As HP's new CEO Leo Apotheker begins his reign over the tech corporation an interesting debate has emerged; staff VS shares. In a time of vicious cuts and austerity some would hail Leo as a hero but the problem is it seems the stock markets don't agree.
Following in the footsteps of the collation government and almost every other business, bar loan sharks ex CEO Mark Hurd had made ruthless cuts to HP in order to maintain profits amidst economic downfall but Leo wants to take a different approach. For him the secret to success is staff morale. You have to agree with him too. If workers are facing wage cuts and fear of redundancy they aren't exactly going to be putting 110% into their work.
“We have cut enough costs.” Says the new CEO "it's time to invest in R&D, and get employees feeling more entrepreneurial. He said.”People need to be a little more empowered in this place.”
Leo feels that "HP has lost its soul" and wants it back, but it will come at cost. Since taking over Leo has sent HP stocks plummeting.
Not one to be put off his plans Leo is going full steam ahead with his business approach and is willing to hack down any opposition. “The one thing I've learned is to try to manage my temper better and get rid of cynics sooner.”
But is he right to focus on staff morale or do people have to deal with cuts and understand the economic situation may require cuts?