HP Reassesses Restructuring Plan, Decides To Eliminate Up To An Additional 16,000 Jobs
Hewlett-Packard, the second largest supplier of PCs in the world, announced financial results for its fiscal 2014 second quarter ended April 30, 2014. The company grew its profits year-over-year by 18 percent to $1.3 billion on $27.3 billion in total revenues, though despite the profit growth, HP said it plans to cut up to an additional 16,000 jobs over those that are already planned.
In May 2012, HP outlined a mulit-year restructuring plan to simplify its business model, accelerate innovation, lower costs, and boosts profits. As part of that plan, HP said it would eliminate 34,000 jobs. Having reassessed the situation, HP said it will hand out an additional 11,000 to 16,000 pink slips. Should HP's job cuts tend towards that latter figure, it would bring the total number of job reductions under CEO Meg Whitman's tenure to 50,000.
"With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track," said Meg Whitman, president and chief executive officer, HP. "With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."
The additional job cuts are a tough pill for HP employees to swallow when profits are in the billion dollar range and going up. Nevertheless, Whitman is determined to turn HP into a lean and efficient organization.
HP recorded a 7 percent bump in Personal Systems revenue, The company said it shipped 10 percent more desktops and 6 percent more notebooks than it did in the same quarter a year ago. This helped offset the 7 percent decline in Enterprise Group revenue.
In May 2012, HP outlined a mulit-year restructuring plan to simplify its business model, accelerate innovation, lower costs, and boosts profits. As part of that plan, HP said it would eliminate 34,000 jobs. Having reassessed the situation, HP said it will hand out an additional 11,000 to 16,000 pink slips. Should HP's job cuts tend towards that latter figure, it would bring the total number of job reductions under CEO Meg Whitman's tenure to 50,000.
"With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track," said Meg Whitman, president and chief executive officer, HP. "With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."
The additional job cuts are a tough pill for HP employees to swallow when profits are in the billion dollar range and going up. Nevertheless, Whitman is determined to turn HP into a lean and efficient organization.
HP recorded a 7 percent bump in Personal Systems revenue, The company said it shipped 10 percent more desktops and 6 percent more notebooks than it did in the same quarter a year ago. This helped offset the 7 percent decline in Enterprise Group revenue.
