The company said the cuts – about 8% of its workforce – will reduce costs by up to $3.5bn (\u00a32.2bn) a year.<\/p>\n
HP said in a statement that the money would be reinvested into the company.<\/p>\n
The move was part of a “productivity initiative designed to simplify business processes” and comes as rival products such as the iPad tablet computer eat into HP’s sales.<\/p>\n
As part of the changes, the head of HP’s Autonomy division, Mike Lynch, is being replaced by Bill Veghte, HP’s chief strategy officer. Mr Lynch will leave after what HP called a “transition period”.<\/p>\n
Mr Lynch founded software company Autonomy as a small start-up and turned into one of the UK’s largest technology companies.<\/p>\n
It was bought by HP last year for more than $10bn.<\/p>\n
HP employs about 350,000 people worldwide and about 20,000 in the UK. A spokesman said it was too early to say exactly where the job cuts would hit, but no part of the business would escape some losses.<\/p>\n
“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,” the spokesman said.
\n‘Exceeded outlook’<\/p>\n
News of the job losses overshadowed the release on Wednesday of HP’s latest quarterly results. The company’s profits and revenues were both better than analysts had estimated.<\/p>\n
California-based HP reported a 31% fall in profits in the second quarter to $1.6bn. Revenue in the period fell 3% on a year ago to $30.7bn.<\/p>\n
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.”<\/p>\n
The former chief executive of eBay joined HP in September, vowing to turn around the company after a series of problems including a failed tablet computer and an announcement that it was considering an exit from the PC business.<\/p>\n
Her predecessor, Leo Apotheker, was ousted after just 11 months on the job.<\/p>\n
HP’s shares, which fell as much as 5% on Wednesday and closed 3% down, were up 6.6% in after-hours trading on Wall Street.<\/p>\n
source: www.bbc.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"
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