Hewlett-Packard to can an extra 6000 jobs
80,000 staffers have agreed to unpaid leave
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. ®
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