Hewlett Packard makes major lay-off plan

Meg Whitman, the CEO of Hewlett-Packard, has confirmed that the Palo Alto technology will proceed to a massive reduction in employment, with the goal of eliminating up to 27,000 jobs , or 8% of the workforce.

He made the painful announcement after announcement the results of their second quarter in the fiscal year.

The world’s first manufacturer of computers were little good on numbers this quarter, having a net profit of 1,590 million (1,260 million Euros) compared to 2,300 million in only a year ago (1,826 million Euros).

Revenue for the start of the year was calculated approx 30,690 million, which represented a fall of 3%. And this downward trend, according to analysts at Wall Street and the direction of HP, will continue until 2013.

Whitman promised to overturn the company’s business and re-grow their income last year. The reduced spending was also the part of the restructuring plan which needed to stabilize the firm.

The idea of ??his predecessor, Leo Apotheker, was to separate the PC unit. The eBay executive considered, however, fundamental. They are also considering expanding the printing division and is out to play in the business of mobile
devices too.

"We are making progress in the multi-year plan to simplify and make more efficient HP" Whitman said in presenting the results.

According to the executive, "they are exceeding expectations." while making it clear that they have much to do. "The adjustment of staff is expected to be completed by autumn 2014.” he went on

A structural problem of the company, the challenge of new competitors and a dysfunctional board, which resembles that of Yahoo!, is added at all favourable economic circumstances. All this explains that the company’s value is at
its lowest level in seven years.

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Posted by Farasat Ali on May 24 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry