RSSPay cuts fail to save HP jobs
Despite the across-the-board pay cuts HP CEO Mark Hurd made (and I lauded) two months ago, the latest quarterly results have proven disappointing and the outlook no better, leading the company to announce that it will be making recession-related layoffs after all… 6000 jobs over the next 12 months, amounting to 2% of the overall workforce.
I caught a lot of flack from HP staff for voicing my approval over the pay cuts; now we'll see how they feel about the alternative of outright layoffs. It was odd to me that people seemed to prefer the more traditional sugar-coating and uncertainty followed by outright layoffs or business failure, prompting this observation in comments:
It's an interesting portrait in psychology, however… from an outside seat, HP employees probably have less to be fearful about exactly because the numbers look good, but because the steps taken impact all of them, they seem to be reacting unfavorably. Employees at other companies, which have management who play the old game to the hilt before blowing the tires out (Chrysler, anyone?) and collapsing, seem more confident than they reasonably should in the circumstances.
So, perhaps morale will improve now that people are simply being let go. On the other hand, perhaps people feel even more persecuted by having their wages slashed, and then simply being laid off anyway. So was Hurd's decision a bold effort to avoid RIFs which failed, or a mistake which would better have been avoided by deep and dramatic workforce reductions in the first place? It should certainly give pause to other CEOs and executives who might be tempted to share the burden of (or be shamed into) across-the-board pay cuts… Hurd has been rewarded neither by his employees or by the Street, whereas more traditional layoffs would at least have been more likely to bolster the company's stock price.
My bet is still on HP over the long term; the sole bright spot in the quarterly report is the recently services division formed out of the EDS acquisition. Services are the future for major hardware companies which are watching their hardware become a commodity, and HP is making the transition more boldly and successfully than most.
Whilst I was on a graduated return to work after being off on long term sick I was abused by EDS/HP staff on a DWP site. There was no investigation by EDS nor the DWP and the HP employment lawyer (Michael Farrier of Boyes Turner in Reading) suggested I deserved to be abused and asked if I was going to quit my job.
HP sacked me for blowing the whistle by naming and shaming the company and it’s staff’s conduct on a website.
In a High Court hearing Mrs Justice Swift injucted me from naming the individuals and their actions.
I’ve asked the Work and Pensions secretary James Purnell and Gordon Brown to investigate but – surprise surprise – they aren’t interested.
The complaint my colleague (as a witness) and I made to EDS at the time appears to have “disappeared”.
I never realised how corrupt/incompetent this country really is.
Sounds to me as if it’s time to talk to a lawyer who specializes in labor law; politicians and bureaucrats are often most interested in what a case can do for them or their career. You need someone in your corner of the ring. Unfortunately, you’ll have to pay them… but a good lawyer can tell you if you actually have a case, or can pressure state and federal agencies into doing their jobs.
What a coincidence – I too have a medical condition, and was made redundant by EDS / HP, only to see my position advertised 7 weeks later.
I have registered a complaint for non-genuine redundancy with the Australian Industrial Relations Commission.
I hope this is not a trend with EDS / HP – employees made recently redundant should double check the reasons for their redundancy.
So much for the “humane” face of this company…..
This article misses the point. The reason why so many HP/EDS employees were angry at the pay cut was because it did not include those at the top.
If Mark had said everyone gets a temporary 5% pay cut and all bonuses are cancelled till things get better the rank and file would have welcomed it.
The real reason for the pay cut was that it was a good excuse to permanently reduce HPs cost structure and prop up executive pay…it stinks!!!!!!
EDS/HP have refused to furnish me with information I requested months ago and which was needed for my appeal into unfair dismissal. The company refuses to provide the information and have now been found guilty of breaking data protection laws in the UK. Genevieve Moat from EDS HR was asked to provide the information many times over. Disgraceful.
The scale of EDS/HP incompetence is available at http://www.edsfuckups.com