Hewlett Packard (HP) will make more job cuts, despite
announcing it would slash7.5% of its global workforce last
September.
The technology provider announced it would cut a further 2% of
its global workforce, approximately 6,400 jobs, despite the success
of cost cutting exercises at a its second quarter financial results
last night (19 May).
The company reported that the services division more than
doubled operating profit to $8.5bn
due to the acquisition of EDS, making up more than a third of
HP's $3.1bn profit from operations.
Sales of servers and storage equipment fell 28%, personal
computer sales fell 19% and printing sales fell 23% from figures
for the previous year.
Mark Hurd, chief executive at HP, said disciplined focus on
operational efficiencies and execution drove record cash flow [of
$5bn].
“Our services business continued to deliver strong profitability
with an increased deal pipeline and the EDS integration tracking
ahead of schedule,” he said.
The company reported that the services division more than
doubled operating profit to $8.5bn due to the acquisition of EDS,
making up more than a third of HP’s $3.1bn profit from
operations.
HP expects third quarter revenue to be flat or down 2% percent
from the second quarter. For the year, HP is projecting revenue to
decline 4% to 5% from the previous year.