HP slashes EDS salaries by half

I think HP still uses 2000 wages...

So HP aims to bring the wages in-line across the entire organization.. what's the big deal? Some got a cut..some got a raise.

Question is, did the EDS-people who got lowered salaries actually earn low wages to start with?

Cutting salaries on EDS employees is a great way of moving your best to competitors like IBM and Accenture...I wouldn't wait for a salary cut that would be on the way...I would definitively be searching for a position elsewhere.

This isn't just about slashing pay. EDS employees were given a 1 month notice they may not be able to pay all their bills if they don't find a another job,dip into their 401k/savings,sale their homes and/or cars. This is a total disruption of peoples lives with a 1 month notice, and a rotten economy. What I find missing in all the articles about these pay reductions/job alignment, is some people will be getting paid an entry level wage. At this point many employees with the larger pay reductions can change jobs and make more than what HP is paying EDS employees. This is great for HP, force people out and not have to pay. Or if they stay, they get years of experience for dirt wages. All the while continue pocketing millions upon millions of millions of dollars by a select few.

What part of "living paycheck to paycheck" do people not understand? It's not HP's problem if employees have no money management skills. In fact, if I had employees who could not manage the money they earner for their work I'd be MORE likely to let them go in a round of layoffs. At that education level fiscal responsibility should be a no brainer.

I wonder if people realise that not all people with pay cuts were living from pay check to pay check.....these were HUGE cuts. No Brainer.

If they actually leveled total compensation in both directions (up towards the market rate and down towards the market rate) then there is no real issue (the issue is if they only leveled downwards). The alternative would be for HP to fire people above the market rate and re-hire them competitively at the market rate (where some of them may actually not be rehired). Most employees 'get' this. If everyone is being leveled below market rates then HP just cut its own throat.

Ok, can someone find the person that got their salary raised, even by 1%?

Note that Hurd took a 20% cut after getting a 35% raise. Sounds different when said that way isn't it, even before considering the impressive bonus.

The real point is that EDS people have seen total compensation impacted between 3 to 7 times in the last 9 months. That means that top, very motivated workers are now less interested in producing previously top results. Mark is creating a dysfunctional unit.

No there is greed going on given that a friend of mine got a pay cut and now is making less than when he began as a temp nearly five years ago. College educated and trained for a variety of jobs at the company, he will starting next month be making about on par with the employees at the local super walmart.

CEOs make 40+ million a year with their bonuses while the average worker is subjected to wages that either force paycheck to paycheck living or makes the job unsustainable for those who might have fmailies.

Also, nobody has gotten a raise or even their wages untouched. It is pretty much straight down. The not everyone will be affected seems to be as much of a lie as when they did the 10% April pay cut when they did not forsee any further pay cuts.

All so the wealthy shareholders can squeeze out a few more pennies per share come the next quarter and the CEOs reward themselves lavishly. It is a fine example of capitalism run amok.

The Gulf Stream jets that Carly bought are getting old by HP standards. The ones Carly bought were to replace four year old jets, and it has now been four years.

PS: Carly is running for a 2010 US Senate seat, and is ahead against Boxer of California in polls.

Having worked at a company with IT support provided by EDS several years ago, I would say that charging $5000 USD/year/Windows XP workstation support costs (plus hourly billing if you had to actually contact them for support) was a little tiny bit excessive. You could buy several brand-new PCs and just "recycle" the ones which have problems for that (and not be stuck with the same antique garbage PC's that we had, year after year).

Hopefully HP is going to trim down the EDS fat-cats, because they sure need trimming (and Hurd should honestly trim his own wages to match if he wants anyone to take him seriously).

I believe it is unfair to cut employee total salary while the executive only cut their based salary. Do they think that will earn them any respects or for us take them seriously?

I can't respect the executives for this type of strategy.

Imagine, will your total pay be restored when the market get better or when the stock perform better? More likely, very little affect on your pay. But the executives with their options and stocks will get a big pay day and have their salary adjusted upward.

Also, when they decide to leave the company, they get an exit pay too. Let just said it is in the millions. Remember Dick Brown!

Since the February announcement of pay cut, there were 2 more pay cut as well as cut in benefits.

It's not just EDS wages on the chopping block. I have been an HP employee for 10 yrs. Many positions (including mine) were recently moved to EDS to "align the organization". Now they are realigning me back to HP but not before they are slashing my pay by 30%. I didn't make that much to begin with. I never got a raise. I'll make less then when I started 10 years ago. There are alot of entry level jobs in alot of companies that would pay better then what I'll be getting. My wife's good at stretching a dollar, but no one can stretch them that far. If I don't find something better, we'll have to sell our house.

HP cuts employee wages to bring them to the middle of their pay scale for their job title. If your salary was more than the middle, even by just 2%, they cut your salary by the 2% just to bring you down to the middle. But if you were earning at the low end of the pay scale, they did not bring you up to the middle, they just left you there at the low salary. Isn't it wonderful to work for a company like this? Just don't plan on earning too much or you'll get adjusted.

HP's higher management is acting like mafia, they are doing everything thats beneficial for them and they are making the life of common employee miserable day by day.

How much does a family require for livelyhood definitely not millions, people under the executive hat are munching millions and they have a problem with common employees salary.

HP executives should be ashamed of themselves and they will never live in Peace, thats my curse on them!!!!!!!

Just out of an account meeting and we were told EDS is going to hire 60 more people in the Monona, Wisconsin account and they wont give any of their employees making less than 10/hr a raise!!!! And I am one of those people. im disgusted with this place.