Mercury News article
by: skeptically 06/02/02 12:57 pm
Msg: 136174 of 136196
bayarea.com
Posted on Sat, Jun. 01, 2002
Post-merger HP to brief investors on its progress
ANALYSTS LOOKING FOR COST SAVINGS
By Therese Poletti
Mercury News
The acrimonious proxy fight is over. The international media attention is gone. Now, Hewlett-Packard is trying to execute the promises it made in its campaign to win shareholder approval of its controversial $19 billion purchase of Compaq Computer.
HP will deliver a formal update on its progress Tuesday in Boston, where it will hold its first meeting with Wall Street analysts and investors since the merger closed May 3. During the all-day marathon, executives including Chief Executive Carly Fiorina, President Michael Capellas and Chief Financial Officer Bob Wayman will delineate their accomplishments so far and what they hope to achieve in the next six months.
HP declined to discuss the integration process before that meeting, including the 15,000 layoffs that have already begun. But interviews with employees and analysts provide a few glimpses of what has been happening during the past four weeks at the Palo Alto computing and printing giant.
At least 600 jobs at HP's Cupertino campus have been eliminated as management chose to drop HP's money-losing line of Windows-based computer servers in favor of Compaq's more popular product line. Some of those laid off have found other jobs within the company, however. Almost 200 more jobs were cut at HP's Corvallis, Ore., operations as the company phased out the old HP's Omnibook laptops and Jornada handheld computers.
HP executives have already chosen the top three layers of management, including the top manager in each of 160 or so countries where the company does business. Many of those who did not make the cut are in the process of leaving.
Each business unit is working on its next two layers of management, which has been taking longer than expected. Because of the total reorganization of the company's structure, some staffers have to reapply for their jobs.
``That speaks to a pretty orchestrated integration here, at least on the personnel side,'' said Mark Specker, an analyst with SoundView Technology Group. ``Time will tell whether the business model actually works. At least they are not making any huge mistakes.''
Employees say morale seems to have improved as the bitter battle lines over the merger are slowly erased and workers scramble to find their place in the new order.
Some employees are heartened by .....cont' at link.............
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