Meg Whitman, President of HP, Gets Flack for Partial Follow-Through on Ultimatum
October 14, 2015
The article titled HP Didn’t Actually Fire All the Employees It Threatened to Cut on Business Insider details the management teachings from Hewlett Packard. To summarize, HP recently delivered an ultimatum to several hundred employees that they had to shift off HP’s payroll and become contract workers for significantly lower pay with HP’s partner Ciber. If they refused, they would be let go. Except that the employees mutinied and complained, resulting in HP negotiating for higher salaries from Ciber as well as holding on to a few employees who refused the deal. The article states,
“On top of that, HP is also shipping most of the jobs in this business unit offshore. Whitman wants 60% of the Enterprise Services division jobs to be in low-cost areas of the world, compared to less than 40% today. Employees in this unit fully expect HP to line up more take-it-or-leave it contract jobs, they tell us, so we’ll see how HP handles the next one if it does materialize.”
This is all in the midst of HP’s massive layoffs of over 80,000 employees, 51,000 of whom have already been let go. Morale must be under the building. The non-negotiable ultimatum strategy did not seem to work, and at any rate is bad business, especially when coupled with it being overturned later in a handful of instances.
Chelsea Kerwin, October 14, 2015