Read this article and you might not notice the spin — because it’s not being reported.
Hewlett-Packard says it will cut another 25,000-30,000 jobs, or 10% of its workforce, as it plans to split the company in two.
It follows 55,000 job cuts announced earlier this year.
The losses will come in Hewlett Packard Enterprise (HPE), which is splitting from the printer and PC business.
The company says the cuts will save $2.7bn (1.76bn) in annual costs, although the plan will cost $2.7bn to carry out.
At a meeting for Wall Street analysts, chairman and chief executive Meg Whitman said: “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.”
Yes, the usual “spike the earnings” by reducing cost — and the usual claim is that there was too much fat, too much redundancy, people that were employed but not doing anything.
Ok, if that’s true. I recognize that organizations carry bloat and increase it over time; it happens in most larger companies. The reason it happens is a combination of fear, stoicism, cronyism and keeping people on the payroll that are flat-out worthless (or even worse, contribute negative value.)
This post was published at Market-Ticker on 2015-09-17.
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