HP Attempts Innovation Through Massive Layoffs?

Susan Hall

Our Rob Enderle recently warned Yahoo against long, slow layoffs, a tactic Hewlett-Packard reportedly is planning in a restructuring that could eliminate around 30,000 jobs.


CEO Meg Whitman will make the announcement next Wednesday along with its quarterly earnings call, according to All Things Digital. It says the layoffs could take place over a year.


The company's enterprise services group, which sells a range of IT services and is expected to again post poor results, will be hit hard, with cuts of 10,000 to 15,000 positions, Bloomberg reports.


All Thing D says Whitman's strategy will largely focus on reinvesting in R&D and new initiatives in wake of the massive cutting by former CEO Mark Hurd. My colleague Ann All, after Hurd was ousted, wrote about how the cost-cutting left the company unable to innovate. She also wrote during the economic downturn about the importance of not neglecting innovation.


Analysts say HP needs, for one thing, to develop a consistent cloud strategy before it falls too far behind competitors, as SearchCloudComputing.com reports.


By cutting so many jobs, Whitman hopes to return HP to its innovator image of yore, if it's not too late. And, of course, that will be cold comfort to all the folks left with pink slips.

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