Linked by Howard Fosdick on Fri 23rd Nov 2012 14:03 UTC
In the News Hard to believe, but articles are popping up at business websites claiming that venerable Hewlett-Packard may fail. In their most recent fiasco, HP wrote off a loss of $8.8 of their $11.1 US billion acquisition of Autonomy and have alleged fraud in the deal. Revenue is down 7% from a year ago and the stock has hit a 10-year low. The company is laying off 27K employees but that may not be enough. Some speculate HP might be broken up into parts with buy-outs involved. This article from last May offers a good in-depth analysis of how all these problems came to pass.
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RE[2]: Actual HP employee
by Delgarde on Mon 26th Nov 2012 00:59 UTC in reply to "RE: Actual HP employee"
Delgarde
Member since:
2008-08-19

Why the hell not layoff the incompetent fuckers who made the poor acquisitions? Why the hell hire people whose only "strategy" is get rich quick through acquisitions in the first place?


Agreed, but getting rid of them doesn't get them out of the hole. Yes, senior management are hugely overpaid as individuals, but collectively they're small-beans compared to the cost of paying salaries for tens of thousands of workers. So even if they get rid of the bad execs (as they should), they still need to get rid of large numbers of regular folks as well.

Think about what 29K people could think up now that they're not busy.


In theory. In practice, they still need to be paid now that they're not busy. I've been in that position, and when the company isn't making money, the first priority tends to be to stop doing stuff that's losing money

Reply Parent Score: 2

RE[3]: Actual HP employee
by Soulbender on Mon 26th Nov 2012 02:05 in reply to "RE[2]: Actual HP employee"
Soulbender Member since:
2005-08-18

So even if they get rid of the bad execs (as they should), they still need to get rid of large numbers of regular folks as well.


True but what I think is grating is that the management hardly ever is let go and if they do it's usually with a hefty package. It's like getting paid incredibly well to screw up and that's not how capitalism is supposed to work.

when the company isn't making money, the first priority tends to be to stop doing stuff that's losing money


Like spending all day on the golf course....

Reply Parent Score: 2

RE[4]: Actual HP employee
by kwan_e on Mon 26th Nov 2012 03:41 in reply to "RE[3]: Actual HP employee"
kwan_e Member since:
2007-02-18

"when the company isn't making money, the first priority tends to be to stop doing stuff that's losing money


Like spending all day on the golf course....
"

Or getting their offices redecorated with a $1400 trash can.

Reply Parent Score: 2