Tuesday, September 15, 2015

Yet Another Case of #QuarterlyCapitalism as HP to Fire 30,000 even with a $5 Billion Yearly Profit

I guess the split into two meaningless companies is going to cost 30,000 people their jobs.
The purge announced Tuesday will occur within the newly formed Hewlett Packard Enterprise, a bundle of technology divisions focused on software, consulting and data analysis that is splitting off from the company's personal computer and printing operations.

The spinoff is scheduled to be completed by the end of next month, dooming 25,000 to 30,000 jobs within HP Enterprise. The target means 10 to 12 percent of the 252,000 workers joining HP Enterprise will lose their jobs as part of the company's effort to reduce its expenses by $2 billion annually.
Reducing their expenses really doesn't actually sell one extra printer or another software license. Instead they are shuffling the costs to keep them making $5 billion in the next year. I would love to see a CAPEX bump or a move into some other part of the technology infrastructure. Instead cut staff and prop up those earnings in time for the next quarter.

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