HP Lays Off 27,000 Employees in Largest Workforce Cut in the Company’s History

Hot on the heels of General Mills' layoffs comes the news that HP is cutting 8 percent of its workforce — some 27,000 employees. What facets of the business will be affected most?

The layoffs are selective: The services business is just one area that will shrink as HP moves toward cloud services, data analytics, application-modernization services and security. CEO Meg Whitman believes the cut will ultimately benefit that facet of the corporation, telling Wired, "I believe we will have a smaller, more profitable services business over the next two to three years."

Whitman feels especially confident about HP's position in the PC market. "We have struck that perfect balance between design and the workhorse requirements of customers," she said, adding that HP will also pay closer attention to the printer business. "We need to step up our marketing and demonstrate new use cases for printing. We are going to get very aggressive in the printing business, and I feel very good about our way forward."

The HP layoffs will save the company between $3 and $3.5 billion each year. The job cuts are the largest in the company's 73 years in business in terms of payroll.

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