HEWLETT-PACKARD’S turnaround lost some momentum in its second fiscal quarter, with more job cuts and a dip in revenue overshadowing higher profits.

The Silicon Valley giant said it would cut an additional 11,000 to 16,000 jobs on top of 34,000 positions it previously said would be eliminated as part of a multi-year restructuring plan. At the midpoint of that range, the new cuts would trim an additional 4 per cent from H-P’s workforce of about 317,500 employees.

H-P’s results follow two quarters that had generally pleased investors, as the company appeared to stabilise itself under chief executive Meg Whitman after several years of turmoil.

The quarterly numbers were accidentally posted on H-P’s website ahead of schedule and before the close of regular trading Thursday.

H-P shares, which had been trading higher earlier in the session, dipped following the disclosure by more than 2 per cent to $US31.78 at 4pm. The stock slid more in after-hours trading, before rebounding slightly.

Following the release of the financial results, H-P announced leadership changes at its software and networking businesses.

H-P, known largely for personal computers, server systems and printers, has been grappling with stiff competition and rapid changes in the technology landscape. Its lack of revenue growth, along with the new job cuts, may complicate efforts to revive growth and innovation at H-P as Ms. Whitman hits the midpoint of her five-year turnaround plan.

Ms. Whitman said the new lay-offs will affect all business units and geographies.

“We recognise that it is difficult for employees,” she said. “Our employees know there are ways we can be more efficient.”

In fiscal year 2014, H-P said it expects the new lay-offs will produce approximately 2 to 3 cents a share of incremental savings, an estimated incremental charge of approximately $US500 million, and an additional cashflow impact of approximately $US200 million in the second half of the year.

H-P said lay-offs will also create an additional savings in fiscal year 2016 of approximately $US1 billion a year, although some of this will be reinvested back into its business.

For the quarter ended April 30, H-P reported that net income rose 18 per cent to $US1.27 billion, or 66 cents a share, from the year-earlier level of $US1.1 billion, or 55 cents. On an adjusted basis excluding certain expenses, H-P put earnings per share at 88 cents. Revenue fell 1 per cent to $US27.3 billion. Analysts on average had expected adjusted earnings per share of 88 cents on revenue of $US27.4 billion, according to Thomson Reuters.

H-P’s strongest-performing segment was its PC group, whose sales rose 7 per cent thanks in part to continuing strength in sales of computers to businesses. PCs are H-P’s largest business by revenue, but they also produce the lowest profit margin of the company’s main business groups.

RBC analyst Amit Daryanani wrote that mix of the company’s revenues is concerning especially if PC sales start to slow down following the boost seen in April when some customers were forced to buy new machines after Microsoft ended support for its Windows XP operating system.

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