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Hewlett-Packard Layoffs: HPQ to Cut Up to 16,000 More Jobs

Cuts come on top of 34,000 cuts already planned


Hewlett-Packard (HPQ) will lean on some 16,000 job cuts to help stabilize the company.

hewlett-packardHP previously announced that some 34,000 jobs would be eliminated in a multiyear restructing, but now the company is upping that number.

Net revenue from Hewlett-Packard was down 1% to $27.3 billion in the second quarter from the prior-year period.

Analysts question whether the cuts are coming because the company sees sluggish growth ahead — or it’s just part of the plan to trim the fat to bolster current finances.

Via the Wall Street Journal:

H-P, known largely for personal computers, server systems and printers, has been grappling with stiff competition and big shifts in the technology industry. Challenges across its array of businesses, along with the new job cuts, may complicate efforts to revive growth and innovation.

Ms. Whitman sought to portray the unexpected job cuts as an opportunity to further streamline a company that had grown bloated over the years through multiple acquisitions.

“With the first half of our fiscal year completed, I’m pleased to report that HP’s turnaround remains on track,” said CEO Meg Whitman in a statement. “With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We’re gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape.”

HPQ stock is up 2% in early morning trading.

Article printed from InvestorPlace Media,

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