HP lowers turnover forecast and to cut 6000 positions

Global second biggest computer manufacturer HP announced that affected by the persistently worsening global economy and the declining expense in technology, it would reduce the sales forecast in the fiscal Q3 ended July 31 and eliminate 6000 positions. HP predicted that the Q3 turnover would fell 14-16% to reach around US$930m and US$10.16 bln, lower than the market expectation of US$11.11 bln. It is the second time that HP downgraded the Q3 sales forecast for the past two months. In mid-May, HP lowered the Q3 sales prediction by 5% to the same level with the same period last year. Besides, HP planned to cut 6000 jobs, accounting for 6.5% of the workforce. The move is expected to save US$500 mln of operational expense for the company. HP announced to cut 4700 jobs earlier. Its stock eroded US$1.68, or 6.54% to close at US$24.

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