HP to announce restructuring Tuesday

Hewlett-Packard said it will announce details of a company restructuring plan on Tuesday morning during a pair of conference calls with CEO Mark Hurd.

Hurd will be joined by Bob Wayman, HP executive vice president and chief financial officer, to deliver the news to financial analysts and members of the press at 8:45 a.m. EDT--before the financial markets open in New York.

On the call, Hurd is expected to announce sweeping cuts to HP's workforce as part of a plan to bring the company's costs more in line with its competitors. About 15,000 employees could lose their jobs, with HP's IT, sales and service divisions among the areas particularly hard hit, according to a source close to the company.

The restructuring is also expected to focus mainly on the workforce and should not impact the company's executive lineup, the source said.

If job cuts are announced, employees aren't expected to be immediately notified of their status but may get a greater sense of their place at the printer and computer maker later in the week. That's when HP officials will reconvene for more high-level discussions. Officials met over the weekend to nail down the number of layoffs and which departments would be most impacted, according to the source.

The Palo Alto, Calif.-based company has been making adjustments to its corporate structure in the last few months, including splitting up its PC and handheld computer business from its imaging and printing group. Hurd also recently hired Dell's chief information officer to separate HP's IT business from its global operations.

Any large-scale restructuring plans would mark one of the most significant initiatives that Mark Hurd, HP's chief executive, has launched since his arrival less than four months ago from NCR.

[open-mind]

Insider Info on Restructuring...

1) Take money from old employees.
2) Give money to new CIO.

Here we go again?

I guess I?m just from the old school of thought when it comes to business and how they should be run. Ever hear of the business model top- bottom- inside and out? When there is a problem with a company the first place to look is at the helm and the style of leadership being used.

Management needs to be sent back to kindergarten to learn math. 1 + 1 does not equal an inflated 5 for extra bonus checks and raises. We are just now seeing what had been predicted for the past 5 years. If big companies continued to take their manufacturing plants and relocating them in other countries there was to be a projected profit, but it would be short lived.

Part of the profit would come from corporate welfare of our tax dollars being used to subsidize companies in their relocation efforts all the while the continued domino effect of more and more worker loosing their jobs. ?About 15,000 employees could lose their jobs? This brings us back to doing the math. Where did you expect to sell your product that had been produced in another country? The average person that used to purchase that product is now unemployed or if employed making far less money.

To all you top managers that seem never to loose your jobs and all the while keep getting raises and a bonus its time for a reality check.? The restructuring is also expected to focus mainly on the workforce and should not impact the company's executive lineup, the source said. ? Go stand in front of a mirror and try to sell that crap to yourself. You can try and come up with any number of excuses, one being if I don?t do it someone else will. End result? the only thing you come into this world with and can leave with is your self respect, you get to decide.

What?s my prediction for the coming years??? I think far fewer large companies will be the norm and the swing to small business that are being run by the displaced worker will continue at an accelerated rate. Want to see it in action?just take a look at all the new business being born everyday on eBay and the volume of money being transacted.