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HP cutting 5,000 more jobs


HP cutting 5,000 more jobs

A now not so satisfied new year is in retailer for workers of HP because the agency has published that it must get rid of a further 15% of its team of workers ahead of October 2014.

In its 10k submitting with the SEC (US Securities and Trade Fee), the corporate put it right down to persisted market and trade pressures. The newest spherical of cuts comes only some weeks after the corporate introduced it could be chopping 1100 jobs within the UK as a part of a ‘restructuring’ plan.

Ian Tonks, Unite nationwide officer, mentioned: "For the final 5 years HP has been hooked on a tradition of job cuts within the UK to such an extent that its extremely expert group of workers has little religion in the way in which the corporate is being managed and will likely be going ahead."

Redundancy = Reinvention?

HP is trying to remake itself as a cloud service provider while still relying on revenue from PCs and servers, which are two sectors in which its interests are under pressure.

HP has seen a decline in both notebook PC and desktop PC sales. Revenue from notebooks declined 7.8 per cent while desktop revenue fell 2.9 per cent in 2013. Its consumer business has struggled due to price pressure from budget PC suppliers and the BYOD (Bring Your Own Desktop) trend in businesses and companies.

CEO Meg Whitman, who took over the company in 2011, has repeatedly mentioned that HP is in a long-term turnaround since announcing the restructure in 2012. With its multiple forays into various markets, including phablets and mobile, though, HP seems to be grasping for portfolio profitability.

In a research note based on the company’s fourth quarter results, Sanford Bernstein Senior Analyst Toni Sacconaghi said that HP continued to "struggle with improving its margins and share together, despite substantial cost cuts — particularly in its enterprise business." Cutting jobs could lose the company technical expertise it would be hard fought to regain.