Hewlett-Packard Co, which is splitting into two listed companies later this year, said that it expects to cut another 25,000 to 30,000 jobs in its enterprise business as the tech pioneer adjusts to falling demand. The latest cuts, on top of layoffs of 55,000 workers previously announced under chief executive officer Meg Whitman, notably will be in the company's faster-growing corporate hardware and services operations, to be spun off as Hewlett Packard Enterprise, or HPE, on November 1.
The latest job cuts indicate a reduction of the company's total workforce by at least 10%, based on the company's most recent number of more than 300,000 employees as of October 31, 2014, and reflecting the previously announced reduction of 55,000. The company indicated the cuts will be global, but provided no specifics.
Under the split into two companies, the other company, HP Inc, will comprise the computer and printer businesses, which have been hit hard by a relentless 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. The job cuts, aimed at saving $2.7 billion a year, will result in a charge of about $2.7 billion, beginning in the fourth quarter, HP said.
Job cuts have become a way of life at the company in recent years as it has digested a series of acquisitions that failed to revive its fortunes