Hewlett-Packard Co. has announced that it intends to 11,000 to 16,000 jobs by October, and the total number of layoffs will be equal to 50,000.
The company has announced that the decrease of jobs has come as a result of the company's decision to cut costs and has not been forecast in the past.
"I would say I'm feeling more confident because we have seen a stabilization of revenue," A HP official has told analysts on a conference call. "The high single-digit declines are over."
More cost cuts are not to be expected in the following year.
The Palo Alto-based company has announced that the job reductions will bring savings of $1 billion annually. Despite all savings, experts believe that the stability of the high-tech giant could be only short-term. The company has declared that that Microsoft Corp.'s finale of support for its nearly 13-year-old Windows XP operating system in April had increase demand for PCs, especially in a country like Japan.
"The part I would worry about is: Do PCs get back to declining once XP's benefit is behind you?" said Amit Daryanani, an analyst with RBC Capital Markets. "Is it truly from opportunities they found or is it ahead of an air pocket in demand?"
HP announced has announced the cuts but reported a rise of income in April 30 - it rose 18 percent to $1.27 billion.
Revenue has fallen to $27.31 billion, below the $27.43 billion analysts expected.
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