Corporations 'churn' workers to stay competitive

[w¡n9Nµ7 §£@¥€r 123]

Since 2002, HP has laid off 30 percent of its employees worldwide to cut costs and improve operations. But sending all those employees away with pink slips or early retirement packages hasn't caused a plunge in HP's global head count — because the company continuously hired new workers while it escorted others out the door.

Hiring people while laying off others is called churn.

[...]

HP's decision to embrace churn in the workplace puts it on the same path that many global companies have walked in recent years. On Wall Street, HP's strategy is seen as a smart way to adapt to changing market demands.

[...]

Steven Cochrane, a senior economist who follows Silicon Valley's labor market for Economy.com, said, "This is what you would expect in a dynamic industry or a dynamic economy. Understanding the churn is important to understand whether the industry is truly shrinking or whether it's trying to change shape so it's more competitive in the future."

[...]

Chief Executive Mark Hurd has explained the latest layoff plan as an ambitious agenda to cut back on jobs that have been putting HP at a competitive disadvantage. The company has been loaded down with too many workers in information technology, human resources and finance positions — and not enough in revenue-generating jobs, such as sales.

"We are trying to get our cost structure right," Hurd told HP business partners in September 2005.

[...]

The global layoffs recently helped HP chisel away at an expensive work force in the United States and Western Europe, and funnel work to lower-paid employees in Asia, Eastern Europe and Latin America, according to several HP executives in Europe.

"Some jobs are disappearing on-shore because the skills and the quality exist elsewhere at a much cheaper cost," said Eric Grall, HP Services' vice president of global delivery for Europe, the Middle East and Africa.

[...]

HP spokesman Ryan Donovan declined to comment on whether the company is cutting costs by hiring cheaper workers.

However, Donovan said the company has been hiring "nearly continuously" throughout the years of layoffs as it worked "diligently" to match its personnel's abilities with the market's changing needs.

"This means deploying people in roles that will help the business grow in areas of promise while shifting them away from areas offering less potential or where functions may have become redundant," Donovan said. "This is why we are hiring aggressively in certain areas while working to eliminate positions in others."

[...]

Although workforce churn isn't new, its prevalence has not been widely known.

[...]

These kinds of workforce shifts have helped HP boost its revenue this year by 6 percent. Its stock price shot up more than 60 percent by mid-December since the last major job cut was announced July 19, 2005.

[...]

But Wally Russell, HP's director of employee relations for Europe, the Middle East and Africa, said moving work to lower cost areas will benefit the remaining employees in the long run.

"If we're not competitive," Russell said, "we will lose more jobs than we are losing."

http://www.insidebayarea.com/business/ci_4901757

[Ban Hammer 13,345]

dang i thought it said chum in the title

[Mags 112]

Larry works for HP. They continually lay off staff and rehire. This means, of course, that you have the fear of being sacked, hanging over your head every single bloody day.

Sucks big time. HP are a bunch of arseholes.

[mawilson 2,133]

So "churn" means laying off American workers and hiring cheap and cheerful H1-Bs?

This means, of course, that you have the fear of being sacked, hanging over your head every single bloody day.

The fear of being sacked is unhealthy. If you're sacked, you're sacked. Plenty of fish in the sea, especially in IT.

[w¡n9Nµ7 §£@¥€r 123]

HP are a bunch of arseholes.

I work for a competitor of HP. It's the same deal where I am. The good news is, 1 out of 2 companies I send my resume to actually call me back. And so far every "screener" I've spoken to has invited me on-site for followup interviews. As soon as I have an acceptable offer, I'm out.

Edited December 27, 2006 by Gupt

[one...two...tree 2,762]

That kinda goes against the notion that a company is it's employees. HP ...heartless pricks.

[Mags 112]

So "churn" means laying off American workers and hiring cheap and cheerful H1-Bs?

This means, of course, that you have the fear of being sacked, hanging over your head every single bloody day.

The fear of being sacked is unhealthy. If you're sacked, you're sacked. Plenty of fish in the sea, especially in IT.

And Indiana has piss poor job opportunities in IT.

HP are a bunch of arseholes.

I work for a competitor of HP. It's the same deal where I am. The good news is, 1 out of 2 companies I send my resume to actually call me back. And so far every "screener" I've spoken to has invited me on-site for followup interviews. As soon as I have an acceptable offer, I'm out.

Yup, as soon as Larry finds something better (he will eventually, just got to be patient) he is outta there.

[w¡n9Nµ7 §£@¥€r 123]

Indiana has piss poor job opportunities in IT.

Thankfully the country has 49 other states to choose from But seriously, he strikes me as very employable in the NJ/NY area. There are other parts too, but this is the one I'm familiar with most

[Mags 112]

Indiana has piss poor job opportunities in IT.

Thankfully the country has 49 other states to choose from But seriously, he strikes me as very employable in the NJ/NY area. There are other parts too, but this is the one I'm familiar with most

Yup he is. I may be biased but Larry is really good at what he does. Just a shame we live in an area where that expertise isn't needed often AND there is high competition for whatever jobs there are.

[luvaLimey 0]

The software company I worked for did that, and still does in a way.

They would have the annual layoff, people would take their severance and live off that for a couple months, then get hired back on during the next quarter when they reopened those postitions. That worked out nicely for those guys until the time they laid people off and then outsourced that service. They have continually laid off personnel and replaced those personnel with contractors, who they don't have to pay benefits to, and can get away with lower wages as well.

They also offshored a lot of development to India... and it may or may not be my imagination, but those products whose development got offshored have more bugs and "unexpected features" than any developed inhouse.

Edited December 27, 2006 by luvaLimey

[one...two...tree 2,762]

Indiana has piss poor job opportunities in IT.

Thankfully the country has 49 other states to choose from But seriously, he strikes me as very employable in the NJ/NY area. There are other parts too, but this is the one I'm familiar with most

Yup he is. I may be biased but Larry is really good at what he does. Just a shame we live in an area where that expertise isn't needed often AND there is high competition for whatever jobs there are.

Is he open to the possibility of moving?

[mawilson 2,133]

They also offshored a lot of development to India... and it may or may not be my imagination, but those products whose development got offshored have more bugs and "unexpected features" than any developed inhouse.

Surprise, surprise.

[Mags 112]

Indiana has piss poor job opportunities in IT.

Thankfully the country has 49 other states to choose from But seriously, he strikes me as very employable in the NJ/NY area. There are other parts too, but this is the one I'm familiar with most

Yup he is. I may be biased but Larry is really good at what he does. Just a shame we live in an area where that expertise isn't needed often AND there is high competition for whatever jobs there are.

Is he open to the possibility of moving?

It isn't an option really.

[sheraz 0]

In this age of competition, the best way is to continuously build up your own part time buisness so when the layoffs come, you dont end up in a dead end spiral