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Hewlett Packard To Lay Off Nearly 27,000 Jobs Due to Declining Profits

We are always sad to hear of job losses still happening in our country. Some of the biggest and most powerful companies are finding themselves with no choices but to cut jobs. America has not been pressing the issue because our economy is better than the start of the recession in 2008, but many businesses are still struggling and it continues to effect American families and our economy.

Report from Reuters.com:

Hewlett Packard Co plans to lay off roughly 27,000 employees or about 8 percent of its workforce over the next couple of years to jumpstart growth and save up to $3.5 billion annually, sending its shares 11 percent higher.

The company said the layoffs would be made mainly through early retirement and would generate annual savings of $3 billion to $3.5 billion as it exits fiscal year 2014, when the layoffs are expected to the completed.

The world’s No. 1 personal computer maker, which employs more than 300,000 people globally, also said on Wednesday that it had a 31 percent decline in second-quarter profit and a 3 percent decline in revenue, compared with a year ago.

The results, however, were better than Wall Street expectations.

Layoffs “adversely impact people’s lives, but in this case, they are absolutely critical to the long-term health of the company,” Chief Executive Meg Whitman said.