HP could shed 25,000 jobs as profit margins continue to shrink
by on May 17, 2012 at 9:19 pm
Sections: Business News
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Industry analysts are predicting some bad news for Hewlett-Packard as the company is expected to shed thousands of jobs. In order to cut costs and institute more efficient business practices, HP is expected to cut 25,000 corporate jobs over an unspecified time frame. A high majority of the jobs, such as 10,000-15,000, will come from the IT sector of HP as many companies are turning to cloud computing alternatives. The overall organization restructuring involves increasing research and development funding.
In addition, the CEO of HP, Meg Whitman, plans to combine the PC and Printing industry, two of the more profitable sectors of HP and cut excessive jobs . Early retirement packages are expected to be used as a method to layoff thousands of workers. The expected savings resulting from the job cuts could be anywhere from $1-$3 billion.
HP will give a detailed fiscal report of its earnings in Q2 of 2012 where more information could be announced on the potential job cuts.
Via [Bloomberg]
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