Under the lead of its current Chief Executive Officer Mrs. Meg Whitman, Hewlett-Packard Co. has decided to cut more cobs in an attempt to turn back the company to profit in the conditions of a highly-competitive technology environment. The rapidly changing market has dragged the companys sales for a total of eleven consecutive quarters due to the decreased demand for personal computers and printers.
Hewlett-Packard Co. made an official statement, revealing its intention to cut 11 000 to 16 000 jobs in addition to the previously announced 34 000 positions that are to be eliminated. The additional lay-offs are equal to about 4% of the companys workforce, which amounts to about 317 500 workers. The massive job cuts are part of a multi-year strategy of Hewlett-Packard that aims to restructure the company.
After taking over the helm in 2011, the Chief Executive Officer of Hewlett-Packard – Mrs. Meg Whitman has managed to stabilize the positions of the company. However, Hewlett-Packard Co. is facing a third consecutive decline in annual revenue. The company announced an 18% increase of its second-quarter net income that reached 1.27 billion dollars in comparison to the net income of 1.08 billion dollars posted a year ago.
Mrs. Whitman said in a Bloomberg interview: “We want to become a growth company – this is the second quarter of basically flat revenue. While you may say that’s not very exciting, it’s way more exciting that the historical declines we’ve had for the last eight quarters. The fact that we’re stabilizing revenue is encouraging and positions us well for the future.”
According to the statement made by Hewlett-Packards Chief Executive Officer, the lay-offs will affect all divisions and geographies of the company. Still, Mrs. Whitman explained that the job cuts process is not a reflection of a decreasing demand for the companys products. As reported by the Wall Street Journal, CEO Whitman added: “We recognize that it is difficult for employees. Our employees know there are ways we can be more efficient.”
Hewlett-Packard Co. was 2.28% down to close at 31.78 dollars per share yesterday, marking a one-year change of +46.69%. According to the information published on CNN Money, the 25 analysts offering 12-month price forecasts for Hewlett-Packard Co. have a median target of 36.00, with a high estimate of 41.10 and a low estimate of 24.00. The median estimate represents a +13.28% increase from the last price of 31.78.
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