mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

Poor Old HP

The pain at HP seems never ending. Before she’s fully implemented the last 34,000 job cuts, CEO Meg Whitman has announced another 16,000 job cuts.

HP had 317,500 employees at the end of October. It has had declining revenues for 11 quarters in a row.

Whitman seems to have only one club in her bag to deal with reducing demand for PCs and printers – sackings.

With annual revenues topping $27 billion and net profit at $1.27 billion in calendar Q1, the company has the funds to innovate but there seem no signs of it despite Whitman’s stated wish: “We want to be a growth company.”

Related Tech News

5 Comments

  1. grax
    June 10, 2014 08:30

    Large Billions companies are managed like large Banks.
    The management doesn’t come from RD domain and is scared by the idea of investing in RD.
    The people is hired to guarantee steady growth each year to WS crokos; this policy is not compatible with the peaks produced when right product arrives with the right price at the right time on the market.
    The problems is not that HP is firing, the problem is that no new startup have been generated out of former HP employees …

  2. david manners
    May 23, 2014 15:33

    You’d think the HP Way is common sense George, but it doesn’t seem to get much credence these days. I somehow doubt that Harvard Business School teaches it. Clearly the current CEO is out of her depth – just pandering to the shareholders. A CEO has to have respect from all sides if he’s to balance all the competing interests and who, in the business world, has that these days? HP needs a Lou Gerstner but its board is too flawed to appoint one, maybe too flawed to recognise one. But I can’t believe that there are no great businessmen around in this generation, and it will take a great one to fix HP. As Gordon Moore once said: “I’d rather start a new company than try and fix a sick one.”

  3. George
    May 23, 2014 14:48

    “The HP Way” is dead! Who can revive “The HP Way”?

  4. david manners
    May 23, 2014 14:06

    Oh yes, Silverman, the CEO wouldn’t want to be turfed out of her well-rewarded job because she’d deprived Wall Street of its spoils.

  5. SilverMan
    May 23, 2014 11:45

    Does HP pay dividends out of those profits?

Share your knowledge - Leave a comment