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HP has warned that it is preparing to cut 27,000 jobs by 2014, amounting to a reduction of around eight percent of its global workforce of 350,000. The $3.5bn (£2.2bn) expected to be saved by the move will be reinvested into research and development, says HP.

Whilst the company has not yet confirmed how many jobs will be lost in each of its divisions, a spokeswoman for HP told the Press Association that the cuts are expected to 'impact just about every business and region'. However, a statement confirms that HP plans to invest heavily in its 'core printing and personal systems businesses'.

"While some of these actions are difficult because they involve the loss of jobs, they are necessary to improve execution and to fund the long-term health of the company," HP chief executive Meg Whitman comments. "We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."

The news of the workforce reduction comes as HP announces that its profits for the second quarter of 2012 were better than forecast at $1.6bn, though representing a fall of 31 percent compared to the same period in 2011.