In yet another display of financial struggles, technology behemoth Hewlett-Packard Company (NYSE:HPQ) has increased its layoff target to 29000. This job-cut estimate came in on Monday, as the public eye shifted over to CEO Meg Whitman for his increased aggressiveness towards cost-cutting.
The previous estimate came in at around 27,000 jobs. The new estimate is built on the makings of the initial estimate, and was revealed through a company regulatory filing. HP intends to lay off these workers through 2014; a move that will reduce its expenditure and notably improve its bottom line.
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The company had noted earlier in May, that its cost cutting efforts would save up to $3.5 billion from the onset of 2014.
To perhaps quell unnecessary speculation, Hewlett-Packard Company (NYSE:HPQ) has made it clear that an undisclosed section of the 29,000 people will be given the option of a voluntary early retirement program that covers U.S. employees.
While this number seems incredibly huge, it is a small representation of Hewlett Packard’s labor force, representing a mere divide of the collective 350,000 people that worked at HP as of July.
As if to add a darker shade of gloom, Topeka Capital Market analyst, Brian White, noted that things could get worse for HP and its employees. “It’s more than they said last time, but who’s to say it’s not going to get higher if things get worse?,” he noted. White went on to add that the company still had a long way to go, remarking that the turn-around would be prolonged.
Other highlights in the filing today, reveal that the company had already started implementing its restructuring program earlier. As of July 31st, the company had eliminated 7,300 jobs in its enterprise business. This job cut came after earlier announcements that highlighted the company’s intentions to write down the enterprise business unit by an estimated $8 billion.
As of the moment, the company is shrouded in a dark veil of misfortunes. It is not only grappling with slow demand for services and printers, but its stock is also suffering from bouts of bearishness. Its shares have actually suffered a 32 percent dip this year.
As it is with most cost cutting measures, this move is destined to stir controversy and speculation among critics. Nonetheless, the company had envisioned the layoffs. Hewlett-Packard Company (NYSE:HPQ) made this clear in a Securities and Exchange Commission filing. “The job cuts are designed to simplify business processes, accelerate innovation, and deliver better results for customers, employees, and stockholders,” the company noted.
In fact, Meg Whitman was hired to purposely contribute to a turnaround for the company. The 56 year old CEO, who formerly served as CEO of eBay Inc. (NASDAQ:EBAY), stepped into Hewlett-Packard Company (NYSE:HPQ) back in September 2011.