Hewlett Packard to layoff 27,000 employees in next 2 years

NEW YORK: Hewlett-Packard (HP) has decided to cut 27,000 jobs in the upcoming two years with the aim to restructure the slipping profits and revenues.

An official statement from HP said, “As part of the restructuring, HP expects approximately 27,000 employees to exit the company, or 8 per cent of its workforce as of October 31, 2011, by the end of fiscal year 2014.”

HP, which has over 300,000 employees across the globe, has been facing problems with the demand for PCs and printers.

It is believed that the cut in workforce would be helpful in an annual savings in the range of $3-3.5 billion by the end of the fiscal 2014. HP stated that majority of the funds will be used by the the company.

The job reduction will consist of an early retirement programme. The firm is mulling to make use of the savings to strengthen investment in innovation in three important areas of importance— cloud computing, big data and security, and also other segments that provide lucrative growth potential.