[Info-vax] HP to axe 30,000 jobs to cut costs

[JF Mezei]

This past week, the speculation on job cuts was clarified by HP:

HP Launches Multi-year Restructuring to Fuel Innovation and Enable
Investment
http://www8.hp.com/us/en/hp-news/press-release.html?id=1247078#.T8BnCczVFRE

As part of the restructuring, HP expects approximately 27,000 employees
to exit the company, or 8.0% of its workforce as of Oct. 31, 2011, by
the end of fiscal year 2014.

HP will invest in research and development to drive innovation and
differentiation across its core printing and personal systems
businesses, as well as emerging areas. It will also invest in marketing,
sales productivity and tools that simplify the customer experience and
make it easier to do business with HP.

Enterprise Servers, Storage and Networking will invest to accelerate its
research and development activities to extend its leading portfolio of
servers, storage and networking. Together these assets create a
Converged Infrastructure which is the foundation for top client
initiatives such as cloud, virtualization, big data analytics, legacy
modernization and social media.


And from the financiual quarter release:


Enterprise Servers, Storage and Networking (ESSN) revenue declined 6%
   year over year with an 11.2% operating margin. Networking revenue was
    up 2%, Industry Standard Servers revenue was down 6%, Business
    Critical Systems revenue was down 23%, and Storage revenue was up 1%
    year over year.


Yep BCS down 23%



Not related to VMS, but interesting:

In May 2012, HP committed to a change in its PC branding strategy. As a
result, HP has commenced an asset impairment analysis to determine the
current value of the Compaq trade name acquired in 2002.

		Net revenue	Earnings before taxes: (millions)
PCs:		18,325		988
Services:	17,457		1,902
Printing:	12,390		1,569
ESSN:		10,229		1,147
etc

So the enterprise storage servers and networking still delivers more
profit than PCs although it gets only 55% of net revenues.

Breaking down ESSN net revenues:

Industry Standard Servers:	3186
Storage	 			990
Business Critical Systems:	421
Networking:			614

>From the transcript document:
Within BCS, our mission critical x86 grew double digits, but BCS
performance continued to be impacted by Itanium revenue declines

In the webcast though, Whitman says "impacted by th Oracle/Itanium issue".




>From the webcast of the financial analyst teleconference:
http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-EventDetails&EventId=4700759


"Business critical systems, not surprisingly, still facing challenges
from the Oracle Itanium issue, but more important is how we're moving
forward. Our Odyssey solution is an innovative mission-critical x86
platform that will offer customers a transition to open standards-based
architectures."



Interesting, newly acquired Autonomy has seen revenue decline following
acquisition from HP. (HP is kicking out the founder and replacing with
its own staff).


In the questions and asnwers:
##
Even in industry standard servers, which people say to me all the time,
isn't that a commodity business? Not if we can help it, it shouldn't be.
Look at our next-generation Gen 8 ProLiant servers.Look at Moonshot,look
at Odyssey.These are things that redefine that category,and that's the
thing that we want to invest in.
##

Moonshot is the very low energy consumption servers. Odyssey is the
Superdome class based on x86 (glorified blade servers).