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HP to Cut 27,000 Jobs as Part of Restructuring Program

By Agam Shah May 24th 2012
HP to Cut 27,000 Jobs as Part of Restructuring Program
The cuts will amount to 8 percent of HP's workforce as part of restructuring program that started last year and is to continue through 2014.

Hewlett-Packard will trim 27,000 employees as part of its long-term restructuring plan, the company said when it announced quarterly financial results.

The company will shed about 8 percent of its workforce through a combination of layoffs and retirement offers that started last Oct. 31 and will continue through the end of its 2014 fiscal year, HP said. Employee reduction plans vary by country.

The restructuring program is expected to save US$3 billion to $3.5 billion through fiscal year 2014, and a majority of those savings will be reinvested in the company, HP said in a statement.

The job cuts are "difficult" but they also are "necessary to improve execution and to fund long-term health" of HP, CEO Meg Whitman said in a statement.

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