HP Layoffs Expected to Impact Workforce in India

Bangalore: The elimination of 27,000 HP (Hewlett Packard) staffs is most probable to impact its workforce in India, reports Devina Sengupta of “The Economic Times”. One of the company's spokesperson in a reply to an email query opined that the company has not yet announced plans with regard to particular locations. But the company does anticipate the workforce cutback to impact just about every business and region. Although the company refused to share its further details regarding its cost cut, it is reported that HP subsidiary MphasiS is not likely to be impacted by the layoff.

While the impact is projected to be yielding in India, it is noted that Technology giant HP did not want to spell out the number of employees to be laid off according to location, but the headcount in India is estimated at around 30,000.

According to a director of one of the country's largest consulting firms, it is unlikely that the cost cut will impact India. This is because India has the advantage of cost arbitrage for such organizations.

He further said that countries like India will only be impacted severely if the business runs at a loss and not by this, because the cost of an U.S. based employee is equal to two or three Indian employees for companies like HP and therefore downsizing to save the company's reserves will not impact India on a large scale.

Two senior executives at MphasiS, where HP has a 61 percent venture, too highlighted that they have not yet received any information regarding the downsizing of the company and are sure that the cost-cutting measures will not impact MphasiS or its business overall.

Layoffs are a part of HP’s cost saving measures; moreover, the company is expected to save $3.5 billion in total.