HP reported much lower earnings than projected, likely due to the recent toss-up of their business strategy and leadership. Unfortunately for HP employees, this translates to a significant reduction of workforce. Almost 10% of the total workforce of over 300,000 employees will be cut with approximately 27,000 losing their jobs.
HP seemingly randomly decided to change focus last year. The plan was to move from a PC and peripheral maker that also makes tablets, printers, and other technology products to one more similar to IBM with system integration and commercial software and hardware solutions. After axing the HP Touchpad project and selling them for almost nothing, HP made an about face, fired its CEO, and reset its sights on its prior strategy of making PCs.