HP Lays Off 10 Percent of Workforce

As expected, HP will lay off 10 percent of its workforce in an effort to cut costs in the IT, sales and service divisions. The moves could save the company some $1.9 billion per year. Analysts are expecting as many as 25,000 job cuts as new HP CEO Mark Hurd moves to reorganize the company, so more layoffs could be on the way.

"I think this will make us simpler, nimbler and quicker." Hurd told analysts in a conference call. He had been pushing internally to make these cuts, as HP's costs are higher than rivals such as Dell. Any savings from the layoffs will be reinvested into the company, and Hurd said some pink slips might add to the company's bottom line and boost profit margins.