Palo Alto tech giant HP announced Wednesday, May 23, that it would cut 27,000 jobs -- 8 percent of its global workforce -- by the end of the fiscal year of 2014.
The company also announced today that its second quarter revenue was $30.7 billion, down 3 percent from last year's $31.6 billion. Its profits are down 31 percent, dropping from $2.1 billion to $1.6 billion.
The cuts, along with changes in its business operations, are part of a restructuring program that the company expects will save between $3 and $3.5 billion. HP stated that some of the reductions will come from employees who participate in an early retirement program but did not specify how many.
"These initiatives build upon our recent organizational realignment, and will further streamline our operations, improve our processes, and remove complexity from our business," said Meg Whitman, HP president and chief executive officer. "While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."
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