http://www.theinquirer.net/inquirer/news/084/1051084/hewlett-packard-cuts-salaries
"The math is pretty straight forward. From a productivity standpoint, you’re supposed to reduce headcount on par with declining revenue. If you believe the environment isn’t going to improve, you should take a bigger cut to get in front of the problems. You can do the calculation, as easy as I can. We have about 100,000 people in our product businesses, with revenue down roughly 20%, and an environment that may not get any better in 2009.I’ll be asked by investors, “Where’s the job action, where are you taking out this roughly, 20,000 positions?” Well, I don’t want to do that. When I look at HP, I don’t see a structural problem of that magnitude. There are pockets where restructuring needs to happen, and areas where actions will be taken as part of our ongoing workforce optimization process. But at a company-wide level, I don’t believe a major workforce reduction is the best thing for HP at this time."
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Mark Hurd
"The math is pretty straight forward. From a productivity standpoint, you’re supposed to reduce headcount on par with declining revenue. If you believe the environment isn’t going to improve, you should take a bigger cut to get in front of the problems. You can do the calculation, as easy as I can. We have about 100,000 people in our product businesses, with revenue down roughly 20%, and an environment that may not get any better in 2009.I’ll be asked by investors, “Where’s the job action, where are you taking out this roughly, 20,000 positions?” Well, I don’t want to do that. When I look at HP, I don’t see a structural problem of that magnitude. There are pockets where restructuring needs to happen, and areas where actions will be taken as part of our ongoing workforce optimization process. But at a company-wide level, I don’t believe a major workforce reduction is the best thing for HP at this time."
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Mark Hurd
I do think that buried in his verbiage was the key word "base" pay. Well, he can have his base pay cut, and more than make up for it with more promised bonuses, stock, etc. We've already witnessed previously that declarations of difficult wage freezes and bonus cancellations don't apply to top execs at HP. And his base pay is only a fraction of his total compensation. In earlier news releases, his base pay had ticked up slightly, whereas his overall compensation increased by up to 68%! Two-thirds increase! Whereas many of us have endured wage freezes (in economies where those in charge enforce continuous inflation, so we're continually paid less and less over time for the same work). And now a true pay cut. So some people will likely experience (or have experienced) the same 20% cut as Hurd due to freezes and inflation...and now the actual cut of 2.5-5%. But we don't get generous bonuses independent of corporate performance like the top execs to make up for our cuts. But he just stashed away $42 million more recently. A 20% cut from his base pay will only solicit a yawn. And he likely has a promised bonus (for "performance") to more than make up for that. But what really is "pay for performance"? I work for HP and my mgmt says NO compensation increases of any kind until further notice (2+ yrs out). But the recent missive tries to mollify the "best" and dangle the carrot of "pay for performance." Who is lying? Top mgmt or middle mgmt? How can Hurd say it's available and yet middle mgmt says it's not? And what's with the touchy-feely "To give you a little insight into my world..." I don't want to know the world of someone that lines his pockets at the expense of deserving underlings.
RépondreSupprimerPissed HP employee comments :
RépondreSupprimerhttp://www.siliconbeat.com/2009/01/20/2522/
question for employee broadcast:
RépondreSupprimerwhy not a VoW survey, NOW, with relevant questions to get employee feedback on recent annoucement. you would definitively blow up participation rate to survey.
feel free to relay or duplicate
Latest news on activities in the UK in response to the announcement of a proposed cuts to base pay at EDS/HP:
RépondreSupprimerPCS is organising members meetings at all major sites. The following have so far been organised:
- Lythym St Annes (North West England) - 3rd march
- Cobalt House, Newcastle - 4th March
- Durham House - 5th of March
- Hallamshire Business Park, Sheffield - 6th March
- Matrix House, Swansea - 9th March
The plan is to galvanise members over the proposal at these meetings and increase further our network of volunteer activists.