Hewlett-Packard set to axe 14,500 jobs

HR staff at Hewlett-Packard (HP) face an uncertain future after the IT giant announced it plans to cut 14,500 jobs – 10% of its workforce – over the next 18 months.

The redundancies and a company restructure, which would involve the scrapping of a separate enterprise sales division, are designed to save a total of US$1.9bn (£1.08bn) a year.

The majority of redundancies will be made in support functions, such as HR, IT and finance. The remainder will be made in business units, in areas where work can be reduced by improving processes and re-prioritising existing tasks, according to HP.

The job cuts programme will vary by country, based on local legal requirements and consultation with works councils and unions, HP said.

The company is also changing the format of its US company pension scheme, reducing the benefits to employees.

“After a thorough review of our business, we have formulated a plan that will enable HP to begin delivering to its full potential,” said HP chief executive officer Mark Hurd. “We can perform better – for our customers and partners, our employees and our shareholders – and we will.” 

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