For Hewlett-Packard its time to sharpen the axe
The world’s largest PC maker, Hewlett-Packard, plans to cut 27,000 jobs by the end of the 2014 financial year. The job cuts, which would see 8 per cent of the workforce lose their jobs, are expected to make the company savings of between $3 billion and $3.5 billion per annum. The company is not even willing to spare its top management in job cutting Spree.The company is offering an early retirement program, so the total number of employees affected will be impacted by the number of employees that participate in the early retirement plan. Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate.
So what is in the mind of HP? What is to be done with the saved money?
The savings will be reinvested in the company, HP said. Most of the savings will go back to R&D. HP said it will make the following R&D bets:
- Services will invest in cloud, analytics, and high-value delivery.
- Software will invest in analytics, big data, application management, and security.
- The servers, storage, and networking unit will bet on cloud and big data technologies.
HP will reduce expenses by streamlining its supply chain, narrowing its product portfolio, simplifying its market strategy, and improving its standard business practices. At present the main focus of the HP is these three strategic pillars: cloud, security and information management.With the continuing interest in big data and analytics, and the perpetual interest in cloud and security, these seem like good bets. As the PC industry is declining because of the tablet revolution Hp may get into the bandwagong of the Tablet revolution with the latest Platform.Earlier HP has been criticized by analysts for less innovation in PC and Tablet industry as it has not been able to match up with the innovation of Apple and Samsung in hardware segments.
The services business is now a big focus for HP. It includes security, information analytics and cloud services. Earlier this month, HP launched its public-cloud service portfolio in a beta release. The portfolio consists of three cloud-based infrastructure services: compute, storage and content-delivery network (CDN). HP built its public cloud on the open-source cloud architecture OpenStack, developed jointly by Rackspace and the US National Aeronautics and Space Administration (NASA). But is HP ready for the faceoff with its counterparts in these areas such as IBM, SAP, Oracle and other giants? So let’s watch how Hp is going to grind its axe for its Encounter with Software Services Giants.