HP Increases Job Cuts to 29,000

The restructuring is expected to save $3.0-3.5 billion by the end of the 2014.

Hewlett-Packard (IW 500/7) said Monday its job cuts under a major restructuring program will total some 29,000, or 2,000 more than previously estimated.

In a regulatory filing, the world's biggest maker of personal computers said the cuts will be made through its 2014 fiscal year, with "a portion of those employees exiting" accepting a buyout, or "enhanced early retirement."

The cuts are part of an effort by chairman and chief executive Meg Whitman, who took the reins at HP a year ago, to turn around the giant hurt by a shift away from traditional PCs.

Whitman said in August said the workforce reduction was proceeding faster than expected, with 4,000 departures in the first three months and the number expected to hit 11,500 by the end of October.

HP said the move was part of "a multi-year productivity initiative designed to simplify business processes, advance innovation and deliver better results for customers, employees and shareholders."

The restructuring is expected to generate annualized savings of $3.0-3.5 billion by the end of the 2014 fiscal year for HP, which is struggling amid a move to mobile devices and tablet computers.

Copyright Agence France-Presse, 2012

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