HP to cut 27,000 jobs in next two years

HP: TouchPad US campaign
HP: TouchPad US campaign

Hewlett Packard (HP) is to shed 27,000 jobs, or 8% of its workforce, in a global restructure, to strengthen itself in the areas of cloud computing, big data and security.

HP hopes to make annualised savings of up to $3.5bn (£2.2bn) through the job cuts, which will be reinvested back into the company.

The company claims the moves will make "significant improvements in efficiency and customer services during the next several years".

In addition HP chief strategy officer Bill Veghte will replace Mike Lynch, the founder of Autonomy, the UK IT company HP bought last year for £6.2bn.

Lynch is one of the UK’s most successful entrepreneurs having founded software firm Autonomy in 1996 based on work he did at Cambridge University.

Autonomy is the proprietor of the Aurasma augmented reality technology that is becoming prevalent in print and outdoor advertising.

The Aurasma brand has featured on the Tottenham Hotspur match shirt for the 2011-2012 Barclays Premier League season. 

Savings made will be invested in three areas of strategic focus – cloud, big data and security. 

HP will make the 27,000 job cuts, or 8.0% of the workforce, by the end of fiscal year 2014.

The company will offer an early retirement programme in order to make as few redundancies as possible.

Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives.

Meg Whitman, HP president and chief executive officer, said: "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.

"We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."

Follow Matthew Chapman at @mattchapmanUK


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer