HP To Cut Up To 16,000 More Jobs

Posted at 1:18 PM, May 23, 2014
and last updated 2014-05-23 13:18:04-04

HP_Headquarters_Palo_AltoNEW YORK (CNNMoney) — HP (HPQFortune 500) announced that it will cut an additional 11,000 to 16,000 jobs, after previously revealing plans for 34,000 layoffs.

The news came as part of the company’s second-quarter financial results, which were in line with analyst expectations. Shares rose 5% Friday after slipping in after-hours trading Thursday evening.

HP said the latest layoffs would come across all its business units and geographic locations, and would generate $1 billion in annual savings beyond the $3.5 to $4 billion projected from the previously announced cuts.

“No company likes to decrease the work force, and we recognize that this is difficult for employees,” CEO Meg Whitman said in a conference call with analysts. “I think everyone understands the turnaround we’re in.”

HP originally announced the layoff plans in 2012 in an effort to streamline its teetering PC and services businesses. The company has been contending with consumers’ shift from PCs to mobile devices, as well as a declining printing business and some ill-fated acquisitions.

The company employed roughly 317,500 people worldwide as of late last year. Executives said on Thursday’s call that they don’t expect to announce additional rounds of layoffs.

Whitman took over as CEO in late 2011, inheriting a bloated company in need of restructuring. So far, she seems to be having some success — HP’s second-quarter sales dropped slightly versus last year, but earnings rose from $1.1 billion to $1.3 billion.

The company’s stock had increased 13.6% so far this year as of Thursday’s close — making it a Top Four performer in the CNNMoney Tech 30 index.

Oddly, HP’s earnings were released early at around 3:30 p.m. ET. Companies typically release their financial statements after the stock market closes at 4 p.m. ET. HP did not provide an explanation for its early release.

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