Hewlett Packard may axe 8 percent of workforce

Hewlett Packard are considering axing up to 8 percent of its workforce, or 25,000 people to help reduce costs and to help the company deal with a drop in sales and marketshare.

The enterprise services group may see a reduction in 10,000 to 15,000 jobs. The sources of the information didn't want to be identified because the plans are not final.

Ex CEO Leo Apotheker was superseded by Meg Whitman in September and her plans include reversing the growth problems. HP's computer sales are down as consumers spend their money on tablet computers.

Brian Marshall, an analyst at the ISI group said in a research note earlier this month “Hewlett-Packard could make the difficult decision of announcing. This would enable investments in strategic, higher growth areas.”

If they cut 18,000 jobs they will save $1.2 billion annually and add 50 cents to their annual per share earnings.

Hewlett Packard may plan to cut some staff by offering early retirement packages to thousands of people. The company are working with management consulting firm McKinsey & Co to work out a plan for cutting staff.

Predictions by Bloomberg indicate that Hewlett Packard sales may drop by 4 percent to $122.4 billion.

Kitguru says: Many employees will be pondering their future with HP today.

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