Hewlett Packard will cut about 16,000 jobs in global operations, a fresh addition to the already announced 34,000 job cuts, making the total annual culling half a lakh. HP was engaged in job culling in Europe as early as this January.
It cut down about 1000 workers in Britain alone. The US multinational said that job cuts would be implemented in all locations and not alone in Europe. HP head Meg Whitman said that job cuts were part of a restructuring plan launched in May, 2012.
HP reported a rise in second quarter profit to USD1.27 billion, compared with USD1.08 in the same quarter a year ago. The company revenue however slid down to USD27.3 billion from USD27.6 billion in the year-earlier period.
Revenue decline is a major concern for the company. As part of its restructuring plan HP hopes to shift its focus from the near waning personal computers market to computing equipment and cloud computing services for corporates.
In cloud computing HP hopes to reap substantial gains from the Microsoft-HP Agility Alliance Partnership, a cloud-based service that functions on Microsoft’s Business Productivity Online Services (BPOS), catering to HP’s enterprise client market.
The tech-giant is plagued by sales decline since past 11 quarters. HP head said that the company will retain research and development jobs and cull other jobs that are not vital to long term growth and innovation.