We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedPeople Management

HP to axe 8,000 jobs as part of cost-cutting plan


Company will also cut 9,000 jobs in the US as part of a plan to cut 27,000 jobs by fiscal 2014

Article comments

HP plans to slash about 8,000 jobs in Europe as part of its long-term plan to reduce 27,000 jobs worldwide by 2014, a source familiar with the company's plans said.

The figure is in line with the company's legal obligations to inform and consult with the European Works Council (EWC), a body in the European Union that represents the workers of multinational companies, while it is believe HP also plans to reduce 9,000 jobs in the US.

HP in May said it was cutting about 8 percent of its workforce through a combination of layoffs and retirement offers in an effort to save $3 billion to $3.5 billion through fiscal year 2014. At the time, HP said that employee reductions would vary by country.

HP declined to comment on the layoff plans. A further breakdown on where employee headcounts would be reduced was not available.

The layoffs began last year starting on 31 October, when the company's employee count was at around 350,000. HP's reduction in employee count is intended to preserve the long-term health of the company, CEO Meg Whitman (pictured) said at the time of the announcement in May.

HP's employee count in 2007 was 172,000, but jumped sharply after the company acquired services company EDS in 2008. Since then, the company's employee count has been above 300,000 every year.

HP's net profit for the second fiscal quarter was $1.6 billion, a drop of 31 percent over the same quarter a year ago. HP's revenue was $30.7 billion, falling from $31.6 billion in the same quarter of the previous year. HP has forecast third quarter earnings of $0.94 to $0.97 per share, below previous expectations of $1.02 per share.

photo credit: Reuters

Share:

Recommended Articles

Comments

HP to axe 8,000 jobs as part of cost-cutting plan
People Management

Is the CFO still the sole sacrifical lamb when a company struggles?

Is the CFO still the sole sacrifical lamb when a company struggles?

Tesco's announcement today that boss Philip Clarke is to leave proves that's no longer the casemore ..


Tesco’s Philip Clarke exits after another profit warning

The UK’s largest retailer appoints outsider Dave Lewis, president of personal care at Unilevermore ..

Unemployment falls to near six-year low of 2.12 million

There were 30.64 million people in work in 3 months to May - a leap of 254,000 compared to previous quartermore ..

HP staff in favour of industrial action on jobs

Failure to cooperate with ‘knowledge transfer' may affect DWP and MoJ contractsmore ..

Ten tactics to unleash the potential of Generation Y in finance

Most CFOs are Baby Boomers or Generation X-ers – the difference in mindset is hugemore ..

What's the role of the finance chief in a takeover bid?

With Pfizer's possible takeover of Astrazeneca in the spotlight we take a look at how pivotal the CFO is in such a dealmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *