Hewlett-Packard to axe 34,000 staff by end of 2014

Hewlett-Packard to axe 34,000 staff by end of 2014

Summary: HP's struggle with falling PC sales and fierce competition will see restructuring efforts take a more aggressive form than planned.

TOPICS: Hewlett-Packard

Hewlett-Packard plans to cut 34,000 employees from its global workforce by the end of this year, which equates to 5,000 more job losses than expected.

On Tuesday, the PC giant said in a regulatory filing to the U.S. Securities and Exchange Commission (SEC) that a tough business environment makes the additional cuts necessary if the firm is going to remain competitive in the future. As a result, HP will eliminate 34,000 positions by the end of the firm's fiscal year, which is up from an earlier prediction of 29,000.

Locations which could be affected by the cuts were not disclosed.

The Palo Alto-headquartered firm said:

"Due to continued market and business pressures, as of October 31, 2013, HP expects to eliminate an additional 15 percent of those 29,000 positions or a total of approximately 34,000 positions."

In addition, HP stated that the program will cost the company roughly $4.1 billion in aggregate charges, going beyond earlier predictions of $3.6 billion. These charges will be due to reduction of the workforce and both data center and real estate consolidation.

The CEO of HP, Meg Whitman, is attempting to restructure the company to be able to compete in a world where mobile devices -- rather than personal computers -- have become king. The company shake-up includes cutting costs and focusing on technology sectors that may provide better long-term assurance of profit -- especially as HP missed the mobile bandwagon -- including enterprise services, cloud computing and security.

Hewlett-Packard posted a fourth quarter profit of $1.4 billion on revenue of $29.1 billion, down three percent from Q4 2012. Despite revenue declines, the company's finances outperformed expectations, showing that restructuring efforts are having an impact.

HP has already eliminated over 22,000 positions as part of its restructuring plans.

Topic: Hewlett-Packard

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  • HP to lay of 34,000

    Happy New Year. This is the begining of what will be a year of mass layoffs. With FIAT purchasing Chrystler, aren't we glad we lost $17 billion saving that company for the Italian auto maker, there are sure to be cuts coming from there now. Oh and just in case this is not bad enough we hear warnings of a new housing bubble. I want to see Congress push an imigration bill when unemployment hits 10%, good luck with that.
    Robert Furst
  • Really??

    H.P. laid off 22k last year.. all it is, is a sign that H.P. is floundering , not the rest of the economy which added 5M jobs over the last 3 years. Also FIAT already had controlling interest in Chrysler since 2009...Chrysler is one of their most profitable lines, while FIAT has been floundering in Europe. As for housing, housing starts haven't even reached pre-bubble levels, let alone cause an employment meltdown levels.

    As for H.P. Meg has been in charge for over 2 years, can anyone name which division will lead it's comeback? Is any division looking like it has turned the corner and is growing?
  • The lost world

    It's been a long time now, but HP was once the king of test equipment: rock-solid quality and longevity was the hallmark of the brand. The siren song of the PC pulled them away from core competencies, and lots of good employees are going to pay the price. You can't get that lost world back, but it's still hard to think of what once was without a bit of sadness.
  • HP has made bad decisions for years...

    ...regarding product strategies, personnel, marketing, acquisitions and organizational structure. In fact, they might be the most dysfunctional company in the IT industry.

    If you look at their decision making over the past 15 years you would be hard pressed to name even one thing they got right.
  • 34,000 out of a job

    Who didn't think this would happen when it was announced that Meg would now receive a salary of $1.5 million? After all, she's done such a super job turning HP around!
    Mr Business
  • Megs big plan

    seems to be to get HP to fit in a garage again.
  • Am I missing something here?

    A profit of 1.4 Billion and they need to lay off staff?