Business

Hewlett-Packard makes $8.8bn loss in third quarter

HP ink cartridges
Image caption Hewlett-Packard hopes to cut it workforce by 8% by 2014

Hewlett-Packard has reported a quarterly loss of $8.85bn (£5.57bn).

The world's largest technology firm by sales was forced to to write down the value of some assets, mostly related to its purchase of Electronic Data Systems, which it bought in 2008.

The firm also had to absorb some sizeable restructuring costs, as it looks to cut some 27,000 jobs, or 8% of its global workforce, by 2014.

HP said net revenue in the third quarter fell by 5% to $29.7bn.

The company, like rival Dell Inc, is struggling to offset faltering PC sales with services revenue.

It is undergoing a multi-year restructuring, and chief executive Meg Whitman has asked investors to be patient while this was being carried out.

"HP is still in the early stages of a multi-year turnaround, and we're making decent progress despite the headwinds," she said in a statement.

"During the quarter we took important steps to focus on strategic priorities, manage costs, drive needed organizational change, and improve the balance sheet."

HP paid some $13.9bn for Texas-based technology outsourcing company EDS four years ago.

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