HP is set to fire 2,000 more staff than it had originally planned over the next two years to “simplify” and “restructure” its operations.
The company announced 27,000 job cuts in May when it published its second quarter (Q2) results, showing a 31% fall in profits and a 3% fall in revenue. However, a filing submitted to the US Securities and Exchange Commission (SEC) today revealed this figure will rise to 29,000 by the end of 2014.
“On 23 May 2012, HP adopted a multi-year restructuring plan, the 2012 Plan, designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders,” read the filing.
“HP estimates that it will eliminate approximately 29,000 positions in connection with the 2012 Plan to the fiscal year 2014, with a portion of those employees exiting the company as part of a voluntary enhanced early retirement (EER) programme for US employees.”
This figure is equivalent to more than 8% of HP’s global workforce, which currently stands at around 350,000. Although HP has confirmed the majority of roles will go from its US offices, it has 20,000 workers based in the UK, and a spokesman said, in May, he expected the cuts to hit “just about every business and region.”
The cost of reducing its staff with redundancy pay-outs and the retirement programme is expected to hit $3.7bn, including datacentre and real estate consolidation.
The filing also unveiled HP’s results for the three months ending 31 July 2012. Net revenues fell to just under $29.7bn, compared to $31.2bn in the same period of 2011, and the company recorded a net loss of $8.8bn.
Computer Weekly contacted HP to find out where the extra 2,000 positions set to be axed would come from, but it had not returned our request at the time of publication.