Xerox, HP Latest To Cut Jobs

Xerox and Hewlett-Packard on Monday joined the parade of technology-related layoffs, citing organizational restructuring in the face of the slowing economy.

HP plans to cut about 1,770 positions, or 2% of its workforce, mostly in its sales and marketing divisions. The layoffs are part of a larger restructuring strategy that includes reducing product divisions started by CEO Carly Fiorina.

Kazim Isfahani, Giga Information Group senior analyst, believes this might simply be a "routine housecleaning," though he says even the computer stalwart isn't immune to the current economic downturn. "HP has certainly gone through some trying times recently thanks to the economy."

Troubled copier maker Xerox, meanwhile, disclosed a cutback of 4,000 employees, or 4% of its workforce, in response to a second straight quarterly loss.

"They have a great brand, but are having a hard time shifting to the digital age," Isfahani says. Still, he says, "you can't wipe out an organization that big overnight."