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Fri May 18, 2012
Hewlett-Packard Set To Layoff 30,000 People
Originally published on Fri May 18, 2012 3:49 pm
STEVE INSKEEP, HOST:
NPR's business news starts with layoffs at HP.
(SOUNDBITE OF MUSIC)
INSKEEP: Technology giant Hewlett-Packard is poised to eliminate as many as 30,000 jobs worldwide. These cuts, though, will reportedly spare China - the company's largest source of growth, as well as its research and development divisions.
NPR's Wendy Kaufman reports.
WENDY KAUFMAN, BYLINE: Hewlett Packard is trying to restructure. And as part of that effort, is expected to slash up to nine percent of its global workforce. Though the cuts are being widely reported in the press, the company isn't saying anything publically - apparently waiting until next week when it announces quarterly earnings.
BRIAN MARSHALL: While always a difficult thing - letting people go from the company - its something they have to do.
KAUFMAN: That's Brian Marshall, a technology analyst with ISI, a research and investment firm.
Hewlett-Packard makes computer hardware and software and provides technology services. Revenues last year were about $125 billion, but this year, revenues have fallen. Analysts cite poor and revolving leadership at the top and a lack of vision. And Marshall sees the job cuts as part of what he calls the healing process.
MARSHALL: I think this is the start of HP basically admitting that it's got some issues from mismanagement of its workforce and its expenditures, and this will help bring profits back to the company.
KAUFMAN: HP's relatively new CEO, Meg Whitman, is expected to portray the cuts, as a means to free up money to make needed investments. Some have described it as a cut and reinvest approach. HP is expected to offer some retirement packages, and eliminate some jobs through attrition. But there will also be many outright layoffs.
Wendy Kaufman, NPR News. Transcript provided by NPR, Copyright National Public Radio.