HP 'manically focused' on turnaround as it axes more jobs

Between 11,000 and 16,000 more staff heading for the doors

HP is preparing to cut thousands more staff across its global operations as it promises to remain "manically focused" on its turnaround plan – which it insists is still on track.

As it announced its second-quarter results, the vendor confirmed that between 11,000 and 16,000 more jobs would go soon in a move which could take the total number of roles axed up to 50,000 since the turnaround plan started.

HP's chief executive Meg Whitman (pictured) said that while losing staff is never pleasant, it is necessary to keep her five-year turnaround plan on track.

"We have to continue to focus and... be a more nimble, lower-cost, and more customer- and partner-centric company," she said on a call transcribed by Seeking Alpha. "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.

"No company likes to reduce their workforce but the reality is that HP must be manically focused on continuous improvement in our cost structure."

For the three months to 30 April, HP's GAAP net earnings jumped 18 per cent annually to $1.3bn (£772m) on revenue which slipped one per cent to $27.3bn over the same period.

The firm's Enterprise Group's (EG) sales slid two per cent year on year as a result of declining storage and Business Critical Systems sales – which were down six per cent and 14 per cent year on year respectively. Turnover at HP's Networking business – which is part of the EG – rose six per cent over the same period.

HP's Enterprise Services segment's revenue slid seven per cent year on year and its Software business saw sales stay the same compared with last year.

Whitman insisted her masterplan is coming to fruition slowly but surely.

"With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track," she said.

"With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."