Hewlett-Packard (HP) company is the world’s one of the leading computer manufacturer founded by Bill Hewlett and Dave Packard in 1939. Their first product was an audio oscillator named HP model 200A. In 1966, HP introduced the world’s first go-anywhere and do-anything computer called HP2116A and the world’s first desktop scientific calculator was also invented by HP in 1968. HP is one of the very successful computer manufacturer till date and it has been ranked 15th in the Fortune 500 magazine for the year 2013.
Restructuring comes in various forms; it may be due to excessive growth of the company or the massive decline in revenue of the company. Downsizing, Plant closures, mergers and acquisitions are some of the common reasons for restructuring the company. Hewlett-Packard, a well-known computer manufacturer, is going through a multi-year restructuring program in order to cut cost and create investment capacity to drive innovation against its strategic priorities, strengthen market leadership and rebuild its balance sheet. According to the HP’s quarterly filing to the US Securities and Exchange Commission from March 2012, it is stated that “The restructuring plan includes severance costs related to eliminating approximately 25,000 positions. The infrastructure charges in restructuring plan include facility closure and consolidating costs and the costs associated with early termination of certain contractual obligations.”
According to an article in the economic Times, about 22,700 positions has been eliminated as of July 13, 2013. HP is also going to close one of their sites in Russelsheim, Germany by the end of October 2013. This will cause in the job cut of approximately 850 positions. Human resource management plays a vital role during the corporate restructuring. As many employees get laid off during the restructuring process, Human Resource personnel’s have a greater responsibility towards the company to finalize who stays and who leaves the company....
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