A report suggests that the technology giant is working with management consulting firm McKinsey & Co. to draw up the job-cuts plan.
The cuts are designed to cope with the declining demand for computers and services, according to sources.
The swingeing job cuts come as new chief executive Meg Whitman attempts to revitalise the firm after joining the company in September.
Whitman replaced Leo Apotheker, who was ousted after shareholders rejected his turnaround plans.
The company is the market leader in the UK in terms of PC sales but is suffering globally as consumers turn away from PCs to tablets.
It is understood HP is gearing up for a re-entry to the consumer tablet market later in the year with a device based on the upcoming Windows 8 operating system.
In March, Whitman ended speculation concerning a spinning off of its PC unit with an announcement that the company will combine its PC and printing divisions.
It is believed the company will attempt to make many of the job cuts through early retirements.
News comes as the company prepares for its second quarter earnings report on 23 May.
HP said it was unable to comment on rumour and speculation.
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