HP reports higher profit but will slash up to 16,000 more jobs
Hewlett-Packard reported increased profits Thursday as its PC business turned in a strong quarter, but the company will slash thousands more jobs to reduce costs.
HP has already cut 34,000 jobs as part of a plan announced two years ago to boost profits. It will now cut an additional 11,000 to 16,000 jobs to make its workforce "more competitive," it said.
The latest reductions will be made between now and October next year, CFO Cathie Lesjak said on a conference call. By then HP will have cut as many as 50,000 jobs since the restructuring began in 2012, or about 15 percent of its workforce. The latest cuts will affect almost all business units and geographies, and they're expected to yield HP an additional $1 billion in savings, less some costs. HP says it needs to free up the money to invest in new technologies.
