HP beats Street, guidance below expectations; to axe 27,000 employees

“Hewlett-Packard (HPQ) this afternoon reported fiscal Q2 revenue and profit per share ahead of analysts’ expectations and said it would lay off nearly 10% of its workforce, and forecast this year’s earnings per share above consensus,” Tiernan Ray reports for Barron’s. “Revenue in the three months ended in April fell to $30.7 billion, yielding EPS of 98 cents. Analysts had been modeling $29.93 billion and 91 cents a share.”

“For the current quarter, the company sees EPS of 94 cents to 97 cents, below the average estimate of $1.02 per share,” Ray reports. “The company said in a separate release that it has begun a ‘multi-year restructuring’ effort to ‘fuel innovation’ that will entail the laying off of ‘approximately 27,000 employees,’ or 8% of its workforce.”

Ray reports, “HP’s Personal Systems Group, which houses its PC business, saw zero revenue growth, year over year, and had a 5.5% operating profit margin, HP said.”

Read more in the full article here.

MacDailyNews Take: As we wrote this morning: Good luck to all those affected at a once-great (long ago) company. May you someday find a company where you can really “invent.”

10 Comments

  1. My heart goes out to those getting laid off. I went through it in the 1970s when NCR stopped meaning computers. If HP would devote its energies to developing green, quality, no-nonsense printers that didn’t require a constant supply of expensive ink cartridges (that alienate their end users two or three times a month) they could savor the kind of success Apple enjoys.

  2. Great way to Stimulate innovation by slashing it’s veteran workforce! Meg Whitman is great at destroying company cultures. Did a great job slashing away at eBay!

  3. How can a company that is making over a billion a year cut 20% of its workforce.
    I understand when it is losing money but this is corporate greed over sense.

  4. Very few companies other than Apple really care what they are delivering, just the fact that they deliver something. And hardly any of the large corporations spend so much time concerned over the use of and desire for product as Apple does. HP was simply a ‘channel supplier’, and that’s very, very, far removed from the actual user.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.