Palo Alto, Calif. - Hewlett-Packard reported lower net earnings and net revenue in its fiscal second quarter, ended April 30, and will cut 27,000 jobs, or about 8 percent of its staff.
GAAP net earnings were down 31 percent to $1.6 billion from the prior year's second quarter, with GAAP net revenue down 3 percent year on year to $30.7 percent.
In its personal systems group, revenue was flat year over year with a 5.5 operating margin, and consumer
revenue declined 4 percent year over year.
Revenue for its imaging and printing group declined 10 percent year over year, with a 13.2 percent operating margin. Consumer hardware revenue was down 15 percent year over year, with a 13 percent decline in printer units.
As part of the restructuring, HP expects the cuts to be made as of the end of fiscal year 2014. The company is offering an early-retirement program, so the total number of employees affected will be impacted by the number of employees who participate in this plan. Workforce-reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate, HP said.
The restructuring is expected to generate annualized savings in the range of $3 billion to $3.5 billion exiting fiscal year 2014, of which the majority will be reinvested back into the company, HP reported.