Tag: restructuring

HP hit with age discrimination suit

oldguyAn age discrimination suit is claiming that HP’s restructuring is being used to purge the organisation of old people.

Four former employees of Silicon Valley tech icon Hewlett-Packard have filed an age discrimination lawsuit alleging they were ousted amid a purge of older workers.

Hewlett-Packard began layoffs in 2012, before the company broke into HP Inc. and HP Enterprise last year, and have escalated the layoffs since, eventually hitting tens of thousands of workers.

However the complaint claims the goal of the changes was more to make the company younger.

“In order to get younger, HP intentionally discriminated against its older employees by targeting them for termination … and then systematically replacing them with younger employees. HP has hired a disproportionately large number of new employees under the age of 40 to replace employees aged 40 and older who were terminated,” the complaint said.

Arun Vatturi, 52, Sidney Staton, 54, have joined in the lawsuit with a former employee from Washington, 62, and from Texas, 63. The group is seeking class-action status for the court action and claims HP broke state and federal laws against age discrimination.

HP in 2012 announced it would cut 27,000 jobs. The company continued to announce layoffs, which to date total more than 80,000.

HP said: “Hewlett Packard Enterprise has a long-standing commitment to the principles of equal employment opportunity and age inclusion is no exception. The decision to implement a workforce reduction is always difficult, but we are confident that our decisions were based on legitimate factors unrelated to age.”

The lawsuit alleges that HP’s human resources department in 2013 issued written guidelines mandating that 75 percent of all external hires should be fresh from school or “early career” applicants.

Central to the lawsuit’s claims are statements attributed to Meg Whitman, who is now HP chairwoman and HP Enterprise CEO. She told a company meeting:

“We need to return to a labour pyramid … where you have a lot of early career people who bring a lot of knowledge who you’re training to move up through your organization, and then people fall out either from a performance perspective or whatever. And we put in place an informal rule to some extent which is, ‘Listen, when you are replacing someone, really think about the new style of IT skills.”

Microsoft has angered the Finns

the-sharks-are-circlingSoftware giant Microsoft has finally got the Finns cross over how it hacked about Nokia’s mobile unit before casting it adrift.

Microsoft has recently announced a new round of job layoffs at its Mobile unit in Finland, as it moves forward with its restructuring and reorganization plan following the acquisition of Nokia’s Devices and Services unit.

The Finnish government though is unhappy about the way that Vole has carried you the restructuring saying the outfit has a huge responsibility to help those who are being let go.

Microsoft’s latest job cut round included 1,850 people, 1,350 of whom are said to be working in Finland.

Finance Minister Alexander Stubb said that he was disappointed because of the promises made by Microsoft who had promised him that a new data centre would suck up a large number of the job losses. However this does not appear to have happened.

In 2013, when Microsoft purchased Nokia’s Devices and Services business, the company promised to invest $250 million in a data centre located in Finland that was specifically meant to provide services to European customers. Construction of the data centre never started.

And yet, Finland accuses Microsoft of contributing to the economic downturn that affects the country, as the company fired thousands of people under its restructuring plan and closed facilities that were once among the most successful in Europe.

The research and development centre in Salo was shut down by Microsoft, turning the city into what many described as a “ghost town.” The local facility started operations in the mid-1980s, and its closure dramatically impacted the city, with local sources revealing that “schools are closing, restaurants are mostly empty, and youths worried that they won’t be able to find jobs.”

Employment Minister Jari Lindstrom said Vole must bear as big a responsibility as possible over what they have done by laying off people.

Microsoft has not said anything but then again that is pretty much what anyone would expect.  Vole wants to put the whole Nokia fiasco behind it.

Nintendo planning a restructuring

Nintendo_former_headquarter_plate_KyotoNintendo’s most recent fiscal-year disclosure mentioned that it was planning some serious corporate restructuring.

The outfit has been rolling out more details about how that restructuring will work, and accidently released some news about its new business plans.  Yesterday it was talking about the company’s amended articles of incorporation, expected to be approved by shareholders this June. In the document are three new entries in its “business engagement” list. Apparently Nintendo wants to get into restaurants, medical and health devices, and “computer software”.

Nintendo has publicly announced, then backpedalled on its heart rate monitor (the Wii Vitality Sensor) and a sleep-tracking system. Nintendo-themed restaurant seems pretty obvious, particularly in Japan. But why add “computer software” to the mix? Nintendo already writes computer software, so it might have something else in mind.

That list mentioned that Nintendo will license its “intellectual property rights.”

Nintendo does have some engaged businesses which include things that it has not made for years. This includes office equipment and tools and sporting equipment.  This part of the restructuring might not lead to new products and might just be a legal trick to allow some decent patent trolling.

 

Chipzilla hopes to solve its problems by eating itself

Ouroboros_1Intel has become a monster which eats its own tail and firing thousands of staff who do not fit into its glorious Internet of Things and cloudy vision of the future.

Intel has announced that it is giving more that 11 percent of its employees their pink slips by next year. This decimation will come through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programmes.

Intel expects its restructuring to deliver $750 million in savings this year and annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.

In the official announcement Intel described it as a “restructuring initiative” which will help it evolve from a PC company to one that powers the cloud and billions of smart, connected computing devices. Intel will intensify its focus in high-growth areas where it is positioned for long-term leadership, customer value and growth, while making the company more efficient and profitable.

The move is remarkably similar to that which has gotten IBM into so much trouble. Intel sees the data center and Internet of Things (IoT) businesses are Intel’s primary growth engines. However these particular technologies are not making up for the cash which is been lost to the hardware business.

Intel said that memory and field programmable gate arrays (FPGAs) accelerating these opportunities and “fueling a virtuous cycle of growth for the company.”

The restructuring initiative was outlined in an e-mail from Intel CEO Brian Krzanich to Intel employees.

“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth. The opportunity now is to accelerate this momentum and build on our strengths. “These actions drive long-term change to further establish Intel as the leader for the smart, connected world. I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”

Chipzilla  plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses. Through this comprehensive initiative, the company plans to increase investments in its data center, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways.

 

Top managers exit Intel

rat treading waterChipzilla appears to be having some problems retaining staff, or might be trying to offload a few of them as part of a corporate restructuring.

Although Intel is not saying anything officially there have been a few too many high profile exits from its lair for it to be a coincidence.

The first we heard was when Aicha Evans, the GM in charge of Intel’s Communications and Devices Group, which is responsible for wireless radio/modem chip engineering, and part of INTC’s broader Platform Engineering Group – is resigning. She has been with Intel for a decade and had her current job for just a year.
What is odd about her leaving is that the she appeared to have scored a bit of a coup convincing Apple to dump its Qualcomm modems and go for something Intelish for the next iPhone 7.

Then we heard that Kirk Skaugen, an Intel employee for 24 years who was the SVP in charge of the company’s large Client Computing Group is leaving. Chipzilla noted that in a memo co-signed by CEO Brian Krzanich and President Murthy Renduchintala. Skaugen will be replaced by Navin Shenoy, the GM of Intel’s Mobile Client Platform Division since 2012.

Another one to clean out his desk is Doug Davis, the SVP in charge of Intel’s Internet of Things Group and a 32-year company vet.  His is less mysterious as he was set to retire at the end of the year anyway. Apparently after 32 years at Intel he wants to “devote more of his time to family, friends, and other interests.”

The changes could mean President Murthy Renduchintala, who joined from Qualcomm last fall, is trying to overhaul management, with an eye towards changing Intel’s engineering culture. We can’t be certain, but it is possible that those named above could just see the writing on the wall.

 

Toshiba begs for billions

Old Japanese Beggar --- Image by © Corbis

Old Japanese Beggar — Image by © Corbis

Troubled Japanese electronics outfit Toshiba has popped around to the bank to ask for a quick loan to sort itself out.

Toshiba has asked for a $2.49 billion credit line by the end of January which it says it will use to fund a large-scale restructuring.

The Nikkei Financial Daily earlier said it would likely seek help from banks including Mizuho Bank and Sumitomo Mitsui Banking. This is not the first time that Tosh executives have put on their best suit and worn a tie to see the bank manager but it needs a wider safety net as it seeks to recover from the book-keeping scandal in which it overstated profits from around 2009.

Moody’s recently downgraded the company’s debt rating to junk status, and the Tokyo Stock Exchange has placed Toshiba stocks in a special “watch” category to see whether it can improve internal controls. Both moves have made it harder for the company to raise funding through debt or new shares.

The company said last week it would slash 6,800 consumer electronics jobs, taking total cuts beyond 10,000, including previously announced plans, as the sprawling conglomerate focuses on chips and nuclear energy. It also expects a record net loss this year.

 

 

Jobs go at Twitter

TwitterTroubled social media outfit Twitter said 336 people would lose their jobs as part of a restructuring attempt.

The move comes after Jack Dorsey – a co-founder of Twitter – returned in the position of CEO.

The layoffs represent about eight percent of Twitter’s worldwide roster and the news sent its share price up by six percent.

Dorsey may not be finished with his restructuring however. In a note to Twitter employees he said the rest of the company will also be “streamlined”.

Most of the layoffs are in the software development side of the business because Dorsey thinks a smaller work force is a nimbler work force.

Twitter’s real problem isn’t software engineering however. The problem is it hasn’t really mastered the craft of sales, unlike its sort of competitors Facebook.

The company will take a charge amounting to as much as $20 million in redundancy costs up to $15 million restructuring costs.

AMD lays off staff

AMD Analyst Day '15_2Troubled fabless chipmaker AMD is to lay off 500 people, or five percent of its global workforce.

The outfit is facing weak demand for its chips and is falling behind its rivals Intel and Nvidia it its key markets.

AMD said it expects to take a charge of $42 million, with $41 million of that recorded in the just ended third quarter. AMD said it expected savings of about $58 million in 2016 from the restructuring plan.

Under the plan AMD will outsource some IT and application development services, the company said in a regulatory filing.

AMD will cut white collar jobs and is not shutting or idling any engineering operations. The jobs will be lost across AMD’s global operations, including Austin, Texas, and company headquarters in Sunnyvale, California.

AMD had about 9,700 employees at the end of last year, according to its latest annual filing from February.

AMD reported its second quarter revenue fell 35 percent from the year-earlier period, citing weaker than expected demand for PCs.

The company has been shifting to gaming consoles and low-power servers, but progress has lagged Wall Street expectations due to intense competition from Intel and newer companies. It is currently betting the farm on its Zen chip range, which should be out next year.

Toshiba to lay staff off

ToshibaThe newly fledged CEO of Toshiba said that the accounting irregularities means that the firm will have to look towards laying off staff in divisions that are underperforming.

Masashi Muromachi has introduced a management team to take a cool long hard at its different business divisions and that could well mean layoffs.

According to Reuters, those divisons include its PC, home appliance and TV businesses.

Its nuclear business, which has also been under scrutiny, will also need to be looked at following the Fukushima disaster in Japan, which has virtually put an end to the business there.

Because of the irregularities, Toshiba may also need to take out bank loans because it is unable to raise money by issuing equities and bonds.

Muromachi did not say what the extent of the layoffs might be.

HP will lose 30,000 more jobs

BN-EE799_hp0820_P_20140820164645It looks like HP’s split into two companies will not save jobs – in fact, 30,000 more will go in the restructuring.

The purge will occur within the newly formed Hewlett Packard Enterprise, a bundle of technology divisions focused on software, consulting and data analysis that is splitting off from the company’s personal computer and printing operations.

The spinoff will be completed by the end of next month, dooming 25,000 to 30,000 jobs within HP Enterprise. The target means 10 to 12 percent of the 252,000 workers joining HP Enterprise will lose their jobs as part of the company’s effort to reduce its expenses by $2 billion annually.

About 50,000 workers will remain at HP, which become the new name for the company retaining the PC and printer operations.

This means that since CEO Meg Whitman took control of the company more than 88,000 people have collected their layoff notices. Mostly the problems have been caused by acquisitions that have not panned out and a slump in PC sales.

HP’s layoffs have been demoralizing blow to a company that provided a template for future Silicon Valley entrepreneurs when William Hewlett and David Packard founded it 76 years ago. Hewlett and Packard later embraced an employee-friendly philosophy that became known as the “HP Way.”

The HP Way was more or less killed off by the winsome CEO Carly Fiorina who is now a candidate for the Republican Party’s nomination in the 2016 race for president. Fiorina engineered a $25 billion acquisition of PC maker Compaq that angered many shareholders, including heirs of the company’s founders. She cut more than 30,000 jobs before she was fired.

Still HP remains one of the world’s biggest technology companies. HP Enterprise expects to have more than $50 billion in annual revenue.

“Hewlett Packard Enterprise will be smaller and more focused than HP is today,” Whitman promised in a Tuesday statement.