HP Announces Mass Layoffs

(Ping! Zine) – Within the coming years, thousands of employees from top tech company HP will need to look for new jobs. The company yesterday announced plans to cut 27 thousand from its work force by 2014, an action that is part of what HP says is a “multi-year productivity initiative.”

While the employment cuts may be the most significant part of the restructuring, it’s just one of a number of key initiatives announced by HP. The company is set to reduce costs in areas such as supply chain optimization and more.

3 to 3 and a half million dollars could be saved from the company’s overall plan, according to a press release on the matter. The amount of employees cut accounts for 8% of the company’s current workforce.

“These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business,” commented HP CEO Meg Whitman in a release.

Whitman also admitted cutting jobs was difficult but emphasized the move was “necessary to improve execution and to fund the long term health of the company.”

Despite the loss of jobs, HP isn’t going completely cold-hearted on the matter. To help soon to be former employees, HP is offering benefits through an early retirement package. Meanwhile, costs savings obtained through the measures will be used by the company to invest in areas such as enterprise servers, software, cloud, printing and more.

Last year in August, HP confirmed that it would end its support for its tablet device, the TouchPad. That move resulted in the product selling for just $99 dollars, causing it to receive high sales through retailers including Amazon and BestBuy.