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PALO ALTO, CALIF. - Industry analysts are calling Hewlett-Packard's massive restructuring a positive move, with little if any impact to be felt in consumer/retail communities.
Hewlett-Packard's newly minted CEO Mark Hurd last week announced a long-expected company reorganization that has HP cutting 14,500 workers and merging its customer solution group with its three remaining groups.
The reductions will be primarily centered on support, human resources and information technology personnel, with sales and research and development resources losing only a minimal number of people, the company said in a written statement. HP will also offer long-serving employees an early-retirement option. The cuts will take place over the next six quarters. The company expects to take a $1.1 billion restructuring hit during this period, not counting an additional $100 million to be charged during the third quarter of 2005 from a separate action. By 2007 HP anticipates saving about $1.9 billion per year...