HP to slash 50,000 jobs after Q2 FY 2014 revenue declines

Enterprise IT vendor HP today said it would slash around 50,000 jobs as per its multi-year restructuring plan against the earlier planned 34,000 positions.

The decision to cut around 11,000 to 16,000 jobs follows HP’s dismal performance in the second quarter of fiscal 2014. HP revenue dipped 1 percent to $27.3 billion, while net income increased 18 percent to $1.3 billion.

Meg Whitman, president and chief executive officer, HP, said: “Results in Q2 were driven by solid performance in printing, networking and personal systems, as well as disciplined cost management across all of our businesses.”

HP, which competes with Cisco, IBM, Oracle, Dell, Lenova etc kicked off its multi-year restructuring plan in May 2012 to simplify business processes, accelerate innovation, lower costs and deliver better results.

HP plant

Performance of business divisions

HP said its Personal Systems revenue rose 7 percent, while commercial revenue grew 12 percent and Consumer revenue declined 2 percent. HP said number of devices shipped increased 10 percent with Desktops units up 6 percent and Notebooks units up 6 percent.

Printing revenue declined 4 percent. HP said hardware units increased 1 percent with commercial hardware units up 3 percent and Consumer hardware units flat. Supplies revenue dipped 6 percent in Q2 FY 2014.

Enterprise Group revenue decreased 2 percent. Industry Standard Servers revenue rose 1 percent, Storage revenue dipped 6 percent, Business Critical Systems revenue declined 14 percent, Networking revenue increased 6 percent and Technology Services revenue declined 5 percent, said HP in its quarterly result.

Enterprise Services revenue dipped 7 percent. Application and Business Services revenue slipped 8 percent, and Infrastructure Technology Outsourcing revenue declined 7 percent.

Software revenue was flat, HP said. License revenue was up 8 percent, support revenue was down 4 percent, professional services revenue was up 1 percent and software-as-a-service (SaaS) revenue was up 6 percent.


HP will continue its transition to SaaS while rejuvenating core portfolio and investing in operational improvements across this business.

George Kadifa will take on a new role as executive vice president of Strategic Relationship. George will responsible for leading growth initiatives and alliance programs with key partners, service providers and our largest customers.

Robert Youngjohns will take over for George as the executive vice president and general manager of HP Software. He joined the company last year to lead the turnaround of HP Autonomy after serving as president of Microsoft North America.

InfotechLead News Team