"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.
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."
12 comments:
It’s amazing to see, the ONLY thing, HP top management has learnt in business school is reducing employee numbers in order to make the company value grow..!
Nowadays, we better be HP stock holder than HP employee, it seems being both is not easily possible!
Am I wrong?
SGX To Outsource Data Centre And IT Infrastructure Services
24-Nov-05
Singapore Exchange Limited (SGX) wishes to announce its intention to outsource its Data Centre and IT infrastructure services to Hewlett-Packard Singapore (Sales) Pte Ltd (HP). This initiative is part of SGX’s continuing efforts to focus on its core business and obtain the best return on its information technology (IT) infrastructure investment.
The contract is being finalised and expected to be signed before the end of 2005. The nominal value of the contract is estimated at about S$95 million for five years. Moving forward, SGX would need to make a significant reinvestment in its IT infrastructure. After conducting a thorough review, it was clear that it would be more efficient to outsource the IT services. Over the contract period, SGX expects to save up to 20% of the projected cost of enhancing its data centre and IT infrastructure services.
“As a leading exchange, SGX is constantly seeking opportunities to increase our organizational agility and achieve greater efficiencies. The new outsourcing arrangement will allow SGX to focus on our core competencies and strategic imperatives by leveraging on HP’s specialist IT resources and best practices. Both our primary and secondary data centres will also be moved to modern facilities that are well-placed to support our needs for high service availability.” said Mr Chew Hong Gian, EVP and Head of Technology Group.
About 48 staff will be transferred to HP. A key criterion in selecting the service provider was its ability to offer the affected staff, positions comparable in role and compensation. Mr Chew said, “Our staff joining HP will have many opportunities to develop professionally and will remain important partners to SGX.”
http://www.exchange-handbook.co.uk/news_story.cfm?id=56117
I think the highest performing organizations are cynical
When you look up the definition of cynical on Google you'll find things like "believing the worst of human nature and motives" or "having a sneering disbelief in; e.g., selflessness of others" or "believing or showing the belief that people are motivated chiefly by base or selfish concerns" or "skeptical of the motives of others".
http://h20325.www2.hp.com/blogs/marcello/archive/2005/07.html
Greenies Slam HP
http://www.smarthouse.com.au/Computing/Industry/?article=/Computing/Industry/News/T8K3V2Q6
http://www.i4u.com/article4714.html
HP Garage Opens for Visitors
And HP sends its employees on a way of garage
INSIDER & RULE 144 TRANSACTIONS REPORTED - LAST TWO YEARS
Date Insider Shares Type Transaction Value*
2-Dec-05 LAMBMAN, RICHARD
Officer 65,614 Direct Planned Sale $190,5001
2-Dec-05 LAMPMAN, DICK
Director 65,614 Direct Option Exercise at $15.745 - $20.51 per share. N/A
2-Dec-05 LAMPMAN, DICK
Director 65,614 Direct Sale at $29.20 - $29.24 per share. $1,917,0002
1-Dec-05 WAYMAN, ROBERT
Chief Financial Officer 115,184 Direct Sale at $29.65 - $29.71 per share. $3,419,0002
29-Nov-05 WAYMAN, ROBERT
Chief Financial Officer 115,184 Direct Option Exercise at $20.51 per share. $2,362,423
28-Nov-05 LAMPMAN, DICK
Director 8,097 Direct Sale at $29.85 per share. $241,695
22-Nov-05 HAMMERGREN, JOHN H.
Director 1,708 Direct Acquisition (Non Open Market) at $29.29 per share. $50,027
22-Nov-05 HAMMERGREN, JOHN H.
Director N/A Direct Statement of Ownership N/A
22-Sep-05 HUMPHRIES, BRIAN
Vice President 15,000 Direct Acquisition (Non Open Market) N/A
19-Sep-05 ZITZNER, DUANE E.
Officer 50,000 Direct Planned Sale $1,437,5001
1-Sep-05 FLAXMAN, JON E.
Officer 37,500 Direct Planned Sale $1,030,1251
1-Sep-05 FLAXMAN, JON E.
Controller 37,500 Direct Option Exercise at $15.745 per share. $590,437
1-Sep-05 FLAXMAN, JON E.
Controller 37,500 Direct Sale at $27.54 - $27.56 per share. $1,033,0002
http://finance.yahoo.com/q/it?s=HPQ
HP Securities Analyst Meeting
December 13, 2005 -- 8:00 am - 12:00 am ET
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Speaker presentations and a link to the webcast will be available December 13, 2005. Please return closer to the meeting date and time for the webcast.
Agenda
NOTE: All times are Eastern Time (ET) 8:00am - 8:45am Mark Hurd, CEO
8:45am - 9:05am Bob Wayman, CFO
9:05am - 9:45am CEO/CFO Q&A
9:45am - 10:10am Ann Livermore, EVP Technology Solutions Group
10:10am - 10:35am Steve Smith, SVP HP Services
10.35am - 11:00am Todd Bradley, EVP Personal Systems Group
11:00am - 11:30am Vyomesh Joshi , EVP Imaging & Printing Group
11:30am - 12.15pm Extended team Q&A
12:15am - 12:25pm Mark Hurd, CEO
12:30pm - 1:15pm Luncheon
» View the archive of Securities Analyst Meeting presentations
http://www.hp.com/hpinfo/investor/sam/index.html
Chief Financial Officer Bob Wayman said HP expects revenues of $89.5 billion to $91 billion for its 2006 fiscal year, a range allowing for a lower result than $90.85 billion analysts had been expecting. However, Wayman said that the company expects earnings of $1.88 to $1.95 a share. Analysts had been expecting $1.82 a share.
http://money.cnn.com/2005/12/13/technology/hp_meeting/
The projections are confirmation of new CEO Mark Hurd's first order of business since taking the reins from Carly Fiorina ... cutting costs. But up until now investors and analysts have heard little about how he plans to grow the company.
News For Working Families- Reports on CEO Pay: How High Is Too High?
By AFL-CIO
--------------------------------------------------------------------------------
Related stories: labor movement 12-9-05,9:45am
Dec. 6—The gap between CEOs’ pay and workers’ pay continues to rapidly widen, with the average CEO making 431 times the salary of a production worker in 2004, up from 301 to one in 2003. In the mid 1960s, the average CEO made 24 times a workers’ annual pay, according to the nonprofit Economic Policy Institute (EPI).
Several additional recent studies highlight how extensively executive pay is skyrocketing, even as workers’ wages are stagnant or dropping. In fiscal 2004, total compensation for the CEO of a median U.S. company rose across the board, with corporate officials in the energy industry getting the biggest pay hikes: 46.1 percent, according to a new report by the Conference Board, a business research group. At the same time, the average CEO took home a 91 percent raise in 2004, according to the Corporate Library, an investor research firm.
Workers Produce More, Get Paid Less
Yet U.S. workers, who are more productive than ever before, are not reaping the benefits of their labor. Worker productivity increased 4.7 percent during the third quarter of 2005, according to the federal Bureau of Labor Statistics. Meanwhile, real hourly wages and benefits decreased by 1.4 percent, compared with an even higher 3.1 percent decrease in the previous quarter.
The combination of lagging workers’ compensation and higher productivity are fueling soaring profits, creating a historically unique pattern, according to EPI.
Proposed legislation in Congress would give shareholders more control over runaway executive compensation. The Protection Against Executive Compensation Abuse Act, H.R. 4291, would require public companies to include in their annual reports a comprehensive, shareholder-approved “Executive Compensation Plan.” The plan would disclose all compensation paid to top executives, such as pensions or golden parachute agreements; the performance targets used to determine the top executive’s compensation; and the company’s policy for recapturing any compensation that is found to be unjustified.
“We have witnessed a number of high profile executive pay packages that are hidden to the owners of the company, the shareholders, and I want to make sure we have full disclosure,” said Rep. Barney Frank (D-Mass.), who introduced the measure in November. “We are not taking anybody’s pay or even setting any limits, we just believe these owners should know how [management is] being paid and have some ability to do something about it if they so desire.”
Frank is the ranking Democrat on the House Financial Services Committee. The bill is co-sponsored by Reps. George Miller (D-Calif.) and Martin Sabo (D-Minn.).
“Excessive CEO pay takes money out of the pocketbooks of shareholders, including the retirement savings of America’s working families,” AFL-CIO Secretary-Treasurer Richard Trumka says. “Year after year, CEO pay levels show little apparent relationship to corporate profits, economic growth, or executive performance. Moreover, a poorly designed executive compensation package can reward decisions that are not in the long-term interests of a company, its shareholders and employees.”
http://www.politicalaffairs.net/article/articleview/2350/1/135/
Golden parachutes in a time of pink slips
After Carly Fiorina screwed up as the CEO of Hewlett-Packard Co., the computer company deleted her – and gave her $21 million. When the Securities and Exchange Commission started investigating Krispy Kreme Doughnuts Inc., and shareholders filed a lawsuit about padded sales figures, the company rolled President Scott Livengood out the door – and gave him more than $32 million. And when CEO Harry Stonecipher, the self-styled “chief ethics officer” for Boeing Co., had an affair with an employee, the aircraft manufacturer sent him flying – and gave him $44 million.
http://www.businessrecord.com/Main.asp?SectionID=40&SubSectionID=75&ArticleID=2366
Los Angeles, CA 90017 December 2 2005
A controversial bill was introduced earlier this month that would require public companies to reveal more about executive salaries and perquisites. The proposal does not dictate what companies can pay their executives. Instead, the law focuses on additional disclosure and related shareholder approval.
The Protection Against Executive Compensation Abuse Act (HR 4291), is sponsored by Rep. Barney Frank (D-MA). Frank’s bill would require public companies to:
Disclose additional details about how much executives earn in cash, incentives, and perks, and submit this for shareholder approval.
...
Carly Fiorina
Hewlett-Packard
$ 21 million
http://www.expertclick.com/NewsReleaseWire/default.cfm?Action=ReleaseDetail&ID=10934
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