HP is cutting another 16,000 jobs despite increased profits

Hewlett-Packard reported increased profits Thursday as its PC business turned in a strong quarter, but the company will slash thousands more jobs to reduce costs. HP has already cut 34,000 jobs as part of a plan to boost profits announced two years ago. It will now cut an additional 11,000 to 16,000 jobs to make its workforce “more competitive,” it said. It announced the cuts along with its earnings report for the quarter ended April 30. HP’s profit for the period was $1.27 billion, up 18 percent from a year earlier, on revenue of $27.3 billion, which was down 1 percent.

HP announced Thursday that it will cut an additional 11,000 to 16,000 jobs, after previously revealing plans for 34,000 layoffs. The news came as part of the company’s second-quarter financial results, which were in line with analyst expectations. Shares slipped 2% in after-hours trading Thursday. HP said the latest layoffs would come across all its business units and geographic locations, and would generate $1 billion in annual savings beyond the $3.5 to $4 billion projected from the previously announced cuts. “No company likes to decrease the work force, and we recognize that this is difficult for employees,” CEO Meg Whitman said in a conference call with analysts. “I think everyone understands the turnaround we’re in.” HP originally announced the layoff plans in 2012 in an effort to streamline its teetering PC and services businesses. The company has been contending with consumers’ shift from PCs to mobile devices, as well as a declining printing business and some ill-fated acquisitions. Executives said on Thursday’s call that they don’t expect to announce additional rounds of layoffs.