HP's 15,000 job cuts look imminent

Rumour, speculation, no comment

By Lucy Sherriff • Get more from this author

Posted in Financial News, 15th July 2005 13:30 GMT

HP's long awaited re-structuring could start as early as next Monday, according to reports, with as many as 15,000 jobs thought to be on the line.

CNet and the Wall Street Journal both cite unnamed sources close to the company saying that the axe is likely to fall early next week. CNet's source says Monday, the WSJ's prefers the Tuesday option.

Analysts have been expecting cuts at the tech firm for a while. Back in May Sanford C. Bernstein & Co. analysts predicted HP would soon opt to reduce its workforce by five to ten percent. Making the cuts could save HP between $750m and $1.5bn per year.

CEO Mark Hurd also warned that restructuring was on the horizon back in April when he took on Carly's mantle. He promised then that he would continue with a workforce reduction plan that was already in place. After the company posted so-so results for Q2 this year, he reiterated his determination to reduce costs.

HP itself has declined to join the discussion, saying that it "does not comment on rumour and speculation". ®