Bank Of America Retrenchment 10,000 , Hewlett Packard Selling Off Tablet, Smartphone & PC Division

Posted by Kris | Friday, August 19, 2011 | | 0 comments »

Wow..looks like US is heading to a bad situation again. Last time it was Citigroup, now is Bank Of America turn. They plan to axe up to 10,000 people as restructuring.

WSJ said the initial 3,500 job cuts are spread across BoA's business including investment banking and trading.

Looks like Hewlett Packard will also retrench some of its workers since it is selling off its tablet, personal computer and smartphone!! They cannot compete with Google in the Android domain and Apple on Ipad, Iphone and even Mac Book. Will they be bought over by another China company like  Lenovo aka Legend whom purchase IBM's personal computer division.

SAN FRANCISCO (AP) -- Hewlett-Packard Co. is surrendering in smartphones and tablet computers and has put its personal computer division up for sale, as new CEO Leo Apotheker tries to transform the Silicon Valley stalwart into a twin of East Coast archrival IBM Corp.

The restructuring contains an unmistakable message: HP has failed to cater to both consumers and corporations. As a result, it needs to exit most of its consumer businesses, just as IBM did six years ago.

The overhaul will have three parts:
-- HP will stop making tablet computers and smartphones by October.
-- It will try to spin off or sell its PC business, the world's largest. By the end of next year, HP computers could be sold under another company's name.
-- The company plans to buy business software maker Autonomy Corp. for about $10 billion in one of the biggest takeovers in HP's 72-year history.

HP, the largest technology company in the world by revenue, will continue to sell servers and other equipment to business customers, just as IBM now does. Those businesses currently don't generate as much revenue for HP as PCs, but they have higher profit margins.

Apotheker would not say whether any jobs will be cut. HP plans to take a charge of about $1 billion for restructuring and related costs, some of which could go for severance payments. HP employs more than 300,000 people worldwide.