Rapid expansion can have one fatal flaw, if you do not match or beat revenue expectations then you will have to eventually downsize your company. HP have found this out, or the employees to put it more accurately, have taken the brunt of another round of expected job cuts with the figure being somewhere in the region of 25,000 – 30,000 positions to fall.
The technology stalwart has confirmed these roles will go from HP Enterprise; this is with the aim of bundling together its data analysis and software divisions which in turn separates them from the personal computer and printer operation. This brutal scythe cutting will be completed by the end of October 2015; this is on top of 55,000 jobs which have already been culled over the last 3 years. HP aim to save around $2 billion annually from its business by reducing costs which include wages.
Chief executive Meg Whitman, who will lead HP Enterprise, informed investors of the potential to profit to the tune of around $50bn in annual revenue from the business. HP insists the company will be nimbler and therefore able to meet the “evolving needs of our customers around the world”. The New York Times Square Stock Exchange has reacted badly, as expected to news of both further layoffs and also uncertainty over the direction of HP, it has lost 33% of its value in the year to date
Unfortunately, HP lost touch of the ever-evolving trend of consumer tech over the last decade or so, gone are the bulky towers and a large staffed manufacturing base with which to churn out consumer tech. Computers are now associated with tablets and smartphones and the trend of lighter gadgets have propelled a new innovation onto the market. HP will need to adjust or face further uncertainty, it’s a shame that ordinary employees are facing the brunt and employment is very uncertain considering the intense competition for fewer jobs within the world of tech.
Thank you sky news for providing us with this information.
Image courtesy of devicebox
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