Welcome!

Weblogic Authors: Yeshim Deniz, Elizabeth White, Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: Weblogic, IT SOLUTIONS GUIDE

Weblogic: Article

HP's Hurd Announces 10-Percent Cut

Workforce Reduction to Occur Over 18-Month Period

"The Pretty Big One" is the nickname in the San Francisco Bay Area for the 1989 Loma Prieta quake, an event that was enormous and tragic to many, yet fell short of a catastrophic event on the scale of the giant 1906 earthquake.

HP employees are no doubt using the same terminology, as they react to a layoff announcement from new CEO Mark Hurd that fell short of some predictions that called for "The Big One" to roil through the company's Palo Alto headquarters and beyond.

The announcement set a workforce reduction target of 14,500, about 10% of the company (and technically speaking, a decimation), but falling well short of the 25,000 number being thrown about by company outsiders earlier. The reduction will mostly target administrative functions, rather than R&D, and certainly not sales, Hurd said. It will be effected over the next 18 months, and will come with early retirement offers throughout the organization. Hurd did not say what percentage of the reduction will be tied to attrition, but one would expect a large chunk of the overall reduction to come from this source.


Mark Hurd

The company expects these actions to save $1.9 billion annually, "drive growth and increase business performance," Hurd said. "The program simplifies HP's structure by embedding sales and marketing efforts directly into the business units, providing a tighter link with customers," Hurd said. The reduction also targets HP's U.S. retirement programs, especially for shorter-term employees, although the company emphasized that employees will keep all benefits they've already earned.

"After a thorough review of our business, we have formulated a plan that will enable HP to begin delivering its full potential," said Mark Hurd, HP chief executive officer and president. "We can perform better - for our customers and partners, our employees and our shareholders - and we will."

Hurd also announced that it will dissolve its Customer Solutions Group (CSG), which had focused on a variety of business and government customers. It was also announced that CSG's head, Michael Winkler has retired. The group's functionality will be absorbed into HP's Technology Solutions Group (TSG), Imaging and Printing Group (IPG), and Personal Systems Group (PSG).

This move, coupled with Hurd's previous re-separation of the company's printer and PC groups, appears to be a straightforward undoing of some of the latter actions taken by his predecessor. Today's announcements, done in a low-key but decisive manner, also seemed to be part of the new CEO's apparent wish to be a non-flamboyant leader focused on addressing concerns that the company had lost its "Way" in recent years. Early voting from stockholders indicated acceptance of today's announcement, with the stock falling very slightly after a 20% run-up in the past six weeks in anticipation of expected dramatic action from the new CEO.

More Stories By Roger Strukhoff

Roger Strukhoff (@IoT2040) is Executive Director of the Tau Institute for Global ICT Research, with offices in Illinois and Manila. He is Conference Chair of @CloudExpo & @ThingsExpo, and Editor of SYS-CON Media's CloudComputing BigData & IoT Journals. He holds a BA from Knox College & conducted MBA studies at CSU-East Bay.

Comments (1)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Every organization is facing their own Digital Transformation as they attempt to stay ahead of the competition, or worse, just keep up. Each new opportunity, whether embracing machine learning, IoT, or a cloud migration, seems to bring new development, deployment, and management models. The results are more diverse and federated computing models than any time in our history.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...