Agreed...in the past hp'ers would do anything for the company. Workin overtime, thru lunches and on weekends- not now. All are comin late and leavin early. Now with all of the cuts over the last six years the mgt has stepped too far on the cuts and they know it. The exits are gathering momentum and San Diego has been losing people at an over than 13% clip. Corvallis people are leaving in droves for Intel - sometimes five engineers in a group at a time. Also the higher paid engineers are finding that hp's package is weaker than comparable companies. At the same time the lower performers are the only people getting raises because they are below curve. The higher performers are getting nada. AND the execs are raking it in. Hp is losing hundreds of engineers and they are unable to stop it. Acutally they want them to leave because the strategy is to downsize at all costs. Good for the mgt bonuses.
The west coast sites are basically empty. Labs is a vacuum, CV has half of buildings empty. Vancover and SanDiego is emptying fast. So, the cutting will give a short term uptick but the ability to come out with the next gen printing is hosed. Six years of cutting and zip raises is causing all to consider backup plans and the sheep are turning to wolves finally. So expect near term uptick but the dire cuts will result in losses overall.
Cannot grow revenue organically if you drive all the employees away. plain and simple. ugly way to keep employees away from competitors. short term uptick but as the market returns, the mgt will have no resources to expand.
Capital budgets are being cut by over 70% and engineers twiddling thumbs to act busy- sooooooo is this a business plan? WE SHALL SEE.
I'm getting my information by being intimately familiar with the organizations, its leadership and what's happening to bottom, middle and top performers. More than that, I will not say. Obviously, to each his or her sources of information, eh? Oh, sure, to each his or her measure of accuracy as well.
Interesting thread. I don't see how attrition cannot pick up this year given lack of meaningful salary increases for the umpteenth year in a row. Yes, a bonus was given. But it was calculated to appease the masses, to assuage the savage beasts. It also relieved the company of the burden of rolling an additional 7% into salaries, benefits and the like thus not increasing costs of goods sold. A cold, calculated move for a company with, what, 12 Billion in cash? The results have been solid for HP for five quarters, the employee performance exemplary, and yet the salary increases fairly pitiful. So, one has to wonder, if Hurd has folded increased attrition into his bag of tricks. It's an old management ploy. It keeps the need for another layoff at bay by depressing increases across the board and forcing out those closest the edge. Could this be his game?
A person knows what is going on by easily attending section meetings with the zero raises being announced and engineers stating that they have not had a raise in four to five years...ALONG with people walking out the door- it is very very easy to see that the data and evidence match. The low & below band performers are getting raises because they are below the curve. Plain and simple. Performance is not the criteria. Essentially the Carly distribution required some to be below band and hence with the new band they moved the high performance $$'s to help the past weaker performers. Rude but truthful.
Just some powerpoint sheet and spreadsheet handed down from above gives the raise numbers. i.e. "World Class cost structure means below average cost for employees". go ahead and check or keep your head in the sand. the truth is out there.
I think there are a couple fo errors in your message:
> At the same time the lower performers are the only people getting
> raises because they are below curve.
Lower performers have lower curves. High performers have gotten raises. The ones that I know recently got both a raise and stock options, too.
> Cannot grow revenue organically if you drive all the employees away.
> plain and simple. ugly way to keep employees away from competitors.
I agree that you need good employees to grow, but how does WFR keep ex-employees away from competitors? I expect that's where most will go, toutsuite.
Look, no offense to my colleagues, but if there are engineers sitting around and "twiddling their fingers" as you say, then more cuts are appropriate. Same holds true for the many managers I see sitting around "twiddling their fingers."
It's a New, Brave World in the tech business. Only the imaginative will survive. Under Hurd's leadership, so far, HP is one of these.
Very good point - which points to the real intent of mgt. Move all projects away and most hp'ers want to accomplish projects that are funded and SO they will leave with the absense of real honest to goodness projects with legs. The logic fits with the original downsizing premise on the West coast. imho
I think you think H-P should care. H-P has moved overseas and can afford to pay less here. If they don't find the people to do it for less here they just move the opertion over there.
Work for less and get over it. H-P is way ahead of the ballgame now. Other companies will follow. Think of H-P as the Wal-Mart of tech companies.
The problem is you really do get what you pay for. If you think that people here have a 9-5 attitiude, it is worse in countries like India. The over-achievers either come to the US, start their own business, or quickly get into management - there is no money to be made being technical in India, unless the alternative is no job.
Part of the problem is there is no infrastructure - no mega-marts, no strip malls, no road maintenance, clean water, etc. Life takes more time, which means less time for work.
Another problem is schools there do a good job of training you to follow, not to lead or innovate. Not that there aren't leaders or innovators, just that there aren't as many as here. Remember, the leaders and innovators come to the US (or now, thanks to the Patriot Act, NZ, Canada, Australia, Singapore, etc) for their graduate education, and are very likely to stay there.
There just aren't as many good engineers over there as is thought. There is enough of a shortage that 20% annual raises are often neccessary to keep employee turnover down to a tolerable minimum.
You are correct- many know hp does not care and that the exit plan is in place for employees whether they know it or not. Jobs have gone and will continue to go elsewhere. Exception is that Intel is hiring big time and has gotten 25.2 Billion U.S. $$'s in tax exemptions to expand in Oregon alone.
Question 1: Why is Intel expanding in U.S. while HP is not?
Question 2: Is there no value in staff stateside? or is capability only exit offshore?