updated 11:00 pm EST, Mon December 30, 2013
Computer giant cuts jobs as it struggles in new paradigm
Computing giant HP will lay off 34,000 employees by the end of 2014, the company confirmed in its annual report to the Securities Exchange Commission. The layoff total, previously noted in the firm's October financial filings, is up 5,000 from the figure HP gave in September, and it marks a continuation of massive staff reductions at the company. The cuts will amount to nearly 11 percent of HP's total workforce, as the computer maker has struggled to adapt to the new consumer computing paradigm.
HP has already accomplished most of the 34,000 layoffs, as Business Insider notes. By October 31, 2013, HP had cut about 24,600 positions. The remaining layoffs are expected to see completion by October, 2014.
While consumers have increasingly opted for smartphones and tablets instead of traditional PC form factors, HP has struggled to gain traction in both of those segments. The job cuts are part of CEO Meg Whitman's plan to lower operational costs in order to make the firm more competitive.
HP's computers have struggled, as have its tablets.
Aside from its desktop computer segment, HP has been suffering in the server market as well, with companies buying server services from other companies instead of purchasing their own dedicated hardware. As The Verge notes, HP's services and software division has been performing as well, as has its printer division.
In is most recent quarter, HP posted diluted net earnings per share of $0.73 on $29.1 billion in revenue. The company's EPS total was up from the year previous, but revenue was down three percent year-over-year.
For 2014, HP estimates net EPS to be in the range of $3.55 to $3.75. Fiscal 2014 net EPS estimates exclude after-tax costs of approximately $0.70 per share, related primarily to the amortization of intangible assets and restructuring charges in continuing efforts to sustain the company.