2012 Announced Layoffs: 27,000
Stock Performance Since Announcement: -19%
Back in May 2012, Hewlett-Packard (NYSE:HPQ) dropped the bomb, announcing it would eliminate 27,000 jobs, then adding 2,000 to the cut list for a total of 29,000 jobs expected to be slashed by the end of FY2014.
The goal: Snip more than $3 billion in costs.
HPQ’s stock pretty much tanked through the remainder of the year, but has recently gained some momentum on rumors of a possible investment by Carl Icahn. He’s a smart guy … but you’d think he’d have noticed the year’s worth of steady revenue decline at HP. Meanwhile, the past couple quarters have been hideous on the bottom line thanks to restructuring charges and lousy investments.
With interest in traditional PCs waning every year and virtually no mobile presence to speak of, significant growth at Hewlett-Packard seems unlikely. Cutting expenses makes sense, especially in a bloated company with seemingly no direction. But Hewlett-Packard still needs direction — and a legitimate plan for revenue growth.