HP SLASHES E.D.S. EMPLOYEE SALARIES BY 47%

[Anonymous]

http://venturebeat.com/2009/08/05/hp-slashes-ex-eds-salaries-up-to-47-percent-its-a-slap-in-the-face/
HP slashes EDS salaries up to 47 %
Before
the World Wide Web, working for Ross Perot’s IT outsourcing firm EDS
was one of the most prized and prestigious jobs in tech. EDS, which
Perot founded in 1962, defined the outsourcing business and made Perot
a hero to both businessmen and techies.Perot resigned in 1986, but his
brash, I-always-win style continued as part of EDS’s professional
brand. (Perot ran for president as an independent candidate in 1992 and
won over a that’s-impossible 39 percent of voters in polls, before he
awkwardly dropped out of the race.)

Last year, HP acquired EDS
and its 137,000 worldwide employees for $13.9 billion. Now, some of the
acquired staffers have told NBC Bay Area reporter Randy McIlwain that
HP has slashed salaries from 29 to 47 percent among the people from
whom McIlwain got numbers. HP has made several rounds of cuts, the most
recent of which will take effect September 1st. Only employees based in
the U.S. are affected by this latest, deepest cut.

HP CEO Mark
Hurd took his own 20 percent haircut, from 10 million a year to eight.
But for a techie making, say, $120,000 a year, Hurd’s gesture doesn’t
help. “It’s a slap in the face. That’s the only way you can take it, is
that it’s a slap in the face,” one employee said.The most striking
aspect of the EDS cuts is that most of these senior, accomplished
employees didn’t talk about quitting. They told NBC Bay Area that
they’re hanging onto their reduced-pay jobs, afraid there’s nothing
else out there. A couple of years ago, some of these Texans would’ve
gladly slapped Hurd back as they walked out the door. Tomorrow, most
will pocket their HP badges and show up for work.

Update: An HP spokesperson emailed me this statement:
 “As
part of the EDS integration process, a project was undertaken to ensure
that employees in both EDS and HP, holding the same roles, receive
comparable compensation based on market rates. While pay will not be
impacted for the majority of employees as a result of this process,
some employees will receive pay reductions while others will benefit
from salary increases. We understand that these changes personally
impact our employees and we are working closely with them during this
transition.“EDS is an integral part of HP’s long term strategy to
provide more services and solutions to our clients.”

[Author]

August 19, 2009 at 11:11 AM