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HP announces more job losses despite cutting costs

Hewlett Packard (HP) will make more job cuts, despite announcing it would slash 7.5% 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.

 


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