In
2012, Meg Whitman took control of Hewlett Packard as the company’s Chief
Executive. Since then, she has vowed to take the company, “from turnaround mode to
growth mode.” As part of her turnaround process, Ms. Whitman has decided to
split the company into more specific corporations and fire about 30,000
employees, or 10% of the company by 2018. The split breaks the tech giant into
HP Enterprise and HP Inc. and both will market separate types of products and
services. HP Enterprise will be led by Ms. Whitman as the chief executive and
it will focus mainly on servers, data storage, software, and tech services for
companies. The other half, HP Inc., will take over the consumer product side
of the business, like printers and personal computers.
Meg Whitman has made a good move to separate the
company. Before the split, HP was too broad and so they were catering to too many
markets under one name. Since HP has so many products and has been around for
so long, many people only think of their old functions and not their new
enterprise services. Furthermore, since there are so many diverse things that
the original HP had to market that the marketing team was probably stretched
too thin. Now, each company’s marketing team can more specifically focus on
their respective product or service market.
It’s also important to note the negative parts of the
company’s reformation, mainly the layoffs. It truly is unfortunate news to hear
that thousands of HP’s employees will be out of work, relying on federal
unemployment and this will only make our nation’s poor unemployment statistics,
even worse. This seems to be Meg Whitman’s most prevalent business move. Since
she took the company over in 2012, Whitman has fired over 54,000 employees.
Most of these job cuts will be coming from HP Enterprise
in the call and service centers located in developed countries. The company has
decided to replace these people will automated services and outsourcing to
Costa Rica and India, like the rest of the world’s major service companies. HP
Enterprise is taking the bigger hit in the division because the old enterprise
division of the company was much less successful than the old HP personal
computer division. In 2014, HP lost many of their big enterprise service accounts,
causing them to have an unsuccessful year.
The article used for this blog could have been better.
The author needed to add more statistics about the company’s past success or
failure in specific markets like enterprise services and personal computers.
Also, it would be interesting to know what, “developed countries” as the
article plainly states, HP currently operates out of and why exactly (other
than cheaper labor), this is a smart move.
http://bits.blogs.nytimes.com/2015/09/15/hewlett-packard-to-cut-about-10-percent-of-work-force/
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