Business World

Sunday 22 April 2018

HP to cut 16,000 more jobs in global shake-up

HP had originally planned to shed 34,000 jobs as part of its overhaul.
HP had originally planned to shed 34,000 jobs as part of its overhaul.

Edwin Chan

COMPUTER giant Hewlett-Packard plans to cut as many as 16,000 more jobs globally in a major ramp-up of efforts to turn around the personal computer maker and relieve pressure on its profit margins.

The company employs about 4,000 in Ireland, in Galway and Kildare and is one of the biggest multinationals in the country. But it's not clear if any of those jobs are under threat.

The company suffered a disappointing 1pc drop in quarterly revenue, as it struggled to maintain its grip on the shrinking personal computer market while protecting profit margins. That marked its 11th consecutive quarterly sales decline.

HP, whose sprawling global operations have more than 250,000 employees, had originally planned to shed 34,000 jobs as part of its overhaul.

But on Thursday, it estimated 11,000 to 16,000 more positions needed to go, scattered across different countries and business areas. It was announced last July that nearly 300 jobs were to go at HP's customer service unit in Dublin, that had been set up to deal with BarclayCard clients in Italy and Portugal.

Chief executive Meg Whitman said HP continues to find areas to streamline across the company's broad portfolio, which encompasses computing, networking, storage and software.

But research jobs, which are vital for innovation and long-term growth, will continue to grow.

Research

HP is looking to cut back more in "areas not central to customer-facing and innovation agendas," she said, rather than areas like research.

The Silicon Valley company is trying to reduce its reliance on PCs and move toward computing equipment and networking gear for enterprises, part of Whitman's effort to curtail revenue declines and return the world's number one PC maker to growth.

HP recorded sales of $27.3bn (€20bn) in its fiscal second quarter, just shy of the $27.41bn Wall Street had expected.

(Reuters)

Irish Independent

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