SAN JOSE, Calif. — While other big technology vendors have said they’ve seen demand bottom out and show signs of recovery, Hewlett-Packard Co. has stayed cautious, warning it’s too soon to tell when its business will improve.
HP Chief Executive Mark Hurd reinforced that outlook Thursday. He told investors and financial analysts at a meeting in New York that he’s confident HP can hit its profit forecast, but he wouldn’t speculate on the timing of a turnaround in tech spending. HP also signaled that even recent job cuts won’t be enough.
The recession has generated a lot of pent-up demand, because it has disrupted the normal cycle of tech upgrades, Hurd said, and when that will get back on track is unclear.
"The buildup now of 4-year-old desktops, 4-year-old notebooks, 4-year-old servers, this is creating quite a bubble,” Hurd said at Sanford C. Bernstein & Co.’s "Strategic Decisions” conference.
There is "a little more stability” in the market, particularly in China and U.S. consumer sales, he said. That echoed his comments from HP’s quarterly results last week, when the Palo Alto-based company reported a 17 percent drop in profit and a 3 percent decline in sales.
The company also announced 6,400 more layoffs, or 2 percent of its work force.
The company is indicating it will need to cut more jobs than that. HP said Thursday it plans to slash 5,700 jobs from Europe, the Middle East and Africa over the next two years. Some of those are included in the cuts announced last week, but not all. HP would not offer specifics.
by the associated press
HP Chief Executive Mark Hurd reinforced that outlook Thursday. He told investors and financial analysts at a meeting in New York that he’s confident HP can hit its profit forecast, but he wouldn’t speculate on the timing of a turnaround in tech spending. HP also signaled that even recent job cuts won’t be enough.
The recession has generated a lot of pent-up demand, because it has disrupted the normal cycle of tech upgrades, Hurd said, and when that will get back on track is unclear.
"The buildup now of 4-year-old desktops, 4-year-old notebooks, 4-year-old servers, this is creating quite a bubble,” Hurd said at Sanford C. Bernstein & Co.’s "Strategic Decisions” conference.
There is "a little more stability” in the market, particularly in China and U.S. consumer sales, he said. That echoed his comments from HP’s quarterly results last week, when the Palo Alto-based company reported a 17 percent drop in profit and a 3 percent decline in sales.
The company also announced 6,400 more layoffs, or 2 percent of its work force.
The company is indicating it will need to cut more jobs than that. HP said Thursday it plans to slash 5,700 jobs from Europe, the Middle East and Africa over the next two years. Some of those are included in the cuts announced last week, but not all. HP would not offer specifics.
by the associated press
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