(WEB HOST INDUSTRY REVIEW) — IT giant Hewlett-Packard (www.hp.com) announced on Tuesday it will cut 2 percent of its workforce, approximately 6,400 employees, after the company’s profits for the second quarter took a 17 percent dive to $1.7 billion, according to a report by The San Francisco Business Times.
The company had earlier projected a 2 to 5 percent decrease in sales for the full year, but has now confirmed it will experience a 4 to 5 percent decline.
HP anticipates that personal computer sales, in particular, will suffer a significant drop.
The company has about 321,000 employees around the world. It currently has 4,000 employees in Ireland with plans to add another 500 jobs near Dublin, but will also cut some jobs there.
Last month, HP requested to build a more than 250,000-square-foot data center, worth up to $260 million, next to its 1.1 million-square-foot complex in Colorado Springs.
And although the facility will create about 25 jobs, as well as another 300 to 400 temporary construction jobs, the company will be cutting 800 jobs at the same time when it shuts down its call center in the city.
The Colorado Springs government offered tax rebates to convince HP to preserve about 125 “high paying” jobs in the city.
Additionally, some of the 800 call center employees were offered positions if they relocated to Rio Rancho, New Mexico.
The company is constructing a 1,350-employee call center there that is scheduled to open at the end of the year.
The 6,400 job cuts do not apply to HP’s Electronic Data Systems, which the company purchased last August for about $13.9 billion.
EDS’ business helped increase HP’s overall sales in the service segment during the second quarter.
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