USA TODAY US Edition
Hewlett-Packard plans to cut up to 30,000 jobs
Hewlett-Packard said Tuesday 25,000 to 30,000 people will leave the enterprise division as part of a planned spinoff. The cuts, meant to slice $2.7 billion in annual costs, represent about 10% of the company’s total workforce.
Meg Whitman, CEO of HP, is becoming CEO of Hewlett-Packard Enterprise, a company focused on software and services for corporate clients. It will trade under the ticker HPE. The split is expected to be finalized Nov. 1. The employee departures will save $2 billion annually, the company said. HP Inc. will remain focused on printers and PCs.
“Hewlett-Packard Enterprise will be smaller and more focused than HP is today,” Whitman said in a statement. “As a separate company, we are better positioned than ever to meet the evolving needs of our customers.”
The cuts will result in a charge of $2.7 billion, beginning in the fourth quarter. In a statement, the company said the cash impact will be approximately $2.6 billion over the next three years, beginning in fiscal 2016. HP was up 0.26% in after-hours trading.
In recent years, HP has struggled to reverse sagging sales for its printers and PCs as it faces tough competition from Oracle, IBM and Lenovo, among others.