HPE Employment Issues
(Updated September 19, 2017.)
From the book Becoming Hewlett Packard: After the printer business "...HP did not produce another truly breakthrough new business." https://www.amazon.com/dp/0190640448 (page 351)
HP statements on employment:
"...an industry-wide shift to highly automated, asset-light delivery of IT infrastructure and applications leading to headcount consolidation." HPE SEC filing Mar 9, 2017 (page 51)
"...how do you keep up with this next generation of IT and how do you bring people into this company for whom it isn't something they have to learn, it is what they know." Meg Whitman
"...we need to return to a labor pyramid that really looks like a triangle where you have a lot of early career people who bring a lot of knowledge who you're training to move up through your organization, and then people fall out either from a performance perspective or whatever... we put in place an informal rule... when you are replacing someone, really think about the new style of IT skills." Meg Whitman, Sept 2013, CEO of HPE, DXC board member, and former chairman of HPI.
"...eventually you will wear out. Not many people can last for twenty or thirty years, which is why we need to attract young people." Antonio Neri, now HPE president. Quoted in Becoming Hewlett Packard https://www.amazon.com/dp/0190640448 (page 311)
"Employees were selected for the reduction in force because the job they were performing will no longer continue, their skill set was not applicable to the Company’s or organization’s operations going forward, and/or other employees were viewed as better qualified because of past performance and competency evaluation, which may include skills, abilities, knowledge and experience." From the legally-required Attachment A provided to those 40 or over
US: If you left HP, HPI, or HPE in May 2012 or later -- and were paid under a WFR, EER, etc. program -- you ineligible for rehire or to be engaged as an agency contractor. "It is important for [HPI; HPE]... to keep its commitment to current employees to invest in their careers by creating opportunities for growth and promotion." Details
"The changes to the workforce will vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives." Typical SEC filing
Find out what the company is telling Wall
Street about employment prospects and strategic issues that will
affect your career. Read the transcripts of the quarterly analyst
conference calls -- especially the Q-and-A sections.
"...the usual suspects. It's the travel, it's the consultants, it's the
contractors, it's the rehiring rates, and we continue to do that."
"...de-layering as we right-size the organization ahead of the separation from ES and SW... "...the overhead structure that was required to knit together the old HP and then Hewlett Packard Enterprise was a pretty high overhead structure, because of the diversity of the businesses. We ought to be able to run much leaner and meaner..." Q4FY16 Earnings Call
"Fiscal 2015 Restructuring Plan... As of April 30, 2017 , the
Company now expects up to approximately 12,200 employees to exit
the Company by the end of 2018, of which approximately 4,000
remain as of April 30, 2017."
Key Q-and-A exchange... Morgan Stanley analyst: "...how should we think about incremental cost takeout, as we head into next year post the software divestiture, is that $200 (million) to $300 million run rate or more like $400 (million) to $600 million for the full-year the right run rate to think about for next year?"
Tim Stonesifer, HPE CFO: "...given the spinoff and now the fact that we have 110,000 fewer people and we've had a little bit of time under our belt to operate in the new model, if you will, we do think there are opportunities and there are going to be opportunities in the usual suspects." "...roughly half of that $200 million to $300 million is more of the discretionary type stuff like policies, like travel and then the other half is labor related and within that labor piece, I'd break it out into two components. I think half of that is really around lowering our rehire rates, taking a look at contractors." Q2 HPE Earnings Call, May 31, 2017. http://investors.hpe.com/~/media/Files/H/HP-Enterprise-IR/documents/q2-2017-earnings-transcript.pdf
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