New round of HP firings to cost $200m
Eyes on the server and storage teams
HP revealed on Tuesday that its latest round of job cuts will cost the company $200m through the first half of 2005.
During HP's fourth quarter earnings announcement, the company said it would continue to cut costs in its server and storage units with layoffs being the main cost-cutting tool. Such cuts have been commonplace since HP acquired Compaq. HP, however, continues to struggle to keep the server and storage groups profitable.
"As a part of their ongoing cost structure management, HP’s various businesses routinely review the size of their workforces and make adjustments they deem appropriate after evaluating a variety of factors," HP said in a regulatory filing. "In connection with providing an outlook for the first half of fiscal 2005, HP announced on November 16, 2004 that its planning assumptions included workforce reductions across HP's businesses that would have a net impact of approximately 4 cents per share in the period. HP expects that expenses for workforce reductions in the period will total approximately $200 million."
HP has not issued word on exactly how many workers will get the axe. ®