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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

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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

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