Hewlett-Packard will cut 34,000 jobs by October of this year, tacking on an additional 5,000 positions that weren’t initially expected.

HP1111 600 x 600 HP cuts 34,000 jobs on stagnant PC market

PC manufacturer Hewlett-Packard will reportedly cut 34,000 global positions by October 2014, as the company continues to restructure amid a downturn of the PC market.

In July 2012, HP believed a total of 29,000 positions would be eliminated, but HP needs to cut an additional 5,000 to reach better financial footing. The company returned to financial profitability during its fiscal year 2013, and cutting jobs is a great asset while rebuilding its arsenal to compete against rivals.

HP, which is battling Lenovo as the top PC maker in the world has struggled in the PC market while consumers and business workers go mobile.  The company is drastically working on its laptops and manufacturing tablets for the workplace, but the job cuts will help the company trim some fat.

HP2222 500 x 358 HP cuts 34,000 jobs on stagnant PC market
HP CEO Meg Whitman is battling a challenge that has caught PC OEMs completely off guard, but is clearly making progress in restoring faith in HP.

The company plans to return to the consumer tablet market with multiple product launches expected in early 2014.  In addition to the consumer market, HP has a strong partnership with businesses and value-added resellers (VARs) selling HP products.  These relationships will be strengthened as VARs also recover from a sluggish economy and work with HP, which offers backend rebates and market development funds (MDF) to established partners, as sales increase.

The PC market is shrinking due to longer hardware life spans, greater competition, and mobile devices are gobbling up the market – and HP simply hasn’t been able to keep up.  HP, Lenovo, Dell, and other companies will battle it out in the consumer marketplace, and prepare PCs, laptops, and other mobile devices for the enterprise.

Source: The Economic Times