14 DAY TRIAL // You would think that earnings of $1.6 Billion (1.27 billion Euro) would be a cause for joy, but that definitely doesn't apply to HP, whose reaction was to start enacting a restructuring plan.
Although some may gawk at the notion, the $1.6 billion accumulated during the latest three-month period is a low number compared to the one registered in the previous quarter.
More precisely, the fall is of 33%, and the seasonal slowdown can justify only so much.
That isn't to say that HP is in any sort of weak spot right now. After all, its stock market per-share earnings exceeded expectations (98 cents instead of 91).
Nevertheless, a restructuring plan will come in effect in the third quarter of HP's fiscal year 2012, which happens to coincide with the second calendar quarter (Q2 2012). The statement was made during the earnings call with financial analysts.
HP intends to send the 27,000 pink slips by 2014. The number represents 8% of its total workforce, or what was the total workforce way back on October 31, 2011.
Perhaps the most high-profile removal will be that of Mike Lynch, Autonomy's co-founder.
The man became part of HP's staff when Autonomy got acquired by the giant, back in October 2011. It was one of HP's most controversial business moves of the time, along with the temporary plans to get out of the PC market.
Long story short, Autonomy's shareholders managed to squeeze a huge sum of money out of HP: $10.4 billion / 7.86 billion Euro.
Lynch's words on the matter, back then, were quite optimistic, but he won't be with his company for much longer. His role will be taken over by Bill Beghte, president of HP Software.
Naturally, HP tried to paint the act in gold, but no words can make up for the simple fact that a project's founder leaving the ship, by his own initiative or otherwise, is never a good sign.