Sunday, August 16, 2009

HP's HR Downsizing


The following are the articles I’ve found on the internet about the HR downsizing of the Hewlett-Packard Corporation.


Thursday, June 20, 2002

HP's downsizing gearing up

Silicon Valley / San Jose Business Journal

High-tech manufacturer Hewlett-Packard Co. will lay off its roughly 4,000 North American information technology contract workers for three weeks and then may fire as many as 1,000 of them, according to CBS Marketwatch.com, which cited unnamed sources. There has been no comment from the Palo Alto-based company about the terminations. Earlier this year HP CEO Carly Fiorina said as many as 15,000 employees will lose their jobs as a result of the acquisition of Compaq Computer Corp.

A company spokesman confirmed the three-week furloughs to "evaluate those contracts and services," the Internet news service says.

In another HP labor development, the San Francisco Chronicle reported Thursday that the company has lowered the age to qualify for buy-out offers from 55 to 50.

http://www.bizjournals.com/sanjose/stories/2002/06/17/daily54.html

HP drops 4 research groups in downsizing

Benjamin Pimentel, Chronicle Staff Writer

Friday, July 22, 2005

Hewlett-Packard has dismantled four research groups at HP Labs, including one led by a world-renowned scientist, as the company begins its latest downsizing initiative that will eliminate 14,500 jobs.

The technology giant has shelved a team based in Palo Alto focused on advanced software research led by Alan Kay, a respected computing pioneer, according to HP Labs spokesman Dave Berman.

HP also dissolved two Palo Alto labs that dealt with emerging technologies and consumer applications and a group in Cambridge, Mass., that handled research on health care and medical issues.

The company also consolidated the HP Labs organization by eliminating a level of management that ran three separate research centers for printing and imaging research, Internet and computing platforms, and information technology services, Berman said.

Kay is considered one of the pioneers of personal computing who also helped design the ARPAnet, the forerunner of the Internet.

He has received two of the computing industry's highest honors, the Association for Computing Machinery Turing Award and the National Academy of Engineering Charles Stark Draper Prize.

The moves follow HP's announcement on Tuesday of a restructuring plan that will eliminate about 10 percent of its global workforce of 151,000.

Berman said the reductions in HP Labs will be consistent with that goal, although he declined to discuss details. HP Labs has about 700 employees, including 400 in Palo Alto.

Berman stressed that HP remains committed to innovation through research and development, citing HP Labs' continuing work in the fields of nanotechnology and quantum computing.

"The message is (that) we are trying to refocus our research into the areas of greatest promise and our core strength and those areas which are most important to HP in the medium and long term," Berman said.

"Despite these cuts, we still have a rich and varied research agenda," he added. "We're still doing a lot of interesting and very important work. There just comes a time when you have to set priorities."

Analyst Crawford Del Prete of International Data Corp. said HP is redirecting its research to areas that could help generate revenue in the foreseeable future.

"It sounds like they're doing some pruning and refocusing of the research centers," he said. "I think the longer-term risk for HP is doing innovation that they can't" profit from.

But analyst Michael Dortch of the Robert Frances Group said the cuts, particularly the elimination of a group led by a highly respected scientist like Kay, could backfire.

"How many times in a lifetime does a company like HP get access to a mind like Alan Kay's?" he said in an e-mail.

"To eliminate his group by saying its efforts are outside of HP's primary business focus seems incredibly disingenuous and risky, happening as it does precisely at a time when HP could use all the loyalty, support and vision its management team can muster," he added.

The cause of HP’s downsizing:

• HP has lay off its roughly 4,000 North American information technology contract workers for three weeks and then may fire as many as 1,000 of them.
• 15,000 employees of HP will lose their jobs as a result of the acquisition of Compaq Computer Corp.
• Hewlett-Packard has dismantled four research groups at HP Labs.
• HP has shelved a team based in Palo Alto focused on advanced software research led by Alan Kay, a respected computing pioneer.
• HP has dissolved two Palo Alto labs that dealt with emerging technologies and consumer applications and a group in Cambridge, Mass., that handled research on health care and medical issues.
• The company has consolidated the HP Labs organization by eliminating a level of management that ran three separate research centers for printing and imaging research, Internet and computing platforms, and information technology services.


The process:

HP has lay off its roughly 4,000 North American information technology contract workers for three weeks and then may fire as many as 1,000 of them. 15,000 employees of HP will lose their jobs as a result of the acquisition of Compaq Computer Corp. Hewlett-Packard has dismantled four research groups at HP Labs. It has shelved a team based in Palo Alto focused on advanced software research led by Alan Kay, a respected computing pioneer. And because of that, it has dissolved two Palo Alto labs that dealt with emerging technologies and consumer applications and a group in Cambridge, Mass., that handled research on health care and medical issues and has consolidated the HP Labs organization by eliminating a level of management that ran three separate research centers for printing and imaging research, Internet and computing platforms, and information technology services. All the reductions in HP Labs will be consistent with that goal. But still HP remains committed to innovation through research and development, citing HP Labs' continuing work in the fields of nanotechnology and quantum computing and they are also trying to refocus their research into the areas of greatest promise and their core strength and those areas which are most important to HP in the medium and long term. Despite those cuts, they still have a rich and varied research agenda and still doing a lot of interesting and very important work. But as of now, there just comes a time when someone has to set priorities, right? Many of it’s employees will suffer but HP is just redirecting its research to areas that could help generate revenue in the foreseeable future that could give more benefits to the people.


http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/07/22/BUGVRDRPHI1.DTL

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