HP`s local office is still in the dark about how it will be affected by the announcement that HP is to cut 14 500 staff over the next six fiscal quarters.
"We don`t know what the local details are yet, and there is no timeline as to when we should expect those details," a local HP spokesman says.
According to an HP statement: "Headcount reduction plans will vary by country, based on local legal requirements and consultation with works councils and employee representatives, as appropriate."
There had been speculation for some time that a major restructuring was in the offing after Mark Hurd was appointed CEO to replace Carly Fiorina.
Hurd gained a reputation as a cost-cutter at his previous company, NCR Corporation, where he was CEO.
HP expects the job cuts to save it $1.9 billion a year, beginning in fiscal 2007. For the 2006 financial year, it expects savings of $900 million to $1.05 billion.
According to a company statement, the group`s structure is also to be simplified, by "embedding sales and marketing efforts directly into the business units, providing a tighter link with customers".
The group is forecasting pre-tax restructuring charges of about $1.1 billion over the next six quarters, beginning with the fourth quarter of the 2005 financial year. This, it says, excludes the previously announced $100 million restructuring charge to be taken in the third quarter.
The majority of the staff cuts will be in support functions, including IT, human resources and finance, while sales and research development staff will mostly remain unaffected.
"Reductions in sales positions will be minimal, so that HP can continue to provide world-class service and avoid impacting customers; and there will be little change to headcount in research and development, to ensure the company remains a leader in technology innovation," HP says.
It adds that the remainder of the cuts will take place inside business units, in areas where work can be reduced by improving processes and reprioritising existing tasks.
The group says it will dissolve the standalone Customer Solutions Group, which is responsible for sales to enterprise, small and medium-sized businesses and the public sector. The sales function and related accountability will be merged directly into three business units: Technology Solutions Group, Imaging and Printing Group, and Personal Systems Group.
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