HP to announce 25,000 job cuts – reports

23 May 2012

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The entrance to HP's corporate headquarters in Palo Alto, California. Photo from Wikimedia Commons

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The world’s largest computer maker HP is to announce the layoffs of some 25,000 workers across the company today as it tries to streamline its PC and services business, reports say.

CNNMoney cites a source as having told Fortune about the job cuts, most of which are expected to come from the printing unit. In March, HP had merged its Imaging and Printing Group into its Personal Systems Group (PSG), which includes PCs.

HP employs 349,600 people worldwide, according to its latest regulatory filing. The layoffs, which could be announced when HP reports its quarterly results today, would amount to 7pc of the company’s global workforce.

Meg Whitman, HP’s CEO, has been trying to restructure HP into a leaner and more efficient organisation in the wake of HP’s sales falling 15pc during the holiday period and consumer computer sales diving 25pc.

Her goal, The New York Times reported, is to spend the money she saves from the job cuts on increasing the efficiency of the company’s sales force and on creating new products.

HP’s services business has been struggling, as well, according to CNNMoney, with profits in HP’s printing business falling 10pc last year as sales remained flat.

The company is also fighting to stay relevant in a world that is going mobile and leaving PCs behind. The firm had considered spinning off its PC unit last year, for instance, but the board later decided it would hang onto the division.

HP had said it would be better to keep its PSG within the company for its shareholders and customers.

Tina held senior editorial positions at daily newspapers in Ottawa and Toronto

editorial@siliconrepublic.com