HP to lay off 27,000 as profit slides 31%
Hewlett-Packard Co plans to lay off roughly 27,000 employees or about 8% of its workforce over the next couple of years to jumpstart growth and save up to $3.5 billion annually, sending its shares up 11%.business Updated: May 25, 2012 01:33 IST
Hewlett-Packard Co plans to lay off roughly 27,000 employees or about 8% of its workforce over the next couple of years to jumpstart growth and save up to $3.5 billion annually, sending its shares up 11%.
The company said the layoffs would be made mainly through early retirement and would generate annual savings of $30-3.5 billion as it exits fiscal year 2014, when the layoffs are expected to the completed.
The world's No. 1 personal computer maker, which employs more than 300,000 people globally, on Wednesday reported a 31% fall in second-quarter profit and a 3% decline in revenue, compared with the year-ago period.
Layoffs "adversely impact people's lives, but in this case, they are absolutely critical to the long-term health of the company," CEO Meg Whitman said. "This is broad based. By design, it will touch all of HP."HP will take a pretax charge of $1.7 billion in fiscal 2012 related to the layoffs.
The company also plans to launch tablets -- for both consumers and corporations -- later this year, said Whitman. "We will have a Windows 8 tablet for the holiday."
India operations also likely to be hit
HP's global layoffs are also likely to affect the company's India operations, a company spokesperson said on Thursday. "We do expect the workforce reduction to impact just about every business and region. Beyond this, we don't have any additional information to share."
First Published: May 24, 2012 14:26 IST