Hewlett-Packard to cut 16,000 jobs

Technology giant Hewlett-Packard (HP) in a statement, that was accidentally released before US stock markets closed, said its profits had arisen 18% to $1.3 billion for the second quarter.

But company sources said that despite rising profits, it plans to lay off an additional 11,000 to 16,000 workers. In 2012 HP had made plans to cut 34,000 jobs as part of a restructuring program.

“I'm pleased to report that HP's turnaround remains on track,” said Chief Executive Meg Whitman in a statement.

“We're gradually shaping HP into a more nimble, lower-cost, more customer and partner-centric company,” he said.However, analysts were disappointed by the firm's revenue growth, which fell 1% from the corresponding period a year ago, to $27.3 billion. HP has been hit hard by declining PC sales as consumers shift towards devices such as tablets and smartphones.

Ms Whitman has tried to shift the firm's focus to computing equipment and networking gear for business clients.

HP began a restructuring plan in 2012 that was designed to simplify the company's business processes, accelerate innovation, bring down costs and deliver better results.

Ms Whitman said the turnaround remains on track, and added, “With each passing quarter, HP is improving its systems, structures and core go-to-market abilities.

“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.”

HP has not specified when it expects to see the full results of its restructuring strategy. But analysts are suggesting the company should probably take a closer look at its product mix.“The world has gone mobile for computing, and HP is not exactly the go-to brand at all when it comes to smartphones and tablets,” said Jon Ogg at 24/7 Wall St in a blog post.

- BBC