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HP to Cut Some 30,000 Employees

What would Dave and Bill do? Probably not this

1 min read
HP to Cut Some 30,000 Employees
Photo: HP

About a year ago, Hewlett-Packard unveiled plans to split into two companies, Hewlett-Packard Enterprise, encompassing software and services, and HP Inc., a PC and printer business. Research activities previously housed in HP Labs would go with the business units. That split will become official on 1 November.

Today, the company announced that this restructuring will involve reducing the workforce by 25,000 to 30,000 people, or 10 percent. Most of those jobs will be eliminated on the Enterprise side.

The statement released by HP indicated that Tim Stonesifer, who will become chief financial officer of Hewlett-Packard Enterprise, is aiming for US $2.7 billion in annual cost reductions, mostly coming from those staff cuts.

As part of the announcement, HP CEO Meg Whitman turned the spotlight on the company’s cloud strategy, indicating that cloud revenue would be $3 billion, and expected it to grow 20 percent annually. (Indeed, the company has indicated that some of the layoffs would be offset by new hires, to “reshape the workforce.”) This sounds a lot like IBM’s recent efforts to “rebalance” its workforce to focus on the cloud. It appears to be getting crowded in the virtual skies.

For an analysis about the potential impact of HP’s restructuring on its laboratories, see “Hewlett-Packard Splits Again: But What About the Labs?”

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Asad Madni and the Life-Saving Sensor

His pivot from defense helped a tiny tuning-fork prevent SUV rollovers and plane crashes

11 min read
Asad Madni and the Life-Saving Sensor

In 1992, Asad M. Madni sat at the helm of BEI Sensors and Controls, overseeing a product line that included a variety of sensor and inertial-navigation devices, but its customers were less varied—mainly, the aerospace and defense electronics industries.

And he had a problem.

The Cold War had ended, crashing the U.S. defense industry. And business wasn’t going to come back anytime soon. BEI needed to identify and capture new customers—and quickly.

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