HP had planned to cut about 34,000 jobs. After a tough quarter, media sources are reporting HP will now shed up to another 16,000 jobs, bringing the total to 50,000.
After a friend at HP contacted me, my math was off a bit. HP is cutting another 16,000 on top of a number that has already been or in the process of being cut. I had reported a 20% cut in their workforce but the number is 13% (268,000 workers down to 234,000).
At least R&D spending is up, which is a good sign, but ouch (click to Tweet).
The following article appears on reuters.com.
(Reuters) – Hewlett-Packard Co plans to cut as many as 16,000 more jobs in a major ramp-up of CEO Meg Whitman’s years-long effort to turn around the personal computer maker and relieve pressure on its profit margins.
On Thursday, the company posted a disappointing 1 percent drop in quarterly revenue, as it struggled to maintain its grip on the shrinking personal computer market while protecting profit margins. That marked its 11th consecutive quarterly sales decline.
Shares in HP closed down 2.3 percent at $31.78, after the company inadvertently posted the results on its website more than half an hour before the closing bell.
HP, whose sprawling global operations have more than 250,000 employees, had originally planned to shed 34,000 jobs as part of its corporate overhaul. On Thursday, it estimated 11,000 to 16,000 more positions needed to go, scattered across different countries and business areas.
