When HP CFO Cathie Lesjak said last week that HP would be cutting another 5% from its workforce, beyond the last target of 55,000 people, she said something odd.
The additional cuts wasn't expected to increase HP's costs.
And now a person close to the company has given us some insight into how that might be done.
Some HP employees in the chronically troubled HP Enterprise Services business unit are being offered jobs at a different consulting company in lieu of severance.
The hiring company is Denver Colorado-based Ciber, HP confirmed to us. Ciber is an IT consulting company that resells HP products and has a labor partnership with HP. It's best known for helping companies install and work on SAP, Oracle and Microsoft products. (We've reached out to Ciber for comment and will update when we hear back.)
An HP spokesperson told us:
HP reached an agreement with a strategic labor partner, Ciber to allow more flexibility in managing labor demands. There are a small number of employees who will move from HP to Ciber, and become contractors to HP’s Applications Delivery Services organization. HP will continue to own and manage the end-client relationship and overall service responsibility.
HP told employees affected by this arrangement that they are being "terminated" and will not be offered the standard one week of pay for each year of employment, our source told us. HP will pay for unused vacation time only in states that require such payments by law, we were told.
Ciber will be sending out job offers in the next few days. HP employees have 48 hours to accept or decline.
This is a particularly difficult decision for long-term employees, who could wind up joining the new company with no seniority. But it's also a fairly creative way for HP to downsize its workforce and save money on the termination costs, while not completely chopping employees off at the knees.
In total, jobs report probably a sight beat
August job gains of 173K were shy of consensus by 47K, but the revisions to June and July added 44K to those prints. We'll call it a wash. The unemployment rate, however, fell to 5.1% from 5.3%, and estimates for 5.2% - declines in the headline UE number have typically been associated with drops in the labor force participation rate, but that number was flat in August at 62.6%. One year ago, it was 62.9%.
The average workweek edged up 0.1 hour to 34.6 hours. Average hourly earnings of $25.09 gained $0.08. They're higher by 2.2% Y/Y.
The boarder U-6 unemployment rate fell to 10.3% from 10.4%. One year ago it was 12%.
wow, so much ignorance from two lines of text. You won the dunce award this morning.
How's paying $450 a month free? The doctors need to repay their training costs and loss in compensation while and I were raking in 6 figures as engineers. Besides, they have staffs, overhead and their own insurance payments.
Folks like you don't want union workers to get decent pay; service workers to get living wages and now, doctors to work for a engineer with only a BSEE degree?
And be reminded that I have been posting my annual Kaiser membership costs for over a decade. Before Obamacare, it used to rise 2X to 5X CPI. Since Obamacare, it has risen but reasonably vs inflation.
Sue is back with her toxic spiels on how Carl had saved HP by destroying The HP Way.
As some gurus reminded us last week, we used to have 10% correction about twice yearly. We are long over due. This morning, it opened near today's low with gigantic volume and by any measure, indices have since surged higher by 3% to 5% or more. Wonder who sold
Meg's 5 year recovery plan has done well for executive compensation -- good job in 57K layoffs, using meager ink profit to buyback expensive shares and set to deliver another $1b fees and expenses to split up into two messes instead of one.
Alabama is number one and Colorado is runner up in $ spent per capita. DC, a district mostly populated by lobbyists and congressional staffs came in 3rd.
Who thunk it would be that a backwater state beats out the so called liberal states:
But some of the most interesting pieces of data come from examining the differences between regions. We already looked at what cities around the world had the most cheaters, but now data scientist Jake Popham has examined which states in the United States like to cheat the most.
This graph shows each US state organized by how many dollars it spends on Ashley Madison per capita. Alabama leads the charge, along with Colorado and Washington, D.C. — even though that's technically not a state.
Lesjak got HP's teats and she is good at the pull-squeeze-pull:
Jun 27, 2015 LESJAK CATHERINE AOfficer 93,096 Direct Option Exercise at $30.53 per share. 2,842,220
Jun 27, 2015 LESJAK CATHERINE AOfficer 46,563 Direct Disposition (Non Open Market) at $30.53 per share. 1,421,568
No long-term future in tar sands, Alberta's premier says
Alberta premier Notley says she sees no long-term future in fossil fuels, and vows to fight climate change by cleaning up the tar sands, shutting down coal-fired power plants, and converting to wind and solar power.
The leader of the province that sits atop the world’s third-biggest known carbon reserves in the tar sands and has ramped up production to ~2M bbl/day of crude is expected to unveil new targets for reducing greenhouse gas emissions later this fall.
At the same time, Notley says she is not opposed to most of Alberta's proposed pipeline projects; she supports TransCanada's (TRP +1.5%) Energy East because she says it helps create value from Alberta crude, but she opposes Keystone XL because it would keep Alberta too focused on the U.S. market.
She says Kinder Morgan (KMI +3.5%) should consider shifting its Trans Mountain pipeline to a different port in British Columbia to win over opponents to the line’s expansion
these days remind me of a quote by Charles Bukowski:
I’d lost my kick. Existence was not only absurd, it was plain hard work. Think of how many times you put on your underwear in a lifetime. It was appalling, it was disgusting, it was stupid.
Lowest jobless claim since 1973 !!!! Yes sir, when prime rate was 7% and Nixon was about to abolish Au standard etc:
Jobless Claims dives 26K to 255K
Initial Jobless Claims: -26K to 255K vs. 279K consensus, 281K prior (unrevised).
Continuing Claims -9K vs. 2.21M prior.
Chicago Fed index rises past estimates
June Chicago Fed National Activity Index: +0.08 vs. -0.05 expected, -0.08 prior.
WASHINGTON (Reuters) - The number of Americans filing new applications for unemployment benefits last week fell to its lowest level in more than 41-1/2 years, suggesting the labor market maintained a solid pace of job growth in July.
You are right ... crushed vs yesterday. Even HPQ is not crushed when compared to its 2001 low of under $11.
Here is another standout around 12 miles from Apple:
Intuitive Surgical, Inc. (ISRG) - NASDAQ
$554.60 49.51 (+9.80%
LOL! Only if they are inanimate objects like a jar of almonds. Unfortunately, they are wing nuts brought to you by the rise of the evangelical fanatics, those who would tell anyone who does not worship in a church of their own denomination is bound for eternal suffering in hell.
And she and her lieutenants have been rewarded millions during this so called recovery?
Hard to imagine losing out to this crop of GOP boys picked by Koch Brothers:
The five most recent national live-interview polls put these candidates in the top 10:
Donald Trump: 23.2 percent
Jeb Bush: 12.8 percent
Scott Walker: 10.6 percent
Ben Carson: 6.6 percent
Mike Huckabee: 6.6 percent
Ted Cruz: 6.2 percent
Marco Rubio: 5.2 percent
Rand Paul: 4.8 percent
Chris Christie: 3.4 percent
John Kasich: 2.8 percent
Inline jobs number means September rate hike still likely
The average workweek gained 0.1 hours to 34.6 hours.
Average hourly earnings rose a nickel to $24.99, and are up 2.1% Y/Y.
In addition to an upward revision of 8K jobs to June's report, May gains were boosted by another 6K.
The labor force participation rate was flat at 62.6% after falling 30 basis points in June. One year ago, it was was 62.9%.
The broader U-6 unemployment rate fell to 10.4% in July from 10.5% a month earlier. One year ago it was 12.2%.
As the Fed has made clear, absent a significant deterioration in the numbers, a September rate hike is coming, so this print will keep the hawks in charge.
Doesn't this girl knew about sin? May be there is no Church or Planned Parenthood clinic in her neck of the woods?
Initial Jobless Claims: +3K to 270K vs. 273K consensus, 267K prior (unrevised)
Continuing Claims +46K vs. 2.26M prior.
That is despite the do-nothings are on vacation or playing homage to Israel on latest anti-Obama strategy sessions with Nuttyahoo this month.