Wednesday May 23 2012
HP announces 8 percent reduction in workforce
By: ToLewis, The Press Tribune
Roseville employees could be affected
PALO ALTO ? Hewlitt Packard announced Wednesday it will cut 27,000 jobs by the end of fiscal year 2014, which means some Roseville employees could soon be losing their jobs. According to company spokesman Michael Thacker, much of the 8 percent reduction in workforce will come in the form of an early retirement program. ?We expect the workforce reduction to impact pretty much every region and every business of our company,? Thacker said. HP employs 349,600 people worldwide, but the company will not release how many people are employed at its Roseville facility on Foothills Boulevard. Thacker said the number of people who will actually get laid off companywide will depend on how many people take part in the early retirement program. Eligibility for the program will be based on a combination of age and years of service to the company, Thacker said. The restructuring is expected to generate an annual savings of between $3 billion and $3.5 billion by the end of fiscal year 2014, according to a statement from the company. ?We are planning to take the savings from the workforce reduction and use that to invest in areas for growth for the company,? Thacker said. Company president and CEO Meg Whitman said in a statement that the realignment will further streamline operations, improve processes and remove complexity from the business. ?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,? Whitman said in a statement. ?We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders.? The company announced Wednesday second-quarter earnings of $30.7 billion, down 3 percent over last year both as reported and when adjusted for the effects of currency. Toby Lewis can be reached at email@example.com. Follow him on Twitter @TobyLewis_RsvPT.