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HP India may cut 6000 employees: Analysts predict
By siliconindia
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Thursday, 18 September 2008, 16:35 IST
San Francisco: Hewlett-Packard's size of the job cuts - 24,600 jobs over the next three years, nearly eight percent of HP's work force of 320,000 employee was a shock to Wall Street. This measure is expected to have a significant impact on its Indian operations too.
As per a report in The Times of India, analysts in India believe that in the short term, the company could see off some 1,000 people, and that in a three-year period this could go up to 6,000 of its nearly 60,000 people in the country.
However, an HP employee said the organization is buzzing with talk about consolidation of work currently happening in different countries. "In some cases, this is expected to bring more work into the Bangalore competency centre. Since the work will be handled out of one centre and will be more structured, the need for people working on a project is also reduced," he said.
As per the company, nearly half of the job reductions will take place in the United States, the Palo Alto, California-based company. HP said it will take a charge of $1.7 billion in the fiscal fourth quarter ending in October. Accounting for goodwill will cost $1.4 billion, while cost of the restructuring will involve anther $300 million.
HP estimated $1.8 billion in annual cost savings once the three-year cost-cutting programme is completed."We are good at integrating companies ... I believe we will do it well," said Chairman and Chief Executive Mark Hurd told financial analysts at the company's headquarters.
"Workforce reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives," HP said. The company will provide employees affected by this restructuring program with severance packages, counseling and job placement services.
