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Hewlett-Packard cuts 27,000 Jobs to Save Billions

In an effort to restructure itself, Hewlett-Packard plans to lay off 27,000 workers, which equates to about 8 percent of its workforce over the next two years.

Hewlett-Packard expects to generate a savings of between $3 billion to $3.5 billion by the end of fiscal year 2014. The savings will be reinvested into the company.

“Even though the restructure was a difficult decision because of the job losses, it was necessary in order to maintain the long term health of the company.We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders.” CEOMeg Whitman said.

Some of the employees will take the early retirement program offered by the company, so the total number of employees affected by the layoffs will be determined by the number of employees opting to make good on the early retirement option. The layoffs are expected to be completed by October 2014.

Hewlett-Packard expects to use the savings to boost three main areas of operation, “cloud, big data and security.” HP shares (HPQ) rose about 7 percent to $22.48 in after-market trading on news of the company’s cost-cutting plan and quarterly results. The share price has fallen nearly 50 percent over the past.

Hewlett-Packard earned $1.6 billion, or 80 cent per share, during its second quarter ending in April. That represented a 31 percent decline from $2.3 billion, or $1.05 per share, at the same time last year.

To pay for severance and other restructuring cost Hewlett-Packard expects to take a pre-tax charge around $1.7 billion in the current fiscal year, which ends in October. The company expects to take additional charges of $1.8 billion through fiscal 2014.

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May 24, 2012 Posted by | Business News | , , , , , , , , , | Leave a comment

Miami-Dade County Commissioners tossed the ball back to Mayor Carlos Gimenez

Miami-Dade County Commissioners did not and would not support an additional 5% needed from the Miami-Dade Police Department to balance the county budget. After the votes were casted, the commissioners decided to vote against the bill, by a vote of 7-6.

Thus, the ball is returned to Miami-Dade Mayor Carlos Gimenez and his support staff to find another way or avenue to balance the budget. The county is still over 30,000 employees strong. There are other ways to balance the budget equitably without making one or two departments bare the majority of the load.

There is tremendous waste within the structure of Miami-Dade County, particularly at the top. If you want to really balance the budget, “you must start at the top!” Every department does not need a director or even an assistant director. It is clear that the structure needs to be dismantled and rebuilt. At this point it’s to convoluted with nepotism, favors, girlfriends and the like.

The county has some good by-laws in place but the rules and laws are not adhered too and the powers- at-be seems to come up with a thousand excuses why the rules need to be circumvented. And as the system takes on more and more employees that came through the back door, you will ultimately find yourself with a colossal mess. These people didn’t take any test, they have no degrees or working skills, yet they drain the system dry.

1. The county has directors and assistant directors where they
only need a supervisor.
2. The county has attorneys where they only need a well-trained
clerk.
3. The county has departments giving each other unapproved raises.
4. The county has employees whose only function is to keep the
social calendar full.
5. The county has two or more departments performing the same task.
6. The county has employees whose sole function is to socialize
with the judiciary.
7. The county has some employees that receive both a county &
state check.
8. The county has many employees whose hands were caught in the
cookie jar and given a raise and a transfer to start all over
again.
9. The county has directors with no staff.
10 The county has upper level management who refer to the job
requirement description to fill out their annual review.

You see! The waste is endless and it only gets worse. Yes! Yes! Yes! There is plenty room for improvement. The word is call “RESTRUCTURE!’

“Well, Mayor Carlos Gimenez, you said that you were the person for the job and you understood the system. This is where the rubber meets the road and the constituents’ are going to see what you’re working with!” You’ve just stepped up to the plate to bat and the commissioners just threw the ball in your direction. Will you make a hit or foul out? It’s your ball! Good luck!!!

January 6, 2012 Posted by | Community News | , , , , , , , , , | Leave a comment

Hats off to Mayor Gimenez: Making tough choices in tough times!

Having to reduce taxes and shrink the size of government while maintaining a sense of fluidity within the Miami-Dade County is no easy task for anyone, let alone Mayor Carlos Gimenez. Fortunately, having served as commissioner will prove beneficial in the next phase of his career.

Tough choices will have to be made in the days and weeks to follow, unfortunately, the tomorrow of the past is now today and unpopular but necessary decisions will have to be made to bring the deficit down and in compliance of the law.

What one must understand is that the government is the same size if not bigger than it was before so many of the cities within Miami-Dade County decided to incorporate. However, in reality, once Pinecrest, Doral, Aventura, Miami Lakes, Miami Gardens and others decided too incorporate, it took much needed county resources with it. Yet, Miami-Dade County never adjusted its payroll to accommodate the shortfall. Eventually, because of revenue shortfall, the county started to operate in the red and/or at a loss.

In business, you can only cover up a loss for so long, and then you will need to downgrade your operations or restructure to bring your business out of the red and into the black. “The term is called restructuring or downsizing.” The county never restructured to accommodate the loss. Had the previous administration made timely adjustments to accommodate the loss of revenue along the way, perhaps the situation would not be as bad as it is today.

As previously stated, Mayor Gimenez inherited a massive debt loss coming into and taking his position as Mayor of Miami-Dade County, much like the deficit inherited by President Obama. It’s not easy standing up against familiar faces, knowing that they have already pre-judged you before the work is done.

Remember, respect is not always given, sometimes it has to be earned and it appears that Mayor Gimenez will no doubt earn his share of respect in the days, weeks and months to come.

July 22, 2011 Posted by | Community News | , , , , , , , , , , | Leave a comment