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HP to eliminate 27,000 positions

HP on Thursday outlined plans for what it described as a multi-year productivity initiative designed to simplify business processes, advance innovation and deliver better results for customers, employees and shareholders.


May 25, 2012  


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HP on Thursday outlined plans for what it described as a multi-year productivity initiative designed to simplify business processes, advance innovation and deliver better results for customers, employees and shareholders.

As part of the restructuring, HP expects approximately 27,000 employees to exit the company, or 8% of its workforce as of Oct. 31, 2011, by the end of fiscal year 2014. The restructuring is expected to generate annualized savings in the range of US$3-3.5 billion.

The company said it plans to use the savings to boost investment in innovation around its three areas of strategic focus: cloud, big data and security, as well as in other segments that offer attractive growth potential.

“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 CEO. “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.”