Entries in Hewlett-Packard (11)


HP CEO's Grim Outlook Sends Company Shares Down

PRNewsFoto/Verizon Wireless(NEW YORK) -- Most CEOs act as cheerleaders for their companies, but not Meg Whitman.  The Hewlett-Packard boss delivered a grim outlook for her company on Wednesday that sent its shares into a tailspin.

HP's market value dropped more than $4.3 billion, with the share price plunging 13 percent after her remarks in San Francisco for analysts and investors.  

A Silicon Valley pioneer, HP is the world's largest seller of personal computers and printers.  Whitman expects a sharp drop in company profits over the next 12 months and says the problems are so severe it might be 2015 before sales begin to accelerate. 

Some analysts were surprised by the depth of the problems Whitman outlined, but others called her candor refreshing.

Copyright 2012 ABC News Radio


HP Announces 27,000 Job Cuts

PRNewsFoto/HP(PALO ALTO, Calif.) -- Tech giant Hewlett-Packard Co. plans to cut 27,000 employees after revealing that third-quarter results will be lower than expected.

The company outlined plans after the close of the stock market for a “multi-year productivity initiative designed to simplify business processes, advance innovation and deliver better results for customers, employees and shareholders.”

The world’s largest computer maker, based in Palo Alto, Calif., had 349,600 employees as of Oct. 31, 2011.

The announcement was expected by the media and analysts after unconfirmed reports of layoffs last week. HP said it expects “approximately 27,000 employees to exit the company, or 8.0 percent of its workforce as of Oct. 31, 2011, by the end of fiscal year 2014.” The total number of employees affected will be lower because employees are being offered an early retirement plan. Since replacing former chief executive Leo Apothekar in September, HP CEO Meg Whitman has announced declining computer sales amid sharp competition from Apple Inc. and other electronics makers.

“These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business,” Whitman said in a statement. “While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders.”

Hewlett-Packard stock has dropped 18 percent this year. Its shares fell 3.2 percent Wednesday to a closing price of $21.08.

The computer company reported sales fell three percent in its second quarter, which ended in April, to $30.7 billion.

Copyright 2012 ABC News Radio


Hewlett-Packard to Slash 30,000 Jobs

PRNewsFoto/Verizon Wireless(NEW YORK) -- Hewlett-Packard may soon be reducing its workforce by at least 8 percent in an effort save money and offset declining sales.

According to multiple reports, the company is considering cutting between 25,000 and 30,000 jobs.  The layoffs come as HP struggles to sell computers amid the rising popularity of tablets.

Citing people familiar with the matter, Bloomberg reports Hewlett-Packard’s enterprise services group, which is responsible for selling a range of information-technology services, may be reduced by 10,000 to 15,000.

Copyright 2012 ABC News Radio


Hewlett-Packard CEO Sex Harassment Scandal Detailed in Letter

PRNewsFoto/Verizon Wireless(NEW YORK) -- A letter describing allegations of sexual harassment by former Hewlett-Packard CEO Mark Hurd has surfaced, claiming that the married Hurd repeatedly pressured a female contractor for sex and bragged about his popularity with “many” women, including Sheryl Crow.

Hurd allegedly showed off his checking-account balance of over $1 million to impress the contractor, Jodie Fisher, who made the allegations of harassment.

Fisher hosted executive summit events for HP, earning $30,000 for her efforts. The letter written by her celebrity attorney Gloria Allred was obtained by the media late Thursday after the Delaware Supreme Court unsealed it. Hurd’s lawyers tried to keep the letter confidential but the court ruled the attorneys did not show that disclosing it would violate California’s privacy rights.

Hurd, CEO and president of HP from 2005, resigned in August 2010 after being accused of sexual harassment by Fisher. He received a severance package of $12.2 million. Hurd is now working for HP competitor Oracle as a co-president.

The letter, obtained by the New York Times, was addressed to Hurd from Allred and dated June 24, 2010. It details how Fisher felt uncomfortable and “baffled” after the two met to discuss potential job hosting events. Allred wrote in the letter that Hurd had seen Fisher on NBC’s reality show, Age of Love, that she appeared on in May to June of 2007 and was “quite taken with her.”

The letter describes that Hurd “hand-picked” Fisher to host HP events, “but more accurately, to be with you and accompany you when you were out of town at numerous HP events.”

The letter goes on to describe instances in which Hurd “relentlessly” attempted to “cajole her into having sex with (him).”

After Fisher rejected Hurd one last time in October 2009, she was not hired for future HP events, Allred wrote.

Although an investigation by HP did not find evidence to support Fisher’s harassment claim, it found Hurd filed inaccurate expense reports for his outings with Fisher.

“The truth is, there never was any sexual harassment, which HP’s investigation confirmed, and there never was any sexual relationship, which Ms. Fisher has confirmed,” Hurd’s attorney, Amy Wintersheimer said in a statement.

Copyright 2011 ABC News Radio


HP CEO May Be Ousted for Former eBay Boss

Ralph Orlowski/Getty Images(NEW YORK) -- Rumors of the ousting of Hewlett-Packard CEO Leo Apotheker drove the tech company’s stock up over seven percent when deliberations among the company’s board of directors leaked in published reports.

The notion of ousting Apotheker and potentially replacing him with former eBay CEO Meg Whitman seemed to please investors Wednesday, who along with a number of analysts believe that the company is in dire need of a shake-up.

Apotheker has been head of the struggling Silicon Valley company since November of 2010, and since he took control, HP’s stock has slipped nearly 50 percent.

Before his current position heading HP, Apotheker was the CEO of business software engineer SAP AG, beginning in April 2008, but he was forced out of that position less than two years later.  When he came on board as CEO at HP it was theoretically to steer the company away from controversy that included the departure of former CEO Mark Hurd, which was tinged with a sexual harassment lawsuit.

Apotheker has said that during his reign HP has been hindered by Hurd’s under-investment.  Still, Apotheker received wide criticism for his decision-making in selling HP’s personal computer division.  Many feel that Apotheker waffled over selling the business outright or holding it after an auction to gauge interest.

Potential HP replacement Whitman’s back story could prove controversial as well.  The former eBay CEO resigned in 2008 after 10 successful years with the company.  She did, however, just spend well over $100 million in an unsuccessful Republican campaign for California governor in 2010 -- shelling out more than any candidate for a statewide office in U.S. history.

On Wednesday, HP shares rose $1.65, or 7.3 percent, to $24.12.

Copyright 2011 ABC News Radio


HP Slashing Prices of Discontinued TouchPad, Sending Buyers into a Frenzy

Hewlett-Packard/Palm(PALO ALTO, Calif.) -- After announcing it will end its involvement in tablet computers and smartphones, Hewlett-Packard slashed the prices of its TouchPad tablets, sending buyers into a craze over the weekend.

The company marked down the 16GB TouchPad to $99 and the 32GB version to $149 -- price reductions that amounted to $300 or more.

As a result, inventories of the tablet computer flew off store shelves fast.  HP's own website sold out of the TouchPad, as did Best Buy and other retailers.

Customers who are still looking to take advantage of the deal may be running out of luck.

HP spokeswoman Marlene Somsak told The Washington Post that the company would not be releasing any more of the discontinued tablets.  The company will, however, sell any that have already been shipped to stores.

The TouchPad was released on July 1 as HP's answer to Apple's iPad.  Back then, the 16GB version sold in the U.S. for $499.99, while the 32GB version was available for $599.99.

Copyright 2011 ABC News Radio


Stocks Plunge Amid Economic Concerns

ABC News (NEW YORK) -- The major market averages took a dive Thursday, falling by more than 3.6 percent. The plunge began in Europe with new pressure on banks. Shares in several British and French banks dropped more than 10 percent.

Weakness in the economy is also a big concern. But there are some on Wall Street who blame high frequency computerized trading programs for the recent rise in volatility.

The Dow ended below 11,000 Thursday. But the biggest percentage drop was in the high-technology Nasdaq index, which fell more than five percent.

A big change may be coming for Hewlett-Packard. The tech company says it will end its involvement in tablet computers and smartphones and consider selling off its PC business. HP, now the biggest maker of PCs and printers, has been trying to focus much more on technology services.

Copyright 2011 ABC News Radio


Hewlett-Packard's New Tablet Computer Hits Stores

Hewlett-Packard/ Palm(PALO ALTO, Calif.) -- Hewlett-Packard's competitor to Apple's iPad -- HP's TouchPad -- hits stores Friday.

The new tablet computer will run on software developed for Palm phones, and will feature a 9.7-inch screen along with a front-facing camera for video chats.  The TouchPad will also have have the capability of running Adobe Flash, setting it apart from its Apple counterpart.

The 16 GB version of the tablet is selling in the U.S. for $499.99, while the 32 GB version is available for $599.99.  The HP TouchPad will become available in other countries later in the year.

Copyright 2011 ABC News Radio


Rough Outlook for HP Brings Tuesday Stocks Down

Comstock/Thinkstock(NEW YORK) -- Shares of Hewlett-Packard dropped early on, dragging the Dow down for the entire trading session Tuesday.

The Dow dropped 69 points, the Nasdaq closed flat after dropping more than eight percent early on and the S&P lost a point Tuesday.

HP, the world's largest tech company by revenue, said profits rose in the most recent quarter, but a leaked memo from the company warned of a rough quarter to come.  The company was affected by the earthquake in Japan and dropping demand for PCs.

Copyright 2011 ABC News Radio


Hewlett-Packard Reports Dismal Growth

Photo Courtesy - Ralph Orlowski/Getty Images(PALO ALTO, Calif.) -- Hewlett-Packard Co. released a statement Tuesday showing disappointing growth in the face of poor consumer demand.

The Palo Alto-based computer giant reported a $1.21 per share profit, which disappointed investers hoping for $1.26. HP stock fell 9.6. percent at the New York Stock Exchange Tuesday afternoon in spite of reported 3.5 percent growth this year.

The report comes as an unfortunate close to Leo Apotheker's first quarter as chief executive officer. Apotheker is slated to present a renewed vision for the company at a strategy conference in San Francisco on March 14.

Apotheker took the helm of the company from Mark Hurd, whose resignation last August was prompted by a sexual harrassment scandal.

Copyright 2011 ABC News Radio

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