HP To Cut 27,000 Jobs; Beats Q2 Earnings, Sales Ests.; Shares Up 11.7% [Updated]

Article by Brian Caulfield, Forbes Staff

Moving to right a technology giant ailing after years of internal turmoil and cut-throat competition, Hewlett-Packard Chief Executive Meg Whitman outlined a plan to axe 27,000 jobs — or 8% of the company’s workforce — as the company posted better-than-expected second quarter earnings Wednesday, sending HP’s shares up more than 11.7%.

“There’s a lot we have to do, and we are moving quickly,” Whitman said on a conference call with investors. “We are in the early stages of what we hope to achieve here.”

While sales and profit were down sharply from the year-ago period, HP’s results beat both its own guidance and the expectations of analysts tracking the company.

http://www.forbes.com/sites/briancaulfield/2012/05/23/hp-to-axe-27000-jobs-beats-q2-earnings-sales-ests-shares-up-6-5-after-hours/

NickyJack Comment:  This is only another sign that the economy is not recovering, and policy changes need to be made (i.e. lower corporate taxes).  Apple has proved to be a a formidable rival to HP and Dell by devouring the market with Steve Jobs creations.  I have no problem with a company laying off employees to stay profitable, but am uneasy about the current conditions in the markets