US information technology giant Hewlett-Packard plans to unveil a major restructuring that analysts have speculated includes slashing as many as 25,000 jobs.
H-P said late Monday that it planned to disclose on Tuesday details of a major
restructuring, widely expected after an executive reshuffle in March.
The move for the Silicon Valley group would be the company's biggest shakeup
since completing its controversial takeover of Compaq Computer three years ago.
Chief executive Mark Hurd will discuss details of the company's planned
restructuring in conference calls with analysts and the media, beginning at
8:45 am EDT (1245 GMT), the company said in a statement.
Joining Hurd in conducting the calls will be Bob Wayman, H-P executive vice
president and chief financial officer.
Analysts have estimated the job cuts could save H-P more than 1.5 billion
dollars (1.25 billion euros) annually.
Hurd was widely expected to announce the most ambitious steps since he joined
the company in March, following the removal of Carly Fiorina, to build
profitability and resolve problems remaining from the 2002 Compaq merger and
Speculation has run high that a major restructuring has been in the works since
Hurd took over at H-P. Hurd, the former CEO of NCR Corporation, built a
reputation for restoring NCR into a money-making machine through cost-cutting.
Cindy Shaw, an analyst at Moors and Cabot, said that the H-P restructuring
would include about 15,000 to 25,000 job cuts, citing an industry source.
Shaw did not say where the job cuts would fall in the international company,
which employs about 150,000 people worldwide.