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Meg Whitman Details Layoffs To HP Employees In Internal Video, Thinks HP Is “Rebuilding Credibility”

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Confirming rumors from last week, HP just publicly announced a layoff plan that will result in a reduction of 8% of its workforce. Shortly after releasing the memo to Wall Street, HP CEO Meg Whitman sent a company-wide video message explaining the future of Bill Hewlett and David Packard’s company.

She acknowledges throughout that HP is in trouble, stating in the beginning, “HP’s performance is still not where it needs to be” and “We have a lot of work ahead of us to get HP back on track.” She also explains, a bit comically and perhaps erroneously, that “[HP] is currently rebuilding credibility one quarter at time, and to do that, we need to consistently deliver on what we say.” Remote support

Whitman also reaffirmed HP’s commitment to infrastructure, PCs and printing, servers, storage and networking. “This is a differentiating strength for HP and one we can be proud of,” she said in the video.

However, the axe is about to fall throughout HP. Before Whitman attempts to justify the cuts, she explains that HP’s employee count has grown at a pace unsustainable by its low revenue as of late.

“We’re struggling under our own weight,” said Whitman in today’s internal video memo. “And we’ve got to restore a healthy balance in order to return HP to its position as a growing… thriving… innovating… industry leader. That’s what this is all about. And the workforce reduction is only one piece of a comprehensive effort. We see a lot of opportunity to remove complexity, streamline and reduce costs in a number of areas across HP.”

Like previous rumors speculated, HP plans on reinvesting the savings into the company. “We’ll be investing to drive leadership in the three strategic pillars – cloud, security and information optimization. And in each of our businesses, we’ll make investments to stay ahead of customer expectations and market trends.” This is a fresh move for HP who under previous leadership simply used the savings of a smaller company to help the ledger.

In the consumer-focused PC and Printing Group, “we’ll be focused on design, engineering, quality, and generating demand and desire with our customers,” she said. In Enterprise Servers, Storage and Networking (ESSN) “we’ll invest to drive R&D and innovation in our core businesses of servers, storage and networking. In Software, we’ll be investing to speed development across Security, Information and Management Infrastructure for both on-premise IT and in the cloud – with a key focus on software-as-a-service offerings. This will include the extension of Vertica and Autonomy across our entire portfolio. And in Services, we’ll improve processes and build-out capabilities in cloud, security and information. We’ll also be strengthening our industry practices, as well as our service quality and innovation.” Dell support

Whitman also detailed that HP is looking to better train their employees while providing a “career development and better tools and support.”

Like most leaders, Whitman ends the video with a reminder to her underlings that “In times of change, it’s easy to lose focus, waiting to see what happens next. We can’t let that happen. This a great organization, full of incredible people who are resilient, committed and who care about our customers and our company. I’m asking all of you to please keep driving forward. Close every deal. Leave nothing on the table. We need that now more than ever.”

Below is a transcript of the video. We are currently working on obtaining the video itself. Update: We have the video. Uploading now. Dell support

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