As originally reported by Business Insider, HP is jettisoning an additional 5,000 jobs on top of the 29,000 jobs it had previously planned to cut between 2012 and 2014. In May 2012, the company originally said it would cut 27,000 positions; that number now stands at 34,000.
HP currently has over 300,000 employees in offices around the world.
The world of computing has changed, and HP is struggling to keep pace with the evolution. PC sales decline each quarter, and are showing no signs of bouncing back. Chief executive Meg Whitman has admitted in interviews with the press that HP is struggling. The turnaround seems to be taking longer and longer.
Shipments of PCs around the world are continuing to decline; they fell as much as 11 percent in the second quarter of 2013 according to research firm Gartner.
In the report, the company also admits that over 60 percent of its net revenue is drawn from business conducted in emerging markets, like Russia and India. HP anticipates a number of potential financial setbacks, including longer collection cycles, and “actions affecting… pricing of products.”
Whitman has said she won’t lay off more employees until these cuts are finalized. This round will end in October of 2014.
Here’s what the SEC filing says about the cuts:
Due to continued market and business pressures, as of October 31, 2013, HP expects to eliminate an additional 15% of those 29,000 positions, or a total of approximately 34,000 positions, and to record an additional 15% of that $3.6 billion in total costs, or approximately $4.1 billion in aggregate charges. HP expects to record these charges through the end of HP’s 2014 fiscal year as the accounting recognition.