HP To Get Rid of 10% of Full-Time Staff

HP announced that it has designed a cost-saving program to simplify its structure, and focus more on its customers, which of course means getting rid of employees. 14,500 employees will lose their jobs over the next six quarters, the company said. That is about 10% of its regular full-time staff. HP also said that it will modify its U.S. retirement benefits programs.

HP will carefully target staff reductions. Reductions in sales positions will be minimal, so that HP can continue to provide world-class service and avoid impacting customers; and there will be little change to headcount in research and development, to ensure that the company remains a leader in technology innovation. The majority of staff reductions will come in support functions, such as information technology, human resources and finance. The remainder will be made inside business units, in areas where work can be reduced by improving processes and re-prioritizing existing tasks. To facilitate these reductions, HP will offer a voluntary retirement program to longer-serving staff based in the United States. "Our objective is to implement these measures smoothly, with as little disruption to our business as possible. Great companies grow and reduce costs. We will do both," said Hurd. HP has recently added three new executive vice presidents (Cathy Lyons, Todd Bradley, and Randy Mott) to its Executive Council, which is now made up of 10 people. Chris is a staff writer for latest ebusiness news.