Language Selection

English French German Italian Portuguese Spanish

Analysts expect massive HP layoffs

Filed under
Misc

Hewlett-Packard is likely to lay off thousands more employees, financial analysts have projected after new chief executive Mark Hurd presented his inaugural assessment of quarterly earnings.

Hurd didn't reveal specific layoff plans after the earnings report, but he did make clear HP's intent to cut expenses and said his company has "a cost structure that is off benchmark in many areas." Now the analysts are weighing in with their assessments of the printer and computer maker's future.

"We expect that Hurd will likely articulate his detailed plan for improving HP sometime over the next two months, and we do expect material workforce reductions--likely numbering five percent to 10 percent of the workforce, or 7,500 to 15,000 people," Sanford C. Bernstein analyst Toni Sacconaghi said in a report. He estimated that doing so could increase annual earnings by US20 cents to US40 cents per share.

Merrill Lynch analyst Steve Milunovich predicted job cuts would be announced by August; he projected an earnings boost of 21 cents to 42 cents per share for a hypothetical reduction of five percent to 10 percent of employees.

HP declined to comment Friday on possible layoff plans.

Massive job cuts have been more the rule than the exception in recent years at the Palo Alto, California-based company. HP laid off thousands of employees under the plan by previous chief executive officer Carly Fiorina to merge with Compaq Computer in an attempt to compete better against top rivals IBM and Dell.

Competitors have taken a similar approach. IBM announced a cut of 10,000 to 13,000 employees in its services division, and Sun Microsystems has laid off thousands in recent years.

HP is in the middle of more job cuts in divisions for imaging and printing, servers and storage, and services. Not all cuts have been in the form of pink slips, though: 1,900 employees took advantage of a voluntary severance plan in the imaging and printing division.

In the last quarter, which ended April 30, HP took a charge of US$71 million for the imaging and printing cuts. It also took a US$74 million charge for cuts in services and US$24 million for cuts in the servers and storage group.

In the current quarter, HP is budgeting US$100 million for job cuts that already were planned.

Source.

More in Tux Machines

What is Ubuntu?

The open source community is packed full of intriguing projects and companies, so much so that even the biggest of proprietary vendors have moved to embrace it. Ubuntu is one of those open source projects that has developed a wide-spread following. Ubuntu is an open source Linux distribution based on Debian, which is a freely available operating system that uses the Linux kernel. Initially developed for personal computers, it has developed to being used on servers, and smartphones. Development of Ubuntu is led by Canonical, a UK based company that was founded by Mark Shuttleworth. Read more

Hands-on with Ubuntu MATE 16.04 on the Raspberry Pi 2 and 3

To put things into a fair perspective, keep in mind that we are talking about a computer that costs $25 or so and can be used with a display, keyboard and mouse which a lot of people are going to have on hand already. That means for a very small amount of money, you can have a very nice computer running one of the most popular Linux distributions. Some people (including me) might argue that there are really not many (or any) significant advantages of Ubuntu MATE over Raspbian, but even I can't deny that MATE looks more polished, and if you are accustomed to Ubuntu in general or MATE in particular, then this distribution is the way to go. Read more

Solus Project Announces New Tool for Enabling Better Steam Integration on Linux

Ikey Doherty and the Solus Project are proud to announce today the availability of a new project that aims to better integrate the Steam client on various GNU/Linux operating systems. Read more

GNOME 3.21.2 Released

Hi! The second snapshot of the GNOME 3.21 cycle is now available!! To compile GNOME 3.21.2, you can use the jhbuild [1] modulesets [2] (which use the exact tarball versions from the official release). [1] https://developer.gnome.org/jhbuild/ [2] https://download.gnome.org/teams/releng/3.21.2/ The release notes that describe the changes between 3.21.1 and 3.21.2 are available. Go read them to learn what's new in this release: core - https://download.gnome.org/core/3.21/3.21.2/NEWS apps - https://download.gnome.org/apps/3.21/3.21.2/NEWS Read more Also: GNOME 3.21.2 Released With More Wayland Improvements, Flatpak