Hewlett-Packard cuts up to 30000 more jobs

HP is splitting up into two standalone companies later this year, and with that comes a new strategy. Hewlett Packard Enterprise will trade under the ticker symbol “HPE”.

“Over the past several months, we have developed a clear plan to drive more cost reductions associated with the separation and specific to the Enterprise Services business”, said Stonesifer. The effect of the job cuts were expected to be seen in a fourth-quarter change of $2.7 billion. The American global information technology company already plans to lay off 55,000 employees as part of the restructuring process that started in 2012.

HP said it will take a $2.7 billion charge to its earnings for restructuring costs over a three-year period beginning with its FQ4 financial statement for the period ending October 31.

Earlier too, HP had cut thousands of jobs to shore up margins, at a time of waning PC demand as consumers shift their preference to smartphones.

The company has more than 300,000 employees, and the latest job cuts means that HP is cutting a further 10 percent of its workforce.

However, hiring more people in emerging markets also helps to keep costs down, letting the company compete with other providers “from IBM to Huawei, from EMC to Lenovo”, Whitman added. As part of a restructuring announced in 2012, 54,000 jobs have been cut at the company.

The company will separate into Hewlett-Packard Enterprise – covering server, data centre technology and business consulting – and HP Inc. – covering printers and PCs – in November.

HP’s layoffs have been demoralizing blow to a company that provided a template for future Silicon Valley entrepreneurs when William Hewlett and David Packard founded it 76 years ago. Whitman likened the $4 billion (around £2.58 billion, or AU$5.58 billion) in losses to water draining from a bathtub.

Meg Whitman, H-P CEO, is becoming CEO of Hewlett Packard Enterprise, a company focused on software and services for corporate clients.