Feeds

Hewlett-Packard to can an extra 6000 jobs

80,000 staffers have agreed to unpaid leave

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

Hewlett-Packard is going to can an extra 6,000 workers and says it expects sales to fall 14-16 per cent year on year in its Q3, ending 31 July.

Carly Fiorina, HP chairman and chief exec, has said revenues from the consumer business will be down 24 per cent. Her good news is that the outsourcing and consulting businesses are expected to grow 20 per cent and 9 per cent, respectively.

She said the majority of the job cuts would come during the fourth quarter. "This will result in a savings of about $500 million annually. These reductions are incremental to the actions we've already taken in the areas of marketing restructuring and management span of control," she said.

The company believes its strategy of forcing people to take unpaid leave is a winner. More than 80,000 HP employees signed up and savings of approximately $130 million are expected for the remainder of the fiscal year. As a result of this and other expense control measures, HP expects expenses to be down 2% to 4% sequentially. ®

Related Story

Compaq gets clobbered

HP prompts staff to take unpaid summer holidays
HP PC biz to 'lose $100m' in 2001

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.