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Thursday, May 24, 2012

HP restructuring will see 27,000 jobs cut worldwide

HP, the world’s largest technology company, has announced what it’s calling a ‘multi-year productivity initiative’. The restructuring scheme is expected to save up to $3.5 billion (£2.2 billion) by the end of the 2014 financial year and will see around 27,000 employees leaving.

Most of the savings will be reinvested in the company, boosting investment in innovation around three key areas: cloud, big data and security.

The 27,000 employees - around 8% of the HP workforce - will be encouraged to take early requirement.

Meg Whitman, HP’s president and CEO, said “These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business. While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders.”

The news came as HP announced quarterly results that showed net revenue of $30.7 billion, down 3% year-on-year. Net profit was down 31% year-on-year to just under $1.6 billion.

In addition it says Mike Lynch, who founded the Autonomy software business bought by HP last year, is leaving and being replaced by Bill Veghte. Mr Veghte, who’s chief strategy officer at HP and executive vice president of HP Software, will “help develop the right processes and discipline to scale Autonomy and fulfill its promise”.

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Opinion Articles

Ee-ee-ee, says Everything Everywhere

Mark Bridge writes:

Mobile networks have changed, haven’t they?

Once they were all about delivering service. Coverage. Quality. Price. Now it’s much more about branding.

Everything Everywhere has announced it’s to become EE, an obvious abbreviation that’s been used in mobile industry briefings pretty much since the company was created two years ago. It joins the likes of Kentucky Fried Chicken, Hennes & Mauritz, British Home Stores, Independent Television and Marks & Spencer, although all of these took decades to transition into businesses that were just described by their initials.

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Last week at The Fonecast: 10th September 2012

No Amazon smartphone, no Nokia tablet

Mark Bridge writes:

It’s a smartphone autumn, as prophesied a few weeks ago by the Carphone Warehouse and many others. The frenzy of big-name announcements led by Samsung at Berlin’s IFA has given way to stand-alone media presentations from Nokia, Motorola and Amazon.

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With instant-pay apps, wallets can stay home

Ted Landphair of voanews.com writes:

A lot of people gave up carrying much cash a long time ago, since they knew ‘plastic’ - a credit or debit card, or a store or public transit ‘smart card’ - would be accepted just about everywhere.

But to hear tech companies tell it, plastic cards will be museum pieces as well before long.

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Last week at The Fonecast: 27th August 2012

4G gets a boost in the UK, Samsung gets a slap in the USA

Mark Bridge writes:

It was a week of dramatic contrasts in the mobile phone industry. We started with Everything Everywhere’s news that 4G service was coming to the UK this year – possibly with a new brand that’ll work alongside Orange and T-Mobile. Meanwhile Three UK seems to have its own plans that involve acquiring some excess 4G spectrum from Everything Everywhere. There was much muttering from Vodafone and O2, although whether this’ll manifest itself as legal action remains to be seen.

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The Hare and the Tortoise: the race for 4G/LTE in the UK

Robin Kent writes:

With this week’s announcement that Everything Everywhere has been given the green light to launch the UK’s first 4G service, competing operators such as Vodafone and O2 are getting hot under the collar. With every day that goes by, these operators lose vital competitiveness as the market creeps away them towards Orange and T-Mobile. This is a real life ‘hare and tortoise’ scenario.

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