Rumor: Huge Jobs Cuts Coming at HP

Manufacturing units to be spared, while services hardest hit

   

Rumors are circulating that Meg Whitman is planning significant staff reductions as part of her effort to turnaround struggling computer giant Hewlett-Packard (NYSE:HPQ).

An unnamed source, purportedly within HP, tells Business Insider that the layoffs currently under consideration are much larger than previously expected.

meg whitman smiles 630 200x200 Rumor: Huge Jobs Cuts Coming at HP
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Whitman has recently dismissed rumors of “broad-based” job cuts. However the unnamed source claims that the company will slash its global workforce by 10% to 15%, which would mean that at least 32,000 jobs could be eliminated under the plan.

Not everyone would be laid off. The company could achieve the overall job reduction number through a mix of layoffs, early-retirement offers and simple attrition. Some U.S.-based jobs might also be transferred overseas.

The source also claims that HP’s manufacturing units will be spared the worst of the job cuts.

HP’s services business, on the other hand, could take the biggest hit. Which may not be surprising since the source also predicts that quarterly numbers for the services unit will be disappointing.

How soon HP might announce the job cuts remained unknown.

The company declined comment to Business Insider regarding the report.

HP shares were up fractionally in early Thursday trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/rumor-huge-jobs-cuts-coming-at-hp/.

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