Rumors of impending layoffs at HP appear to have been true. The company's so called "multi-year productivity initiative" looks to cut eight percent of HP's total work force which is somewhere around 349,600 employees. This will result in 27,000 employees losing their jobs.
The major goal of these efforts is to generate somewhere between $3.0 and $3.5 billion in savings for the company at the end of fiscal year 2014. The majority of these savings are reported to be invested back into the company. HP is specifically looking to put this money into three major areas which include "cloud, big data and security, as well as in other segments that offer attractive growth potential."
The layoffs are scheduled to run through fiscal year 2014 with some portion of the employees leaving the company will be accepting an early retirement plan in order to reduce the number of employees needing new jobs after the restructuring.
HP will also be reducing costs by other means which include supply chain optimization, SKU and platform rationalization, go-to-market strategy simplification and business process improvement. HP hopes that this streamlining will put them back in a position of market leadership and allow them to more with more agility to get ahead of upcoming market trends.