HP (HPQ) to Eliminate Up to 16,000 More Jobs

Hewlett-Packard (HPQ) announced on Thursday that it will cut even more jobs in the next year.

HP has already slashed 34,000 jobs as part of a restructuring and cost reduction plan announced two years ago.

“As HP continues to reengineer the workforce to be more competitive and meet its objectives, the previously estimated number of eliminated positions will increase by between 11,000 to 16,000,” the struggling PC maker said in a statement.

The latest reductions, which will be made between now and October 2015, means the job cuts could total as much as 45,000 to 50,000, or about 15 percent of the company’s workforce. The Palo Alto-based firm expects the reductions to yield an extra $1 billion in savings.

HP had about 317,500 employees worldwide as of October 31, 2013. When the restructuring plan was first announced, the PC maker had nearly 350,000 employees.

“With the first half of our fiscal year completed, I’m pleased to report that HP’s turnaround remains on track,” said Meg Whitman, president and chief executive officer.”With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. 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.”

Whitman also said that no company “likes to reduce their workforce, but the reality is that HP must be maniacally focused on continuous improvement in our cost structure.”

HP released its second quarterly earnings on Thursday, showing EPS of $0.88, up 1 percent in the same period a year ago, and a net profit of $1.3 billion from $1.1 billion y/y. Revenues however, came in one percent lower to $27.3 billion from $27.6 billion.

Shares of Hewlett-Packard closed at $33.72 on Friday.

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