Reports Say Hewlett Is Planning Layoffs
Analysts and others who closely watch Hewlett-Packard are convinced that layoffs are imminent. The only question is when. The Wall Street Journal said on its Web site on Thursday night that the company would announce a restructuring on Tuesday.
If layoffs are forthcoming, whatever the timing, they are expected to be large. Last month, A. M. Sacconaghi, an analyst with Sanford C. Bernstein & Company, suggested that 10 percent of the work force might be cut, or 15,000 of the 150,000 employees worldwide.
"People I've been talking with inside H.P. say the layoffs are imminent - it's only a question of when," said Sam Bhavnani, an analyst at Current Analysis.
On Thursday, the research firm Moors & Cabot released a report speculating that layoffs might exceed 20,000.
A Hewlett spokesman declined to comment Thursday night. But Hewlett's chief executive, Mark V. Hurd, hired in March to succeed Carleton S. Fiorina, has hinted about the possibility of layoffs as the company struggles to get its costs in line with revenue.
In May, Hewlett announced that 1,900 employees in its printing division had accepted voluntary retirement.