HEWLETT-PACKARD (HP) has given a disappointing outlook for full-year revenue and says it will lay off another 2 per cent of its workforce as consumers and businesses cut spending on computers, printers and services.
The new round of layoffs – roughly 6,400 jobs – are on top of previously announced cuts from integrating the operations of IT services company EDS, which HP acquired last year. HP said the job cuts would come in its product segments, such as PCs and printers. The reductions will happen over the next 12 months.
The company employs more than 4,000 people in Ireland at facilities in Dublin, Leixlip, Galway and Belfast, and recently announced plans to create 500 jobs over the next 12 months at its Liffey Park Technology Campus in Leixlip, Co Kildare.
It is unclear whether the company’s announcement will have an impact on its Irish operations.
HP, which vies with rivals Dell and Acer in a depressed global PC market, expects fiscal-year revenue to slide 4 per cent to 5 per cent compared with a previous forecast of 2 per cent to 5 per cent, offering a more pessimistic view of 2009.
The company’s services business was the largest by revenue in the quarter, boosted by the EDS buy. PC revenue fell 19 per cent, imaging and printing revenue dropped 23 per cent and storage and server sales sank 28 per cent.
Analysts said the company was doing a good job controlling costs in a difficult environment, but said investors may be spooked in the absence of more upbeat comments from HP chief executive Mark Hurd.
HP reported a net profit of $1.7 billion (€1.23 billion) in the fiscal second quarter to April 30th, down from $2.1 billion a year ago. Revenue slipped 3 per cent to $27.4 billion.
