HP’s realignment may lead to up to 30,000 job cuts

HP, in its release on 21st March 2012, had announced a realignment exercise where in HP’s Imaging and Printing Group (IPG) and its Personal Systems Group (PSG) were to converge as the Printing and Personal Systems Group.  As per the earlier announcement – “ Combining these two entities will rationalize HP’s go-to-market strategy, branding, supply chain and customer support worldwide. This will lead to a better customer experience and drive innovation across personal computing and printing. This realignment is expected to provide opportunities for cost savings and accelerate HP’s ability to pursue profitable growth and reinvest in the business. “

Now , there are reports that the company may cut up to 30,000 jobs across its business towards improving financial performance. While the realignment exercise itself  was an indication of impending job cuts, there has not been any formal announcement from the company.  The realignment exercise may directly lead to redundancies in the sales team as well as the support functions that could be centralized. It is expected that the saving from job cuts would be diverted to new product development and research. In case the company formally announces these job cuts – they will comprise about 8 % of the HP workforce and would be amongst one of the largest job cuts by top corporations in recent times.

HP has been seeing a consistent decline in its revenues – and the Imaging and Printing Group (IPG) and its Personal Systems Group (PSG) comprise more than half of HPs business.  On the realignment, Meg Whitman, Chief Executive had earlier said – “This combination will bring together two businesses where HP has established global leadership. By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders.

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