In order to reduce costs and help the company contend with reducing demand for computers and services, Hewlett-Packard is mulling to cut as many as 25,000 jobs. It is reportedly said that 25,000 jobs is equal to HP’s 8 percent workforce.

It is reportedly said that most of the job cuts are expected to come from HP’s services division, which is struggling hard to keep pace with industry leaders IBM and Accenture. However, out of 25, 000 job cut, some may come through early-retirement packages. It is worth noticing, HP’s enterprise service group, sells a range of information-technology services and has been overwhelmed by declining profitability, these days. 

It is found; HP’s PC sales are facing a gradual drop as more consumers are favoring tablets nowadays. In addition, HP has been a slow adapter for shifting toward cloud computing, which is seen as the in-thing in tech industry, these days. 

The overall job cut and additional cost savings throughout the company could result in savings that could reach billions of dollars. According to an estimate, HP can save about $1.2 billion and add 50 cents to annual per-share earnings by eliminating 18,000 jobs. 

Market watchers added, the latest sweeping cut by HP is signaling a drastic attempt by Meg Whitman, HP’s Chief Executive, to deal with the company’s drooping fortunes.