Information Technology Company Hewlett-Packard to Axe 30,000 Staff
Information Technology company Hewlett-Packard (HP) is to axe more than 30,000 staff. The company, which has headquarters in Palo Alto, California, United States, is a globally recognized brand with a strong identity in the Personal Computer (PC) arena. The downsizing is designed to realign the company to the realities of the current IT landscape.
HP will restructure and form two new entities. Hewlett Packard Enterprise will cater to the business computer market, while HP Inc. will continue in the PC and printer market. The shift is intended to make the company more efficient and better able to address market conditions. Its enterprise division has been losing $4 billion annually, but the company believes its cloud computing activity will generate $3 billion in sales this year.
In 2011 HP had around 300,000 workers, but at its height, the company had around 350,000 staff. HP’s restructuring represents a loss of around 10% of its current workforce and its cost is likely to be in the realm of $2.5 billion in pre-tax penalties. "We've done a significant amount of work over the past few years to take costs out and simplify processes and these final actions will eliminate the need for any future corporate restructuring," explained the company’s CEO Meg Whitman in a statement. The company also intends to move 60% of its workforce to “cheaper countries” by 2018.
What do you think of HP’s downsizing? Is it enough? Let us know your thoughts? Add your comments below.
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