Hewlett-Packard announced on Tuesday that it is planning to have another layoff of about 30,000 people due to the division of the company into two: the HP Enterprise which will focus on cybersecurity, cloud and other high-growth technologies and the HP Inc. which will continue on the printers and PCs. HP has started laying off in 2012 at 25,000 jobs. It has grown to a target of 55,000 and the most recent news says that the layoffs are not yet done and there might be more to come.
Since Meg Whitman took over as CEO in 2011, there has been more than 80,000 jobs that have been eliminated as the tech giant struggles to keep its position in a rapidly evolving industry. Whitman will focus on HP Enterprise and hopes that "these final actions will eliminate the need for any future corporate restructuring."
HP's strategy of divide and conquer surely poses a big challenge for managers. It will be hard for them to retain and motivate remaining workers. The layoffs have been affecting the morale of the employees. However, the reality of the IT market is practically disturbing and some difficult decisions need to be done to keep the company in its place.
According to Jason Berkowitz from Seven Step RPO, HP must have outsourced the workload of the 30,000 workers. It is not common for companies to send their job to offshore locations, but it has been a reality in the IT world due to the rapid changes in its market and companies that are falling behind are taking new strategies to cope up with the challenges, said Berkowitz.
With HP's massive layoffs, it is expected that much work will fall on its managers' hands as they need to continually keep the morale of their workers and tell them that they are still valuable. HP's management on its part, needs to be honest and genuine in the way the company communicate the right information and resources to rebuild trust among the retained employees since even Whitman acknowledge that "the people who remain, people who may have been content at HP will be more willing to take calls from recruiters" if the opportunity comes.