HP Announces Another 5,000 Layoffs, For A Total Of 34,000

Business Insider

View photo

.
HP meg whitman

Reuters/Stephen Lam

HP CEO Meg Whitman

HP has officially ratcheted up its layoff numbers again. It will be cutting another 5,000 jobs above and beyond the 29,000 jobs it had previously targeted.

And that was an increase from the 27,000 jobs it announced in May 2012, as first reported by Business Insider.

In HP's previous quarterly earnings reports filed with the SEC, it warned investors that the company might get rid of more than 29,000 employees.

In its annual report filed on Monday, it made the bigger layoff official, declaring it would cut 34,000 jobs.

Here's what HP said in that SEC document:

Due to continued market and business pressures, as of October 31, 2013, HP expects to eliminate an additional 15% of those 29,000 positions, or a total of approximately 34,000 positions, and to record an additional 15% of that $3.6 billion in total costs, or approximately $4.1 billion in aggregate charges. HP expects to record these charges through the end of HP's 2014 fiscal year as the accounting recognition.

UPDATED: That reference to October refers to a statement by CFO Cathie Lesjak during an analysts call when she warned again that HP might lay off more people:

So, Toni, lets start with the restructuring program. Our restructuring program is really on track. At the end of fiscal ’13, on a program to date basis, roughly 24,600 people exited under the program. So that’s just under 13,000 in fiscal ’13. As we talked about Security Analyst Meeting, our current plan is to end -- at the end of ‘14 at the high-end of our range, so 29,000 plus 15%, so somewhere between 33,000 and 34,000 people.

HP CEO Meg Whitman has promised that HP will not do another big layoff once this one is complete. It is supposed to end by October, 2014, HP says.

HP says it currently has about 331,800 employees.

The silver lining for current employees is that HP has already done most of the cutting. As of October 31, 2013, HP had eliminated approximately 24,600 positions of the 34,000 it expects to cut, the company said in its annual report.



More From Business Insider

Rates

View Comments (6)