HP to cut 25,000 to 30,000 jobs in enterprise business
16 Sep 2015
Hewlett-Packard, which is splitting into two listed companies later this year, yesterday said it expected to cut another 25,000 to 30,000 jobs in its enterprise business as the tech pioneer adjusts to declining demand.
The latest cuts, in addition to 55,000 lay-off earlier announced under chief executive officer Meg Whitman, would be in the faster-growing corporate hardware and services operations of the company.
The division is being renamed Hewlett Packard Enterprise, or HPE, on 1 November.
With the latest job cuts, the total workforce will be reduced by at least 10 per cent, based on the most recent number of over 300,000 employees as of 21 October, 2014, and reflecting the earlier announced reduction of 55,000.
According to the company, the cuts would be global, though it did not provide specifics.
With the split, the other company, HP Inc, would comprise the computer and printer businesses, which had taken a hard hit from the continuing decline in sales of personal computers.
"We've done a significant amount of work over the past few years to take costs out and simplify processes and these final actions will eliminate the need for any future corporate restructuring," Whitman said in a statement.
According to the company between 25,000-30,000 roles would go at HP Enterprise, which would bundle together HP's data analysis and software divisions - separating them from the personal computer and printer operation.
The move would be completed by the end of October and according to HP, the job losses, which follow 55,000 cut over the past three years, formed part of a cost cutting initiative aimed at saving $2 billion per year.
It remained unclear at this stage whether any of its staff of 15,000 in the UK and Ireland would be affected.
The spin-off was announced a year ago as markets shifted from PCs to mobile devices that had reduced demand for many of the company's key products (See: Hewlett-Packard to split corporate hardware and PC and printer businesses).
According to Whitman, who will lead HP Enterprise, she expected it to rake in more than $50 bn in annual revenue.
"HP Enterprise will be smaller and more focused than HP is today, and we will have a broad and deep portfolio of businesses that will help enterprises transition to the new style of business, she told investors.
"As a separate company, we are better positioned than ever to meet the evolving needs of our customers around the world."
