HP Plans To Dump 2,000 More Workers

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HP job cuts layoffs

SAN FRANCISCO -- Hewlett-Packard Co. is planning to cut about 2,000 more jobs than it had previously announced as CEO Meg Whitman tries to turn the company around.

In a regulatory filing Monday, the computer and printer maker said it will eliminate 29,000 jobs by October 2014, up from the 27,000 cuts it announced in May when HP employed about 350,000 people.

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The company, which is based in Palo Alto, Calif., didn't explain why it had raised the number. The revision comes amid signs that the already slumping personal computer market may weaken even further as an increasing number of sleek smartphones and tablet computers win over consumers.

The shift to mobile devices has hurt HP, the world's largest maker of PCs. HP is preparing to release a new line of tablets this fall and has been trying to diversify into more profitable lines of technology, such as business software and consulting, but Whitman has cautioned that it will take several years for the company to bounce back from a litany of problems, including a lack of innovation and acquisitions that haven't panned out.

For instance, the diminished value of HP's 2008 acquisition of consulting service Electronic Data Systems saddled the company with an $8.9 billion loss in its most recent quarter.

More: How Bad Is The Job Market?


About 8,500 workers already have accepted early retirement offers. Most of those employees left HP on Aug. 31, according to Monday's filing. The rest of the early retirees will depart by the end of August 2013.

ISI Group analyst Brian Marshall estimated that HP will save an additional $200 million annually by cutting an extra 2,000 jobs. In May, the company had estimated its austerity drive would reduce its annual expenses by $3 billion to $3.5 billion.

The company expects to record charges totaling $3.7 billion to cover the costs of paying departing workers and other cost-cutting measures. That's up from the May estimate of $3.5 billion. HP absorbed $1.7 billion of the projected charges in its last fiscal quarter ending in July.

The company's stock price rose 14 cents to close at $17.43 Monday. The shares are still close to their eight-year low of $16.77, hit Aug. 30.





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royjeff

Meg ran eBay into the ground. Now all it is is a online shopping mall, with fees, and that only accepts paypal bucks, more fees. It's not even close to it's former auction format that made it great.
Early retirement, which usually comes with a benefit package, does not mean unemployment.

September 12 2012 at 10:50 AM Report abuse rate up rate down Reply
susan

Ford waits to hire 1,200 and this company is losing 29,000 jobs, Who says Obama is doing anything about jobs..

September 12 2012 at 7:41 AM Report abuse rate up rate down Reply
Holly

My first computer was an HP from wal-mart in 2001. That machine is still running. My second was in 2005, that one is also still running. My current PC is also an HP and it runs perfectly. I know HP is not the "cool" brand to buy but their machines are well made and built to last. I hope HP survives Ms. Meg.

September 12 2012 at 2:39 AM Report abuse rate up rate down Reply
zoseph

Meg strikes again!

September 12 2012 at 1:13 AM Report abuse rate up rate down Reply
jackiechas47

Couldn't happen to nicer folks! Their service dept sucks! their machines are bottom of the barrel, and when Hp finds nothing wrong on their computer check, which is every time they run it on my computer, I run a complete scan thru my virus program.

September 12 2012 at 12:39 AM Report abuse rate up rate down Reply
boxcart007

There Ya go, thousands more jobs to overseas fifty cent an hour slave houses......

September 12 2012 at 12:11 AM Report abuse +1 rate up rate down Reply
aequalitas1

As is her usual practice, Meg Whitman will fire 2,000 employees and increase her salary by $6 million. The 2,000 terminated employees will immediately go onto California's already bankrupt unemployment program yet when Meg ran for California Governor she campaigned on the idea that she knew how to create jobs and that she would work to lessen California's dependance on federal money.

September 12 2012 at 12:04 AM Report abuse rate up rate down Reply
3 replies to aequalitas1's comment
aequalitas1

As is her usual practice, Meg Whitman will fire 2,000 employees and increase her salary by $6 million. The 2,000 terminated employees will immediately go onto California's already bankrupt unemployment program yet when Meg ran for California Governor she campaigned on the idea that she knew how to create jobs and that she would work to lessen California's dependance on federal money.

September 12 2012 at 12:03 AM Report abuse rate up rate down Reply
ccplummer

Wonder how Obama will spin this one

September 11 2012 at 11:54 PM Report abuse rate up rate down Reply
1 reply to ccplummer's comment
wmichalek

The company is being run into the ground by its newest CEO, the "tremendous Republican businesswoman" Meg Whitman. Thank God California dodged that "FIX".

September 12 2012 at 12:04 AM Report abuse rate up rate down Reply
ANTON

"About 8,500 workers already have accepted early retirement offers. Most of those employees left HP on Aug. 31, according to Monday's filing. The rest of the early retirees will depart by the end of August 2013." These are some of the statistics that are never in the jobs report that comes out every month. That report only tells you the people that are in the system getting unemployment not the ones that have stopped looking, whose benefits have run out or are not eligible for benefits. While the unemployment numbers hover at around 8% it is more like 15% and many companies like HP will be downsizing in the next two years. I know Obama's motto was hope and change in 2008 and he had some great ideas about changing DC, I wish he would have done what he promised they sounded like great ideas. Now his motto is "FORWARD" but I have to go with fool me once shame on me when it comes to Obama and his campaign promises, I think Romney's new slogan about Obama from forward to "FORWARNED" fits perfectly. I am not pleased with either candidate, I just want things to get better no matter which party is in office. I cannot trust Obama after he broke all his promises from 2008 and just ignored the public until he needs their vote again now you see him everywhere. What scares me is that in a second term the guy will have nothing to lose, if he has done all this damage with another term left he can really mess thing up even worse. Obama had two years with the democrats having a full majority in both Houses and even had a rare super majority in the Senate with enough democratic seats to block any GOP filibuster, Obama and the democrats could have passed or repealed any legislation they wanted with no opposition and they blew it big time. Pelosi blew in the last two years of Bush and the first two years of Obama, so much so that they voted them out of power in the House and took their super majority in the Senate. Since the failed stimulus that gave solyndra $540 million tax payer money only to bankrupt in 6 months the next two budget plans Obama sent to the Senate was rejected 97-0 in 2011 and 99-0 in 2012 and 414-0 in the House, not one democrat voted for Obama's budget plan, that is sad when you cannot get one lousy vote from your own party and you are the sitting president. We do need change, we need to oust Obama and if Romney does not do what he says oust him out in one term too. Send a message to these presidents that they have one shot to get it going, Obama and the democrats could have done it in the first two years but failed, we voted out Pelosi now it is Obamas turn.

September 11 2012 at 10:54 PM Report abuse rate up rate down Reply
1 reply to ANTON's comment
wmichalek

You mean the "failed" bailout that earned the Treasury $15.1 billion in profit this week? That one?

September 12 2012 at 12:05 AM Report abuse rate up rate down Reply

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