PALO ALTO -- Hewlett-Packard, which is nearly done laying off 34,000 workers, announced Thursday that it plans to trim its ranks by an additional 11,000 to 16,000 employees.
The Palo Alto technology giant began laying off the 34,000 workers in 2012 and was planning to complete those cuts by October. But in a statement accompanying its fiscal second-quarter earnings, HP said more job reductions are needed. The company has about 317,500 employees worldwide, according to its most recent annual report.
"As HP continues to re-engineer the workforce to be more competitive and meet its objectives, the previously estimated number of eliminated positions will increase by between 11,000 and 16,000," it said. Although HP officials didn't say how many of the job cuts would be in the Bay Area, they said the reductions would affect all of the company' global operations.
HP's workforce reduction is part of a broad cost-cutting initiative to help it regain its financial footing. The company in recent years has seen its sales and profit stall, largely due to declining consumer interest in personal computers, its primary product.
For the second quarter, HP reported sales of $27.3 billion, a drop of about 1 percent from the same period a year ago. But its $1.3 billion profit was up 18 percent over the same period.
"HP's turnaround remains on track," CEO Meg Whitman said during a conference call with analysts. "Looking forward, I'm excited about the strength of our product lineup."
She added that "no company likes to reduce their workforce," but said it was necessary to help get the company's costs under control and make it more "nimble." Asked by an analyst if the increased job cuts mean she's growing more worried about the company, Whitman insisted "it has nothing to do with our confidence in the business."
HP's chief financial officer, Cathy Lesjak, said all of the layoffs are expected to be completed sometime next year.
HP's stock dropped 74 cents, or 2.3 percent, to $31.78 at the close.