This excerpt taken from the HPQ 8-K filed Jul 19, 2005.
HP Unveils Targeted Program to Streamline Company, Reduce Costs, Drive Greater Customer Focus
Actions expected to lead to annual savings of an estimated $1.9 billion
PALO ALTO, Calif., July 19, 2005 HP today unveiled a targeted program designed to simplify its structure, reduce costs and place greater focus on its customers. The company expects these actions to save $1.9 billion annually, drive growth and increase business performance.
The program simplifies HPs structure by embedding sales and marketing efforts directly into the business units, providing a tighter link with customers. It cuts expenditures by restructuring support functions, eliminating redundancies and modifying HP's U.S. retirement programs, which will free funds for reinvestment in the business. Additionally, it improves individual accountability and executive focus through a simpler reporting structure with fewer management layers.
After a thorough review of our business, we have formulated a plan that will enable HP to begin delivering its full potential, said Mark Hurd, HP chief executive officer and president. We can perform better for our customers and partners, our employees and our shareholders and we will.