HP has ended speculation of massive job cuts with an announcement that it would be shedding 27,000 jobs worldwide. An official statement labeled the move a 'multi-year restructuring'. HP said it expects to make savings of as much as $3.5 billion a year up to the the end of 2014 through an early retirement scheme and plans to improve business effeciency. HP said the savings would be ploughed into research and development, and that it would focus on three areas: cloud, big data and security.
The announcement comes as CEO Meg Whitman (pictured) attempts to return the company to profitability following the disastrous tenure of former CEO Leo Apotheker, who was fired last September. During his short rein, Apotheker mooted the spinning off of HP's personal systems group and a move to a service-oriented model. The uncertainty over the company's direction coupled with expensive acquisitions lost the company $30 billion in market capitalisation.
Meanwhile, the head of HP's underperforming software acquisition Autonomy, Dr Mike Lynch, has announced he is to leave the company. Autonomy, a specialist in knowledge management and search applications for enterprise, was bought over last year for $10.3 billion, netting Lynch $800 million. Despite shareholder resistance the buyout concluded in November 2011. After what Whitman described as "disappointing" revenues Lynch will be replaced by current chief strategy officer and executive president of HP software Bill Vegthe.
The departure of Lynch from Autonomy follows that of Chris Lynch, CEO of another HP software acquisition, Vertica, in March.
HP employs a total of 350,000 globally, 4,000 of which are based in Ireland.
TechCentral Reporters