Hewlett-Packard Tops 2015 Layoff List With 30,000 Job Cuts

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By Douglas A. McIntyre Updated Published
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Hewlett-Packard Tops 2015 Layoff List With 30,000 Job Cuts

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Long after presidential candidate and former Hewlett-Packard CEO Carly Fiorina, who left in 2005, laid off tens of thousands, the tech company continues to downsize. As it reached the final stage of splitting itself into two public corporations, HP cut 30,000 jobs this year, according to data provided to 24/7 Wall St. by Challenger Gray.

HP has gone through more transformations than almost any of the largest U.S. corporations. This may be because HP could never figure out what it was. Unfortunately, this identity problem still plagues the giant tech company. It bought personal computer (PC) company Compaq in 2001, which skeptics worried was a mistake because HP was already deeply into the PC industry.

HP’s focus on its large PC business prevented it from becoming an early entry player in the lucrative enterprise tech arena, where lots of money was made by providing technical services and consulting to other companies. In 2008, HP bought software services and tech consulting company EDS. At that time, HP claimed that the combined companies would have $38 billion in annual revenue and 210,000 workers. Three years later, HP management decided its move into tech consulting had not worked well. It fired 24,600 people to lower its expenses and make up for that mistake.

The restructurings after the Compaq and EDS transactions were not enough to boost profits. HP had yet another restructuring in 2012 and fired 29,000 more employees. This time the need to slash expenses was blamed on HP’s failure to move into the smartphone and portable device business. Apple Inc.’s (NASDAQ: AAPL) products already had taken over that market, followed closely by South Korean electronics behemoth Samsung.

Hewlett-Packard recently has gone from being one company to two: Hewlett Packard Enterprise Co. (NYSE: HPE) and HP Inc. (NYSE: HPQ). Ironically, one will be a PC manufacturer and the other a supplier of enterprise services and software. This iteration of HP in 2015 cost 30,000 people their jobs. Challenger Gray reports that HP is the company that has laid off the most people this year.

ALSO READ: Cowen’s 3 Top Tech Stock Picks to Buy for Year-End Rally

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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