Layoffs Coming at Hewlett Packard

To investors, Hewlett Packard's plan to split into two companies may be good news, but employees should be worried. HP will become two companies: 1) personal printers and PCs, and 2) corporate software and hardware. (This follows the news of eBay spinning off PayPal.)

CEO Meg Whitman explains the rationale:

"In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholder."

This slide warns of 55,000 layoffs to come. Original estimates were 5,000, but they grew to 45,000 - 50,000.


Discussion Starters:

  • Revise the slide so it's easier to understand.
  • The slide seems to be prepared for an external audience. How should HP be communicating internally? Consider the medium, message, and timing.