HP slashes 16,000 more jobs

The maker of expensive printer ink, HP, is to cut 16,000 more jobs as part of a restructuring programme, which has already gutted the company.

The layoffs are part of a ramp-up of CEO Meg Whitman’s years-long effort to turn around the personal computer maker and relieve pressure on its profit margins.

Whitman said her turnaround remained on track and her raised target reflected how HP continued to find surplus fat to trim.

Some analysts are a little concerned that Whitman might have seen more trouble ahead and if more jobs may be cut. Morale at HP must be getting lower and lower as it appears that the restructuring just does not stop.

To be fair HP has a lot of staff. About three years ago it was thought that it had hired about 250,000. In its first restructuring it 27,000 jobs. That number rose to 34,000 last year.

On Thursday, it estimated another 11,000 to 16,000 more jobs needed to go, scattered across different countries and business areas. This means that Whitman’s restructuring has cost about 50,000 jobs.

The Silicon Valley company is trying to reduce its reliance on PCs and move toward computing equipment and networking gear for enterprises.

So far, it does not appear to be working. The company posted a disappointing one percent drop in quarterly revenue, as it struggled to maintain its grip on the shrinking personal computer market and weak corporate tech spending.

HP is looking to cut back more in “areas not central to customer-facing and innovation agendas,” Whiteman said.