HP To Cut 27,000 Jobs With New Restructuring Plan
Hewlett-Packard announced Wednesday that it is slashing 27,000 jobs in a widely expected maneuver aimed at slimming down the company. The company expects the layoffs, which amount to 8% of its worldwide workforce, to save $3 billion to $3.5 billion by the end of fiscal year 2014. The company is offering an early retirement program, so the total number of employees affected will be impacted by the number of employees that participate in the early retirement plan. Shares of HP jumped by nearly 11% in after-hours trading as investors cheered the company’s restructuring efforts and positive outlook.
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.
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