HP cuts 5,000 more jobs, up to 11% of workforce

Computer maker Hewlett-Packard says it expects to lay off 5,000 more people than originally planned, and will now slash its workforce by about 11 per cent as part of a comprehensive cost-cutting plan.

In May 2012, the company said it will lay off more than the 29,000 people in fiscal 2014. The new cuts will add to that round of layoffs. The company had more than 317,000 employees at the end of its last quarter in October.

In a filing with the Securities and Exchange Commission, HP blamed "continued market and business pressures" for the move.

Costs associated with the new cuts will likely boost the accumulated restructuring charges to $4.1 billion US from $3.6 billion, HP said.

At an October meeting with analysts, chief financial officer Cathie Lesjak said the company planned to cut up to 29,000 jobs and would be "near the high end" of that range.

The company has been struggling to adapt to declining sales of its core products — desktop computers and computer printers — for several years now, while focusing more on its growing and profitable enterprise business.

In the fiscal year through Oct. 31, revenue fell seven per cent to $112.3 billion, but the company posted $5.1 billion in net profit, compared with a $12.7 billion loss a year earlier.

HP shares rose 10 cents to $28.17 on the NYSE Tuesday.