HP to Cut Another 15,000 Jobs as Turnaround Continues
The layoffs come as quarterly revenues and income remain flat, but CEO Meg Whitman is encouraged by the company's direction.Hewlett-Packard's workforce will take another hit as the tech giant continues on its multiyear turnaround effort. In talking about the company's latest quarterly financial numbers May 22, CEO Meg Whitman said HP will shed another 11,000 to 16,000 jobs on top of the 34,000 layoffs already announced. By the end of the year, HP will have cut as many as 50,000 jobs, or about 15 percent of its workforce of more than 300,000, since 2012, when the turnaround program began. The new job cuts, which will be done between now and October, will save the company about $1 billion, according to HP officials. During a conference call with analysts and journalists, Whitman said she expects this will be the final round of layoffs, and that the new job cuts did not indicate disappointment in the progress of HP's plans, but were more a natural progression for a company that has seen some significant transitions and acquisitions over the past decade.
"This actually has nothing to do with our confidence in the business," Whitman said in response to a question from an analyst. "This has to do with really understanding the opportunities that we have to make this company better. You’ve got to remember, this company was built over many years by acquisition, has five major business units, we sell through 150,000 [value-added resellers], we operate in 166 countries. As you look at our processes, as you look at how we go to market, as you look at things like sales reps and marketing and … e-commerce, there are so many opportunities to improve this company."