The IT and investor communities were both a little jumpy this week, worried that IT bellwether Hewlett-Packard wasn't pulling in enough dough. But this was just borrowing trouble. Overall revenues at the HP were up 12.7 per cent to $30.8bn in the second quarter ended in April, and with HP keeping tight reins on costs, net …
So, Mr Hurd...
"... worked to extract costs from the EDS services biz"
Yeah, by transitioning staff into a job code lower than their EDS one so that they are technically overpaid and will never get another pay rise. And then they leave. That saves lots of money.
And by not paying bills "contracted prior to EDS integration". To the extent that HP then had to send an all-staff email reminding everybody that "there are some important steps we all need to take to ensure on-time supplier payment, and avoid unacceptable damage to HP's standing in the market place". Yeah, right. Like "we all" didn't want to pay our bloody bills.
"You all" is gonna have to learn the hard way... Hurd way, perhaps. "Me all" left and in doing so saved HP some money... in the short term...
...how much profit was made in Q2? My eyes either glazed over, or it wasn't spelt out in there.
Looks like lots, though.
Bonzo the Wonder Dog is spot on. EDS staff were demoted in the job codes exercise, I know no-one that gained. European & ANZAC staff gave HP the finger on the 5% pay cut but he got the Americas & Asia with it as well as hitting their pensions.
You need to be related to Nostradamus to be able to foretell your travel needs in time so that never gets approved. If you try to push for approval you are threatened with being disciplined.
The only time you get any management communication is when they want to tell you when to take your annual leave or flog you some overpriced piece of tat that you can buy cheaper on Amazon or from Dell.
Meanwhile the money is rolling in on T&M jobs and the staff get bugger all.
Everyone I know gained dick or less
A few in my former group took cuts of 30%, which they couldn't afford to accept and left the company within a month of two of last August (part A of the Turd plan for cost elimination). Personally, I was offered a 15% raise to stay on, but only after I showed my boss a offer from another company that HP couldn't possibly match. I was astounded at the counteroffer, but how could someone accept such a modest raise to stay at a company that treats it's employees so badly?
Spot on Bonzo the Wonder Dog.
The relentless pursuit of short-term profit to the relentless detriment of the staff.
The massive numbers will end in tears.
so, in summary...
The highlight must be x86,which are up 50%. Well done, HP.
Business critical systems business is in the tank, despite a hard push on these from the workforce, storage is missing the mark, despite buying a host of companies in this space and EDS is not cranking the way it should, despite obvious synergies across the business lines.
Couple this with a disgruntled workforce, some pissed off customers and an inability to leverage the outsourced and managed support base to crank up biz critical and storage sales, this is a poor set of results overall.