HP is gearing up to shed 27,000 employees from its global workforce in an effort to save around $3.5 billion. Those savings will then be invested into growth areas like cloud storage technology, according to Sky News.

The cuts will account for around 8% of HP's workforce of almost 350,000 people, so there's little surprise that the company expects the reduction to "impact just about every business and region." Around a third of the cuts will be made in the U.S., but it is not yet known how many will be made in other countries.

In the U.K., one of the casualties will be Dr. Mike Lynch, chief executive of HP's Autonomy division. Dr. Lynch founded Autonomy himself back in 1996, but sold it to HP last October for £7.1 billion (approx. $11.12 billion). Bill Veghte, HP's chief strategy officer, will take over.

HP suffered a 31% decline in profits for the second quarter of this year, and a 3% drop in revenue year-on-year as it struggles to compete in a market dominated by smartphones and tablets. Netbooks and laptops in particular have been hit hard by the thriving tablet market, which was kickstarted by the iPad back in 2010.

Meg Whitman, who was appointed HP's CEO last September, says the cuts are necessary to ensure the company's long-term health:

"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," she said.

"We are setting HP on a path to extend our global leadership and deliver the greatest value to customers and shareholders."

Following the death of its TouchPad tablet last year, HP plans to launch a new slate powered by Windows 8 later this year.

[via Sky News]