HP Faces Personnel Cuts

Hewlett-Packard is planning to cut its work force by 25,000 to 30,000 people, including 10,000 to 15,000 from its enterprise services group, which has been beset by declining profitability.

The cuts, widely expected in the wake of the company’s recent decision to combine two of its units, would reduce the number of employees by about eight percent. The total number of jobs to be eliminated remains in flux, but they reportedly will be “across the board” among H-P’s units.

H-P’s expense-reduction move follows more than a year and a half of turmoil at the company, which has been struggling with declining revenue and profits and issues that led to the appointment of Meg Whitman as chief executive officer last September. As consumers favor tablets like Apple’s iPad, the company’s PC sales are dropping. H-P also has been slow to adapt to the shift toward cloud computing, away from the IT services it provides.

Some of the cuts to its workforce of 324,600 — perhaps several thousand — may come through early-retirement packages.

—Sources: The Wall Street Journal, Bloomberg.com

Hewlett-Packard is planning to cut its work force by 25,000 to 30,000 people, including 10,000 to 15,000 from its enterprise services group, which has been beset by declining profitability.

The cuts, widely expected in the wake of the company’s recent decision to combine two of its units, would reduce the number of employees by about eight percent. The total number of jobs to be eliminated remains in flux, but they reportedly will be “across the board” among H-P’s units.

H-P’s expense-reduction move follows more than a year and a half of turmoil at the company, which has been struggling with declining revenue and profits and issues that led to the appointment of Meg Whitman as chief executive officer last September. As consumers favor tablets like Apple’s iPad, the company’s PC sales are dropping. H-P also has been slow to adapt to the shift toward cloud computing, away from the IT services it provides.

Some of the cuts to its workforce of 324,600 — perhaps several thousand — may come through early-retirement packages.

—Sources: The Wall Street Journal, Bloomberg.com

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