Date
19 January 2017
Meg Whitman expects to save US$2 billion by cutting 30,000 jobs in the latest round of a multi-year  restructuring. Photo: Internet
Meg Whitman expects to save US$2 billion by cutting 30,000 jobs in the latest round of a multi-year restructuring. Photo: Internet

HP cutting 30,000 jobs in new phase of US$2.7 bln restructuring

Hewlett-Packard Co. expects to slash another 30,000 jobs in its enterprise business to save US$2 billion in costs.

The move is part of a plan by chief executive Meg Whitman with cut its 300,000-strong workforce in a multi-year restructuring.

More than 55,000 jobs were had been wiped out as of October last year, according to Reuters. 

The revamp comes as the 76-year-old company presses ahead with a planned break-up into two listed companies this year.

It’s separating the faster-growing corporate hardware and services operations, which will be called Hewlett Packard Enterprise, from its computer and printer businesses.

The job cuts will result in a charge of about US$2.7 billion, beginning in the fourth quarter, HP said.

“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.

HP’s revenue from personal computer and printer businesses, its largest, fell 11.5 percent in its third quarter.

Enterprise services sales tumbled 11 percent while revenue at the enterprise group rose 2 percent.

Hewlett Packard Enterprise is expected to have more than US$50 billion in annual revenue and report adjusted profit of US$1.85 to U$S1.95 per share in 2016, it said.

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