HP has revealed plans to cut a further 11,000 to 16,000 jobs by October, bringing the total number of planned layoffs to around the 50,000 mark.
Coming as part of CEO Meg Whitman’s restructuring plans, the original headcount reduction stood at 27,000, as announced in May 2012.
Yet Whitman denies the company is cutting costs because of a decline in demand, telling analysts:
“I would say I’m feeling more confident because we have seen a stabilisation of revenue. The high single-digit declines are over.”
The news comes after second quarter net revenue figures of US$27.3 billion were revealed for the company, down 1% from the prior-year period, ending April 30, 2014.
"With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track," Whitman said.
"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."
New Zealand impact?
While the Palo Alto-based company is refusing to divulge where the cuts will be made on a geographic scale, TechDay approached HP New Zealand for official comment on the news, with the Kiwi division refusing to give anything away.
“In order to win in the rapidly-evolving markets where we compete, we have to continue to make HP a more nimble, lower cost, and more customer and partner-centric company,” a spokesperson said via email.
“This further alignment, along with our increased focus on innovation, will position HP well for the future”.
“We have not stated specific locations or businesses that would be impacted.”
