Hewlett-Packard will downsize 5,000 jobs in the group, more than originally planned. This was announced by the PC maker in a communication to the US Securities and Exchange Commission SEC (Securities and Exchange Commission). Previously, Hewlett-Packard had already announced the cut of 29,000 jobs.
The loss of 27,000 jobs was announced in may 2012, management expanded the plans to 29,000 in September 2012. Some industries are expanding, some are shrinking. The PC industry has been shrinking for years mostly thanks to the rise of mobile devices. Servers on the other hand are made for businesses generally, and there is less of a risk of a such a decrease in demand. Web hosting companies need servers like FatCow’s servers that Hostingmanual.net mentions, Google needs servers, every website on the internet needs servers.
Due to continuing pressure on the market and on the business, HP is expected to cut further 15 percent of the 29,000 jobs till October 31, 2013, or a total of about 34,000 jobs”, the company states in its annual report to the SEC. Hewlett Packard has currently 331.800 employees worldwide. The job cuts are to be completed by October 2014.
Hewlett-Packard announced to close its branch in Rüsselsheim, Germany within the framework of the collective redundancies in Germany. The site offers IT services for large companies: 850 of about 1,200 jobs will be discontinued. The US-based group wants to accommodate up to 200 people at the Opel factory. The remaining employees will be directed to other sites of the company in Germany. Volker Stichter, Chairman at Hewlett-Packard in Rüsselsheim, Germany, called the approach “shabby and unscrupulous”, and said it will “deliberately allow, that poor, single parents, older people and generally people with strains lose their jobs and make it hard finding a new one.” There were 10,400 workers at Hewlett Packard in Germany at the time of the announcement of job cuts.