HP lays off 34,000 employees, splits into two

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HP
Washington, Oct 6: Hewlett-Packard Co., the maker of computers and printers is reported to have be splitting into two companies by revamping its technology service business. The Wall Street Journal raised the issue on Sunday, stating that the announcement may come on Monday. Out of the two companies, one is likely to sell HP's computers and printers and the second one is likely to sell technology services, including data storage, servers and software.

The California-based company has laid off innumerable employees due to flagging sales as consumers turn to mobile devices for basic computing work. This has led to diminishing demands for HP's desktops, laptops and printers.

In the recent quarter, HP posted a revenue of $27.6 billion, which is up by 1 percent as compared to last year. Interestingly, this is the first such quarterly revenue hike since its fiscal third quarter in 2011. A major part of the quarterly revenue, accounting for 51%, came from printers and computers, while the rest of it comes from various technology services, including consulting, software and financial program.

Meanwhile, HP's decision to wrap up 11,000 to 16,000 employees extented to a whopping 34,000 employees.

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