Hewlett-Packard (NYSE:HPQ) has increased its program of redundancies from 27,000 to 29,000 employees who will leave the giant company over the next two years, as the largest manufacturer of PCs is trying to revive its business and profit at the time of market stagnation. The American multinational corporation with the headquarters in Palo Alto, California announced in May that it would lay off 27,000 employees, representing 8% of total staff at the time.
HP announced yesterday in a note sent to the U.S. authorities that the figure was increased by 2,000, according to WSJ. Therefore, the restructuring costs expected for the next two fiscal years are estimated at $3.7 billion. The company had approximately 350,000 employees in May, when it announced the original redundancies program.
HP spokesman Michael Thacker said the redundancies plan will affect all areas of activity, similar to prior restructuring measures. The PC maker announced earlier that the number of employees who wish to voluntary participate in the program was higher than expected. The big American PC manufacturers like HP and Dell, do not have a notable presence in the market of smartphones and tablets, which have eroded in recent years the sales of desktop and laptop computers. HP provides hardware and software solutions and specializes in computer manufacturing, storage devices, networking products, servers, printers, and service delivery for households, small to mid-sized businesses and big corporations. It sells its products online, through retailers, software partners and other vendors.
HP recorded in the third quarter of the fiscal year 2011 – 2012, which ended July 31, a loss of $8.8 billion, the largest in the 73 years of the company, driven mainly by the book value depreciation of Electronic Data Systems (EDS), an information technology consulting company taken over in 2008 for $13.9 billion. HP shares fell by almost 32% this year, and the company has a market capitalization of $34.37 billion.
Reply