HP plans to cut thousands; unclear if NW workers will be affected

Hewlett Packard will lay off up to 30,000 people.

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Hewlett Packard will lay off up to 30,000 people as a part of a restructuring that creates two separate entities.

The company will incur a charge of about $2.7 billion as part of the restructuring, Hewlett-Packard said Tuesday at a meeting with analysts. The company had previously disclosed $2 billion in probable cost cuts at the services division within Hewlett Packard Enterprise, and has found an additional $700 million in savings across the operation, said Tim Stonesifer, chief financial officer of Hewlett Packard Enterprise.

The additional cuts will “be things such as site closures and the reductions of those, and further reductions of workforce across the broader portfolio,” Stonesifer said at the event. The cuts announced Tuesday, in addition to 54,000 that have already taken place, are the most among North American companies this year, according to data compiled by Bloomberg.

(SOURCE: Bloomberg)

“These restructuring activities will enable a more competitive, sustainable cost structure for the new Hewlett-Packard Enterprise,” Meg Whitman, HP’s current chairman, president and CEO, said in a news release. “We’ve done a significant amount of work over the past few years to take costs out and simplify processes and these final actions will eliminate the need for any future corporate restructuring.”

It is unclear how many workers the tech giant employs in Oregon. HP has a facility in Corvallis that specializes in ink-jet printing, as well as an office in Vancouver that does marketing and R&D for the printers.

Alan Meyer, a professor of business management at the University of Oregon, said in the 1970s the company was cutting edge.

“They were innovating in the use of project management as a way to drive new products out of the labs and into the marketplace,” he said. “They were known as a place that had a really strong culture called the HP way.”


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