HP to trim staff by 8 percent companywide
Hewlett-Packard Co. will eliminate 27,000 jobs, or nearly 8 percent of its workforce, by the end of fiscal 2014, President and CEO Meg Whitman said during the company’s fiscal second quarter conference call with analysts May 23. The cuts will affect every part of HP, she said.
Calls to HP’s Boise operation were not returned. HP employed 349,600 companywide as of Oct. 31, according to its annual report filed Dec. 14.
HP reportedly employs nearly 4,000 in Boise, where it has a 92-acre campus. If the staff reduction is distributed evenly around HP’s holdings, cuts of 7.7 percent would eliminate about 300 jobs.
Whitman said the job eliminations will be accomplished through layoffs and voluntary retirements. Savings will be reinvested in promising areas including Web-accessed cloud computing, data and security, she said.
Earnings and revenue were down from the year-earlier quarter, but the rate of decline has slowed, she said.
“The margins are in non-manufacturing,” said Mark Roby, a Certified Financial Planner in Boise. “They are adjusting to the market just like everybody else.”
HP was once far ahead of the competition in printers, a niche now hard to maintain, he said.
The company’s attempt to get into the tablet computer market didn’t work, “but in a lot of the hardware, they’re no longer the 800-pound gorilla,” Roby said. Systems, applications and software offer better potential than hardware, which will be a flatter part of HP’s business, he said.
HP said Personal Systems Group revenue was flat in the April quarter from a year earlier and included a 4 percent drop in consumer revenue, a 5 percent increase in desktop computer units and a 6 percent drop in notebook units. Revenue was down 1 percent in Services, down 10 percent in the Imaging and Printing Group, down 6 percent in Enterprise Servers and up 22 percent in Software.
HP in late March announced plans to consolidate the Imaging and Printing Group with the Personal Systems Group.
Corporate spokesman Michael Thacker said the company hasn’t announced location-specific plans but will have more information later, at a time to be determined.
The Boise site traditionally focused on imaging and printing, but HP locations now have a mix of employees with different specialties, he said. Regardless, job cuts announced May 23 will affect every HP region and business, he said.
Updated to add comment from Hewlett-Packard