Hewlett-Packard's chief executive, Meg Whitman, plans to cut 30,000 or more jobs next week, according to officials familiar with the plan. Her goal, they said Thursday, is to spend the money she saves on increasing the efficiency of the company's sales force and on creating new products.

The executives, who spoke on the condition of anonymity because they are not authorised to speak for the company, said that HP would seek layoffs and voluntary retirements from across the company. The total could be as many as 10 per cent of HP's workforce of 324,000. China, one of HP's highest growth areas, would probably be spared, as would its research and development efforts.

HP CEO Meg Whitman seen here when running for office as California governor in 2010. Credit:Mario Anzuoni/Reuters

Whitman, who became HP's chief executive last September, "is trying to build a new company," one senior executive said of the job cuts. "You can count this as a part of that."

The final plan is expected to be announced on Wednesday, when HP announces earnings for its second fiscal quarter.