What’s Next in HP’s Extensive Layoff Plan?
In May of 2012, Hewlett-Packard (NYSE:HPQ) announced its intentions to restructure, projecting savings between $3.0 to $3.5 billion by the end of the 2014 fiscal year. The restructuring was to include job cuts for somewhere around 27,000 HP employees — 8 percent of its total workforce as of October 2011.
“While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company,” HP President and Chief Executive Officer, Meg Whitman, said in the company press release. Reuters reports that the tech company will be making 1,124 out of the total 27,000 job cuts in Britain. The Unite union told Reuters that HP has 15,000 to 20,000 employees in the country.
The union believes that the cuts there are a result of low demand, alongside the previously stated company need for reorganization. A spokesperson confirmed the number of cuts happening in Britain with Reuters, but made no further comment. Revenue has been doing better than analysts expected recently, with strong reports as of last week.