The leader of Hewlett-Packard will make some staff cuts, a few thousands of the 150,000 HP employees will have to start searching for another job.
Mark Hurd has announced a reorganizing plan aimed at cutting expenses; and the first
stage is to lower the number of employees. The same method was applied by Carly Fiorina three years ago, when HP merged with Compaq Computer. At the end of October 2003, HP announced the sacking of 15,000 employees; the exact figure was actually 17,900. And that was not all, because this year, due to the disappointing financial results, 4,500 more were sacked.
If we make a simple computation, we find out that HP let go 23,000 employees. Still, the number of active employees declared by HP exceeds 150,000, and this is because HP has resorted to outsourcing.
Despite controversies, many companies use workforce outside their borders. In this way, they are cutting down expenses without decreasing the quality of the provided services.