OEM sees loss of nearly $9 billion, said to be the company’s largest ever quarterly loss.
The $9 billion loss is due to HP being forced to absorb huge charges incurred after overpaying for the acquisition of technology consulting service Electronic Data Systems in 2008, for which it paid $13 billion, reports Boston.com.
In addition, the initial costs of a streamlining programme which will see 27,000 jobs lost to help boost the company’s profits has also affected the quarterly results, with HP expected to pay between $1.5 billion and $1.7 billion to cover severance payments over the next two years.
HP is to expect a loss of $4.31 to $4.49 per share during the three months ending in July, translating as a loss of $8.5 billion to $8.9 billion, the worst quarterly result since the company was established in 1939.
There has been on-going scepticism regarding HP CEO Meg Whitman’s plans for the company, with HP stock falling 14 percent during her leadership so far.