NZ office yet to hear how it will fare in HP cuts

Hewlett Packard to cut global workforce by eight percent in two years

Hewlett Packard intends to cuts its global workforce by eight percent in two years, but there is no word on how the New Zealand branch will be affected.

HP Enterprise South Pacific media and analyst relations manager Stephanie Aye says: “We have not yet announced specific plans with regards to specific locations. We do expect the workforce reduction to impact just about every business and region. Beyond this, we unfortunately don’t have any additional information to share at the moment.”

HP announced last month that it intends to axe 27,000 IT jobs by the end of 2014 - up to 15,000 of them in the enterprise services division. HP employs around 349,600 people worldwide. It doesn't give out country specific numbers.

In its restructuring announcement, HP said it will be "accelerating service capabilities in the high client value areas of cloud, security and information analytics" and plans to "shift the portfolio to a more profitable mix of higher-growth services."

The company was the second largest global IT outsourcer in 2011, both in terms of annual revenue ($19.8 billion) and market share (6.1 percent). (IBM leads with 10.9 percent of the market). But its revenue growth from 2010 to 2011 was just two percent, compared to an average of 8.3 percent industry-wide, 7.8 percent for IBM, and 18.2 percent for Accenture, according to Gartner. Only zero-growth CSC did worse among the large outsourcing providers.

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