HP Cuts 27,000 jobs, Eyes $3 billion Savings To Spend On Research

HP expects the restructuring to generate annualized savings in the range of $3.0 to $3.5 billion exiting fiscal year 2014, of which the majority will be reinvested back into the company. HP expects to use the savings to boost investment in innovation around its three areas of strategic focus: cloud, big data and security, as well as in other segments.

As part of the restructuring, HP expects approximately 27,000 employees to exit the company, or 8.0% of its workforce as of Oct. 31, 2011, by the end of fiscal year 2014. The company is also offering an early retirement program.

In addition to these restructuring actions, HP expects to achieve additional savings from non-headcount cost reductions, including supply chain optimization, SKU and platform rationalization, go-to-market strategy simplification and business process improvement.

"These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business," said Meg Whitman, HP president and chief executive officer. "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."

HP expects to reinvest savings in research and development to drive differentiation across its core printing and personal systems businesses, as well as emerging areas. It will also invest in marketing, sales productivity and tools.

Services will invest in accelerating service capabilities in the areas of cloud, security and information analytics by enhancing HP intellectual property.

Software will invest to speed development in the areas of security, big data and the management of application lifecycle and infrastructure solutions, both on premise and in the cloud. It will also further leverage the capabilities of Autonomy and Vertica across the entire HP portfolio.

Enterprise Servers, Storage and Networking will invest to accelerate its research and development activities to extend its portfolio of servers, storage and networking.

As a result of this restructuring, HP expects to record a pre-tax charge of approximately $1.7 billion in fiscal 2012 that will be included in its GAAP financial results for that period. Through fiscal 2014, HP expects to record additional pre-tax charges approximating $1.8 billion that will be included in its GAAP financial results for the appropriate periods.

HP said net revenue in the fiscal second quarter fell to $30.7 billion.

Source: CDRinfo

Tags: HP

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
The smartwatch is reportedly being released alongside the Galaxy Note9 with some new tech on board
 
Not to be confused with a flip phone which separates the display from the hinge
 
The PCI-SIG has announced that PCIe 4.0 specification is finished
 
The report even mentions that AMD developed the Navi GPU architecture specifically
 
Intel has alreadt started production of XMM 7560 modem chips
 
The Galaxy Note 9 was previously expected to ship with a 3,850mAh battery
 
New update claimed to reduce system stability issues by 20%
 
The new silicon could let Intel design 20-core and 22-core SKUs for the X299 Express chipset
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930




Poll

Do you use microSD card with your phone?
or leave your own version in comments (10)