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HP hints it will move some full-time employees to jobs at contract agencies

Oct 14, 2016, 03:56 IST

Flickr/HP Enterprise

HP on Thursday warned employees and investors that its job cuts will continue for another three years, as the company tries to shrink itself by 3,000 to 4,000 more positions.

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This is on top of the 3,000 positions it had already planned to cut in 2016.

HP is the PC and printer company created when the old Hewlett Packard split apart about a year ago. (The other company is called Hewlett Packard Enterprise.)

But HP wants its workers to know that not all of them will be laid off.

Some number will be offered the opportunity to continue doing their same jobs as employees at contract agencies.

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The company told Business Insider (emphasis ours):

"As part of our plan, during the next three years, we expect to implement both labor and non-labor restructuring activities, including 3,000 to 4,000 people exiting the company between FY17 and FY19. The range is related to the outcome of key outsourcing decisions. HP has a strong record of success in placing employees in outsourced roles to mitigate the headcount number."

This tactic, of shifting employees to positions as contract workers, is something Hewlett Packard was doing before it split.

As we previously reported, this offer was a mixed bag for employees. On the one hand, it meant they still had a job.

On the other, some employees told Business Insider their new jobs came with lower pay, skimpier benefits, and a loss of seniority. They couldn't negotiate and they were told if they didn't want the job, they would be fired without severance.

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In one case, Hewlett Packard employees staged a revolt over the offer, made their case to management. It seemed to work. Hewlett Packard listened and renegotiated the deal with Ciber to make sure salaries were on par with their current salaries.

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