After reporting first quarter revenue declines of 1% from the prior-year period, Palo Alto-based HP announced plans to accelerate its restructuring by increasing the number of job positions it intends to eliminate by 16,000.
“We continue to see an acceleration of the massive shifts that are transforming the way customers buy, pay for and consume technology. This reality is creating both opportunities and challenges for HP and every one of our competitors, said Meg Whitman, president and CEO of HP. "To win, we have to continue to focus and again be a more nimble, lower cost, and more customer and partner centric company. We have made a lot of progress to that end over the past two years but we still have more work to do in our structure, our systems and our go to market."
As a result, Whitman added, an additional 16,000 employees will leave the company under the previously announced 2012 restructuring program, which HP adopted in May 2012. HP previously estimated that 34,000 positions would be eliminated under the plan.
The additional layoffs will bring the total number of employees leaving under the program to as many as 50,000.
“We're also focused not just on labor savings, but also non-labor savings that come from better efficiency across processes, consolidating service centers, looking at data center automation,” Whitman added.