Technology giant HP announced it will be cutting its workforce by eight percent, equating to approximately 27,000 jobs by the end of 2014. The cuts will save the company between $3 and $3.5 billion, annually.
"These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business," said Meg Whitman, HP President and Chief Executive Officer. "While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."
The company also announced that it has seen a three percent drop in its revenues in the last quarter when compared to a year ago, a figure equating to roughly a 30 percent fall in profits.
"We are making progress in our multi-year effort to make HP simpler, more efficient and better for customers, employees, and shareholders," said Whitman. "This quarter we exceeded our previously provided outlook and are executing against our strategy, but we still have a lot of work to do."