Dive Brief:

• Hewlett Packard said it will cut about 33,000 jobs over the next three years, Reuters reports.
• The company says it’s moving more of its workers to lower-cost locations as part of its efforts to reduce expenses.
• Executives say they plan to increase the number of employees it has in low cost locations to 60% by 2018, up from 42% currently.

Dive Insight:

Hewlett Packard said the cuts are needed as it adjusts to changing demand in its corporate hardware and services operations and a decline in PC sales, Reuters reports. Approximately 30,000 of the layoffs will be in the enterprise business and up to 3,300 will be in HP Inc, the company that will continue to make personal computers and printers.

"We've done a significant amount of work over the past few years to take costs out and simplify processes and these final actions will eliminate the need for any future corporate restructuring," CEO Meg Whitman said in a statement.

Charles King, president of Pund-IT, a Silicon Valley IT consulting firm, said the layoffs are “a reflection of how much trouble HP has been having with its services."

Revenue from HP's PC and printer business fell 11.5%in the third quarter.

Last month, IDC forecast PC shipments overall to fall 8.7% this year, and said it does not expect a return to growth until 2017.