Hewlett Packard has been forced to release its Q2 financial results a day early after a leaked memo from CEO Leo Apothekar warned of a tough quarter, causing the company's shares to fall 4 percent, Reuters reports.
Wall Street analysts expect the company’s Q2 financial results to meet expectations as the market bounces back on increased corporate spending.
In an internal memo leaked by Bloomberg, new HP CEO Leo Apothekar, warned his managers of ‘another tough quarter’ and asked them to ‘watch every penny and minimise all hiring’.
The company’s said in the memo that the company’s current employee headcount plans were ‘unaffordable’ due to the financial and market pressures on the company. He asked his managers to evaluate the company’s hiring strategy to bring it in line with ‘the new realities of the market and our position’.
The memo painted a dire picture of the company’s finances and market position, struggling to get by and apparently operating on a virtual skeleton crew.
Investors are worried about reinvigorated competition from Oracle and Cisco, weka consumer PC sales and HP's risky move into cloud-computing, but none of these concerns are new and HP's stock prices are expected to return to normal levels once its second quarter results are released.