HP increases job cuts to 29,000
Computer maker will erase 2,000 more jobs than it earlier estimated -- as it continues to slash costs.
Hewlett-Packard will cut more of its global staff than first planned, upping the figure from around 27,000 to 29,000 employees.
The world's largest computer maker said today in its 10-Q quarterly filing with the U.S. Securities and Exchange Commission that it will, "eliminate approximately 29,000 positions in connection with the 2012 Plan through fiscal year 2014."
HP said in May that it would cut 27,000 jobs -- roughly 8 percent of its global workforce -- and plow the $3 billion to $3.5 billion it says it will save into research and development. The cuts will be spread over the next two years, but overall R&D spending will increase from the 3 percent of revenue it currently stands at.
The filing notes that the multi-year restructuring plan -- dubbed the "2012 Plan" -- was aimed to "simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders." In a nutshell: cut the wheat from the chaff and try to keep ahead of its global competitors, notably up-and-coming Lenovo.
Also in the filing, HP said it expects charges of around $3.7 billion through the end of HP's fiscal 2014 calendar, with $3.3 billion relating to workforce reductions, and $400 million on "other items," such as data center consolidation.
The computing giant has already recorded a $1.7 billion charge during its 2012 third-quarter as a result of its restructuring plans.
HP said in the filing that the company has already shed 3,800 jobs as of the end of July. Employees from the ailing enterprise services group, which manages data centers and consultancy to partners, are taking the brunt of the cuts.
Last month, HP swapped its executives in the enterprise services unit, which accounts for more than a quarter of HP's total sales, and took an $8 billion charge in the process.
HP remains the world's largest computer maker by shipments, according to Gartner figures, recording 13.06 million shipments in the second-quarter -- despite a 12 percent decline year-on-year. Lenovo is poised to take the first-place slot in the coming weeks once September quarterly PC shipments figures are released.
This story originally appeared as "HP revises restructuring figures; now cutting 29,000 jobs" on ZDNet's Between the Lines.