SAN JOSE -- Hewlett-Packard will cut 14,500 jobs over the next six quarters as the computer and peripherals maker reduces its full-time staff by 10%.

"After a thorough review of our business, we have formulated a plan that will enable HP to begin delivering its full potential," said CEO Mark Hurd in a statement. "We can perform better -- for our customers and partners, our employees and our shareholders -- and we will."

Most of the cuts will come in support functions such as IT and HR. The rest will be made inside business units.

HP will also make changes to benefits plans of its retirees.

HP expects the restructuring will cut costs by some $900 million to $1.05 billion in fiscal 2006, and about $1.9 billion a year in future years.

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