Cord Moving and Storage Reports Hewlett-Packard Cut Backs to Hurt the Moving Industry
Hewlett-Packard Co. expanded its planned job cuts by 5,000 positions, bringing the total number of layoffs at the tech giant to 34,000. In its annual report filed last week, HP noted the increase in staff reductions in addressing its multi-year restructuring plan.
As of July 31, 2013, HP estimated that it would eliminate approximately 29,000 positions in connection with the plan through 2014, with a portion of those employees exiting the company as part of voluntary enhanced early retirement.
As of that same date, HP estimated it would recognize approximately $3.6 billion of total costs in connection with the plan. HP also estimated that the number of positions ultimately eliminated could vary by as much as 15% from these estimates.
Due to continued market and business pressures, as of Oct. 31, 2013, HP said it expects to eliminate that additional 15% for a new total of 34,000 positions. As of Oct. 31, HP had eliminated 24,600 positions.
HP also said it expects to record an additional 15% in the cost of the plan bringing the new amount to $4.1 billion. HP expects approximately $600 million of that cost to relate to infrastructure, including data center and real estate consolidation. This is big news to the relocation business and the impact will be felt on every level of the industry that depends on corporate relocations as the base year round. More to follow.