SAN FRANCISCO -- Beleaguered
Hewlett-Packard isn't through slashing its workforce. The tech giant
plans to cut 2,000 more jobs on top of the 27,000 it announced a few
The venerable Silicon Valley company says it now plans to cut 29,000 jobs by October 2014, according to a regulatory filing.
In May, HP said it would slash 27,000 jobs, or 8% of its worldwide workforce, in hopes of saving billions and reversing a financial funk amid brutal competition.
The additional cuts come a month after HP suffered the biggest loss in its 73-year history.
had no comment. But more people than expected have opted for early
retirement from the company, easing layoffs of younger workers,
according to a person familiar with HP's plans, who declined to speak on
the record because he is not authorized to do so.
News of the latest cutbacks sent HP shares up 14 cents to close at $17.43.
multiyear restructuring plan is "absolutely critical for the long-term
success of the company," CEO Meg Whitman said in a conference call in
May. Last month, she said HP is in the "early stages of a turnaround."
is eviscerating thousands of jobs because its revenue and profits are
fading. The Palo Alto, Calif., company reported a loss, factoring in
accounting charges, of $8.9 billion for its fiscal third quarter, which
ended July 31, compared with a profit of $1.9 billion in the same
quarter a year earlier. Revenue was $29.7 billion, down 5% from the same
period a year ago.
The company's revenue is
being squeezed by a phalanx of competition from Dell, Apple, IBM and
others on multiple product fronts. The projected slackening demand for
PCs this summer won't help matters, nor will HP's lack of a tablet
The steady beat of bad news not only
threatens to further deflate worker morale but could greatly compromise
HP's recruitment efforts, analysts say.
many more" of these layoffs are HP employees "going to be subject to?"
says Jonathan Yarmis, an analyst at HfS Research. "When does it stop? We
don't know where the bottom is and, we fear, neither does HP."
massive workforce reduction is believed to be the third-largest in tech
history. IBM slashed 60,000 jobs in mid-1993, and AT&T laid off
40,000 in early 1996, according to analyst Phil Fersht of HfS Research.