HP cuts 6,400 jobs

US - Due to a fall in revenue, Hewlett-Packard (HP) will cut 6,400 jobs over the next 12 months.

This round of layoffs is on top of the previously announced cuts from acquiring IT services company EDS, according to a report by Reuters. HP says the job cuts will come in its product segments like PCs and printers.

HP had reported a loss of S$582 million in the second quarter of 2009 which ended 30 April. In addition, its PC revenue dropped by 19%, while revenue from imaging and printing dropped 23%. Its storage and server sales also fell by 28%.

Mark Hurd, chief executive of HP, says that in terms of demand, HP is expecting a similar outlook. Ron Gruia of Frost & Sullivan feels Hurd is approaching the demand question very carefully.

"He does show a little bit more cautiousness and maybe it's better to be a bit more cautious in this environment," says Gruia.