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article imageHP cuts more jobs than expected

By Ryan Hite     May 23, 2014 in Business
San Francisco - Hewlett Packard, the ailing technology firm, aims to slash more jobs as its relevance continues to take on losses. Are the good fortunes of the company on the decline?
Hewlett-Packard said on Thursday that it aims to cut another 11 to 16,000 jobs by the end of October, bringing the total number of planned layoffs to a maximum of 50,000 and nearly doubling the largest reduction ever for the 75-year-old technology firm that seems to be losing its luster as well.
HP's move revises the previous target of 34,000 job cuts upwards. The current CEO has aimed for a reduction of 27,000 jobs initially.
When the program was first started, the company had almost 350,000 employees. As of October, it had 317,500.
[url= t=_blank]The CEO said extra cuts are being made because the company sees further opportunity to implement cost-cutting measures, not because of a decline in demand. She also said she doesn't see any further cuts after this.
The Palo Alto-based company said the reductions will save an extra $1 billion annually by October 2016 and get 2-3 cents per share in the year of October 2014.
Even so, analysts worry that the company's recent good fortune, especially in a recovering market for things like personal computers, might be short-lived like many technology trends are. The company said that Microsoft Corp.'s end of support for its nearly 13-year-old Windows XP operating system this April has boosted corporate demand for PCs.
HP announced these cuts while reporting that the net income in the three-month period ending April 30 rose 18 percent to $1.27 billion, which comes out as 66 cents per share.
Personal computer sales rose 7 percent to $8.2 billion as sales to businesses offset a slight consumer decline.
Printing revenue fell by 4 percent to $5.8 billion. Enterprise group revenue fell by 2 percent to $6.7 billion while enterprise services revenue fell by 7 percent to $5.7 billion.
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