Hewlett-Packard to cut 10% of their workforce

Hewlett-Packard to cut 10% of their workforce

The rumors are now confirmed. One of the largest PC manufacturers Hewlett-Packard has just announced plans to cut their workforce by around 10%. The computer and printer manufacturer has decided to cut 14,500 jobs and overhaul its retirement program in a restructuring plan, which would help them to cut costs by $1.9 billion US annually.

The proposed job cuts would take place over the next six quarters and most of them would take place in the company’s information technology, human resources, and finance department. HP CEO Mark Hurd said in a statement: “Our objective is to create a simpler, nimbler HP with … clear accountability and greater financial flexibility.”

Some of the prime competitors for the company are Dell and IBM. Both companies have managed to garner bigger profits due to the crucial factor of having low spending on their employees. And Hewlett-Packard has increasing coming under pressure from the competition in their dominating market of computer printers.

The company plans to start this cutting down of workforce by offering a voluntary retirement program to longer-serving employees based in the United States. Hurd added: “After a thorough review of our business, we have formulated a plan that will enable HP to begin delivering its full potential. We can perform better – for our customers and partners, our employees and our shareholders – and we will.”

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