Hewlett-Packard may retrench up to 400 of its Australian employees in worldwide cut backs set in motion by the company’s new CEO Mark Hurd, in an plan to save the company around AUD$2.5 billion a year.

In the most significant move Hurd has made since he took over as CEO from Carly Fiorina less than four months ago the computer and printer vendor will lay off 14,500 workers, or about 10 percent of its staff worldwide, in a strategy designed to bring the company’s costs in line with those of its main competitors.

“Our goal is to create a simpler and nimbler HP,” Hurd has said in an interview.

Hurd has stated that HP is looking closely for inefficiencies in its business units, and its PC branding strategy come under closer scrutiny.

Following a “thorough review of our business, we have formulated a plan that will enable HP to begin delivering its full potential,” Hurd has said.

A local HP spokesperson has described speculation on Australian job cut numbers as “premature”, and has said he could “categorically deny [Australian retrenchment] figures because they have not yet been set”.

Further the spokesperson has been quoted as saying “We are not making any comment about workforce changes until we do due diligence. We haven’t [calculated] workforce reduction in Australia. The workforce changes are not intended to affect customers.”

HP has made worldwide cuts of almost 2000 employees in recent months. Of HP’s 2800 Australian employees, there have been no jobs lost so far.