HP, EMC & Cisco Terminate 30,300 Jobs Globally

Massive Unemployment Continues to Build as Fortune 500 Companies Terminate 30,300 Jobs over 12 Months

Special Report

PALO ALTO, CA – SEPTEMBER 16: The HP logo is displayed on the entrance to the Hewlett-Packard Headquarters September 16, 2008 in Palo Alto, California. Hewlett-Packard announced on Monday that it is planning to cut 24,600 jobs worldwide over the next three years after its purchase of Electronic Data Systems for $13.9 billion. (Photo by Justin Sullivan/Getty Images)

By Avalon 
Intellihub.com 
May 11, 2013

Over the last 12 months, Fortune 500 companies such as Hewlett Packard (HP), EMC and Cisco have terminated 30,300 jobs globally. The initial lay-offs began with the announcement in CNN Money that HP prepares to announce mass layoffs on May 23^rd, 2012. Quoting from the announcement:

The layoffs will be “in the ballpark” of 25,000 workers, the source said, which would amount to about 7% of HP’s global workforce. The nation’s largest technology company by revenue currently employs 349,600 people worldwide, according to its latest regulatory filing.

Later, on Thursday, May 24^th, 2012, the number of layoffs grew to 27,000, although it was planned to be implemented over a 2 year time period – this from the Wall Street Journal, in the article H-P Shows Age With Layoffs

Hewlett-Packard Co. HPQ +1.70% is laying off 27,000 workers as part of a massive restructuring plan to stem its declining profits and revenues, underlining the growing gulf between the technology industry’s old guard and new generation.
H-P said the job cuts, which amount to about 8% of its workforce, will take place over the next two years. It projects the move, once complete, will save $3 billion to $3.5 billion annually, with most of the savings going to fund new efforts such as cloud computing and “big data” analytics.
Hewlett-Packard is laying off 27,000 workers as part of a restructuring plan to stem falling profits and revenues with savings going to fund new efforts such as cloud computing and “big data” analytics. Photo: Reuters
The technology giant outlined its restructuring plan as it posted a 31% profit drop and a 3% revenue decline for its fiscal second quarter. 

Incidentally, during this one year period, virtually no announcement of hiring in large numbers has occurred. The numbers keep adding up – week after week. To anyone paying attention, the last few years the global economy has been in a spiral of destruction of growth and average personal income.

Looking at the recent announcements of EMC and Cisco, whose combined 3, 300 terminated jobs indicate that the giants are now beginning to fail – quoting from the WSJ.com article:
The companies’ declines are unfolding even as tech spending is expected to grow this year. According to research company Gartner, world-wide tech spending is expected to rise 2.5% in 2012 to $3.8 trillion.
The EMC combined layoffs include VMware, acquired by EMC Corporation in 2004 for $625 million.^[11] EMC announced a total of 1,000 employees as stated in the article EMC lays off more than 1,000 as restructuring continues  at ComputerWorld.com on May 8, 2013 03:08 PM ET
Cisco, another Fortune 500 corporation, announced March 27, 2013 that they planned on laying of 500 employees, as explained in a NetworkWorld.com article by Jim Duffy – posted March 27, 2013 04:32 PM ET
Network World – Cisco this week reduced its workforce by about 500 people as the company realigns to face the advent of software-defined networking, cloud computing and its impact on routing and switching.
“We routinely review our business to determine where we need to align investments based on growth opportunities,” a Cisco spokesperson stated in an e-mail to Network World today. “Yesterday, Cisco performed a limited restructuring that will impact less than 1 percent of our population globally. These actions are subject to local legal requirements, including consultation, where required.”
Sources say officials involved in Cisco’s alliance with EMC and other data center business development initiatives have been affected. Cisco would not confirm that.
The progressive collapse of the technology industry forebodes extremely bad times ahead, as Technology is one of the remaining sectors of the global economy that is the strongest. Nevertheless, this disintegration continues to unfold and signals tough times ahead.
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