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Hewlett-Packard’s split will not affect Costa Rica operation, company says

Hewlett-Packard’s (HP) decision to split into two companies on Sept. 1 will not involve any staff cuts at its operations in Costa Rica, the company said in a statement.

HP will split its enterprise-facing hardware and service business and its consumer-facing computer and printer segments, with both companies trading publicly. The business-oriented company will be called Hewlett-Packard Enterprise while the PC focused business will be called HP Inc.

The change only will apply at the operational level and will not have any impact on the company’s staff in the country, currently at over 6,000 employees, HP reported.

Eighty percent of the local staff will work for Hewlett-Packard Enterprise, which will focus on ​​corporate services and software. The remaining 20 percent will work at HP Inc., which will manage the printing and personal computers divisions.

The company in October 2014 officially announced the move and explained that the strategy will provide both of the companies with the focus, financial resources and flexibility to quickly get used to changing market and customer dynamics.

The split will be effective in all 150 countries where HP currently has operations and responds to a global strategy of CEO Meg Whitman.

Human Resources Manager for Central America María Luisa González said there will be little change for Costa Rica employees, and while some will have increased responsibilities, they also will see improvements in their careers. HP launched operations in Costa Rica 13 years ago.

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Ken Morris

I can’t speak to HP’s motives, but often when companies split the motive is to prevent a union from forming (or sometimes break an existing union).

Generally, larger workforces are easier to unionize than smaller ones, so companies have found it an effective anti-union strategy to split into smaller companies, each with smaller workforces.

Again, I have no knowledge of what’s going on in HP or even whether its employees need a union. I am often pro-union, but a few companies have such fair labor policies that unions aren’t necessary. I have no idea about HP.

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Ed Harold

Yeah! Create a union and drive them all out of the country. I can almost guarantee you that no US Tech company will stand still for being unionized. Costa Rica will lose it’s reputation as a good place to do business. There are many countries in the world who would love a well respected
US high tech company.

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Gerry Adams

I know that HP is telling the media no job cuts in Costa Rica. That is not the truth at all. I know of 6 staff that have been told there last day is sept 1 and many HP staff are told find another job in the company or your last day in sept 1. The Costa Rican goverment needs to set down with HP managers asap because layoffs are coming at the Costa Rica division of HP. HP is planning to cut lots of staff at the Costa Rican division that´s what there corp plan says. I wonder if its time for a union at HP? Good luck Costa Rican´s that work at HP your jobs are on the line you need to organize and you need a Union fast to save workers.

Bloomberg May 21, 2015
Restructuring Costs
On a conference call, Lesjak said the company may reduce costs at the two companies by about $1 billion over three years, and sees potential to take an additional $2 billion in costs out of the company’s Enterprise Services business during that time. She wasn’t more specific. Those cost cuts would result in charges of a similar amount, she said. The company is approaching the completion of a restructuring program it began in 2015 that has so far included about 48,000 job cuts.

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