Hewlett Packard is preparing to lay off 27,000 people, which is 8% of their global 325,000 person work-force. The cuts will happen by October 2014 so employees that are affected will have enough time to find new jobs. This is being called “multi-year restructuring.” Hewlett Packard is expecting that this would help make the company more innovative and cost effective. THe lay-off will include an early retirement program and a one-time charge of $1.8 billion. HP plans to continue investing in R&D, enterprise servers, software, etc.
?We are making progress in our multi-year effort to make HP simpler, more efficient and better for customers, employees, and shareholders,? stated HP CEO Meg Whitman. ?This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do.? HP also recently announced their quarterly earnings. Revenue for the second quarter was $30.7 billion, which is down 3% from a year ago, but is higher than what analysts were expecting.