Tech giant HP has announced that it is going to axe ten per cent of its global workforce in an attempt to get back to profitability.
Over the next year and a half it will shed 14,500 employees in what it called ?a targeted programme designed to simplify its structure, reduce costs and place greater focus on its customers?. In other words: a bit of good old-fashioned streamlining.
"After a thorough review of our business, we have formulated a plan that will enable HP to begin delivering its full potential," said Mark Hurd, HP chief executive officer and president (pictured). "We can perform better - for our customers and partners, our employees and our shareholders - and we will."
The focus of the redundancies will be support functions such as IT, HR and finance and is expected to save $1.9 billion annually.
But, cheekily, HP has recently named three new executive vice presidents and added them to the company's Executive Council, expanding it to ten members in a move which is bound to anger those facing redundancy.
Cathy Lyons, a 26-year HP executive, was named executive vice president and chief marketing officer. Todd Bradley, formerly president and chief executive officer of palmOne, was named executive vice president of PSG. Randy Mott, formerly chief information officer at Dell and prior to that at Wal-Mart Stores, for 22 years, also joined HP as executive vice president and chief information officer.
In conclusion, Hurd said: "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."
n Digital imaging rival Kodak also seems to be having a tough time, recently announcing the axing of 10,000 workers as it continues to struggle to cope with the digital revolution.
The company blamed a "faster-than-expected decline in consumer film sales" for second quarter losses of $146 million.