We find ourselves in the middle of one of the greatest wealth transfer periods of all time. Those with wealth must decide whether they want to make transfers, and if they do, they must decide how much, to whom, when and in what structure?
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How many layoffs might come from HP’s Fort Collins location was unknown. The company did not announce specific plans for its locations, a spokesman said.
“We do expect the workforce reduction to impact just about every business and region,” the spokesman said.
The spokesman did not comment on how many people HP employs in Fort Collins. HP reportedly employed 1,570 people by the end of the third quarter of 2010, but that was before it slashed 9,000 jobs.
“We’re really worried about the Fort Collins presence and how strong that will remain,´ said Kelly Peters of the Northern Colorado Economic Development Corp. “All of us economic development partners have calls in to try to make sure we’re doing all we can.”
The restructuring will lead to up to $3.5 billion in savings by the end of its 2014 fiscal year, according to an HP statement.
The company is offering an early retirement program, HP said.
Other than layoffs, additional savings will come from supply-chain optimization, business-process improvement, strategy simplification and platform rationalization, the company said.
“While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long-term health of the company,” HP Chief Executive Officer Meg Whitman said in the statement. “We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders.”
The company will invest savings in each of its business segments, including research and development to drive innovation.
The layoffs could push tech-sector job cuts to near their highest level since 2009, Challenger, Gray & Christmas said earlier Wednesday.
Factoring in Wednesday’s announcement by HP, year-to-date tech-sector job cuts would total about 42,000 workers, the global outplacement firm said.
Last year, that number came to 37,038; it was 46,825 in 2010.
Tech firms announced 174,629 job cuts in 2009, the highest annual total since 2005.