HP Chopped 22,700 Employees Last Year; thousands more to come

HP is slicing jobs at a faster-than-expected rate. The company has axed 27,700 people from its workforce, out of the the 29,000 it plans to cut, it said Monday in an SEC filing.

HP originally announced the layoff plan in May 2012, saying it would cut 27,000 (about 8% of its workforce) and then, in September, said it would cut 29,000. HP also said the layoffs would happen very slowly, over about two years, ending at the close of its fiscal 2014 which is October, 2014.

Six months ago, in February, CEO Meg Whitman said HP had axed 15,000 employees, or was about half way done. But HP has also been warning investors in its SEC documents that the cuts could vary by 15% as it tries to find $3 billion in savings from its workforce. Read more >>

Intel sales sink as PCs slump

Weak PC sales finally caught up to Intel, dragging the chipmaking giant's sales and profits lower in the third quarter. Back-to-school sales typically boost computer demand in the late summer, but a weakening global economy and consumers' shift to tablets cut PC demand to half its third-quarter norm, Intel said. The company's PC chip sales fell by 8% last quarter, in-line with the overall global PC market.

For the current quarter, Intel doesn't expect any improvement, anticipating that PC sales will grow at half their seasonal rate. Computer makers are taking a very cautious approach with their inventories as the global economy continues to slump. They are also taking a wait-and-see approach to Microsoft's Windows 8 launch, which will take place on Oct. 26.

"Our third-quarter results reflected a continuing tough economic environment," said Paul Otellini, Intel's CEO, on a conference call with analysts. "The world of computing is in the midst of a period of breakthrough innovation and creativity. Intel has a history of navigating industry's transitions and emerging better and stronger." Read more >>

Mass Layoffs at HP of 35,000

Hewlett-Packard Co. is expected to announce deep cuts in its workforce Wednesday afternoon when the world's largest personal computer and printer maker is scheduled to release its latest quarterly results.

The payroll purge could lay off 25,000 to 35,000 workers, based on recent media reports that quoted unnamed people familiar with HP's plans. HP has declined to comment, but CEO Meg Whitman has made it clear that she believes the company needs to trim its expenses to offset declining revenue and free up more money to pour into research and development.

The looming layoffs could be the largest in HP's 73-year history, surpassing 24,600 jobs cuts announced in 2008 after the company bought consulting service EDS for $13.9 billion. HP currently employs nearly 350,000 people. If the recent reports pan out, that means HP is looking to jettison about 7 percent to 10 percent of its workforce. More...