HP may cut 34,000 jobs by October due to falling PC sales, adverse market conditions

Struggling with falling PC sales and adverse market conditions, US-based technology giant Hewlett- Packard (HP) expects to eliminate up to 34,000 jobs by October this year as part of its multi-year restructuring programme to cut costs.The company will incur about $4.1 billion in aggregate charges, which includes severance and other charges.

In July last year, HP had estimated eliminating about 29,000 positions through fiscal year 2014 as part of its restructuring programme, which was started in 2012. However, details on which locations would be impacted by the decision were not disclosed. “Due to continued market and business pressures, as of October 31, 2013, HP expects to eliminate an additional 15 per cent of those 29,000 positions or a total of approximately 34,000 positions,” HP said in a filing to the US Securities and Exchange Commission (SEC).

The programme will now cost the company about $4.1 billion in aggregate charges, instead of the earlier estimate of $3.6 billion, it added. “HP expects approximately $3.5 billion to relate to workforce reductions, including the EER programmes, and approximately $0.6 billion to relate to infrastructure, including data center and real estate consolidation, and other items,” it said.

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