HP today announced a major restructuring program that will take place over three years and includes a workforce red...
September 15, 2008
HP today announced a major restructuring program that will take place over three years and includes a workforce reduction that it says will streamline the combined company’s services businesses.
Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate.
Approximately 7.5% of the combined company’s workforce, or about 24,600 employees, will be affected over the course of the program, with nearly half of the reductions occurring in the U.S.
HP will provide employees affected by this restructuring program with severance packages, counseling and job placement services.
Once completed, the restructuring program is expected to result in annual cost savings of approximately US$1.8 billion.
HP will be recording a charge of US$1.7 billion in the fourth quarter of fiscal 2008 relating to the restructuring program.