Surprise! HP To Slash Jobs At EDS…. 24,600 Jobs Go Bye Bye…

In case you missed it, I made this comment when EDS was bought by HP:

Oh, if you want some cheap entertainment, take a look at the e-mail sent to EDS employees. My favorite line is this one:

We are – and will remain – EDS.”

Sure. Until the execs cash out and HP “rightsizes” the company. Compaq employees know what that feels like.

Well, the word is out that HP is going to slash 24,600 jobs and HP will record a $1.7 billion charge in the fourth quarter of fiscal 2008 related to this. HP CEO Mark Hurd defended these cuts by putting the best spin on it:

“Although the headlines were sure to focus on the job cuts, which will take place over the next three years, Hurd said the deal’s benefits were not limited to cutting jobs. “I can assure you there are other synergies we are looking for in the acquisition,” Hurd said.”

He really didn’t say what those “synergies” were, but HP’s stock is up slightly in after hours trading. So whatever those “synergies” are, the market might be buying it.

In the meantime EDS employees should start mass e-mailing their resumes now. Meanwhile, I wonder when the execs from EDS will cash out.

One Response to “Surprise! HP To Slash Jobs At EDS…. 24,600 Jobs Go Bye Bye…”

  1. I think our corporate leaders and wall street have been too short-sighted for too long. If we go back to WHY did the rules change for lending on new home sales, we find that it is because buyers couldn’t afford as much house as they used to due to rate of inflation compared to salary range AND # of jobs moving overseas at an increasing rate. Most of these people were in the middle class – not poor, not rich. When the lending rules changed, it created a “false sense of security” in an environment where the middle class was already over-extended by keeping up consumption using credit (0 down, 0 payments for 1 year, etc., etc.). Once the payments are due on all of these great offers and the APR rates adjusted after their 3-5 year term, the middle class consumers “sink in quicksand”. Not only that, they are losing jobs at an alarming rate.
    Consumer – buys goods and services – businesses grow and hire more employees – more consumers buy more goods and services – employees get raises – consumers buy more goods and services. THIS IS HOW IT WORKS.
    US Companies have cut the legs off the consumers – less pay, less benefits, less jobs – and they wonder why they don’t make as much money now.
    How about we get some smart people in CEO positions who understand basic rules of economics. Keep employees in the US – pay them a good salary – give them good benefits – and, GUESS WHAT, the economy will pick back up again!
    US Government should have distributed the “TARP” money to the people who are US citizens, over 18 years of age, who own a home. This would have put the money in the hands that need it and in the hands that SPEND it, thus keeping the economy moving forward.
    I think I will write a book about what’s really going on here and perhaps enough people will listen to do something about it.

Leave a Reply

%d bloggers like this: