PALO ALTO, Calif. -- Hewlett-Packard Co. here today announced plans to slash 6,000 jobs, or 6.5% of its workforce, and warned that its fiscal third-quarter sales would declined 14-16% over the like period a year ago.
The workforce reduction will save the company about $500 million annually, said Carly Fiorina, HP chairman and chief executive. "Economies around the world continue to weaken as we move through the quarter," Fiorina said. "Our consumer business is being particularly hard hit with revenues expected to be down 24%," she said.
"On the other hand, our outsourcing and consulting businesses are expected to grow 20% and 9%, respectively, in U.S. dollars," she said.
HP also has taken additional short-term actions to control expenses. One example is a voluntary payroll savings program implemented during the third quarter.
More than 80,000 HP employees signed up and a savings of approximately $130 million is expected for the remainder of the fiscal year.
