Bangalore: HP seems to be going the Yahoo way with job cuts. On Wednesday HP announced mass layoff of approximately 27000 employees. The company will lose 8 percent of its work force by the end of the fiscal year 2014 saving itself close to $3 Billion. The decision is a desperate attempt to revive the drowning company and it showed a positive response with a 7 percent increase in the value of the stocks.

CEO Meg Whitman plans to restructure HP into a leaner and stronger workforce. The company has seen some difficult times in the past with three CEO’s in three years. In June 2011 then CEO Mark Hurd had cut down 9000 employees. 275 other workers lost their jobs in February.

The cut down did not help the company in any way with its PC sales seeing a 15 percent fall during the last holiday season. The consumer consumption sales fell 25 percent too. The printing business is not doing well either with a 10 percent fall in profit since last year. Many of the layoffs are expected to be from the printing division.

HP’s problems run much deeper than its larger work force. They have not been competent in the rapidly growing tablet, smart phone and cloud market. The company must realize soon that trimming down and restructuring might help the company in some ways but they must come up with products which are at par with the existing market standards. It has not been specified if the layoffs will be US based or at offshore locations. Either way HP employees will henceforth work in fear.