HP's quarterly earnings may have outperformed expectations, but it's not good enough: the Silicon Valley company confirmed rumours that it would cut lots of jobs. 27,000 jobs to be precise. That's 8 per cent of its workforce.
According to the media release from HP, which the company sent over when we emailed asking for comment:
These moves are expected to yield significant improvements in efficiency and customer service during the next several years. HP expects to use the savings to boost investment in innovation around its three areas of strategic focus: cloud, big data and security, as well as in other segments that offer attractive growth potential.
HP's plan for a turnaround includes investing in a lot of business-oriented products like printing, enterprise servers, networking and storage.
As hard it is to see people lose jobs as HP flounders further, the company probably didn't have any other choice. HP has had a rough go of it since announcing last year that it would kill its webOS devices. Later it said it would "spin off" its PC division — only to back down. These cuts are probably necessary, and hopefully they're part of Meg Whitman's master plan to get the once great company back on track. [The Street]