HP job cuts to affect India ops


2 May 2011
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BANGALORE: The purging of 27,000 Hewlett Packard (HP) employees is likely to impact employees in India. "We have not yet announced plans with regard to specific locations. We do expect the workforce reduction to impact just about every business and region," said the company's spokesperson in response to an email query.

The firm refused to share details. HP subsidiary MphasiS is unlikely to be impacted, though.

Although the company did not want to specify the number of employees according to location, the headcount in India is pegged at around 30,000.

The impact is expected to be soft on India. "It is unlikely that the downsizing will impact India. This is because India has the advantage of cost arbitrage for such firms, " said a director of one of the country's largest consulting firms.

The cost of a US-based employee is equal to two or three Indian employees for companies like HP and downsizing to save the company's coffers will not impact India on a large scale, added the director. Regions like India will feel the heat only if the business runs at a loss, he said.

Two senior executives at MphasiS, where HP has a 61 per cent stake, too said they have not received any information regarding the downsizing and are confident the cost-cutting measures will not impact MphasiS or its business at all.

Reports state that the 27,000 executives comprise around 8 per cent of the employees working for the Palo Alto-headquartered tech major.

HP is expected to save $3.5 billion from cost-saving measures of which lay-offs are a part.

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