HP says that the layoff would help the cash strapped company to save as much as $3.5 billion by the end of 2014. The printing and PC giant is facing one setback after the other. The world’s best company till a around a decades ago is finding it difficult to adjust to the changing scenario.
Meg Whitman who took over the tech giant last year is being criticized for rendering so many people jobless. HP is now trying to disassociate itself from PC business for which it spent a huge amount of around $24 billion by acquiring COMPAQ, a leading computer manufacturer at that time. When Whitman was brought in the HP, her appointment was seen as a move to shore up a host of problems that have dogged the company for more than a decade. Most notably, Whitman was expected to bring stronger communication skills and strategic vision. HP was seen to be lacking both of late. But HP hasn’t found much success with her arrival. On the other hand its slide has become even faster.
After the announcement of the massive layoffs, Whitman said that it was absolutely necessary for the health of company. It may “adversely impact people’s lives, but in this case, they are absolutely critical to the long-term health of the company…This is broad based…By design, it will touch all of HP.”
HP in recent years has been rocked by plummeting demand for its personal computers. The company has not been able to find its feet in tablet and smartphone markets despite repeated efforts. Now it has almost given up the efforts to revive its tablet market that has become a money minting instrument for companies like Apple and Amazon. Meanwhile many analysts have taken potshots at the company for its lack of direction and for developing products too late. A report says that not just profits have gone down, even employees morale too have gone down”.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment