Ax ready to fall at HP
One of the areas that might be a target of this week's anticipated layoffs at Hewlett Packard is its server and storage unit. The job cuts at HP are expected to range from 5,000 to 25,000, according to reports. The company has 150,000 employees worldwide.
IT, sales and services are expected to be especially hard hit, according to one source, as new CEO Mark Hurd makes his move to cut $1 billion a year in costs over the next two years. ""Almost every area will be affected across-the-board, but it won't be 10 percent cuts in every department. It'll be in areas where (HP) need to improve their benchmark against competitors," according to a source quoted by CNET.
But the storage unit could also get lucky and sustain a minimal hit. The company had a major storage products launch in May, with the goal of competing against EMC and Dell Inc., and it might be a sign of HP's commitment to storage.
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