Language Selection

English French German Italian Portuguese Spanish

Analysts expect massive HP layoffs

Filed under
Misc

Hewlett-Packard is likely to lay off thousands more employees, financial analysts have projected after new chief executive Mark Hurd presented his inaugural assessment of quarterly earnings.

Hurd didn't reveal specific layoff plans after the earnings report, but he did make clear HP's intent to cut expenses and said his company has "a cost structure that is off benchmark in many areas." Now the analysts are weighing in with their assessments of the printer and computer maker's future.

"We expect that Hurd will likely articulate his detailed plan for improving HP sometime over the next two months, and we do expect material workforce reductions--likely numbering five percent to 10 percent of the workforce, or 7,500 to 15,000 people," Sanford C. Bernstein analyst Toni Sacconaghi said in a report. He estimated that doing so could increase annual earnings by US20 cents to US40 cents per share.

Merrill Lynch analyst Steve Milunovich predicted job cuts would be announced by August; he projected an earnings boost of 21 cents to 42 cents per share for a hypothetical reduction of five percent to 10 percent of employees.

HP declined to comment Friday on possible layoff plans.

Massive job cuts have been more the rule than the exception in recent years at the Palo Alto, California-based company. HP laid off thousands of employees under the plan by previous chief executive officer Carly Fiorina to merge with Compaq Computer in an attempt to compete better against top rivals IBM and Dell.

Competitors have taken a similar approach. IBM announced a cut of 10,000 to 13,000 employees in its services division, and Sun Microsystems has laid off thousands in recent years.

HP is in the middle of more job cuts in divisions for imaging and printing, servers and storage, and services. Not all cuts have been in the form of pink slips, though: 1,900 employees took advantage of a voluntary severance plan in the imaging and printing division.

In the last quarter, which ended April 30, HP took a charge of US$71 million for the imaging and printing cuts. It also took a US$74 million charge for cuts in services and US$24 million for cuts in the servers and storage group.

In the current quarter, HP is budgeting US$100 million for job cuts that already were planned.

Source.

More in Tux Machines

Five reasons to switch from Windows to Linux

Linux has been in the ascendancy ever since the open source operating system was released, and has been improved and refined over time so that a typical distribution is now a polished and complete package comprising virtually everything the user needs, whether for a server or personal system. Much of the web runs on Linux, and a great many smartphones, and numerous other systems, from the Raspberry Pi to the most powerful supercomputers. So is it time to switch from Windows to Linux? Here are five reasons why. Read more

today's leftovers

Leftovers: OSS and Sharing

Security Leftovers

  • Chrome vulnerability lets attackers steal movies from streaming services
    A significant security vulnerability in Google technology that is supposed to protect videos streamed via Google Chrome has been discovered by researchers from the Ben-Gurion University of the Negev Cyber Security Research Center (CSRC) in collaboration with a security researcher from Telekom Innovation Laboratories in Berlin, Germany.
  • Large botnet of CCTV devices knock the snot out of jewelry website
    Researchers have encountered a denial-of-service botnet that's made up of more than 25,000 Internet-connected closed circuit TV devices. The researchers with Security firm Sucuri came across the malicious network while defending a small brick-and-mortar jewelry shop against a distributed denial-of-service attack. The unnamed site was choking on an assault that delivered almost 35,000 HTTP requests per second, making it unreachable to legitimate users. When Sucuri used a network addressing and routing system known as Anycast to neutralize the attack, the assailants increased the number of HTTP requests to 50,000 per second.
  • Study finds Password Misuse in Hospitals a Steaming Hot Mess
    Hospitals are pretty hygienic places – except when it comes to passwords, it seems. That’s the conclusion of a recent study by researchers at Dartmouth College, the University of Pennsylvania and USC, which found that efforts to circumvent password protections are “endemic” in healthcare environments and mostly go unnoticed by hospital IT staff. The report describes what can only be described as wholesale abandonment of security best practices at hospitals and other clinical environments – with the bad behavior being driven by necessity rather than malice.
  • Why are hackers increasingly targeting the healthcare industry?
    Cyber-attacks in the healthcare environment are on the rise, with recent research suggesting that critical healthcare systems could be vulnerable to attack. In general, the healthcare industry is proving lucrative for cybercriminals because medical data can be used in multiple ways, for example fraud or identify theft. This personal data often contains information regarding a patient’s medical history, which could be used in targeted spear-phishing attacks.
  • Making the internet more secure
  • Beyond Monocultures
  • Dodging Raindrops Escaping the Public Cloud