HP to slash 14,500 jobs, freeze pension plans

Hewlett-Packard (HP) has targeted 14,500 jobs cuts worldwide or about 10% of its regular full-time staff, including an unspecified number from its Houston campus, over the next 18 months.

The cut would result in the company saving nearly $2 billion in annual savings.

HP also will freeze future pension benefits, while slightly increasing contributions to employee 401(k) plans.

HP will go easy on staff reductions. Reductions in sales positions will be minimal, so that HP can continue to provide world-class service and avoid impacting customers.

The company is planning to reduce more staff in support functions, such as information technology, human resources and finance. The remainder will be made inside business units, in areas where work can be reduced by improving processes and re-prioritizing existing tasks.

To facilitate these reductions, HP will offer a voluntary retirement programme to longer-serving staff based in the United States.