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Hewlett Packard cut 27,000 jobs

The world’s largest manufacturer of personal computers Hewlett Packard has outlined plans to cut 27,000 jobs by the end of 2012.

The cuts represent around 8% of the workforce, and will reduce costs by up to $3.5 billion (£2.2. billion) a year.

All funds saved will be reinvested into the company.

The company described the move as a “productivity initiative, designed to simplify business processes”, after HP witnessed disappointing sales of their tablet computer.

Head of HP’s Autonomy Division Mike Lynch will be replaced by Bill Veghte, HP’s chief strategy officer, and Mr Lynch will leave after a “transition period”.

HP employs around 30,000 people around the world, and 20,000 in the UK. It is unclear where the job cuts will hit but all parts of the business will be affected.

A spokesperson commented: “We have not yet announced specific plans with regards to specific locations.

“We do expect the workforce reduction to impact just about every business and region.”

Despite the job cuts, the company’s profits and revenues were both better than analysts had previously estimated. California-based HP reported a 31% fall in profits in the second quarter to $1.6 billion. Revenue in the period fell 3% on a year ago to $30.7 billion.

Meg Whitman, HP’s chief executive, said: “This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .