HP to slash 27,000 jobs, to save around $3.5 billion by 2014

Telecom Lead America: HP has decided to cut 27,000 jobs
by 2014. This will be 8 percent of its total work force. HP will save around
$3.5 billion.

The restructuring is expected to generate annualized
savings of around $3 billion – $3.5 billion in fiscal year 2014.

HP will reinvest majority of the savings into the company.
It will invest in cloud, big data and security, as well as in other segments
that offer attractive growth potential.

HP is offering an early retirement program. Workforce cut
will vary by country, based on local legal needs and consultation with works
councils and employee representatives.

HP did not share country specific plans. India is one of
the main markets for HP.

HP will achieve additional savings from non-headcount
cost reductions, including supply chain optimization, SKU and platform
rationalization, go-to-market strategy simplification and business process

“These initiatives build upon our recent
organizational realignment, and will further streamline our operations, improve
our processes, and remove complexity from our business,” said Meg Whitman,
HP president and chief executive officer.

HP will invest in research and development to drive
innovation and differentiation across its core printing and personal systems
businesses, as well as emerging areas.

It will also invest in marketing, sales productivity and
tools that simplify the customer    experience and make it
easier to do business with HP.


Services will invest in accelerating service capabilities
in the high client value areas of cloud, security and information analytics by
enhancing HP intellectual property. Services will also strengthen its industry
orientation and continue to differentiate its service offerings through quality
and innovation delivered to clients.


Software will invest to speed development in the areas of
security, big data and the management of application lifecycle and
infrastructure solutions, both on premise and in the cloud. It will 
also further leverage the capabilities of Autonomy and
Vertica across the entire HP portfolio.


Enterprise Servers, Storage and Networking will invest to
accelerate its research and development activities to extend its leading
portfolio of servers, storage and networking. Together these assets create a
Converged Infrastructure which is the foundation for top client initiatives
such as cloud, virtualization, big data analytics, legacy modernization and
social media.


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