HP To Cut 27,000 Jobs, Save US$3.5 Billion In The Process

HP To Cut 27,000 Jobs, Save US$3.5 Billion In The Process

HP has announced their new multi-year business plan which includes the shedding of 27,000 employees from its global workforce, which currently stands at 349,600. This would free up US$3 Billion to US$3.5 Billion which the company intends to reinvest into three main businesses: cloud computing, IT security and "big data" products and services for businesses. The layoffs will take place over the next couple of years, until the end of fiscal year 2014. 

This news comes after yet another reorganization of the beleaguered IT company and a poor financial performance in the second quarter of 2012, where they recorded a 31% drop in earnings, making only US$1.6 Billion on a net revenue of US$30.7 Billion.

"These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business," said Meg Whitman, HP president and chief executive officer. "While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."

Source: HP, The Verge