Hewlett-Packard Plans to Layoff 5,000 More Employees in 2014
Hewlett-Packard (HP) has increased the total number of the employees it would make redundant by the end of its restructuring program in 2014. The PC manufacturer said it would eliminate 5,000 additional jobs to bring the total volume of layoffs to 34,000, which would represent about 11% of its current workforce of 317,500 employees worldwide.
The company originally estimated to cut around 29,000 jobs by the end of the restructuring scheme that would last by the end of 2014. HP made this clarification through its latest SEC filing. It stated there that it now looks forward to bigger downsizing compared to its previous disclosure.
The major restructuring program was launched by the start of 2013 by CEO Meg Whitman. The structural overhaul was planned and initiated when Ms. Whitman assumed her post in September 2011.
HP now expects to conclude this restructuring on time by the end of this year. To be more specific, HP plans to conclude the overhaul program by October. That is still a conservative estimate as it could be done earlier, but less likely to be later.
Not prepared for mobile
HP appeared to be less prepared when the popularity of mobile devices specifically Apple Inc’s iPhone and iPad exploded. It experienced a setback along with other technology giants that have been relying heavily on desktop PC sales.
However, the company remains strong in terms of its data center operations. But several acquisitions under Ms. Whitman’s predecessors contributed to an accounting scandal within the firm. That issue mostly related to the $10 billion deal entered in 2011 by HP with enterprise software marketer Autonomy.
The performing leader
When Ms. Whitman took over HP, she handled a company that had no definite answer to the problem regarding the popularity of iOS and Android devices in the market. Thus, HP has recently launched new consumer tablets that run on Microsoft Corp’s Windows 8. It is reportedly preparing to launch Android-based smartphones sometime this year within the emerging markets.
In 2012, Ms. Whitman offered a bleaker outlook on the possible extent of restructuring activities that HP need. She also had dismal estimates on how long this project would take. However, HP’s leadership has become more upbeat especially about its possible chances of turning things around. Many analysts are now logically expecting more from HP as it deals with the problems regarding emergence of other competitors and threats.