Synopsis HP

Essay by midl1nsd2University, Master'sA-, August 2008

download word file, 2 pages 5.0

Hewlett and Packard:HP underwent a significant change in the year 2005. After the forced resignation of the longtime CEO Carly Fiorina, HP's new CEO Mark Hurd stated that he wanted to make HP more competitive on the marketplace and bring back the company's consistent profits by headcount reductions and optimization of cost structures (Regan, K., 2005).

According to HP's published reports the new restructuring plan included layoffs of up to 25,000. These cuts would come in addition to 2,000 cuts already made earlier in the year through voluntary severance packages and attrition, which bring forth a savings of $200 million. Several analysts said that HP needs a fast process in order to start showing benefits by the end of the fourth quarter and estimate a cost-cutting savings of 1.5 billion annual going forward (Regan, K., 2005).

HP also announced that it had hired Randall Mott as chief information office, the former employee at Dell and is underway with splitting its PC division off from its printer business.

With this news the shares went up by 1.5 percent to nearly high levels of $24.99 (

The aggressive plan Hurd is putting through, especially the separation of the printer business and the PC division can help HP to meet the challenge of competing with Dell and others. Rob Enderle, Enderle Group principal analyst told the E-Commerce Times, "Freeing the printing business may be a key. Merging the two [Compaq Computer and HP] never paid the dividends expected" (Regan, K., 2005, 17).

Despite the criticism of the merger being a distraction for HP's financials voiced in 2002, HP signed the contract with the hope of having a better dominance on the marketplace and customer satisfaction (Kary, 2002).

HP's international success and growth has been proven to be successful because of its recruitment system.