Hewlett-Packard said it will cut 14,500 jobs, or around 10 percent of its workforce to achieve $1.9 billion a year in savings. Under new CEO Mark Hurd, the cuts come amid a massive reorganization that will link sales and marketing efforts more closely to business units, eliminating the Customer Solutions Group which sold to enterprise customers.HP’s financial performance has been uneven in recent quarters. The company appears to have stemmed the losses in its PC and server groups, but those divisions are not as profitable as management and shareholders would like, IDG News Service reported. HP has its printer business to thank for most of its recent profits, but the company trimmed positions from that group earlier this year in order to further reduce costs. When the Customer Solutions Group (CSG) is closed, sales staff there will transfer into three business units: Technology Solutions Group, Imaging and Printing Group, and Personal Systems Group. CSG’s head, Michael Winkler, will retire at the end of this month, and senior sales positions will be created in each of the three business groups. Dan Kuznetsky, vice president for system software research at IDC, said it is not yet clear yet how enterprise customers will benefit from the demise of the Customer Solutions Group.“If each business unit has its own sales force, does every major company have multiple HP to deal with? If so, that goes against the trend,” Kuznetsky said. “Companies are looking to standardize to lower the costs of acquisition.” Last month, Hurd separated the imaging and personal systems, undoing a change made by former CEO Carly Fiorina. The moves give each group more control over its business, HP said. CSG was HP’s point of contact with market segments such as the public sector, small and medium-size businesses, or consumers. Those relationships will also be divided between the three business segments, with the technology solutions group taking on public sector customers, the personal systems group handling small and medium-sized businesses and the imaging group dealing with consumers, Hurd said in a conference call with analysts. “The objective is to create a simpler, nimbler HP with fewer matrices,” Hurd said. “I don’t have very high affection for matrices.”The restructuring will reduce the number of people involved in each decision, and shorten the path from idea to customer, he said. Technology Industry