HPE is on a monthly WFR schedule now to prepare for the divestiture of the ES (services) division. I am in management and since 2012, my best estimation is that the company has WFR'd (workforce reduction) around 100,000 people either outright or by "moving" jobs to low-cost locations. They have a stated goal of having 80% of their workforce in so called locations and they are quite proud of that. Many departments are being outsourced as well with employees moving to contracting companies on 1-3 year assignments before they can be completely let go. Not a great place to further your career unless you are in Mexico, Costa Rica, India, or Malaysia. It would be a misnomer to label HPE as a U.S. company anymore.
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I understand the 60% number especially when it comes to public announcements and the government contracts, but I am privy to internal memos and discussions where the actual target is 80% for non-government work. There are many ways to juggle the numbers and shift staffing. HP is an expert at this. I have also been in discussions where the idea of getting out of the government business has been discussed as a long-term goal or shifting these contracts to other entities to comply. Besides, once Trump takes office, I expect there may not be a preference to buy goods and services from companies run by Meg Whitman. She was conspicuously absent at the tech summit that Trump held.
The bottom line is HP cannot be trusted to do the right thing by their employees and get out while you can. I know that is my plan.
Public Sector is staying in the US, but they are shifting as much as they can to contractors, so they can easily shed the workforce when the government contract is over. There isn't much immediate cost savings, but when one of their executives mess up the contract (like many of their state contracts and the NASA contract), they won't have to support the employees there who no longer have work to do.
Re According to SEC filings and comments by the CFO the number is 60% lowcost, not 80. 80% is more realistic. HPE cannot outsource public job sector (US Navy, Defense etc.,) jobs to offshore. Imagine asking the US Navy calling India / Mexico / any non US location for US government / military division support. To achieve the " overall 60%", HPE has to WFR more in non public sector. So public + non public = 'overall just 60%' :-)
According to SEC filings and comments by the CFO the number is 60% lowcost, not 80. At the last review the number was in the mid 50s for HPE at this point.
Correct. It started out Quarterly, but has been consistently on a monthly tick for the past year or so. Justified as reductions for the HP/HPE split, ES spin off, Software divestiture, or whatever Meg dreams up this month. Whatever it takes to move from 320,000 employees down to about 25,000 for the future HPE company.
It's BEEN on a monthly WFR schedule though....