HP INDIA TO CUT 1,000 JOBS

[Anonymous]

http://infotech.indiatimes.com/News/HP_India_to_cut_1000_jobs/articleshow/3495019.cms
HP India to cut 1,000 jobs?
BANGALORE:
Hewlett-Packard’s decision to eliminate nearly 25,000 of its 320,000
jobs worldwide is expected to have a significant impact on its Indian
operations too.Analysts in India believe that in the short term, the
company could see off some 1,000 people, and that in a three year
period this could go up to 6,000 of its nearly 60,000 people in the
country.The computer and printer maker’s job cuts come as part of its
plan to integrate Electronic Data Systems (EDS), the computer services
giant that HP acquired for $13.9 billion in August as part of an effort
to match IBM in the services space.

Following the acquisition, a
workforce reduction was seen as inevitable, but the figure HP has
announced is way beyond anybody’s expectations.Kapil Dev Singh,
managing director of research firm IDC India, said HP’s announcement
mostly stems from the global economic scenario. “It’s an instant fall
out of what’s happening on Wall Street. The IT accounts of banking and
financial institutions (BFSI) have been shrinking. So hiring for this
space has been put on a slow burner by global companies,” he said.

Mohan
Lal Menon, managing director of strategy advisory firm Sentient, said a
lot of overlapping was expected with the integration of HP and EDS
Mphasis (in India, EDS had previously acquired Mphasis).“Most of it
would have been in the areas of HR, administration, sales and
marketing. But the trigger for HP is definitely the precarious
conditions in the BFSI space across the US, Europe and Asia. HP seems
to be ahead of the curve, towards planning for the economic downturn,”
he said.

Till the time of going to print, HP had not responded
to questions sent by TOI on the impact HP’s workforce reduction move
would have on India.However, a senior official at Mphasis said no
immediate impact was expected on Mphasis. “We have been hiring junior
to top talent. We have been expanding our footprint across the country.
So its business as usual,” he said.

[Author]

September 18, 2008 at 3:15 PM