As a cost cutting measure-for boosting the business-Hewlett Packard or HP is considering reducing its work force by eight per cent or 25,000 jobs.  HP says the sales of computers are dipping everyday since tablets such as Apple’s iPads are fast catching up in the country.

An analyst at ISI group, Brian Marshal says, HP would be saving 1.2 billion dollars in case 25,000 jobs are cut. Further, the cost cut measure would add up 50 cents to annual share earning.  The moment the news was announced, a drastic change in trading was noted. HP traded green at New York Stock Exchange (NYSE) and gained three cents to touch 22.06 dollars by the end of the trade.

Also, many business experts are of the opinion that HP is likely to even announce special packages to those who wish to retire early. That way people can move out the company with good package besides gain employment in another company. This would be a mutual benefit but what’s exactly HP going to do will only be known after the company comes out with an official statement.

Cost cutting in companies is no new affair ever since global recession paralysed the stock marks a couple of years ago. Many companies asked their employees to resign to cope up with the financial crunch. And after two years of global recession, HP has now though to cost-cutting term to increase its profits.

(Phani)