HP Plans To Cut 29,000 Jobs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Infrastructure // PC & Servers

HP Plans To Cut 29,000 Jobs

Troubled PC maker raises layoff estimate as it struggles with services swoon and competition from mobile device makers.

8 Key Differences Between Windows 8 And Windows RT
8 Key Differences Between Windows 8 And Windows RT
(click image for larger view and for slideshow)
In the wake of the worst quarterly loss in its history, Hewlett-Packard said it would cut 2,000 more jobs than originally planned, bringing the number of layoffs announced by the computer maker this year to 29,000, or 8.6% of its total headcount.

HP did not formally announce its revised layoff plan, but disclosed the new numbers in a quarterly report filed Monday with the Securities and Exchange Commission. HP in May disclosed a sweeping restructuring plan, and said associated layoffs would total 27,000.

"It’s more than they said last time, but who's to say it's not going to get higher if things get worse?" Topeka Capital Markets analyst Brian White told Bloomberg. "They've got a lot of wood to chop, and this is a long-term turnaround story."

In its SEC filing Monday, HP said that it had already laid off 3,800 workers as of July. It said it now expects the total cost of its restructuring to reach $3.7 billion through 2014, $200 million more than originally expected.

[ They're here, but does anyone care? See Nokia Windows Phone 8 Devices Arrive With Thud. ]

HP remains the world's number-one PC maker. But the market is shrinking as an increasing number of consumers and workers turn to mobile devices such as smartphones and tablets for their computing needs. HP, along with software partner Microsoft, has failed to develop a strong presence in the mobile market.

HP also has struggled to make good on its $13.9 billion acquisition of IT services giant Electronic Data Systems. Since closing the deal in 2008, the company has made little progress establishing itself as a leader in the outsourcing market.

Last month, HP shook up the unit, replacing services chief John Visentin with senior VP Mike Nefkens. HP also wrote down the value of its EDS unit by $8 billion. The move led HP to report a per-share loss of $4.49 last month, the worst in its history.

HP is hoping its fortunes will improve with the arrival of Windows 8 next month. On Monday, the company unveiled three new lines of Windows 8-compatible PCs.

The Envy, which starts at $799, and SpectreOne, starting at $1,299, are designed to work with Windows 8's touch-friendly Live Tiles interface. The $499 Pavilion uses standard mouse and keyboard input.

Microsoft has said Windows 8 and related systems will be available to the general public starting Oct. 26.

Download the debut issue of InformationWeek's Must Reads, a compendium of our best recent coverage on enterprise mobility in our new easy-to-read and -navigate Web format. Included in this issue of Must Reads: 6 keys to a flexible mobile device management strategy; why you need an enterprise app store; and Google points to the future of mobile. (Free registration required.)

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
User Rank: Apprentice
11/20/2012 | 10:59:05 PM
re: HP Plans To Cut 29,000 Jobs
They Laid off 29000 for the same reason Hostess closed shop and laid off 18,000 they cann't afford to keep them employeed because,. The Economy is in a hole. Boy are you in for a serious eye opener....You know Steve Jobs had some interesting words about Obama:
"The man doesn't have a CLUE how to run a Business...."
User Rank: Apprentice
9/17/2012 | 12:55:13 AM
re: HP Plans To Cut 29,000 Jobs
I don't understand how they can lay off 29,000 employees when technology in all areas across the board is set to do nothing but expand and is currently expanding as we grow. Ye sit does suck when people loose their jobs, especially when the employees do not even get a heads up! Maybe HP should have invested in it's own employees instead of acquiring a 13.9 billion payment for Electronic Data Systems, and biting off more than they can obviously chew!

Paul Sprague
InformationWeek Contributor
Why 2021 May Turn Out to be a Great Year for Tech Startups
John Edwards, Technology Journalist & Author,  2/24/2021
How GIS Data Can Help Fix Vaccine Distribution
Jessica Davis, Senior Editor, Enterprise Apps,  2/17/2021
11 Ways DevOps Is Evolving
Lisa Morgan, Freelance Writer,  2/18/2021
White Papers
Register for InformationWeek Newsletters
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Flash Poll