Toner News Mobile › Forums › Latest Industry News › HP's S.AMERICAN BOSS RESIGNS !
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AnonymousInactivehttp://www.businessday.co.za/articles/Content.aspx?id=72389
Effects of HP’s restructuring, job cuts on SA uncertain
HP’s
operations in SA are without a local head after the sudden resignation
of country manager Oliver Fortuin last month, after just seven months
in the job. A search for a replacement is under way.Nor does the local
subsidiary have an official spokesman to disclose any specific
information regarding the local effect of the cutbacks.Yesterday HP
released a proposed restructuring plan for its Europe, Middle East and
Africa region as part of an “ongoing global business transformation”.
The 5700 jobs to be lost in that region will reduce its 80000 employees
by more than 7%.In March, HP’s vice-president for the region,
Francesco Serafini, said Africa was a potentially huge market for HP
since it presented a vast target market for its products.However, any
potential expansion plans now seem to have been overtaken by additional
cutbacks. A more detailed breakdown of the positions to be lost in each
country will be finalised in the coming weeks.Many of the cuts will
come in Germany and Scotland, as HP will relocate its production
facilities from there to the Czech Republic to reduce its running
costs.Last week HP’s chief financial officer, Cathie Lesjak, said the
company expected to make a 2% cut in its headcount over the next 12
months.That made yesterday’s news worse than its employees had
anticipated, but the news has been getting progressively worse for
several months. In February, HP workers received a memo from CEO Mark
Hurd saying he was imposing wide-ranging pay cuts in an effort to
prevent further job losses. That followed a first quarter earnings
report showing a 13% drop in profit and a double-digit slide in the
sales of its printers, servers and PCs.Hurd told employees there would
not be any major workforce reductions for the foreseeable future,
although there were pockets where restructuring was needed in a
“workforce optimisation process”.Executive council members had
their pay cut 15%, other executives 10%, and other staff took cuts of
5% or 2,5%. While this was implemented in the US, wage cuts in Europe
were initially limited to leaders, who were asked to support the
measure.“In an environment like this, there’s no margin for error and
no tolerance for inaction,” Hurd said.“My goal is to keep the muscle of
this organisation intact but we do have to do something because the
numbers just don’t add up.”In September last year Hurd had announced
24700 job cuts. -
AuthorJune 5, 2009 at 3:18 PM
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