HP shares down 13 per cent; to cut workforce by 8 per cent

Firm's CEO anticipates decline in revenue across its divisions
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Hewlett-Packard shares have fallen to their lowest in ten years following a statement from its boss discussing the company's planned turnaround.

The decline is a response to HP CEO Meg Whitman's recent comments, which referred to 2013 as a "fix-and-build" and predicted a decline in the year's revenue.

Shares for the firm dropped down 13 per cent to a share value of $14.91.

HP has predicted its profit for the fiscal year to be between $3.40 and $3.60 per share, a value that falls short of the $4.18 share value expected by market analysts.

As part of the planned turnaround the firm plans to cut around 27,000 jobs, which is close to eight per cent of its total workforce.

Whitman anticipates significant growth from the planned changes, with the expectation that by 2016 HP's revenue will achieve "operating profit growing faster than revenues, industry-leading margins and disciplined capital allocation," as the firm's growth in revenue matches with US GDP.

The firm anticipates struggles for its enterprise division too, predicting a decline in revenue between 11 and 13 per cent.

As desktop sales continue to falter, due in part to the growth of the mobile devices market, firms like HP and Dell are struggling to balance the defect with revenue from other areas of business.

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