HP to Layoff 6,400 Workers

May 19, 2009

Palo Alto, CA - Following its merger with a technology company, Hewlett-Packard Co. announced on Tuesday its plan to reduce its workforce by 2 percent which will affect 6,400 workers.

In a press conference, HP chief financial officer Cathie Lesjak said the massive workforce reduction is in line with the company’s restructuring plan and has been decided to improve the efficiency of its business.

Lesjak also said that the new cuts will be completed next year but declined to give further details.

In August 2008, HP acquired IT service provider Electronic Data System Corporation (EDS) for nearly $14 billion in an effort to expand its outsourcing business.

According to earlier report, the computer giant’s profit declined by 17 percent to $1.72 billion while its sales dropped by 3 percent during the first quarter.

Meanwhile, other computer firms also posted slumping sales due to global recession which greatly hit the technology sector.