HP cuts 6400 jobs as sales decline

Posted on Wednesday, May 20 2009 @ 18:38 CEST by Thomas De Maesschalck
HP saw its second-quarter net income fall to $1.72 billion, from $2.06 billion a year earlier. Sales dropped 19 percent to $8.19 billion and HP CEO Mark Hurd says sales haven't shown signs of rebounding as the economy remains in a dire position. Hurd doesn't expect sales will improve this year and announced HP will slash another 6,400 jobs, roughly 2 percent of the company's global workforce.
Annual revenue will drop 4 percent to 5 percent, the lower end of a forecast range given in February, Hewlett-Packard said yesterday. Chief Executive Officer Mark Hurd said he’s basing the forecast on the expectation that the economy won’t improve in coming months.

“I’m not ready to call it better,” he said on a conference call. “It’s roughly going to be the same the rest of the year.”

Hurd, who’s already trimmed jobs and slashed salaries at the company, will eliminate another 6,400 workers in the next 12 months as sales slump for PCs and printers. Hewlett-Packard’s services unit -- bolstered by the $13.2 billion acquisition of Electronic Data Systems Corp. last year -- is becoming “our largest profit driver today,” he said.
More info at Bloomberg.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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