HP restructuring saw job losses in tune of 22,700

By Monday, September 9, 2013 0 , , Permalink 0

According to a recent Securities and Exchange Commission filing, HP has laid off nearly 22,700 employees as of July 2013 as a part of its multi-year rejig efforts to cut costs.

Job cuts at HP will continue through the 2014 financial year (HP follows November-October as fiscal year) and the computer maker intends to sever nearly 6,300 more jobs. HP said in the filing that it is expecting that the layoffs will cost the company a total of $3.6 billion USD in severance and other charges.

HP noted in the filing that the company had eliminated 22,700 positions during the year 2012 and it will be making payments associated with the layoffs by 2017. HP’s SEC filing read, “HP recorded a charge of approximately USD 813 million for the nine months ended July 31, 2013 relating to the 2012 Plan, of which USD 103 million related to data centre and real estate consolidations.”

HP announced its multi-year restructuring plans in May last year and said at the time that they were “designed to simplify business processes, accelerate innovation and deliver better results for customers, employees and stockholders.” HP also revealed in the filing that part of the layoffs have been categorized as voluntary enhanced early retirement (EER) programmes and quite a few employees have opted for this option.

Of the USD 3.6 billion which the company is expecting to shell out, USD 3 billion are related to costs related to work force reduction as well as payments under the EER programmes. The rest USD 0.6 billion are related to data centre and real estate consolidation and other items.

The filing read, “HP expects to record aggregate charges of approximately USD 3.6 billion through the end of HP’s 2014 fiscal year as accounting recognition criteria are met.”