Hewlett-Packard Co. is moving to cut the number of employees in its imaging and printing business by 10 percent or more to trim costs amid falling printer prices, BusinessWeek reported.
Palo Alto, CA, U.S.-based HP (Research) started the plan under ousted CEO Carly Fiorina, and new CEO Mark Hurd supports it, BusinessWeek reported in its online edition, citing four unnamed HP managers and a business consultant.
HP's operating profit margins in its printer business have come under pressure in recent quarters. CFO Bob Wayman has said in earnings conference calls that HP would take moves to keep margins up while trying to regain lost market share.
HP competes with Lexmark International Inc. (Research) and No. 1 PC manufacturer Dell Inc. (Research), which resells Lexmark printers, among others. HP is one of the biggest makers of computer printers and the No. 2 PC maker behind Dell.
Vyomesh Joshi, who runs HP's printer and PC businesses, aims to take HP out of underperforming niches, BusinessWeek reported, noting that HP would end its 18-month-old effort to break into the corporate copier business. (CNN, Reuters)
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