Looks like a bad week for Hewlett Packard:
Hewlett-Packard said today it would lay off 14,500 employees, almost 10 percent of its staff, in the next year and a half and freeze its pension plan for new and existing workers who have not vested in it yet.
Hewlett announced the highly anticipated program before the opening of the stock market in a bid to persuade investors that the struggling company finally has its house in order. The company, which hired Mark V. Hurd in March to replace Carleton S. Fiorina, said it would save $1.9 billion annually beginning in 2007 and half of the savings would be used to “offset market forces or reinvested in the business.”
Hewlett will dissolve its Customer Solutions Group, a business unit that sold to businesses and public entities, and distribute its work to the company’s three product groups. The company said it would protect employees in sales and research and development from the brunt of the layoffs, which will mostly affect support positions in information technology, human resources and finance.
Now I don’t want to kick someone when they are down, but I have thought HP computers were crap for about, well, forever now. I am surprised the company has lasted this long.
Johnson and Johnson, on the other hand, reported some good news:
Diversified health-care products company Johnson & Johnson said Tuesday that second-quarter profit rose 9 percent on strong medical device and consumer product sales.
Quarterly income grew to $2.68 billion, or 89 cents per share, from $2.46 billion, or 82 cents per share, a year ago. Results included a $353 million charge, or 12 cents per share, for the company’s recent acquisitions of privately held biopharmaceutical company Peninsula Pharmaceuticals Inc., wound treatment product maker Closure Medical Corp. and TransForm Pharmaceuticals Inc. The company also repatriated about $225 million from abroad through the American Jobs Creation Act.
Without the one-time adjustments, the company posted earnings of $2.8 billion, or 93 cents per share.
Must be that legendary homosexual disposable income!