HP may cut 34,000 jobs by Oct

HP may cut 34,000 jobs by Oct

 Struggling with falling PC sales and adverse market conditions, US-based technology giant Hewlett- Packard (HP) expects to eliminate upto 34,000 jobs by October this year as part of its multi-year restructuring programme to cut costs.

The company will incur about USD 4.1 billion in aggregate charges, which includes severance and other charges.

In July last year, HP had estimated eliminating about 29,000 positions through fiscal year 2014 as part of its restructuring programme, which was started in 2012.

However, details on which locations would be impacted by the decision were not disclosed.

"Due to continued market and business pressures, as of October 31, 2013, HP expects to eliminate an additional 15 per cent of those 29,000 positions or a total of approximately 34,000 positions," HP said in a filing to the US Securities and Exchange Commission (SEC).

The programme will now cost the company about USD 4.1 billion in aggregate charges, instead of the earlier estimate of USD 3.6 billion, it added.

"HP expects approximately USD 3.5 billion to relate to workforce reductions, including the EER programs, and approximately USD 0.6 billion to relate to infrastructure, including data center and real estate consolidation, and other items," it said.

The Palo Alto-headquartered firm recorded a charge of about USD 1.2 billion in fiscal 2013.
The company expects to record these charges through the end of HP's 2014 fiscal year. HP follows November-October as fiscal year.

As of October 31, 2013, HP has eliminated about 24,600 positions.

HP's annual sales have declined from USD 127.24 billion in 2011 to USD 112.3 billion in 2013, mainly due to declining consumer interest in PCs and printers.

However, the company has been able to return to profitability in fiscal 2013 with net earnings of USD 5.1 billion against a loss of USD 12.65 billion in the previous financial year.

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