24/Apr/2014 - Last News Update: 19:01

Hewlett-Packard to cut 27,000 jobs by the end of 2014

Category: Scotland

Published: 23rd May 2012 22:34:58

Hewlett-Packard, the world's largest maker of personal computers, is to cut 27,000 jobs by end of 2014.

The company said the cuts - about 8% of its workforce - will reduce costs by up to $3.5bn (£2.2bn) a year.

HP said in a statement that the money would be reinvested into the company.

The move was part of a "productivity initiative designed to simplify business processes" and comes as rival products such as the iPad tablet computer eat into HP's sales.

As part of the changes, the head of HP's Autonomy division, Mike Lynch, is being replaced by Bill Veghte, HP's chief strategy officer. Mr Lynch will leave after what HP called a "transition period".

Mr Lynch founded software company Autonomy as a small start-up and turned into one of the UK's largest technology companies.

It was bought by HP last year for more than $10bn.

HP employs about 350,000 people worldwide and about 20,000 in the UK. A spokesman said it was too early to say exactly where the job cuts would hit, but no part of the business would escape some losses.

"We have not yet announced specific plans with regards to specific locations. We do expect the workforce reduction to impact just about every business and region," the spokesman said.

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.

California-based HP reported a 31% fall in profits in the second quarter to $1.6bn. Revenue in the period fell 3% on a year ago to $30.7bn.

Meg Whitman, HP's chief executive, said: "This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do."

The former chief executive of eBay joined HP in September, vowing to turn around the company after a series of problems including a failed tablet computer and an announcement that it was considering an exit from the PC business.

Her predecessor, Leo Apotheker, was ousted after just 11 months on the job.

HP's shares, which fell as much as 5% on Wednesday and closed 3% down, were up 6.6% in after-hours trading on Wall Street.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Hewlett-Packard to cut 27,000 jobs by the end of 2014 [Online] (Updated 23rd May 2012)
Available at: http://www.ukwirednews.com/news/1430528/Hewlett-Packard-to-cut-27-000-jobs-by-the-end-of-2014 [Accessed 24th Apr 2014]

News In Other Categories

  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Kenyan MPs in status battle with governors

    Kenyan MPs are debating a proposal to make it a criminal offence to address an official incorrectly at a state function.
  • Police appeal after serious sexual assault near Grandsable cemetery

    Police are appealing for witnesses after new information came to light over a sexual assault in Polmont.
  • E-cigarette age restriction push by US regulators

    The US Food and Drug Administration (FDA) wants minimum age restrictions and health warnings on e-cigarettes.
  • Peter Jackson changes third Hobbit film title

    Director Peter Jackson has changed the title of the final film in his Hobbit trilogy from There and Back Again to The Battle of the Five Armies.
  • European election candidates in Northern Ireland revealed

    Ten candidates will be vying for three European parliament seats in Northern Ireland, it has been confirmed.