Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

HP reports higher profit but cuts up to 16,000 more jobs

CEO Meg Whitman says the company's turnaround 'remains on track'

Article comments

Hewlett-Packard reported increased profits Thursday as its PC business turned in a strong quarter, but the company will slash thousands more jobs to reduce costs.

HP has already cut 34,000 jobs as part of a plan to boost profits announced two years ago. It will now cut an additional 11,000 to 16,000 jobs to make its workforce "more competitive," it said.

It announced the cuts along with its earnings report for the quarter ended April 30. HP's profit for the period was $1.27 billion, up 18 percent from a year earlier, on revenue of $27.3 billion, which was down 1 percent.

Its Personal Systems Group, which sells PCs and laptops, continued to buck industry trends by turning in its second straight quarter of growth, with revenue up 7 percent to $8.17 billion, HP said. Strong sales to businesses offset a slump in consumer sales.

That was the only division to report growth, however, with sales in HP printing, enterprise computing and enterprise services all declining.

Things had been looking up for the enterprise computing group, which reported growth the last two quarters. But its x86 server business grew just 1 percent this past quarter, and sales of storage gear and high-end servers were both down.

Excluding one-time items, HP's earnings of $0.88 a share were in line with what financial analysts had been expecting, according to Thomson Reuters. HP revenue fell below the forecast, however.

In a statement, CEO Meg Whitman said HP's turnaround "remains on track."

"We're gradually shaping HP into a more nimble, lower-cost, more customer and partner-centric company that can successfully compete across a rapidly changing IT landscape," she said.

James Niccolai covers data centers and general technology news for IDG News Service. Follow James on Twitter at @jniccolai. James's e-mail address is james_niccolai@idg.com



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *