Palo Alto, Calif.—Hewlett-Packard Co. on Tuesday announced its plans to lay off 14,500 employees, or 10% of its workforce, in the next six quarters as part of an overall plan to reduce costs by almost $2 billion. The majority of staff reductions will be in support functions, such as information technology, human resources and finance, according to the company.
Under the plan, the company will embed sales and marketing efforts directly into the business units, modify its U.S. retirement programs and improve accountability through "a simpler reporting structure and fewer management layers," it said.
As part of the changes, Cathy Lyons was promoted to exec VP-chief marketing officer, from senior VP-Business and Imaging Printing.
The program is expected to reduce costs by $1.9 billion annually beginning in fiscal 2007, according to HP.