HP To Slash 30,000 Jobs As It Faces Competition From Apple, Report Says

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
HP cutting jobsSAN FRANCISCO -- Hewlett-Packard is poised to eliminate as many as 30,000 jobs to compensate for dwindling demand for personal computers as more people connect to the Internet on smartphones and tablets, according to reports published Thursday.

The looming cuts cited by Bloomberg News and the technology blog All Things D would trim as much as 9 percent of HP's workforce, based on the 349,600 people employed by the Palo Alto, Calif., company as of last October. A breakdown on HP's website listed 324,600 employees, but company spokesman Michael Thacker said the information was wrong. He pointed to the October figure listed in HP's annual report as the most accurate head count. Bloomberg News says HP is mulling 25,000 job cuts. All Things D, which is affiliated with The Wall Street Journal, estimates the purge will jettison 30,000 jobs. Both reports cited unnamed people familiar with HP's plans.

Thacker declined to comment on the reports.

The job cuts could be announced next Wednesday, when HP is scheduled to report its quarterly earnings.

Those results are expected to show that HP, the world's largest maker of PCs and printers, is still struggling to adapt to a technological shift that is enabling more computing tasks to be completed on smartphones and tablet computers such as Apple Inc.'s hot-selling iPad.


Meg Whitman's Messy Situation
The trend has been crimping HP's sales. Analysts predict HP's revenue for its current fiscal year ending in October will total $122 billion, down 4 percent from $127 billion last year.

If HP trims its payroll by at least 18,000 workers, the company could save more than $1 billion annually, according to ISI Group analyst Brian Marshall.

If it occurs, the purge would be the most dramatic step taken so far by HP CEO Meg Whitman, who took the job last September after the company abruptly ended the 11-month reign of her predecessor, Leo Apotheker.

Whitman told analysts that she inherited such a messy situation that it may take several years for the company to bounce back. HP is trying to lift its stock price back to where it was nearly two years ago before the company demanded the resignation of another CEO, Mark Hurd, who was widely respected on Wall Street. Hurd stepped down in August 2010 amid questions about his relationship with an HP marketing contractor.

HP's shares are worth half as much as they were before Hurd's departure. The stock gained 3 cents Thursday to close at $22.03.

Whitman has said she wants to increase spending on research and development to spur more innovation at HP. The company cut deeply into its research-and-development budget while Hurd was CEO. Whitman has indicated that she would reduce expenses in other areas so she can funnel more money into research and development.


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Bob

Yah, let's blame Meg Whitman, after all, she's been CEO for......let's see.......almost 9 months. If the libs REALLY thought like this, they would have run Obama out of the Whitehouse more than 2 years ago.

May 19 2012 at 8:12 AM Report abuse rate up rate down Reply
kathy ann

The quality of their product has fallen tremendously over the years, driving customers away. I used to be an HP fan... no longer.

May 19 2012 at 8:11 AM Report abuse rate up rate down Reply
silask

:Meg Whitman and her co-hort Mitt Romney don't know how to manage or run companies. The only know how to run them down, fire workers and destroy comunities as well as peoples lives. This is not enovation nor is it capitalism....it is Economic Treason.

Wake up Amricans.....Private industry couldn't even launch a rocket this morning....

May 19 2012 at 5:51 AM Report abuse rate up rate down Reply
2 replies to silask's comment
Hotdigittydog

Please tell us what flavor Kool-Aid you are drinking.......

May 19 2012 at 7:52 AM Report abuse rate up rate down Reply
kathy ann

Wrong. Under Bain Capital, what the media fails to share, is that 78% of their takeovers - mostly of companies on the verge or in bankruptcy, were turned around. MILLIONS of jobs were saved. Sadly, they were unable to salvage about 22%. The recent Obama ad featuring the men out of work due to Romney under Bain Capital is completely false. Romney was gone for 2 years when the company went under-- bankrupt. Romney was long gone from the company - and the company did not shut it down. But, who cares about the truth in the Obama campaign? With respect to the failure of private industry to launch a rocket. If you know anything about the earlier space race, everything we initially did failed on the launch pad. My understanding is that the government has been very limited in what they are willing to share relative to space technology with private companies, for fear at some point, it could be sold to other countries.

May 19 2012 at 8:17 AM Report abuse rate up rate down Reply
Paul

ATTENSION

May 19 2012 at 1:38 AM Report abuse rate up rate down Reply
wapitibowhunters

How about Obumma hire 30,000 new goverment employees to offset the loss and look better for the unemployment rate. He could always lay them off after the election, Iffin he wins LOL

May 18 2012 at 10:05 PM Report abuse -2 rate up rate down Reply
wapitibowhunters

WOW, how will Obumma and HuffPuff spin this into a positive or maybe blame George Bush.

May 18 2012 at 10:03 PM Report abuse -1 rate up rate down Reply
seekthetruth123

HP, tell me it isn't so ! You have just took the crown away from Apple and became the number one computer mfg/sales on the globe. Before the flame wars start, there are more Windows PC being used worldwide than Apple. As a single manufacture Apple held the number one spot until this year when HP became number one.

May 18 2012 at 9:12 PM Report abuse +1 rate up rate down Reply
Denise

But I don't have, or want, a "smart" phone. I use my laptop a lot, as well as my brain!

May 18 2012 at 8:01 PM Report abuse +2 rate up rate down Reply
bohikke

In this Obama economy HP has realized that is it difficult to sell computers to the unemployed.

May 18 2012 at 6:48 PM Report abuse +1 rate up rate down Reply
I Made This

Rats, I thought it was HP as in Huffington Post slashing 30k jobs since no one knows how to do real journalism except cut-n-paste.

May 18 2012 at 6:44 PM Report abuse +4 rate up rate down Reply

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