UPDATED: HP slashes 27,000 jobs as part of restructuring program

The cuts will amount to 8 per cent of HP's workforce as part of restructuring program that started last year and is to continue through to 2014.

It's official. Hewlett-Packard will cut 27,000 employees as part of its long-term restructuring plan, the company said when it announced quarterly financial results.

The company will shed about 8 per cent of its workforce through a combination of layoffs and retirement offers that started last October 31 and will continue through the end of its 2014 fiscal year, HP said.

The lay-offs are the biggest in its 73-year history.

Employee reduction plans vary by country.

The restructuring program is expected to save $US3 billion to $US3.5 billion through fiscal year 2014, and a majority of those savings will be reinvested in the company, HP said in a statement

The job cuts are "difficult" but they also are "necessary to improve execution and to fund long-term health" of HP, CEO Meg Whitman said in a statement.

HP also announced that its net income for the second quarter, which ended April 30, was $US1.6 billion, a drop of 31 per cent over the same quarter a year ago.

It reported revenue of $30.7 billion, down 3 per cent.

Excluding one-time charges, the company's earnings per share was $US0.98, which topped the consensus estimate of $0.91 from analysts polled by Thomson Reuters.

The company also forecast third quarter earnings of $US0.94 to $US0.97, below previous expectations of $US1.02 per share, but it expects that its full-year earnings will be $US4.05 to $US4.10, rather than $US4.03 that analysts had forecast.

The announcement confirms industry rumours over the past week that HP was about to cut up to 30,000 staff.

A HP South-Pacific enterprise spokesperson said, "We have not yet announced specific plans with regards to specific locations. We do expect the workforce reduction to impact just about every business and region. Beyond this, we don’t have any additional information to share at the moment.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?