Hewlett-Packard (HP) is to axe up to 30,000 jobs in efforts to make the company more competitive in the face of the rising might of the smartphone and tablet markets.
The company has nearly 350,000 staff, making the cuts close to 10 percent of its entire workforce. Anonymous sources close to the company cite figures between 25,000 and 30,000 as the estimated job losses on the table.
It is believed that HP may announce the cuts next Wednesday at its quarterly earnings call, which is widely expected to show the continuing failure of the company to adapt to competition to the once-dominant PC market.
Axing 18,000 jobs would save the company a whopping $1 billion a year, according to Brian Marshall, an analyst for ISI Group, but with the company expected to lose $5 billion of its annual revenue this year, down from $127 billion to $122 billion, job cuts alone won't save it.
The company's latest CEO, Meg Whitman, indicated that she wants to spend more on research and development in order to encourage more innovation. She plans to reduce expenses in other areas of HP in order to afford this research, so we can likely expect further cutbacks and lay-offs throughout the company.
Source: Associated Press
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HP to axe 30,000 jobs
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