HP To Terminate 10% of Staff Over Next Six Quarters

HP is cutting jobs as part of its new program to save money and simplify the structure of the business. 10% of the company's full-time staff will be let go. About 14,500 employees in all will be terminated over the next six quarters as part of this program. HP is also making changes to its U.S. retirement benfits 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.