Hewlett-Packard cuts 22,700 jobs

Written by Press Trust of India | New York | Updated: Sep 10 2013, 03:52am hrs
New Delhi
Computer maker Hewlett-Packard (HP) has laid off about 22,700 jobs as of July as part of its multi-year restructuring programme to cut costs.

The US-based firm intends to lay off a total of 29,000 employees in connection with its plan that will extend till 2014 fiscal, which it expects will cost about USD 3.6 billion in severance and other charges.

HP follows November-October as fiscal year.

"As of July 31, 2013, HP had eliminated approximately 22,700 positions as part of the 2012 Plan. The cash payments associated with the 2012 Plan are expected to be paid out through fiscal 2017.

"HP recorded a charge of approximately USD 813 million for the nine months ended July 31, 2013 relating to the 2012 Plan, of which USD 103 million related to data centre and real estate consolidations," HP said in a filing to the US Securities and Exchange Commission (SEC).

The firm had announced in May 2012 about its multi-year restructuring plan (2012 Plan) "designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders."

"HP estimates that it will eliminate approximately 29,000 positions in connection with the 2012 Plan through fiscal year 2014, with a portion of those employees exiting the company as part of voluntary enhanced early retirement (EER) programmes in the US and in certain other countries," the filing said.

The filing further said: "HP expects to record aggregate charges of approximately USD 3.6 billion through the end of HP's 2014 fiscal year as accounting recognition criteria are met."

Of the total amount, about USD 3 billion relates to the reduction in workforce and the EER programmes and around USD 0.6 billion in infrastructure, including data centre and real estate consolidation and other items, it added.