HP Confirms Elimination of 27,000 Jobs

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Hewlett-Packard today confirmed rumors of massive job cuts. The world's largest personal computer and printer manufacturer - with thousand employees at its Boise campus - said it would shed 27,000 jobs, or about 8 percent of its workforce, by next year.

"These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business," said HP CEO Meg Whitman. "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."

The job cuts are the largest staff reduction effort in HP's 73-year history. In 2008, the company said it would eliminate 24,600 jobs over three years, and in 2010 announced it would cut about 9,000 more workers over several years.

At the closing bell, Hewlett-Packard stock dropped 3.2 percent on the New York Stock Exchange, trading at $21.08 per share. In April 2010, HP stock traded at more than $50 per share.