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Hewlett Packard faces cutbacks

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Job cuts rumours

Hewlett-Packard is considering axing a large number of its workforce according to a CNBC report, as new CEO Meg Whitman attempts to reverse the decline of the company.

The Hewlett-Packard enterprise services team is set to take the biggest hit, as it has been suggested that 10,000 to 15,000 staff members could lose their jobs. Overall, the workforce could be reduced by around 8 per cent, resulting in as many as 25,000 jobs being axed.

If the decision goes ahead to drastically cut the 324,600 strong staff list, the HP jobs cut would be one of the biggest redundancy programmes put in place in the US in recent years.

Refresh and revive

The new Hewlett-Packard CEO Meg Whitman joined the company in September in an attempt to reverse the fall that occurred during Leo Apotheker’s time leading the company. Apotheker led Hewlett-Packard for one year after Mark Hurd was forced to resign after allegations of sexual harassment.

It is thought that the money generated from the redundancies will not be used to increase profits, but will be reinvested back into the company. However, Hewlett-Packard’s previous attempt to grow failed as it was forced to withdraw the £400 TouchPad tablet due to poor sales.

Adrian Mursec, senior developer at theEword, said: “Hewlett-Packard has not given its full attention to investing in new services or products – in recent months, the TouchPad tablet has failed and the shift to cloud computing was slow. It is no wonder that the company now needs to find funds to refresh the brand which is currently falling out of fashion.”

Written by lauren_knowles_swapLauren Knowles

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