Hewlett-Packard Could Tumble 15% By 2013
Hewlett-Packard (HPQ) will cut a large number of jobs, with some sources putting the number at 25,000 and others putting it at 30,000. This represents about 8% of the company’s workforce.
This is all part of a huge restructuring plan that the company plans to unveil very soon. The details of the restructuring will be available when the company reports its quarterly earnings. So far, what we do know, is that the company claims that it is not doing this in order to keep shareholders happy but rather to “make needed investments.” In addition, the cuts will not all happen at once. HP reports an intention to cut the jobs over a long period of time, perhaps even as long as a year. This is contrary to certain reports that state that people closely involved in the restructuring plans claim that the restructure is due in large part to declining profitability. On the other hand, these people have also asked not to be named as plans are not final. Without knowing exactly who the sources are, it is hard to say whether or not this information can be trusted.
The company’s Chief Executive, Meg Whitman, is determined to “turn the company around.” Recently, HP has suffered a huge decrease in stock price, which means that new innovations may well be called for. Cuts made in HP’s past were not concurrent with new investments, which is why, Whitman claims, they were unsuccessful.To continue reading, click here.