PALO ALTO, CA (Marketwire May 23, 2012) HP (NYSE: HPQ) today outlined plans for a m year productivity initiative

ve designed to simplify business processes, advance in novation and deliver better results for customers, employees and shareholders. The restructuring is expected to generate annualized savings in the range of $3. 0 to $3.5 billion exiting fiscal year 2014, of which the majority will be reinve sted back into the company. Enabling investments in people, processes and techno logy will allow HP to accomplish the restructuring effort and to generate the sa vings. These moves are expected to yield significant improvements in efficiency and customer service during the next several years. HP expects to use the saving s to boost investment in innovation around its three areas of strategic focus: c loud, big data and security, as well as in other segments that offer attractive growth potential. As part of the restructuring, HP expects approximately 27,000 employees to exit the company, or 8.0% of its workforce as of Oct. 31, 2011, by the end of fiscal year 2014. The company is offering an early retirement program, so the total num ber of employees affected will be impacted by the number of employees that parti cipate in the early retirement plan. Workforce reduction plans will vary by coun try, based on local legal requirements and consultation with works councils and employee representatives, as appropriate. In addition to these restructuring actions, HP expects to achieve additional sav ings from non-headcount cost reductions, including supply chain optimization, SK U and platform rationalization, go-to-market strategy simplification and busines s process improvement. These initiatives build upon our recent organizational realignment, and will furthe r streamline our operations, improve our processes, and remove complexity from o ur business, said Meg Whitman, HP president and chief executive officer. While some of these actions are difficult because they involve the loss of jobs, they are nec essary to improve execution and to fund the long term health of the company. We are setting HP on a path to extend our global leadership and deliver the greates t value to customers and shareholders. HP expects to reinvest savings in each of its business segments to strengthen th eir ability to stay ahead of customer expectations and capitalize on growing mar ket trends. HP will invest in research and development to drive innovation and differentiati on across its core printing and personal systems businesses, as well as emerging areas. It will also invest in marketing, sales productivity and tools that simp lify the customer experience and make it easier to do business with HP. Services will invest in accelerating service capabilities in the high client val ue areas of cloud, security and information analytics by enhancing HP intellectu al property. Services will also strengthen its industry orientation and continue to differentiate its service offerings through quality and innovation delivered to clients. Combined, these activities are expected to shift the portfolio to a more profitable mix of higher-growth services. Additional work in lean process methodologies is expected to better serve clients and increase overall efficienc ies. Software will invest to speed development in the areas of security, big data and the management of application lifecycle and infrastructure solutions, both on p remise and in the cloud. It will also further leverage the capabilities of Auton omy and Vertica across the entire HP portfolio. Enterprise Servers, Storage and Networking will invest to accelerate its researc h and development activities to extend its leading portfolio of servers, storage and networking. Together these assets create a Converged Infrastructure which i s the foundation for top client initiatives such as cloud, virtualization, big d ata analytics, legacy modernization and social media.