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The US-based IT company has announced plans to cut 27,000 jobs over the next two years as part of what it calls a “multi-year restructuring”. The layoffs, which include early retirement packages, are expected to save the company USD 3-3.5 billion by the end of 2014. HP said the savings generated will be used to re-invest in the company, in particular in R&D at the PC and printing department, cloud services, network security, marketing and sales productivity.



Kevin O’Gallagher, from UNI’s UK affiliate Unite, says that “Hewlett-Packard is still a highly profitable company which is, we believe, simply aiming to cut costs to increase both its market share and profits, while showing scant regard to its loyal and dedicated workforce.”



Hans Cederberg, one of the Swedish representatives on the European Works Council (EWC) and a member of UNI’s affiliate Unionen, says that the company has provided very limited information on the layoffs to the employee representatives. He is critical of the decision to cut the workforce and fears that the services the company provides will be compromised as a result.



HP currently has approximately 349,000 employees worldwide and is ranked number 10 on the Fortune 500 list of the largest corporations in the USA.