2 posts • joined 8 Jul 2009
Just say no
This, and all the other recent swathe of benefit and cost cuts, are nothing to do with the current challenging economic environment. There is no secret that Hurd wants HP to get to the lowest possible cost structure and have far more of the renumeration as a variable bonus than fixed base pay.
It is not going to stop. Bet your bonus that he is being measured on earnings per share. He will continue to screw down on everything until the happy day he buggers off to do the same to the next company. I can only hope that it is one that already has less of a shining soul than HP had because the change to the situation now has been so painful.
It's a Cartel!
This article and the comments posted are so true for other companies in this industry. Take HP for another sad example. Maybe the numbers are slightly different here and there regarding the contribution changes, profits or the obscene amount the CEO takes home but at the end of the day this company is doing exactly the same kind of thing. Every single benefit or cost associated with employees is being cut back significantly and morale is rock bottom as a result.
In the UK they are asking for a 5% pay cut even though the company profits are enormous. They have raised the employee contribution for the final salary pension scheme from 3% to 9% and now 12% for the same level of benefit (in effect a 9% pay cut in itself) and the scheme has long been closed to new members. It will not be long before this is stopped completely as IBM has done.
And the excuse given for doing all this - "benchmarking the cost structure against the competition" It is a cartel and at at the CEO club they must be laughing together as they all agree on what to reduce next. Makes a change I suppose from wondering how to spend their personal millions.
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