HP planning on restructuring and cutting jobs

HP planning on restructuring and cutting jobs

Hewlett-Packard has announced restructuring plans scheduled to start at the end of this current month. This procedure is expected to cause massive level layoffs as per the speculations of the market experts. HP is the world’s second largest computer maker and the people at the top believe that their cost structure is not exactly in best shape.

Possibilities of job cuts were first noticed when the results of the company’s performance in the second quarter were released. In fact, Moors & Cabot analyst Cindy Shaw wrote in a research this week that the company could easily cut as many as 25,000 jobs next week. Another senior analyst believes that as many as 10% of the workforce can be laid off as a result of this restructuring process.

These efforts are expected to save the company more than USD 1.5 Billion every year. The company started the process in May itself when it announced a voluntary severance package program that attracted about 2,000 employees in the company’s imaging and printing business itself.

Chief Financial Officer Bob Wayman has said in a statement to the market analysts: “we are currently evaluating ways to optimize our cost structure, and are preparing to take the actions necessary to do so. Beginning with the third quarter, we will exclude the costs of workforce reductions from our segment operating results,” Wayman said. “We will continue to do so until such time as the majority of the actions are behind us.”