ID :
19888
Wed, 09/17/2008 - 10:23
Auther :
Shortlink :
https://oananews.org//node/19888
The shortlink copeid
Now HP to axe 25,000 staff; but financial crisis not to blame
New York/New Delhi, Sep 16 (PTI) Job market seems to be turning gloomy not only in the banking space but also in the technology sector, with global IT giant Hewlett-Packard planning to slash close to 25,000 jobs across the world.
However, it was immediately not clear what would be the impact in India, where HP has over 30,000 employees.
"Approximately 7.5 per cent of the combined company's
workforce, or about 24,600 employees, will be affected over
the course of the program," HP said in a statement.
HP's job cut plans come in the midst of huge layoffs in
the financial services sector, where thousands of employees
have already been given pink slips by firms like Citigroup.
Thousands more job cuts are expected to come soon in the
backdrop of Merrill Lynch's distress sale to Bank of America,
Lehman Brothers filing for bankruptcy protection and firms
like AIG suffering huge losses.
However, the layoffs at HP are of different in nature and
are part of the integration process related to the company's
recent acquisition of EDS.
HP said that nearly half of the reductions would be in
the United States. HP has a considerable presence in India
with over 30,000 employees working for the firm, but the
company's officials in the country declined to comment on how
the Indian workforce would be impacted by the restructuring.
In India, thousands of employees of Lehman and Merrill
Lynch are already at risk of losing their jobs, while AIG is
also said to be nearing a possible bankruptcy, which could
lead to layoffs there as well.
Besides, a number of IT and BPO firms in India have
significant exposure to financial services majors of the US
and those firms being deep in the financial crisis could lead
to the Indian entities losing a number of contract, which
could subsequently result into job losses.
HP said in its statement that it "intends to implement a
restructuring program for the EDS business group that will
better align the combined company's overall structure and
efficiency with the operating model that HP has successfully
implemented in recent years."
However, the company made it clear that it will provide
employees affected by this restructuring program with
severance packages, counseling and job placement services.
Once completed, the restructuring program is expected to
result in annual cost savings of about USD 1.8 billion.
These savings are net of reinvestments in areas including
sales coverage, delivery optimisation and emerging markets, it
added.
HP will be recording a charge of USD 1.7 billion in
the fourth quarter of fiscal 2008 relating to the
restructuring program.
About USD 1.4 billion, of which will be recorded as
goodwill and USD 0.3 billion will be recorded as a
restructuring charge that will be included in HPs GAAP
financial results.
The company has announced it Tuesday ahead of their
security analyst meeting. PTI PML
ASJ
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However, it was immediately not clear what would be the impact in India, where HP has over 30,000 employees.
"Approximately 7.5 per cent of the combined company's
workforce, or about 24,600 employees, will be affected over
the course of the program," HP said in a statement.
HP's job cut plans come in the midst of huge layoffs in
the financial services sector, where thousands of employees
have already been given pink slips by firms like Citigroup.
Thousands more job cuts are expected to come soon in the
backdrop of Merrill Lynch's distress sale to Bank of America,
Lehman Brothers filing for bankruptcy protection and firms
like AIG suffering huge losses.
However, the layoffs at HP are of different in nature and
are part of the integration process related to the company's
recent acquisition of EDS.
HP said that nearly half of the reductions would be in
the United States. HP has a considerable presence in India
with over 30,000 employees working for the firm, but the
company's officials in the country declined to comment on how
the Indian workforce would be impacted by the restructuring.
In India, thousands of employees of Lehman and Merrill
Lynch are already at risk of losing their jobs, while AIG is
also said to be nearing a possible bankruptcy, which could
lead to layoffs there as well.
Besides, a number of IT and BPO firms in India have
significant exposure to financial services majors of the US
and those firms being deep in the financial crisis could lead
to the Indian entities losing a number of contract, which
could subsequently result into job losses.
HP said in its statement that it "intends to implement a
restructuring program for the EDS business group that will
better align the combined company's overall structure and
efficiency with the operating model that HP has successfully
implemented in recent years."
However, the company made it clear that it will provide
employees affected by this restructuring program with
severance packages, counseling and job placement services.
Once completed, the restructuring program is expected to
result in annual cost savings of about USD 1.8 billion.
These savings are net of reinvestments in areas including
sales coverage, delivery optimisation and emerging markets, it
added.
HP will be recording a charge of USD 1.7 billion in
the fourth quarter of fiscal 2008 relating to the
restructuring program.
About USD 1.4 billion, of which will be recorded as
goodwill and USD 0.3 billion will be recorded as a
restructuring charge that will be included in HPs GAAP
financial results.
The company has announced it Tuesday ahead of their
security analyst meeting. PTI PML
ASJ
NNNN
The information contained in this electronic message and any attachments to this
message are intended for the exclusive use of the addressee(s) and may contain
proprietary, confidential or privileged information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please notify
the sender immediately and destroy all copies of this message and any attachments
contained in it.
