HP’s Profits Nosedives by 17%
The bug called recession has applied salt on HP’s wounds as a direct result of smaller sales numbers and reduced profits. It was reported that HP’s profits have hit rock-bottom, down by 17% from the previous quarter. The main culprit is obviously printer and printer supplies along with desktop and laptop computers.
Many industry majors had recently mentioned that the recession had hit the lowest end and things should only look up going forward. But, does the HP profits cuts contradict the expert theory? HP’s Chief Financial Officer (CFO), Cathie Lesjak says its too complex to call that the theory has fallen.
A weak demand in the market is the obvious reason for the debacle. Figures suggest that printer sales have dipped by 23% whereas the printer supplies revenue fell by 14%. Lesjak feels that the decline was HP adjusting the amount of ink it had in resellers’ inventory.
There has been another fall-out since the profits numbers were made public. HP has decided to lay-off 2% off its employees worldwide. It has a total employee strength of 321,000; so the number of employees to be laid off are 6400.
About the author:
Abhinav has been blogging about printing and related technologies on CreativeCloud for several years. He is also a project manager for a large technology company.
Share your thoughts, leave a comment!
(get your own gravatar)