HP Job Cuts Will Hit 34,000 by End of 2014

By Jeffrey Burt  |  Posted 2014-01-02 Print this article Print

However, during the same call, Chief Financial Officer Cathie Lesjak also indicated that the number of layoffs could outpace the 29,000 the company initially outlined. Lesjak said that, as of November, about 24,600 workers had left the company—more than half of them leaving during fiscal 2013. She also said that the plan was that at the end of 2014, job cuts would be "at the high end of our range, so 29,000 plus 15 percent, so somewhere between 33,000 and 34,000 people."

HP is working to grow its own mobile business, pushing out tablets and promising to get back into the highly competitive smartphone space. However, MacDonald said HP can still make gains in businesses that are under the most pressure. He noted that while the use of printers and number of pages being printed are declining as more content sharing is done over the Internet, HP has still been able to improve profit margins and grow market share.

HP could have similar success in PCs if it is able to steal business away from competitors like Lenovo and Dell, he said. In addition, HP could take advantage of what Gartner analysts see as a bifurcation in the server space, with growth in the hyperscale market in the low end and increasing demand for converged infrastructures—which offer servers, storage, networking and management software in a tightly integrated package—by enterprises in the high end. HP is one of the few vendors big enough to address both extremes, MacDonald said.

HP board members seemed to be pleased with Whitman's efforts. When she took over as chairman and CEO in 2011, Whitman said her salary would be $1—not including stock options and bonuses. In December, HP announced the CEO's salary would grow from $1 to $1.5 million a year.


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