[Info-vax] HP Layoffs - 2019

[Kerry Main]

> -----Original Message-----
> From: Info-vax <info-vax-bounces at rbnsn.com> On Behalf Of Scott Dorsey
> via Info-vax
> Sent: October 4, 2019 5:08 PM
> To: info-vax at rbnsn.com
> Cc: Scott Dorsey <kludge at panix.com>
> Subject: Re: [Info-vax] HP Layoffs - 2019
> 
> Neil Rieck  <n.rieck at sympatico.ca> wrote:
> >I never understood why HP split in to two companies: HP Inc + HPE (why
> place emphasis on the desktop market at a time when many people were
> already moving to Tablets and Phablets?).
> 
> First HP split off the real HP as Agilent (later Keysight) and kept only
the
> computer division.
> 
> Then they bought EDS, a dreadful computer services company, which
> became HPE.
> 
> Then they re-arranged things and decided to get rid of the EDS part, which
> they are now doing (along with the server stuff that got mixed in with
it).
> 
> Why did they do these things?  Because upper management sees a way to
> make personal gains out of them.
> 
> >Anyway, it should be no surprise that we now see layoffs
> >
> >https://www.zdnet.com/article/hp-to-axe-up-to-9000-staff-globally-as-pa
> >rt-of-company-restructure/
> >
> >p.s. here, I hope everyone reporting this item are aware of the fact
> >that HP Inc. and HPE are two separate companies -AND- that the layoffs
> >are only in the former
> 
> It's more of the same, yes.
> --scott
> --

What you are seeing is not just with HP/HPE, but most of the other major
companies as well that have C level and BOD execs focussed on personal
compensation goals.

The scenario is usually something like this:

1. Execs measured on revenue increases? Buy companies under the guise of "we
need to expand in order to compete in a global market". HP was up to 42
companies it purchased before I left in 2012.

2. Execs measured on revenue/ employee? Drop the number of employees
regardless if it is for short term results and not in the long term interest
of the company. At one point, HP was second only to IBM in terms of
employees working at a computer company (250,000+ WW as I recall the peak)

3. Execs measured on share price? Outsource/sell major BU's in the company
under the guise of "we need to get back to our core businesses". HPE
sold/outsourced its WW Cust Service, Software, Managed Services BU's, and
others it picked up in 1. as well.

4. Repeat #1

The more things change, the more history repeats itself.


Regards,

Kerry Main
Kerry dot main at starkgaming dot com