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HP has confirmed that it’s cutting about 8% of its global workforce, amounting to about 27 000 jobs and potentially saving the company about $3,5-billion.

The cuts will, where possible, be achieved through early retirement. HP employs about 300 000 people around the world.

The company yesterday announced financial results for the second quarter, ended 30 April, with net revenue of $30,7-billion down 3% year-on-year.

GAAP diluted earnings per share (EPS) was $0.80, down 24% from the prior-year period. Non-GAAP diluted EPS was $0.98, down 21% from the prior-year period. Second quarter non-GAAP earnings information excludes after-tax costs of $356-million, or $0.18 per diluted share, related to amortisation of purchased intangible assets, restructuring charges and acquisition-related charges.

“We are making progress in our multi-year effort to make HP simpler, more efficient and better for customers, employees, and shareholders,” says Meg Whitman, HP president and CEO. “This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do.”

Personal Systems Group (PSG) revenue was flat year over year with a 5,5% operating margin. Commercial revenue increased 3%, and consumer revenue declined 4% while workstations revenue was down 1% year over year. Desktop units were up 5%, notebook units were down 6% and total units were down 1%.

Services revenue declined 1% year over year with an 11,3% operating margin. Technology services revenue was flat year over year, application and business services revenue grew 1% and IT outsourcing revenue declined 3% year over year.

Imaging and Printing Group (IPG) revenue declined 10% year over year with a 13,2% operating margin. Commercial hardware revenue was down 4% year over year with commercial printer units down 7%. Consumer hardware revenue was down 15% year over year with a 13% decline in printer units.

Enterprise Servers, Storage and Networking (ESSN) revenue declined 6% year over year with an 11,2% operating margin. Networking revenue was up 2%, industry standard servers revenue was down 6%, business critical systems revenue was down 23%, and storage revenue was up 1% year over year.

HP Financial Services revenue grew 9% year over year driven by a 4% increase in net portfolio assets and a 5% increase in financing volume. The business delivered a 9,9% operating margin.

Software revenue grew 22% year over year with a 17,7% operating margin, including the results of Autonomy. Software revenue was driven by 7% license growth, 17% support growth, and 72% growth in services. Autonomy saw a significant decline in license revenue.

To help improve Autonomy’s performance, Bill Veghte, HP’s chief strategy officer and executive vice-president of HP Software, will step in to lead Autonomy.

In May 2012, HP committed to a change in its PC branding strategy. As a result, the company has begun an asset impairment analysis to determine the current value of the Compaq trade name acquired in 2002. Based on the preliminary results of that analysis, HP expects to record an impairment charge of up to approximately $1,2-billion that will be included in its GAAP financial results for its third fiscal quarter. There will be no cash impact associated with the impairment charge.