Hewlett-Packard said it plans to cut 2,000 more jobs than the 27,000 cuts announced last May, bringing the total number of cuts to 29,000. The company said it will lay off workers in a restructuring effort aimed at saving up to $3.5 billion per year. HP released a regulatory filing today noting that the cuts will take place through fiscal year 2014 and it will book reorganization expenses of about $3.7 billion during the period.
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By email, HP told RCR Wireless that in May 2012, HP announced a restructuring plan designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders. “At that time, we estimated that approximately 27,000 employees would exit the company by the end of fiscal year 2014. As is normal course with multi-year restructurings, we review our estimates each quarter and now expect approximately 29,000 employees to exit the company through fiscal year 2014,” company explained.
Last month HP announced financial results for its third fiscal quarter ended July 31, that showed net revenue of $29.7 billion, which was down 5% year-over-year and down 2% when adjusted for the effects of currency.
According to Gartner, HP remained in the top position in worldwide PC shipments in the second quarter of this year accounting for 14.9% of the market. However, HP’s global shipments dropped 12.1%.
“Some of HP’s disappointing results were due to internal issues from the organizational changes. HP’s PC business has not been back to pre-re-structuring level yet. The company also faced aggressive pricing from Lenovo in the professional market, and threats from companies such as ASUS and Samsung in the already crowded consumer markets,” noted Gartner in its report.
Worldwide PC shipments totaled 87.5 million units in the second quarter of 2012, a decline of .1% from the second quarter of 2011.
