HP will Cut 27,000 Jobs to Save $3.5 Billion a Year

hp cuts jobs

HP will cut 27,000 jobs to cut operational costs

The rapid advances in mobile technology is not always a good thing; just ask HP’s employees.

According to BBC News, HP – allegedly the world’s largest PC maker – is reportedly to cut 27,000 jobs by 2014 – approximately 8 percent of HP workforce. The cuts will help reducing HP’s operational costs by $3.5 billion a year.

The slash is meant to bring down costs due to the decline of it’s PC business and to answer the market trends that show no sign of slowing down for tablets and smartphones.

Perhaps the biggest driver of the cut is the plummeting revenue. HP has reported its second quarter earning of $1.59 million, a 31 percent drop from last year’s $2.3 billion.

Via a series of milestones (read: problems) – such as the failed tablet computer and the big bad announcement of HP considering to bail out of the PC business – the current HP chief exec Meg Whitman tries her best to turn things around. Will she succeed? Only time will tell.

Advertisement

No comments yet.

Leave a Comment

Featured FREE Resource: