Multinational information technology company, Hewlett-Packard (HP), is expected to lay off 500 employees in India. The Company is gearing up to restructure globally and also cut costs. As part of its efforts to do so, it may lay off 7000 to 9000 of its employees, across the world, in three years. As per estimates, the Company will be able to successfully save about a billion dollars by 2022, if things move as per plan.
With cost cutting being the priority, and many PC models being discontinued, HP’s India workforce— which right now, is about 55,000 strong— is going to be deeply impacted. Slow growth is another reason for the downsizing in addition, to inconsistent government orders. Commercial sale of PCs and printers has been adversely affected.
It is estimated that the restructuring that is being planned will involve expenditure of about a billion dollars, in labour and non-labour costs. The approx.16 per cent downsizing of its global staff will involve retrenchment as well as early voluntary retirement schemes, all of which will be processed within the next three years, that is, by 2022. About one-fifth of the Company’s global staff, that is, about 10,000 employees, is in Singapore.
The Company clearly expects challenges in the future. Its stocks are already down 10 per cent, and the restructuring plans will help HP reinvest in its business.