Citing challenging business conditions, PC maker Hewlett-Packard (HP) has expanded its plan to cut jobs in 2014, raising the number of out-of-luck employees from 29,000 to 34,000. According to The Street, HP employed about 317,500 workers as of October 31 of last year. The recent slide in PC sales has been tough for the company, which at one point had considered divesting its PC sales business. The restructuring project under the leadership of CEO Meg Whitman includes more than just job cuts; the company plans to also consolidate data center and real estate holdings, with the project’s price tag expected to exceed $4.1 billion, according to ZDNet.
A number of factors have combined to hurt HP in recent years, not the least of which is the decline in PC sales. The company’s first foray into the tablet and smartphone market was cut short when HP pulled its product line in 2011. It has since returned to the tablet market, but the late reentry puts it at tremendous a disadvantage to other mobile manufacturers like Apple and Samsung. Other trends, like good-enough computing (particularly in PCs, but increasingly in tablets and smartphones) also poses challenges, as well as a sputtering Moore’s Law. The upcoming year could tell much about the future of HP as it struggles to find its place in a competitive market.
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