Hewlett-Packard (HPQ) may cut up to 25,000 jobs, or 8% of its workforce, writes Aaron Ricadela of Bloomberg�this afternoon, citing unnamed sources that have apparently been briefed on the computer maker’s plans.
The cuts could include 10,000 to 15,000 layoffs in the company’s “enterprise” services group, Ricadela reports.
The report echoes a report this morning by Business Insider‘s Julie Bort, though she had suggested cuts might be “massive,” on the order of 10% to 15% of the total workforce.
Shares of HP are currently up 7 cents, or 0.3%, at $22.10, reversing weakness earlier in the session.
Update: AllThingsD‘s Arik Hesseldahl now writes that the restructuring plan will be announced this coming Wednesday, May 23rd, and that it will “include the elimination of about 30,000 jobs,” citing multiple unnamed sources.
HP shares are up 9 cents, or 0.4%, at $22.12.
Update 2: In a note to clients this afternoon, RBC Capital‘s Amit Daryanani writes that the 25,000 count from Bloomberg earlier is “a positive” move, and “not entirely unexpected.”
“We continue to believe HP will likely announce a restructuring charge of ~$1.5 to 2.0B to align its cost structure to the demand reality,” writes Daryanani.
“In our view, the key belief going forward is revenue stability rather than a restructuring initiative. We believe the company needs a stable revenue base to realize benefits of the
restructuring initiatives.”
Daryanani has an Outperform rating on the shares and a $33 price target.
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