The decision by Hewlett- Packard (HP) an IT company which specialises in personal computers and other IT products to cut down its current workforce by around 8% by 2014 has come from within the productivity initiative. There are 20,000 employees of HP in the UK part of 350,000 worldwide. HP has said at this time it is too early to say which geographic areas will be affected by the cuts but it expects all regions to be effected. It has also been confirmed however that the cuts will be effecting all departments. The productivity initiative plan has been designed to simplify the business. It has been developed to tackle the new rival business products such as the iPad tablet computer. It also plans to address the fact HP has been struggling to maintain its position and financial stability after a series of problems including a failed tablet computer and an announcement that it was considering an exit from the PC business. The new initiative is looking to save 2.2bn a year through the job cuts which can then be reinvested in the business.
