Hewlett-Packard to Cut 2,000 More Jobs Than Previously Stated
Hewlett-Packard (HP) announced today that it would cut 2,000 more jobs than it originally reported back in May. This brings the total planned layoffs up to 29,000 by the end of fiscal year 2014.
According to a Bloomberg report, a regulatory filing today revealed the increased number of layoffs. Back in May, HP announced that it had begun a restructuring program, of which the tens of thousands of layoffs (8% of its entire workforce) are a large part. The company estimated that the program will save $3-$3.5 billion annually by the end of 2014.
This news comes on the same day that HP announced a new lineup of enterprise security solutions. A new focus on cloud security and information analytics is part of HP’s restructuring program.
Even so, its enterprise services were devalued in August, when the company wrote off $8 billion from the value of Electronic Data Systems (EDS), an IT services company HP bought in 2008 for $13.9 billion. Since that acquisition, HP has faced the growing competition and rapid industry change that many aging technology manufacturers have seen. HP’s stock has reflected this, falling over 30% this year, according to Bloomberg.
HP has not announced the reason for the increased number of layoffs. At the IFA trade show in Berlin two weeks ago, HP announced a new series of Windows 8 ultrabooks and a Hybrid tablet/PC called the HP ENVY x2