HP has warned that it will be taking a higher-than-expected financial hit as the costs for its restructuring project spiral.
HP said it expected to take a charge in its next quarterly results of between $1.5bn and $1.7bn for its job cutting and restructuring plan. It had originally anticipated its plans would cost it $1bn.
The increase was because employees have been accepting the offers for voluntary job cuts at a faster rate than expected, pushing up the costs for HP.
The report comes as HP announced plans to restructure the management team in its Enterprise Services division.
The overhaul will see John Visentin leave his position with the company as senior vice president and general manager of Enterprise Services. Current vice president of Enterprise Services in Europe, the Middle East and Africa, Mike Nefkens, will take over for Visentin. Additionally, Jean-Jacques Charhon will take over as chief operating officer for Enterprise Services.
The company expects to write down the goodwill value in its services division by $8bn over the next quarter, largely due to a poor market and a drop in the company's stock price.
HP has been looking to cut some 27,000 employees from its ranks in hopes of boosting its dwindling profits as of late. In addition to sagging finances, HP has seen a parade of executives come and go at its highest ranks in recent years.
Meg Whitman was named to the chief executive position late last year following the ignominious departure of Mark Hurd and the brief but tumultuous reign of Leo Apotheker. In taking over, Whitman said that "ending drama" at the company would be a top priority going forward.
Yeah, sorry about all that, simpers Zuckerberg
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