HP And The Benefits Of Its Restructuring Process


HP’s restructuring process is said to have a lot of good for the company. They are approximating to save up to $3.5 billion USD on the process. This gain will be made by the year 2014 when the process of restructuring will come to the end. This will lead to 270 thousand individuals losing their jobs at HP. The company announced that it will plough back these gains to the company. The number of people who will lose their jobs makes up 8 per cent of all employees of the company.

There are also other areas from where the company aims to make gains. This includes reducing the various costs. HP will pursue without fail the objective of going-to-the-market strategy and the factor of platform rationalization.

As part of the process of restructuring, HP will increase its focus on R&D and also increase the speed of delivery in cloud security and the idea of information analytics. They will also not leave behind the areas of huge data handling and building up of security matters.

What are the costs of HP’s Restructuring Process?

The major aim of restructuring is streamlining its operations, improving its major processes and making their business matters easier to handle. These actions are very difficult to handle but they must be executed. The pain comes in because many people are involved in job losses. The jobs lost will be the price HP will pay for it to cut a competitive globally and offer very high quality to its clients.

What were the factors which pushed HP to restructure?

Hewlett Packard embarked on its multi-year restructuring process due to various factors like the making of losses. HP had started with the re-organization process with the action of combining the Printer and computer business into a single unit. It has been reported that HP’s PC’s are still struggling to survive the competition from the smart phones and the tablets which are snatching the show from under its feet. It means that Samsung Electronics and Apple are giving bitter pills to HP at the business front.

The restructuring process is reported to use layoffs and earlier retirements in order to complete it successfully. The process was started last year, October, 2011. Restructuring is a business process which is forced by the environment in which the business is operating in. Great debt burdens can be a source of inspiration for the restructuring process. Financial restructuring is always the last option but it has proved to be very effective in the long-term.

This post is written by Donald, he works at myoutdesk. You can hire efficient virtual assistants at

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