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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

UK riots hit the mobile industry

Mark Bridge writes:

Having just returned from a week's holiday in a part of the country where mobile coverage was surprisingly sparse, it struck me how much mobile phones were linked to the recent English riots and looting.

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Rhona Cashman from OtterBox explains the secrets of mobile phone cases

Mark Bridge writes:

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Steve Ballmer and Rupert Murdoch - both troubled by their one-percent businesses

Mark Bridge writes:

Last month, News Corporation's Rupert Murdoch said the News of the World had accounted for just 1% of his global business. It's a figure that put the overall size of News Corp into perspective.

This week, some analysis of Microsoft's financial results seems to suggest Windows Phone is only generating a similarly small percentage for its parent.

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Google claims 'hostile campaign' against Android by Microsoft and Apple

Mark Bridge writes:

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I'm unconvinced about the new T-Mobile hybrid tariff

Mark Bridge writes:

I don't like marketing spin. You know, the kind of thing where the small print contradicts the headlines or where an embarrassing u-turn becomes a benefit. Given my chosen profession, I find it tends to stand out.

And so I turn my attention to T-Mobile's new 'You Fix' tariff. Sounds rather like T-Mobile's 2005 'U-Fix' tariff, but that may be coincidence. You pay a fixed monthly fee and - if you use all of your inclusive calls - you can add an additional allowance during the month by paying a bit more. Rather like buying a top-up on a prepay phone.

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