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HP job cuts to reach 29,000 by end of 2014

HP job cuts to reach 29,000 by end of 2014

SEC filing reveals number of job cuts is higher than previously announced

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Hewlett-Packard has revealed plans to cut 29,000 jobs from its work force – 2,000 more than previously announced.

Back in May, HP said it would cut 27,000 jobs (roughly 8% of its workforce) as part of its long-term restructuring plan, following a 31 percent drop in net income during the second quarter compared to the same quarter a year earlier.

The restructuring plan included both a voluntary early retirement program for eligible US employees and non-voluntary workforce reductions. It was expected to save between $3 billion and $3.5 billion through fiscal year 2014.

Now the company has revealed in a regulatory filing with the US Securities and Exchange Commission (SEC) that the number of job losses could reach 29,000 by the end of fiscal 2014.

HP said it expects to record aggregate charges of approximately $3.7 billion by the end of HP's 2014 fiscal year, with $3.3 billion relating to workforce reductions, and $400 million on other items such as data centre and real estate consolidation.

“We are working to improve our execution and financial performance and to align our cost structure with our revenue and margin profile,” HP said in the filing.

“These efforts are designed to enable us to invest in our business to respond to industry shifts and capitalise on emerging opportunities in areas like cloud computing, security, and information management, and to better serve our customers and partners in both the short- and long-term.”

In its fiscal third quarter, HP announced a loss of $8.9 billion, after recorded $10.8 billion in write-downs for acquisitions and restructuring costs related to its enterprise services business.

As of July 31, 2012, approximately 7,300 positions had been eliminated, according to the filing.

HP is still the world's largest PC maker, according to the latest figures from Gartner, accounting for 15% of the market. However, its global shipments declined 12% to 13.06 million during the second quarter, and Lenovo is expected to overtake HP in the coming months.

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