Sales of HP notebooks and servers are UP! And that's all the good news

In constant currency, the numbers were considerably better! Let's see what other companies post given the $ rate at the moment. Storage up something like 3% at constant currency, in a declining market, so dig a little deeper in the numbers!

Interesting

If one were being very cynical, one would say that the reason HP are splitting into two companies - one aimed at the Enterprise, and one at the personal / printing world - is so they can put one high performing division in each company, making each company look better than the sum of the whole.

It's a good job one isn't cynical.

Spiralling wages contribution

One of the hidden reasons for the not as good as expected results in the Enterprise Services arm of HP is that the permanent employees that have been made redundant have been replaced by contractors. These contractors don’t count as employees in terms of the numbers that HP declares to shareholders, yet they are earning 3, 4 and 5 times the amount in wages that the employees were!

A bloke I worked with was on £32k a year and was made redundant last week. A contractor has now come in on a 12 month contract to cover his work and he is earning £425 a day – you do the math. This scenario is being repeated right across HP UK meaning that the wage bill has sky rocketed exponentially.

As far as the shareholders know HP have culled over thousands of staff in the UK. However, what they haven’t been told is that contractors have taken over most of their job roles earning huge amounts of money in the process.