Hewlett-Packard today unveiled a restructuring that calls for the firing of 14,500 employees, roughly 10 per cent of its workforce, over the next six quarters.
The printer and computer maker is looking for the plan to yield roughly $1.9 billion in annual savings.
The company expects to record charges of about $1.1 billion related to the restructuring over six quarters, starting in the fourth quarter.
Hewlett-Packard also plans to modify its US retirement programmes, freezing pension and retiree medical-program benefits of current employees who do not meet certain defined criteria and increasing its matching contribution for 401(k) plans to 6 per cent from 4 per cent.
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The stock closed yesterday at $24.92, down 2 cents.