HP (Hewlett-Packard Co) plans to cut up to 16,000 jobs as the struggling tech giant flounders in response to changing market trends.
The electronics giant that is known for PCs, computer servers and printers
and has been synonymous with the development Silicon Valley, said Thursday it would
cut an additional 11,000 to 16,000 jobs on top of 34,000 positions it previously
announced would be eliminated as part of a multiyear restructuring plan.
HP is one of Ireland's largest foreign employers
with plants in Leixlip, Co Kildare and Ballybrit in Galway. It employs about
"I'm pleased to report that HP's turnaround remains on track," said Meg Whitman CEO, in a statement.
"We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company."
For the quarter ended April 30, HP posted net
income at $1.27bn, or 66 cents a share, up 18% from the year-earlier level of
$1.1bn, or 55 cents.
HP has been struggling with falling PC sales as consumers shift towards devices such as tablets and smartphones.
Whitman has focused on shifting the firm's focus to computing equipment and networking gear for business clients.
The Wall Street Journal said Whitman sought to portray the unexpected job cuts as an opportunity to further streamline a company that had grown bloated over the years through multiple acquisitions.
"I'm not at all disappointed, I think it's the natural course of what makes sense in a turnaround of this size and scale," she said. The restructuring, along with continued investments in growth areas such as cloud computing, analytics software and networking technology, would set up the group "as a force to be reckoned with," she said.
However the Journal said some analysts wondered if Whitman was trying to get ahead of potentially weakening demand by announcing the new job cuts.
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