This week HP is sending out word that not only are they doing relatively well in the stock market with per-share earnings of 98 cents (over 91 cents projected), they’re cutting 27,000 jobs by 2014. According to HP, this is 8% of their total workforce according to – strangely enough – numbers they have from October 31st, 2011. This “restructuring” plan includes a “portion” leaving the company as a part of a voluntary early retirement program “whose combined age and years of service exceed certain levels.”
This move will have HP recording aggregate pre-tax charges of $3.5 billion by the end of the 2012 fiscal year according to HP. They expect that of this amount, $3.0 billion will relate to the reductions they’re making in workforce. HP also expects that just about $2.7 billion in pre-tax charges will result in cash expenditures throughout the term of the plan.
This plan will begin to take place in the third fiscal quarter of this year (that’s this quarter, for those of you wondering) and will take charges of $3.5 billion, again mostly in workforce reductions, by the end of the period in 2014. Keep your eyes tuned to SlashGear as the earnings call and data continues to roll in. HP may well pull out of this with a win, even though their workforce might not feel the same way if they’re on the cutting block – such is life!