Breaking: HP Plans To Cut 25,000 Jobs, Says Bloomberg

Posted on May 17 2012 - 6:03pm by Editorial Staff

Hewlett-Packard still under trauma of webOS, big news is hitting the hardware company (in words of company’s CEO Whitman) that HP is thinking of cutting 25,000 jobs, Bloomberg reports. According to company, cutting this number of job or 8 percents of its workforce will help it to reduce costs and help the company to survive better. The number to be cut also includes around 10,000 to 15,000 from HP enterprise service group, which sells a range of IT services.

“Hewlett-Packard could make the difficult decision of announcing” a workforce reduction, Brian Marshall, an analyst at ISI Group, wrote in a research note earlier this month. This “would enable investments in strategic, higher growth areas.” All on the top reducing at most 18,000 jobs could result in a total saving of about $1.2 billion and will add 50 cents to annual per-share earnings (probably the big figure but at a cost of large chunk of workforce).

 

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