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Hewlett-Packard will announce on Tuesday a restructuring plan that is expected to include hefty layoffs.
The Palo Alto, Calif., computer giant on Monday evening said in a statement that its CEO, Mark Hurd, and chief financial officer, Bob Wayman, would conduct calls on Tuesday morning to provide “the details of a restructuring plan.”
That plan is expected to trim Hewlett-Packard Co.s expenses and thus could result in as many as 25,000 job cuts, analysts have said.
One source familiar with the plans said the plan would include at least 15,000 layoffs, but could range as high as 25,000. HP has about 150,000 employees worldwide, according to its Web site.
Despite the eye-catching scale of the layoffs expected, the plan has been in the works for some time.
Hurd, who took over as HPs CEO in March, first said that HP would need to make tough decisions to reduce costs during the companys second fiscal quarter earnings conference call on May 17.
During the call, Hurd said HP was in the process of reviewing its operations and cost structures.
“Nothing will be taken for granted,” he said. “We are stacking up the cost structures of each business, the corporate function, against best in class. We are reviewing the organization structure and determining how we can simplify it and take out complexity, and we will take necessary steps to drive a performance-oriented culture across our company.”
Aside from reducing costs and tweaking HPs capital allocation strategy, Hurd said, his goals included forging ahead with the companys Imaging and Printing strategy while bolstering the financial performances of its server and storage business, as well as its managed services, consulting and integration, and software groups.