HP To Cut 25,000 Workers

Source: David Goldman and Michal Lev-Ram / CNN Money

NEW YORK – Hewlett-Packard will announce another round of substantial job cuts Wednesday afternoon in an effort to streamline its teetering PC and services businesses, a source familiar with the plans told Fortune.

The layoffs will be “in the ballpark” of 25,000 workers, the source said, which would amount to about 7% of HP’s global workforce. The nation’s largest technology company by revenue currently employs 349,600 people worldwide, according to its latest regulatory filing.

CEO Meg Whitman is trying to reorganize the tech giant into a leaner, more efficient powerhouse, but she faces a massively uphill battle.

The overall PC industry is stuck in neutral, but HP (HPQFortune 500), the world’s largest computer maker, is traveling in reverse at high speed. The company’s PC sales fell 15% during the holiday season, with consumer computer sales tumbling 25%.

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