Hewlett-Packard to slash 27,000 jobs worldwide – no certainty on Ireland
HEWLETT-Packard is to slash 27,000 jobs, or 8pc of its global workforce by 2014, as chief executive Meg Whitman attempts to revive the fortunes of the world's largest PC maker.
HP said that the move would cut costs by up to $3.5bn a year. In a statement, the company added that the money would be reinvested into the company.
There was no indication today if the job losses would affect Hewlett-packard’s 4,000 strong Irish workforce. HP has several different business units in Ireland spanning inkjet manufacturing, an international bank, sales and marketing, e-procurement, media manufacturing and customisation.
Meg Whitman, HP's chief executive, said: "While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."
The job losses cap a torrid two years for HP that began in August 2010 when then chief executive Mark Hurd left following allegations of sexual harassment. He was replaced last year by Leo Apotheker, who ran the German software giant SAP.
Mr Apotheker lasted less than a year and was fired late last summer as he failed to reverse a decline in sales. The German's plan to spin off the company's PC business also confused customers.
Ms Whitman has since reversed that decision. However, her greater hurdle lies in expanding the range of products and services HP can offer businesses and consumers in an era in which more computing is web-based.
Last year, the company paid $10bn for Autonomy, Britain's biggest software company, to tap demand from companies in need of software that can sort and organise the increasing amount of data they produce.
In a conference call on Wednesday, Ms Whitman announced that current Autonomy chief Mike Lynch will leave the company. He will be replaced by Bill Vegthe, who is currently HP's chief strategy officer.
Although Autonomy's price tag was criticised by Wall Street, Ms Whitman has backed the deal that was engineered by Mr Apotheker and helped precipitate his departure.
News of the job losses overshadowed the release on Wednesday of HP's latest quarterly results. The company's profits and revenues were both better than analysts had estimated.
HP reported a 31pc fall in profits in the second quarter to $1.6bn. Revenue in the period fell 3pc on a year ago to $30.7bn.
HP shares rose by 6.8pc in after-hours trading on Wall Street.