Mark Hurd will slice 15300 jobs, up from the 14500 initially planned

ZDnet

"HP announced additional job cuts Thursday after it reported that fourth-quarter earnings rose 7 percent, exceeding analyst expectations.

Without the special charges, HP earned $1.5bn, or 51 cents a share. Analysts expected the number two personal computer maker to earn 46 cents per share, according to a survey by Thomson First Call.

HP's profits were partially eaten up by $1.57bn in retirement and severance packages for 15,300 employees who will be leaving the company in the next 15 months. That number adds 800 layoffs not factored in to the 14,500 announced in July by chief executive Mark Hurd.

"On July 19, we had a model. As we discussed then, we had to operationalise [sic] the model, and 14,500 moved to 15,300," Hurd said during a conference call with reporters. "It was our best view at the time."

The Inquirer

"HP will cut even more staff after its CEO Mark Hurd announced financial results showing a 62 per cent drop in its financial fourth quarter profit.

Reliable sources warn the job cuts will affect support as HP recruits additional outsourcing partners. Many of these are in the learning stage but that's going to change.

For example, in Germany, a number of units are expected to go to partners in former East Germany. Customers expecting mission critical support will change from specialised standby engineers to re-vamped "support centres".

Some engineers will go to Synstar or suffer the WFR (workforce reduction).

Another insider said: "HP is mostly like a black hole. First growing after acquiring customers then imploding to a small black area invisible to the market." From which you will gather that morale within the ranks of HP is still not brilliant."

HP quarterly net profit falls on job cut charges

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SAN FRANCISCO, Nov 17 (Reuters) - No. 2 computer maker Hewlett-Packard Co. on Thursday posted a lower quarterly net profit, due in part to charges related to ongoing jobs cuts.

Per-share results excluding items beat the average Wall Street estimate and shares of HP rose nearly 3 percent in extended trade. Net income for its fourth fiscal quarter ended Oct. 31 fell to $416 million, or 14 cents per share, from $1.09 billion, or 37 cents per share, in the year-ago period. Revenue rose to $22.9 billion from $21.4 billion.

Excluding items, HP said its profit rose to 51 cents per share, compared with the average Wall Street estimate of 46 cents per share, according to Reuters Estimates. Revenue was pegged at $22.8 billion.

HP is in the process of rolling through job cuts of nearly 15,000 it announced in July to help cut annual costs by almost $2 billion. The company's per-share results, excluding items, in all four fiscal 2005 quarters have topped average Wall Street expectations as its businesses have improved.

For the current, first quarter, HP said it expects earnings per share before items of 46 cents to 48 cents, excluding 3 cents to 4 cents of stock-based compensation expense.

Analysts currently expect Palo Alto, California-based HP to earn 44 cents per share, on average, before items, in the first quarter.

So far this year, HP is the best performing stock in the Dow Jones Industrial Average, with a gain of some 35 percent, based on Wednesday's closing price. Over the same period, shares of IBM, also a Dow component, have declined some 12 percent. The index is down roughly 1 percent on the year.

HP shares rose 73 cents, or 2.6 percent, to close at $29.00 on the New York Stock Exchange. In extended trade on Inet, the shares climbed to $29.80.

Hewlett Packard aims to transfer the jobs from Erskine, Renfrewshire, to the Czech Republic

Times (Scotland) , Nov. 9, 2005
An electronics giant announced plans yesterday to make 200 contract staff redundant at one of its plants in Scotland.

Hewlett Packard aims to transfer the jobs from Erskine, Renfrewshire, to the Czech Republic, reducing its Scottish workforce by a tenth.In a statement, the company said: "We have taken this decision as part of our global supply chain strategy to drive increased value for our customers and ensure that we remain competitive in the marketplace." The company went on to say that they remained "committed to our presence in Scotland".Jim Sheridan, the MP for Paisley and Renfrewshire North, accused Hewlett Packard of "corporate greed" and called for new laws to ensure that companies carry out proper consultations.He said: "This is devastating for the local community, the workers and their families. It's just sheer corporate greed coupled with the opportunity to exploit Eastern European cheap labour."More than 2,000 people are employed on the Erskine site in manufacturing, sales and customer service.

The Herald (Scotland) / Nov. 09 2005

The decision by HP will bring further pressure on the government to tighten up its employment legislation.The jobs, which have been outsourced to Foxconn, a Hewlett-Packard partner, will move to Pardubice in the Czech Republic.Tina Green, HP's director of government and public affairs, said: "The announcement is part of HP's strategy to use partners such as Foxconn to take on the large volume manufacturing of less complex products."Working in partnership with HP, Foxconn will be able to achieve greater competitiveness through economies of scale, vertical integration of the manufacturing process, and by applying their expertise in low cost manufacturing. This strategy allows HP to focus on our core competencies of innovation and high value services."Ms Green added that the "higher-skill operation" employment base, customer support, and sales call centre positions at Erskine would be unaffected. Jim Sheridan, MP for Paisley and Renfrewshire North, who condemned the job losses, intends to call on the government to take steps to give workers more protection from the whims of multinationals.He said: "This is just corporate greed with employees thrown on the scrapheap. The only thing that is going to stop this is improved and effective employment legislation. Again the consultation process, so called, with HP is a farce. "These decisions are made with little or no feelings for those who have lost their jobs or the wider community. This is about exploiting cheap labour costs in Eastern Europe."Stephen Boyd, assistant secretary of the STUC, said: "It is a long-standing problem that these multinationals are able to treat Scottish workers in this way. The outsourcing of low value manufacturing jobs is happening time and again, and we really have to ask where large numbers of people will find employment in the future."Last month, The Herald revealed workers at the plant were being sent home during quiet periods, but expected to finish shifts at later dates. The workers said they owed the company hundreds of hours and were being forced to give up days off to make up for the "lost" time.Hewlett Packard transferred 260 staff contracts to employment agency Manpower two years ago, and it is understood the majority of those affected by the cuts are employed by Manpower and Excel.

Nice !