Wed, Sep 12, 2012 - Page 15 News List

Hewlett-Packard raises work force cuts to 29,000


US computer giant Hewlett-Packard Co (HP) said on Monday its job cuts under a major restructuring program would total about 29,000, or 2,000 more than previously estimated.

In a regulatory filing, the world’s biggest maker of PCs said the cuts would be made through its 2014 fiscal year, with “a portion of those employees exiting” accepting a buyout, or “enhanced early retirement.”

The cuts are part of an effort by chairman and chief executive Meg Whitman, who took the reins at HP a year ago, to turn around the giant hurt by a shift away from PCs.

The company is grappling with slower demand for printers, services and data-center equipment. Many cuts will take place in the ailing enterprise services group, which manages data centers and provides information-technology consulting.

Whitman said last month the workforce reduction was proceeding faster than expected, with 4,000 departures in the first three months and the number expected to hit 11,500 by the end of next month.

HP said the move was part of “a multiyear productivity initiative designed to simplify business processes, advance innovation and deliver better results for customers, employees and shareholders.”

The restructuring is expected to generate annualized savings of US$3 billion to US$3.5 billion by the end of fiscal 2014 for HP, which is struggling amid a move to mobile devices and tablet computers.

Shares in HP rose less than 1 percent to US$17.43 at the close in New York on Monday. The shares have declined 32 percent this year.

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