It’s never wise to read into one company’s earnings too much, but HP is a tech bellwether so it’s worth noting. The company announced plans to release their earnings early tomorrow morning due to a leaked memo. In the memo, CEO Leo Apotheker warned that the upcoming quarter would be another tough one and that the company had to lock down all spending. Some notable quotes from the Bloomberg report:
Q3 will be “another tough quarter”
Apotheker is telling employees to “watch every penny and minimize all hiring.”
Current spending is “unaffordable given the pressures on our business,”
“Q3 is going to be another tough quarter, one in which we will be driving hard for revenue and profit”
“We have absolutely no room for profitless revenue or any discretionary expenditures.”
It’s only one company, but it sounds like HP has no plans to hire anyone any time soon due to cost pressures in other markets. It will be interesting to hear the details tomorrow morning.