HP/Compaq Merger
In 2002, the biggest merger n the technology industry was completedwhen Hewlett-Packard Development Company (HP) merged with Compaq ComputerCorporation. Since then, the merger has had an impact on employees,investors, consumers and the business world in general. Among the mostvisible predicted outcomes of the merger were these: a $500 million costsavings during fiscal 2002,and a 15,000-person workforce reduction, experts For employees, the silver lining in that envelope of bad news was thatonly two-thirds of the reduction was to happen before November 1, with therest for the following fiscal year. And much of the reduction waspredicted to come through voluntary retirement. Of course, it didn't quitework out that way, and job reductions at the Palo Alto, Calif. HPfacilities were happening faster than predicted and were expected to cost$2.1 billion in severance and site-closing charges. (Direct newsline, 2002) Additional savings were also predicted, $2.5 billion in fiscal 2003and $3 billion in fiscal 2004. (Direct newsline, 2002) This would bepredicted to have a salubrious effect on share prices.
(Hardy, 2003) HP on the other hand is poised for growth. It has built technologyfor Walt Disney World's newest ride, Mission: Space and wireless headsetsexplaining the theme park in five languages. " (Johnson, 2002) Again, there was a bright spot, at least forCalifornia. 1 billion settlement of theresulting class-action lawsuit. Revenue was $18 billion, down slightly from acombined $18. She said that Dell Computer will find it difficult to achieve in thefuture the growth they have had in the past, and that Sun will hang ondespite an unworkable business model. HP is "more than a partner--we have commoninterests. Compaq and HP were next in line for thecourtroom. (Flynn, 2003) At about the same time, some analysts had not been so positive,however, about HP's general condition vis-A -vis shareholders. IBM has also shaved costs, and it is using a sales pitchsimilar to that of HP. "When we look at how Disneywill grow, it's through a few key partnerships," says Disney PresidentRobert Iger.
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Acceptance Essays
