HP to cut 16,000 more jobs

Hewlett-Packard (HP) announced an 18% rise in profits to $1.3 billion for the second quarter in a statement that was accidently released before US stock markets closed.

The tech giant said that despite rising profits, it plans to lay off an additional 11,000 to 16,000 workers.

HP had previously announced it would cut 34,000 jobs as part of a restructuring announced in 2012.

Shares in HP fell after the early release of the news.

HP CEO Meg Whitman said in a statement: “I’m pleased to report that HP’s turnaround remains on track.”

“We’re gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company.”

However, analysts were disappointed by HP’s revenue growth, which fell 1% from the same 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.

Meg 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, lower costs and deliver better results.

Meg Whitman said the turnaround remains on track, and added: “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.”

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.

HP’s personal systems division was the only segment that showed a gain in revenue in the second quarter. Other divisions, namely printing as well as enterprise group and services posted a drop in revenue.

The decline in revenue is one of the main reasons HP is cutting jobs.