Striving for Dell Inc.'s efficiency and IBM Corp.'s breadth, Hewlett-Packard Co. said Tuesday that it will cut 14,500 jobs and overhaul its retirement plan in a move that all but buries the legendary company-employee bond known as the "HP Way."

The computer and printer maker once known for treating employees like family said it will save $1.9 billion a year as it trims its global work force of 151,000 by 10 percent over the next 18 months.

Hewlett-Packard, which employs about 2,000 in Rancho Bernardo, would not specify where jobs will be lost. But executives said support jobs will be most affected ---- in information technology, human resources and finance ---- as they weed out inefficiencies.

Rancho Bernardo houses the company's imaging and printing operations, where product development is done with digital photography and inkjet printers, said spokeswoman Christina Schneider. The company's printing arm has been a consistent moneymaker.

The company is "one of the anchors for North County in terms of employment," said Gary Knight, chief executive of the San Diego North Economic Development Council.

Only a handful of companies ---- such as Sony Electronics, also based in Rancho Bernardo ---- employ more people in North County than Hewlett-Packard.

Hewlett-Packard has been trying to expand uses for its printers, especially in digital photography. Five years ago, the company allied with Kodak to found Phogenix, a Rancho Bernardo-based joint venture that put self-service computer photo minilabs into photo stores. But the venture failed and was shut down in May 2003. Hewlett-Packard recently announced it had developed a new type of printing technology that would double the speed of printing.

The company's basic problem is easy to state: Hewlett-Packard isn't efficient enough, and is pressed by competitors in all its major operations.

"Cost structures and revenue growth go hand-in-hand," said Hewlett-Packard's chief executive, Mark Hurd, who has been on the job for four months. "We know that only by having a competitive cost structure can we compete aggressively in the marketplace, thereby growing the company for our employees, customers and shareholders."

Hurd was hired away from NCR Corp. with a mandate to perform painful surgery that Hewlett-Packard's board had sought but failed to obtain from Carly Fiorina. The board fired Fiorina as chief executive officer in February.

Tuesday's was just the latest in a series of moves by the Palo Alto company to become more competitive in an industry dominated by lower-cost rivals. Critics contend that such moves have obliterated the workplace philosophy espoused by William Hewlett and David Packard, who founded Hewlett-Packard in 1939.

But Hurd, like his predecessor, argues that the changes are necessary.

Rivals including Dell in computers and IBM in consulting services have managed to squeeze higher profits. At the same time, Hewlett-Packard's highly profitable printer and ink business is coming under increasing threat.

Though Hewlett-Packard has remained largely profitable, its stock has underperformed most of its rivals.

Shares of Hewlett-Packard fell 40 cents to close at $24.52 in Tuesday trading on the New York Stock Exchange. The company's stock has risen some 19 percent since Jan. 1, but remains well below its peak during the technology boom.

"Our objective is to create a simpler, nimbler Hewlett-Packard," Hurd said.

Beginning in January, Hewlett-Packard will freeze the pension and retiree medical-program benefits of current employees who don't meet defined criteria based on age and years of company service. The company said it instead plans to boost its matching contribution to most employees' 401(k) plans to 6 percent from 4 percent.

Hewlett-Packard said the changes won't affect benefits currently received by retirees or eligible employees who are longer-serving and close to retirement age. Existing employees will retain benefits they have already earned.

Left unresolved, however, is how Hewlett-Packard can turn its size and position into new sales and persuade customers that its products best offerings from Dell or IBM.

Beginning in fiscal 2007, Hewlett-Packard expects to save about $1.9 billion a year from the restructuring, including $1.6 billion in labor costs and $300 million in benefits savings. In fiscal 2006, Hewlett-Packard expects savings of between $900 million and $1.05 billion from the restructuring.

The company said about half the savings will be used to "offset market forces" or be reinvested in the business. The remainder is anticipated to add to operating profit.

The Associated Press and staff writer Bradley J. Fikes contributed to this story.