Skip to main content

HP may cut up to 16,000 more jobs as results disappoint

class="mandelbrot_refrag">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.

Whitman said the turnaround remained on track and her raised target reflected how HP continued to find areas to streamline across its broad portfolio, which encompasses computing, networking, storage and class="mandelbrot_refrag">software. But some analysts wondered whether it signaled a worsening outlook for the coming year, or if more jobs may be cut.

"The rationale makes sense," said RBC analyst Amit Daryanani. But "you do worry if there's a finality to this process, or if it's an ongoing thing that may affect morale at the end of the day. So far the trend has been worrisome."

HP, whose sprawling global operations employ more than 250,000, estimated about three years ago when it first hatched its sweeping overhaul that it would need to shed 27,000 jobs. That number rose to 34,000 last year.

On Thursday, it estimated another 11,000 to 16,000 more jobs needed to go, scattered across different countries and class="mandelbrot_refrag">business areas. That took the grand total under Whitman's restructuring to 50,000.

The Silicon Valley company is trying to reduce its reliance on PCs and move toward computing equipment and networking gear for enterprises, part of Whitman's effort to curtail revenue declines and return the world's No. 1 PC maker to growth.

But that goal remains elusive. The company posted a disappointing 1 percent drop in quarterly revenue, as it struggled to maintain its grip on the shrinking personal computer market and weak corporate tech spending.

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.

A PIVOTAL DIVISION

Research jobs, which are vital for class="mandelbrot_refrag">innovation and long-term growth, will continue to grow, Whitman stressed.

HP is looking to cut back more in "areas not central to customer-facing and class="mandelbrot_refrag">innovation agendas," she said in an interview, rather than areas like research. "That's not what we're doing here. You need to look at the R&D spending, which is up."

HP recorded sales of $27.3 billion in its fiscal second quarter ended April 30, just shy of the $27.41 billion Wall Street had expected.

Whitman said China remained a challenging region, though revenue from that country rose in the quarter. U.S. companies like class="mandelbrot_refrag">International Business Machines CorpBusiness Machines Corp class="mandelbrot_refrag">Business Machines Corp and class="mandelbrot_refrag">Cisco Systems Inc have blamed recent lackluster performances on a backlash against American companies in China, in the wake of U.S. spying allegations.

On Thursday, HP forecast full-year earnings of $3.63 to $3.75 a share, compared with Wall Street's estimate for $3.71.

It reported non-GAAP diluted net earnings of 88 cents a share in the second quarter, up 1 percent from a year earlier and about level with what analysts, on average, had expected.

(Reporting by Edwin Chan; Editing by Steve Orlofsky and Richard Chang)

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o