HP to Cut Another 30,000 Jobs After Split
The move will save $2.7 billion for Hewlett Packard Enterprise, but will drive up the number of layoffs under Meg Whitman to about 85,000.The brutal string of job cuts over the past several years at Hewlett-Packard will continue after the company splits in two in November. At a meeting with analysts in San Jose, Calif., Sept. 15, HP executives said that once the tech vendor breaks apart, the two companies that come out of the split—Hewlett Packard Enterprise and HP Inc.—will undergo more layoffs as they look to reduce expenses. The executives were laying out what the two companies will look like going forward. According to Tim Stonsifer, who will be CFO of Hewlett Packard Enterprise after the split, the new company will slash 30,000 jobs, a move that will save $2.7 billion in annual costs. According to reports, Cathie Lesjak, who will be CFO of HP Inc., told the analysts that her company will reduce headcount with another 3,300 layoffs. Those layoffs will come on top of the 55,000 job cuts that HP has undertaken over the past several years as President and CEO Meg Whitman restructured a company that was falling behind such rivals as IBM and Cisco Systems. According to Whitman, who will become CEO of Hewlett Packard Enterprise after the vendor breaks in two Nov. 1, the latest layoffs should put Hewlett Packard Enterprise in good enough shape to avoid future cuts.
"Hewlett Packard 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 said in a statement. "These restructuring activities will enable a more competitive, sustainable cost structure for the new Hewlett Packard Enterprise. 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."