In a much anticipated move, HP announced today it would over the next eighteen months cut headcount by 10%, or roughly 15,000 employees. Hardest hit will be "overhead" support jobs, namely in support functions, such as information technology, human resources and finance -- but the business units will not be spared. The implication is a streamlining is in order at the computer systems division, which "lags the benchmarks" in HP's terminology.
The $1.9 billion in compensation and benefits savings will be plowed back into the business. My assumption is that future cuts and reorganizations will whack at least another $1.1 billion out of the cost structure.
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