HP Layoff 2012: Everything Employees Need To Know

Posted on 24 May 2012 by pinoytutorial

It’s not a good time to be a Hewlett Packard employee. According to the latest press release from the company, there will be a restructuring plan that will be taking place over the next several years.

hp lays off employees 1 HP Layoff 2012: Everything Employees Need To Know

Why is this so? HP plans on making itself more efficient and productive because it’s not doing so well in a market dominated by its rival electronics makers. It also admits that it has a lot of work to do, especially when one of the goals of the restructuring program is to increase its annual profits to about $3 to $3.5 billion by the end of 2014. Granted, its revenue for the second quarter of the year is at $30.7 billion instead of the expected $29.9 billion by Wall Street analysts, it doesn’t change the fact that profits have been dropping steadily. In fact, it’s gone down about 3% since last year.

How will HP restructure itself? As mentioned above, it wont be a good time to be an employee, as the company is planning on reducing its workforce by 8%, or about 27,000 people. This is at least lenient, as HP will be introducing an early retirement program, but there’s no telling who will be losing their jobs and who will stay, as the job cuts will be different depending on the country’s legal requirements and other details. HP also failed to outline just what the retirement plans would entail, which could be cause for nervousness for some.

HP also plans on reinvesting in savings of different sectors to improve on their efficiency. For R&D, innovation and creating better systems will be the main focus, and for marketing and sales, the company plans on making sure that doing business with it will be easier and that the customers have a better experience doing so. Meanwhile, Services will be focusing on cloud, security and information-based services, Software will increase capabilities in data and management, and Enterprise Servers, Storage and Networking will work more on storage, networking capabilities and an infrastructure that will make sure all of the important aspects such as media and cloud will be able to work properly.

It seems the fiscal year 2014 is the goal for some of HP’s plans in the restructuring program, as it’s expecting to record $1.8 billion in pre-tax charges in that year, following the $1.7 billion that it will be recording this year.

Will the world see a better, more successful Hewlett Packard by 2014? It’s still too early to tell, and the company itself admits that the restructuring program is a big risk to undertake, and that certain plans can be changed at any given moment. We will just have to wait and see what its next move will be. Meanwhile, those who are nervous of being laid off may want to start searching for a new job, or improving their work ethic to be able to keep their position.



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