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HP to let 16,000 employees go as revenues drop

Posted: 23 May 2014 ?? ?Print Version ?Bookmark and Share

Keywords:HP? layoff? Meg Whitman?

Whitman's comments

Several analysts on the call asked about the layoffs. Although Whitman seemed slightly off balance at the first question, which took an unusually challenging tone, she quickly regained her footing and provided increasingly confident answers, including the following:

  • This company has been through a lotthe acquisitions of Compaq and EDS, the acquisitions of 11 to 20 software companies. Part of what we are doing is integrating, streamlining the system, automating processes which have not been done in a while.
  • No company likes to decrease the workforce. I think our employees live it every single day. Our employees know we can be more efficient. They are our biggest sources of ideas.
  • I don't think anyone likes this, but I think we've done a good job of explaining where we are at.
  • My outlook has actually not changed in where we are at in our turnaround and our return trajectory. I'm feeling more confident because we have seen a stabilisation of revenues and I really like our product road maps.
  • Many people said this is the best product line up we have had in a decade. We need to run this co more efficiently in terms of ease of doing business and being faster, nimbler in decision making.
  • Quarterly results

    In its second quarter, HP reported GAAP net revenues of $27.3 billion up 1 per cent from the same period last year. Profits were up 18 per cent to $1.3 billion.

    Across its major business groups, HP reported:

    • Personal Systems revenue was up 7 per cent year-over-year with a 3.5 per cent operating margin. Total units were up 10 per cent with desktops units up 6 per cent and notebooks units up 6 per cent.
    • Printing revenue was down 4 per cent year-over-year with a 19.5 per cent operating margin. Total hardware units were up 1 per cent.
    • Enterprise Group revenue was down 2 per cent year-over-year with a 14.4 per cent operating margin.
    • X86 servers revenue was up 1 per cent, storage revenue was down 6 per cent, Itanium server revenue was down 14 per cent and networking revenue was up 6 per cent.
    • Enterprise Services revenue was down 7 per cent year-over-year with a 2.5 per cent operating margin.
    • Software revenue was flat year-over-year with a 19.2 per cent operating margin.

    - Rick Merritt
    ??EE Times

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