HP has confirmed plans to reduce its workforce by 27,000 which would amount to eight percent of the companies staff by 2014 in order to make savings of £1.9 billion.

The move will come as part of long term restructuring and cost cutting by the company, which began at the end of October. The cuts will come in the form of both retirement offers and redundancies.

The move comes as HP announce a reduction of the company’s net income by 31 percent in the third quarter from the same time last year.