Hewlett-Packard is considering cutting up to 25,000 jobs, as the world's largest PC maker wrestles with a decline in demand.
According to the Telegraph, some cuts being considered will be coming from HP's information services business as well.
The former boss of eBay, Meg Whitman, who took over as CEO at HP last September, faces the challenge of finding new sources of revenue for the company as consumers are increasingly favouring tablet devices such as the iPad over the traditional desktop computers that HP has been making since the very beginning.
Besides lifting revenues at the Californian company, Whitman is also under pressure for the company to undergo redundancy, which employs more than 300,000 people globally.
It is estimated that if jobs are cut, it would end a torrid two years for HP that began in August 2010 when former Chief Eexecutive Mark Hurd was forced to resign from the company, following allegations of sexual harassment.
He was replaced last year by Leo Apotheker, who ran the German software giant SAP.