Hewlett-Packard to Cut Another 2,000 Jobs

by Christopher Freeburn | September 11, 2012 12:42 pm

In documents filed with federal regulators on Monday, Hewlett-Packard (NYSE:HPQ[1]) announced plans to cut another 2,000 jobs through layoffs and early retirements[2].

The computer equipment maker had already announced plans to trim its workforce by 27,000 — 8% of its global workforce — back in May as part of its latest restructuring plan under new CEO Meg Whitman, CNNMoney noted.

With the new round of cuts, HP will shed 29,000 workers by the end of fiscal 2014. HPQ shares moved up more than 2% in Tuesday midday trading. HP shares have dropped 30% since the beginning of this year.

The cost of its restructuring has grown, too. HP increased its projected expenses from previous estimates of $3.5 billion to $3.7 billion.

Last month, the company raised its profit forecast for the current quarter, topping analysts’ estimates[3], but it also said it expected to take charges of between $1.5 billion and $1.7 billion during the quarter, more than initially estimated.

In June, computer-making rival Dell (NASDAQ:DELL[4]) announced plans to trim about $2 billion in operating costs[5] and reduce the number of products it offers.

Endnotes:
  1. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  2. to cut another 2,000 jobs through layoffs and early retirements: http://money.cnn.com/2012/09/11/technology/hewlett-packard-layoffs/index.html
  3. topping analysts’ estimates: http://investorplace.com/2012/08/hewlett-packard-predicts-higher-q3-earnings-charges/
  4. DELL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DELL
  5. plans to trim about $2 billion in operating costs: http://investorplace.com/2012/06/dell-announces-2-billion-cost-cutting-plan/

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