http://www.forbes.com/sites/panosmourdoukoutas/2016/12/27/hewlett-packards-split-have-massive-layoffs-paid-off/#539e74055729
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At that stage we'll finally see the end of capitalism.<<
Huh? Sounds like you want capitalism to fail. Good grief! Are you not employeed because of capitalism? lol
Sure thing... it's all about financial operations... no longer producing something. On the bright side, the markets cannot keep doing this, they'll hit a non-return point when US/EU consumers are no longer able to consume as they are mostly off work. At that stage we'll finally see the end of capitalism.
They also thought Mark Hurd had it all............
Well, HPE also makes some gains by replacing engineers on existing contracts with cheaper engineers. Fire an experienced, skilled engineer who makes rate XX, arranged at the time they joined the contract, fire him, hire recent college graduate at half the salary and keep charging rate XX... PROFIT! Don't worry about the fact that the contract is no longer being fulfilled in a competent, timely manner... or that it's basically fraud through a loophole in the contract. That sort of thinking is long term, and Meg isn't in this for the long term.
Witness the messes that are the recent state contracts, or the NASA contract.... and make no mistake, the DoD contracts will fall the same way in the next 6 months or so. Customers are getting the old Bait and Switch, which helps the short term bottom line, and makes Wall Street happy as they churn stock on the uptick, but somebody always loses. In this case, it's the customers and shortly after, the remaining stockholders (1%ers and company executives have cashed out before the waste matter hits the fans) - i.e. the pension funds of the remaining middle class Americans. Yay unrestrained capitalism!
I guess it depends on who's perspective you are looking at it from.
Increasing margins on a declining revenue seems to be all the rage will Wall Street.
The revenue largely decreases because when you are a services company, your employees billed time is your revenue. Less employees, less billed time, less revenue.
Its a bit like a car manufacturer cutting manufacturing costs by making less cars. Sure your material costs come down, but so does your revenue...