HP Revises Its Layoff Plan By Increasing Job Cuts To 29,000 By 2014

Back in May, HP announced that it would cut 27,000 jobs in an effort to reduce costs. In an SEC filing today, the company announced that the plan will be even more important than that by bringing the job cuts to 29,000. It expects to save $3.7 billion by 2014. It might not even be enough to offset HP’s current situation.

The company employs around 350,000 people worldwide. But the layoffs represent 8.3 percent of its workforce, which is still an impressive number. The filing also indicates that HP does not plan to restructure the remaining Palm assets any further after spinning off webOS into a brand new company.

A portion of the American employees will exit the company as part of a voluntary early retirement program. The market received the news positively, as HP’s share is currently up 1.6 percent compared to yesterday.

Yet, HP reported a major $8.9 billion loss last quarter. So the plan that will take two years in the making is still not enough to compensate the major loss the company registered during only one quarter.

HP has been struggling over the past couple of years to stay relevant. After buying Palm, then abandoning webOS and changing CEOs very often, HP now has to find its next direction in order to survive in a computer landscape where ARM-based devices are becoming the dominant platform.