In the news:
Hewlett-Packard (HPQ) is widely expected to cut thousands of jobs next week as part of a long-expected restructuring that will attempt to bring the computer maker’s costs in line with business and its rivals’ numbers, according to industry analysts.
The exact timing and number of layoffs isn’t known, though observers speculate layoffs could range from 5,000 to 25,000 positions. The huge company, whose offerings range from digital cameras and printers to computers and corporate consulting, has 150,000 workers worldwide.
I think it has more to do with keeping the shareprice up and the bonus of top management. As can be concluded from the next section of the newsitem.
Shares of H-P rose Friday. The stock has gained about 15% since H-P named NCR executive Mark Hurd as its chief executive in late March, replacing the ousted Carly Fiorina. The stock was trading Friday at a 52-week high.
Hurd has made no secret of his intent to reduce expenses at the company. In May, he told financial analysts that H-P’s cost structure is “off benchmark in many areas.”