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HP to announce restructuring Tuesday

About 15,000 expected to lose their jobs as part of effort to bring costs more in line with its competitors.

Hewlett-Packard said it will announce details of a company restructuring plan on Tuesday morning during a pair of conference calls with CEO Mark Hurd.

Hurd will be joined by Bob Wayman, HP executive vice president and chief financial officer, to deliver the news to financial analysts and members of the press at 8:45 a.m. EDT--before the financial markets open in New York.

On the call, Hurd is expected to announce sweeping cuts to HP's workforce as part of a plan to bring the company's costs more in line with its competitors. About 15,000 employees could lose their jobs, with HP's IT, sales and service divisions among the areas particularly hard hit, according to a source close to the company.

The restructuring is also expected to focus mainly on the workforce and should not impact the company's executive lineup, the source said.

If job cuts are announced, employees aren't expected to be immediately notified of their status but may get a greater sense of their place at the printer and computer maker later in the week. That's when HP officials will reconvene for more high-level discussions. Officials met over the weekend to nail down the number of layoffs and which departments would be most impacted, according to the source.

The Palo Alto, Calif.-based company has been making adjustments to its corporate structure in the last few months, including splitting up its PC and handheld computer business from its imaging and printing group. Hurd also recently hired Dell's chief information officer to separate HP's IT business from its global operations.

Any large-scale restructuring plans would mark one of the most significant initiatives that Mark Hurd, HP's chief executive, has launched since his arrival less than four months ago from NCR.