Hewlett-Packard Co. (HP) plans to cut 27,000 jobs in what is the largest payroll purge in the company’s 73-year history.
The cuts will affect approximately 8 percent of HP’s 350,000 employees by October 2014, the date in which the planned overhaul would be completed.
HP CEO Meg Whitman hopes that these austerity measures, which will save the company $3.5 billion per year, will allow the company to update their products and services as it looks to adapt to technological shifts.
Demand is growing on mobile computing and software devices as sales of individual computers decrease, causing IT companies to consider their future plans.
HP’s latest quarterly results show that the company earned $1.6 billion during the three months ending in April which represents a 31 percent decline from $2.3 billion at the same time last year.