Assuming that each employee costs approximately $100K per year, then HPE would need to layoff approximately 2500 employees to reduce costs by $250M. That would mean that one out of every 22 employees at HPE will get the ax by the second quarter.
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Shareholders must see something in Granny we don't see.
Heard thru my grapevine that the cuts are happening or about to. Former HP'er who left almost 2 years ago on my own. Never felt stable during time there. $100K per employee estimate is low in my estimation and would expect that # to be closer to $200K for the field sales personnel. Factoring salary/benefits/etc.
It will cut 7.5% employee from US payroll in Q3/Q4,No math and assumption.
I know of a quick way to get to that number... Get rid of those that are incompetent and causing the greatest harm to this once great company. Get rid of Meg and her minions.
Seriously, how long before the shareholders rise up and revolt?
HPE Q2 2017 Results - Earnings Call Transcript
"We believe we can take out another $200 million to $300 million in cost in just the second half of this year."
"and then thirdly, is a $200 million to $300 million of cost out. So, the way I would think about that is roughly a third of that will come in Q3 and then two thirds of that will come in Q4 and that's what's going to drive the remainder of the lift. So that's why you see that ramp up in Q4."
"And then from a cost structure perspective ballpark, I think roughly half of that $200 million to $300 million is more of the discretionary type stuff like policies, like travel and then the other half is labor related and within that labor piece, I'd break it out into two components.
I think half of that is really around lowering our rehire rates, taking a look at contractor. So, when you think about the cost to do those things, there really is no cost to do that and then there's the remaining 25% that would be more structural and that's why we're evaluating the restructuring that we have in 2018 employing forward."
Only 25% of the $200M - $300M is job cuts but on an annual basis it's up to $300M in "savings".
1500 - 2000 USA's jobs.
Is anyone willing to share their site or general area of expertise? I haven't heard of older people in Plano being asked.
Yes it started already - I got the axe this last Monday -- but after the lay offs the top execs celebrate by promoting each other. Then replace us with foreign workers and guest workers are not touched.
From what I know, being "asked if you would like to retire" is (?) near-identical, at the ? 85% - 95% level maybe (?, maybe more), to being told that you will be laid off. Then they will sometimes near-immediately open up a job opening for a "new college grad" for your job! If they do that (and you did not volunteer), then, if you decline your "money for not suing" on departure, you have a near open-and-shut case for age discrimination... If you apply for the new job! They won't re-hire you at the lower salary, of course, because of their bone-headed "blacklist" policy against re-hiring the laid-off. That's how you set up your open-and-shut case.
HPE's demise is accelerating... I know of a group where they laid off an old but hard-working and competent geezer, replaced him or her with a "new grad" (who shows up way-late when he or she does show up at all), and now (surprise!) they can never meet their deliverables schedules! A new grad makes maybe 75% of what the geezer made... HPE would rather save a pittance of money, and NOT get the job done, than vice versa!
i can confirm that managers are asking, i have been asked, i am in the older bracket and probably near the higher end of the dept salary list. We have already lost a handful of folks who had no warning last month.
Again, those calculations of yours are pure D speculation. When Meg mentioned removing 250-300 million, "a combination of spend control and organizational streamlining"....this can be accomplished in many ways. So you know what they say about assumptions? They make an @$$ out of you and me. Juss sayin
Managers are asking older employees if they want to take a wfr that is going to happen on June 19th.
FUD (Fear, Uncertainty, Doubt) is a GOOD thing for anyone out there who is contemplating hiring on at HPE! Unless you are into getting laid off, a high probability of working in a toxic-office-politics work-group, and masochism in general (being abused, in general)... Then you would be well advised to work elsewhere, if at all possible!
My two cents worth, believing that I may be a wee tad better informed than the so-called "average bear", is that layoffs are yea verily coming to the USA, with clarity to be expected by the end of July. 5% laid off is a way-low estimate I suspect...
HPE management communications have gone way-strange. No one is willing to sign on the dotted line, about revenue projections. If they sign, with unrealistically positive expectations, they open themselves up to being personally sued, under Sarbanes-Oxley laws and regs. If they sign with realistically low projections, they scare the living snot out of employees and investors. Chose between a rock and a hard place, for HPE, right now...
Again, not trying to spread FUD.
If this quote is authentic:
"We have also committed to take out an additional $200-$300M in costs during the second half of this year through a combination of spend control and organizational streamlining. "
Then my estimate is basic math:
$250,000,000 / $100,000 = 2500 employees
This assumes the following:
1) The email is authentic, and there is $250M in cost savings planned
2) The average employee costs $100K per year
With all respect to you, not trying to flame ya, but post like this really detracts from credibility of those attempting to post information.
If anyone is curious, I made that statement yesterday, in response to a post in this thread:
https://www.thelayoff.com/t/Nzp97St#replies
My math was based on a statement made by someone else.
If anyone can confirm OP's statement, that would help to estimate how many layoffs are coming.
I'm not here to spread FUD or anything, just hoping I can help some people plan their lives. Layoffs can really turn your life upside down.