HP Set to Announce Major Restructuring
US information technology giant Hewlett-Packard plans to unveil a major restructuring that analysts have speculated includes slashing as many as 25,000 jobs.
H-P said late Monday that it planned to disclose on Tuesday details of a major
restructuring, widely expected after an executive reshuffle in March.
The move for the Silicon Valley group would be the company's biggest shakeup since completing its controversial takeover of Compaq Computer three years ago.
Chief executive Mark Hurd will discuss details of the company's planned restructuring in conference calls with analysts and the media, beginning at 8:45 am EDT (1245 GMT), the company said in a statement.
Joining Hurd in conducting the calls will be Bob Wayman, H-P executive vice president and chief financial officer.
Analysts have estimated the job cuts could save H-P more than 1.5 billion dollars (1.25 billion euros) annually.
Hurd was widely expected to announce the most ambitious steps since he joined the company in March, following the removal of Carly Fiorina, to build profitability and resolve problems remaining from the 2002 Compaq merger and earlier.
Speculation has run high that a major restructuring has been in the works since Hurd took over at H-P. Hurd, the former CEO of NCR Corporation, built a reputation for restoring NCR into a money-making machine through cost-cutting.
Cindy Shaw, an analyst at Moors and Cabot, said that the H-P restructuring would include about 15,000 to 25,000 job cuts, citing an industry source.
Shaw did not say where the job cuts would fall in the international company, which employs about 150,000 people worldwide.
The move for the Silicon Valley group would be the company's biggest shakeup since completing its controversial takeover of Compaq Computer three years ago.
Chief executive Mark Hurd will discuss details of the company's planned restructuring in conference calls with analysts and the media, beginning at 8:45 am EDT (1245 GMT), the company said in a statement.
Joining Hurd in conducting the calls will be Bob Wayman, H-P executive vice president and chief financial officer.
Analysts have estimated the job cuts could save H-P more than 1.5 billion dollars (1.25 billion euros) annually.
Hurd was widely expected to announce the most ambitious steps since he joined the company in March, following the removal of Carly Fiorina, to build profitability and resolve problems remaining from the 2002 Compaq merger and earlier.
Speculation has run high that a major restructuring has been in the works since Hurd took over at H-P. Hurd, the former CEO of NCR Corporation, built a reputation for restoring NCR into a money-making machine through cost-cutting.
Cindy Shaw, an analyst at Moors and Cabot, said that the H-P restructuring would include about 15,000 to 25,000 job cuts, citing an industry source.
Shaw did not say where the job cuts would fall in the international company, which employs about 150,000 people worldwide.