Net revenue for the quarter was US$30.7bn, down 3 per cent year over year both as reported and when adjusted for the effects of currency.

The Imaging and Printing Group (IPG) revenue declined 10 per cent year over year with a 13.2 per cent operating margin. Commercial hardware revenue was down 4 per cent year over year with commercial printer units down 7 per cent. Consumer hardware revenue was down 15 per cent year over year with a 13 per cent decline in printer units.

In response HP has announced the largest payroll purge in its 73-year history, which will affect around 8 per cent of its 250,000 strong workforce.

Meg Whitman, HP president and chief executive officer says, “While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company.

“We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders.”

HP says the savings from the jobs cuts will be used to boost investment in innovation around its three areas of strategic focus: cloud, big data and security, as well as in other segments that offer attractive growth potential.

As a result of this restructuring, HP expects to record a pre-tax charge of approximately US$1.7bn in fiscal 2012 that will be included in its GAAP financial results for that period. Through fiscal 2014, HP expects to record additional pre-tax charges approximating US$1.8bn that will be included in its GAAP financial results for the appropriate periods.

Workforce reduction plans will vary by country, while the affect in Australia remains to be seen.

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