HP Suffers US$8.9 Billion Loss
Technological giant, Hewlett-Packard, suffered its largest quarterly loss in its 73-year history as the firm struggles to cope with a shifting and unpredictable tech market. HP announced on Wednesday a staggering loss of US$8.9 billion was sustained by the company during the third quarter of the year.
To some pundits, this came as no surprise following HP's earlier disclosure to take an US$8 billion charge to size-up the shrinking value of Electronic Data Systems, a technology consulting service it purchased for US$13 billion four years ago.
To turn things around, HP plans to jettison 27,000 workers to reduce its overhead expenses and dwindling revenue pool. Based in Palo Alto, the tech firm expects to severe 11,500 employees from its payroll by end October; a sizable increase from its previous estimate of 9,000. An additional 15,500 employees would face the axe through October 2014.
Hewlett-Packard's revenue dipped five percent compared to last year's US$29.7 billion. That's about US$500 million short of analysts' projections as polled by FactSet.