HP to Layoff 6400 Workers

Summary: Following its 17 percent fall in the net profit during the first quarter and the acquisition of a new IT service firm, computer giant Hewlett-Packard announced its plan to layoff 2 percent of its workforce or 6,400 employees.

According to HP official, the new cuts will be completed next year as part of the restructuring plan.

Following its 17 percent fall in the net profit during the first quarter, computer giant Hewlett Packard recently announced its plan to reduce its workforce by 2 percent that will affect 6,400 employees.


HP said the new cuts will be completed next year in line with the company’s contingency plan and cost-cutting measure.

Meanwhile, HP also said that the massive workforce reduction will also allow the company to restructure its business following its acquisition last year of another IT service giant Electronic Data System Corporation (EDS) for $13.8 billion. The acquisition is expected to expand the outsourcing business of the computer giant.

During a conference with analysts and media, HP chief financial officer Cathy Lesjak said the layoff will also allow the company to simplify its business and boost its global profitability amid the financial crisis which hit the Silicon Valley industry.

According to earlier report, the computer giant said its laptop sales declined by 13 percent while desktop sales fell 24 percent in the first quarter. Meanwhile, the revenue plummeted by 19 percent to $8.2 billion.

With the ongoing recession, most technology companies also reported weak sales and low demand.