manage the company, hand picking friends and allies to run divisions. This is no way to run a global company and Carly had the strength of character and courage of conviction to stand up to it and ultimately she lost her job because of it.

    While lesser leaders would have accepted offers of transition plans and graceful resignations, Carly would have none of that. Carly demanded to be fired. In order to restore peace to the board I voted to fire her. That was a mistake.

    In the months and years after Carly left, the Board of Directors remained dysfunctional. The Board members who plotted Carly’s ouster eventually resigned after an embarrassing investigation by Congress.

    I have no question that Carly is a transformational leader who uniquely has both vision and the expertise to implement it. We are in the middle of a heated election, and often facts and the truth get lost in the heat of partisan rhetoric. As someone who worked with and observed Carly first hand I can attest to her abilities, intellect and talent. I am proud to support Carly Fiorina for President of the United States.

    Tom Perkins

    Tom Perkins is the founder of the California venture capital firm Kleiner Perkins Caufield & Byers.”

    http://www.washingtonexaminer.com/watch-emily-blunt-apologizes-for-comments-about-gop-debate/article/2572373

  3. squid2112 says:

    But I thought o’l Carly fixed HP? … this not true? … ROFLMAO

  4. gator69 says:

    Hmmm…. maybe Carly wasn’t the problem.

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