You cannot imagine how serious the memory crisis is the company is facing right now. The company has for many months act on it but was not taking much action thus lead to the CEO demise. Now the situation is so bad that the company is exploring reconfiguring/resourcing/reusing memories but the impact is near negligible. The problem cannot be solve with throwing more money at it as it is not a money problem. So bad is the situation that the production rate is so low that it's coming to a standstill. Externally the company is totally handicapped by the memory situation, internally they are tightening up so much that it's scrapping every single cents to can save to cushion the financial impact.
7 replies (most recent on top)
@ve ball just rolling, hp first rule of reorg is combine and cut hc big time. Small cut no reorg it's called CR POR (cost reduction plan of record).
Reorg already started, EP sent first one last week .. DT and DS merged.. CIO sent his new org.. they added one more layer.. no one gone in the management.. all are having some function.. no impact at L3 and above
“The problem cannot be solved with throwing more money at it…”
Partially true. This is a similar situation for what happened during Covid. Companies essentially had to bid for supplies. HP did a very poor job with this. So I expect this to happen again. But the good news is that while consumer end user demands are low, the OEM demand is very high so it could be balanced supply chain.
We’re seeing a weird trend of demand from the consumer end users. There’s two reasons why they’re not interested in buying a new computer: first is obviously inflationary costs have spiraled out control but secondly, they’re looking for ways to make the best of what they have now. For example, they could switch to Linux that makes their 10 year old computer (exaggerating) to work like a brand new computer because it’s significantly faster. I think we’re going to see a shift in how software works where it will require less resources to run said software. There’s also a matter of cloud based applications as well that will offload the majority of resources and all you really need is a minimal computer that can connect to the internet with good speed.
Some of us don’t have to imagine.
When is the massive re org happening Friday :))))
Terrible news for contract workers in America but at least they still have Donald trump as president to make them feel good. I’m from India and wish I had one of those.
And still having parties??? taking resellers to sky resorts as incentives....well HP deserve to drown completely...