Is There Any Hope Left at HP?

The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss topics across the investing world.

Reports surfaced last week that Hewlett-Packard is set to lay off 25,000 to 30,000 employees. While this would represent a less than 10% cut in head count, Bloomberg reports that up to 15,000 of these workers would be from the enterprise services group. This would come after HP's  2008 acquisition of Electronic Data Systems for almost $14 billion, which is included in that group. In this short video, Jeremy and Eric discuss whether HP’s binge and purge strategy has permanently damaged the company, or if it can recover and once again become a leader in the technology sector.

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Eric Bleeker owns shares of Cisco Systems. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of International Business Machines and Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On May 23, 2012, at 1:55 PM, cbglobal wrote:

    Funny how you say HP is in trouble because the era of big data is upon us. One of the leaders of big data is HP. And in many cases you will still need a PC to use big data.

  • Report this Comment On May 23, 2012, at 9:55 PM, NJ7 wrote:

    I'm long HP, I think they can come back and have the markets/products to do so. But it is a wreck leadership-wise. If there is a strong hand on the helm (or two with Chairman Lane) and a clear drive for innovation and to win back the employees who have made HP great, HP will be an outperformer. If, on the other hand, there is a complete employee revolt due to executive oppressiveness and layoffs, HP will be in big, big trouble. I think Whitman is doing a good job. I especially like her moves to put the execs in cubicles and tear down the fence around the executives' parking lot. Little things (and not so little) that say "we're better than you" can demotivate employees. The board is the biggest problem, IMO.

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