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HP layoffs could total 50,000

Job cuts are higher than company previously projected

Palo Alto tech giant Hewlett-Packard Company announced on Thursday that it plans to lay off up to 50,000 employees as it strives to "re-engineer the workforce to be more competitive and meet its objectives," the company said in its second-quarter financial statement for the period ending April 30.

The jobs loss is an increase of 11,000 to 16,000 over the estimated 34,000 positions HP expected to eliminate when it adopted a multiple-year restructuring plan in May 2012, company officials said. Meg Whitman, HP president and chief executive officer, said during a webcast that the cuts will be made across all sectors. She did not specify how many jobs would be lost in Palo Alto.

Most segments of its business were down, with PC sales being the bright spot. PC revenue increased 7 percent for the quarter, with the biggest gains in commercial revenue at 12 percent. Consumer revenue declined by 2 percent.

But five other sectors were down or flat. Printing revenue declined 4 percent year over year; its enterprise group, which related to business systems, servers and information storage, was down 2 percent. Enterprise services dropped 7 percent; software revenue was flat, and HP financial services was down 2 percent year over year with a 2 percent decrease in net portfolio assets and a 12 percent increase in financing volume.

HP's second-quarter net revenue of $27.3 billion was down 1 percent from the prior-year period. HP returned $1.1 billion to shareholders in the form of dividends and share repurchases in the second quarter. Its net cash improved by $1 billion -- the ninth consecutive quarterly improvement of approximately $1 billion or more, the company noted.

"With the first half of our fiscal year completed, I'm pleased to report that HP's turnaround remains on track," Whitman said. "With each passing quarter, HP is improving its systems, structures and core go-to-market capabilities. We're gradually shaping HP into a more nimble, lower-cost, more customer- and partner-centric company that can successfully compete across a rapidly changing IT landscape."

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