HP Posts Mega-Loss after EDS Writedown

Reuters: For its third fiscal quarter, HP posted a $8.9 billion loss due primarily to a $10.8 billion writedown of its $13.9 billion acquisition of EDS. The company reported net revenue of $29.7 billion, a 5 percent year-over-year decrease. Revenue from the PC division showed the biggest drop–10 percent–with revenue of $8.6 billion.

HP is in the midst of a global restructuring effort which will reduce its headcount by 8 percent. It eliminated 4,000 jobs during the most recent quarter and expects to have cut 11,500 jobs by the end of the year.

“We are still in the early stage of the turnaround. There will be challenges ahead that could create some variability in performance,” said HP CEO Meg Whitman. “But I’m confident in our ability to work through them and get to where we want to be.”