Date
19 September 2017
The planned job cuts will affect almost all of HP's business units. Photo: Bloomberg
The planned job cuts will affect almost all of HP's business units. Photo: Bloomberg

Embattled HP to cut 16,000 jobs

Hewlett-Packard will cut as many as 16,000 employees, or another 5 percent of its workforce, as the embattled technology company tries to turn its business around.

The sackings are in addition to 34,000 layoffs previously announced by the company, the Financial Times reported Thursday.

HP is struggling to reinvent itself in the post PC-era.

Chief executive Meg Whitman has been trying to push the business further into software services and expanding sectors such as big data, security services, and sales of the servers for cloud computing.

Revenue fell for the 11th straight quarter, down 1 percent to US$27.3 billion from the previous year, slightly below expectations. Earnings per share were 88 US cents, in line with analysts’ forecasts.

However, for the next quarter, the company is forecasting largely flat earnings.

HP earlier announced it would eliminate between 11,000 and 16,000 positions, bringing the total job losses to 50,000.

“The reality is HP must be maniacally focused on continuing improvement in our cost structure,” Whitman said.

Almost all of the company’s business units will be affected by the cuts, although its research and sales departments would be protected, Whitman said.

The restructuring charge the company will record as a result will see its non-adjusted earnings per share fall from this quarter to the next, thje report said.

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