Times: HP To Slash 30,000 Jobs


The New York Times reports that Hewlett-Packard is looking at slashing about 30,000 jobs from its payroll, representing about 10 percent of HP's workforce of 324,000.

The Times reported that HP wants to reduce costs so it can increase spending on product development and sales, according to sources inside the company who requested anonymity. The exact number of employees who will lose their jobs has not been finalized, the sources said.

HP’s new chief executive Meg Whitman “is trying to build a new company,” one senior executive said, according to the Times. “You can count this as a part of that.”

According to Bloomberg News, "the company's PC sales are dropping as consumers favor tablets, such as the iPad, and it has been slow to adapt to the shift toward cloud computing, away from the IT services Hewlett-Packard provides."

Shedding 18,000 jobs could result in savings of about $1.2 billion and add 50 cents to annual per-share earnings, Brian Marshall, an analyst at ISI Group, wrote in a research note earlier this month, according to Bloomberg News.

The job cuts will occur in nearly all parts and all regions of the global company, the Times reported. It is possible that Hewlett-Packard will offer early retirement packages to several thousand employees, the sources said, according to Bloomberg News.