HP has announced that it would be eliminating 24,600 of its employees. HP, in one of its Security Analyst Meetings stated that is a part of its global restructuring plans.
Many companies in the software, ITES or the EDS industry have been in a ramp down spree recently owing to inadequate projects, global slowdown and high competition. Companies have been showing the pink slip to employees in the name of performance issues. The economic slowdown has affected large companies.
HP’s plan to eliminate 24,600 employees is a huge and sensitive move for the organization. Mark, in one of his updates stated, “By far the hardest part of this effort is restructuring our global workforce and today we are announcing the elimination of 24,600 positions. There is no way to downplay the magnitude of this. The restructuring impacts people, families and communities, and we undertake it with gravity and deliberation.” He also added, “We have the well-being and futures of more than 300,000 employees to consider, and we owe it to all of them to create a business that is healthy, strategically sound and growing.’
The huge amount of eliminations shows the state of the company and the seriousness of employees without projects. Companies are no longer able to hold on to an employee if he/she is not billable even for a month.
The situation has been wide spread among all similar service companies. Industry experts feel that the same heat wave would prevail for further months. Hope we see the light soon in the end of the tunnel.