Hewlett-Packard to Cut 14,500 Jobs

Updated from 7:22 a.m. EDT

Hewlett-Packard(HPQ Quote) detailed a broad restructuring Tuesday that will result in the elimination of 14,500 jobs over the next six quarters.

The company, struggling to rein in costs under new CEO Mark Hurd, hopes to save $1.9 billion annually from the actions, which also include aligning sales and marketing operations with their respective manufacturing units. Shares slipped 0.9% to $24.71 on the widely expected announcement.

The layoffs amount to 10% of H-P's workforce and will result in pretax restructuring charges of about $1.1 billion through 2006. Most of the charges will appear in the company's fiscal fourth-quarter financial report and executives declined to comment about business demand during the third quarter, which ends this month. The company expects annual savings of $1.9 billion starting in 2007, including $1.6 billion in reduced labor costs and $300 million in benefit savings. ...