A norm nowadays is new on layoffs, some blame it on the economic slowdown, some on the political bureaucracy while the others blame it one offshore outsourcing. There could be a number of the reasons for the job cuts but it all boils down to cost reductions. The Microsoft Corporation wave a layoff notices to more than 3,000 employees. The Microsoft issued a public statement regarding the layoffs saying they did it in the response to the global economic downturn. This might not be the end of the flying pink, slips as Microsft CEO Steve Ballmer stated that as they move forward, they will continue to closely monitor the impact of the economic downturn on the company and if necessary, take the further actions on their cost structure including the additional job eliminations.
The company is applying the cost cutting measures, Microsoft that still plans to hire about 2,000 to 3,000 employee in some of its business segments. The Microsoft is not the only company chopping jobs on the certain business division and moving them on more profitable business segments. The Microsoft is not the only company chopping jobs on a certain business division and moving them on more profitable business segments. The Hewlett Packard Company is also capitalizing on the current market conditions. The HP reported a 17 percent decrease in the second quarter earnings as a sales fell on almost all of its business segments.
The HP seems to be shifting its focus, instead of the restructuring its main PC business, it diverted its attention to its more profitable services business, with its EDS acquisition, the HP could go from a PC maker to an IT consulting and outsourcing firm. The HP plans to go head to head with the International Business Machines Corporation, in its venture into the services business arena. The HP investors are happy with the EDS acquisition, they like the steady flow of the revenue that comes with the services business as well as the idea that services that can be used to support the other HP products like software and servers. The IBM does not want to share any big technology outsourcing contract with the HP. The IBM fired back by hiring a former executive of EDS. The former managing director of EDS in the UK and also served as VP for EDS’ CRM practice. IBM now has an edge over the HP as Finnan knows how EDS’ business works , IBM could use Finnan’s experience to push their services business even further.
REFERENCE:
http://www.blog.infinit-o.com/firms-shifting-focus/
