HP to cut 5,000 more jobs
December 31, 2013 2:30PM
PALO ALTO, Calif. — Personal computer giant Hewlett-Packard Co. confirmed Tuesday it expects 5,000 more workers than originally planned to lose jobs by October 2014. The additional cuts would increase the overall layoffs to 34,000.
The company said in a securities filing Monday that “continued market and business pressures” were behind the move. The additional cuts, on top of the 29,000 positions it planned to cut in a May 2012 restructuring plan, will likely boost the accumulated restructuring charges to $4.1 billion from $3.6 billion, it said.
Hewlett-Packard said in March that its estimated cutbacks could vary by as much as 15 percent from its original estimate. At an October meeting with analysts, Chief Financial Officer Cathie Lesjak said the company planned to end up “near the high end” of that range.
Cost cuts have helped HP weather revenue declines in PCs, printing and enterprise services. In the fiscal year through Oct. 31, revenue fell 7 percent to $112.3 billion, but the company posted $5.1 billion in net profit, compared with a $12.7 billion loss a year earlier.