HP is cutting another 10 per cent of its workforce

HP has announced a massive job cut as Chief Executive Officer Meg Whitman attempts to restructure the company so it can adapt to a rapidly changing market. Its share price closed 0.3% higher at $27.11 in New York on 15 September.

The target means 10 to 12 percent of the 252,000 workers joining HP Enterprise will lose their jobs as part of the company’s effort to reduce its expenses by $2 billion annually.

Enterprise Services-HP’s IT outsourcing service-currently makes up about 40 percent of the new Hewlett Packard Enterprise’s revenue, but it has struggled with declining revenue; it’s down $4 billion a year since 2011.

“I’m frankly not sure if HP is finished with the layoffs”, King added, saying he expects the job cuts and the shuffling of people and positions to continue well into 2016.

HP indicated that, apart from Hewlett Packard Enterprise or HPE, HP Inc, will comprise the computer and printer businesses. Most of the job reduction will be in the faster-growing corporate hardware and services operations of the business that will be spun off as Hewlett Packard Enterprise on November 1, this year.

According to the company between 25,000-30,000 roles would go at HP Enterprise, which would bundle together HP’s data analysis and software divisions – separating them from the personal computer and printer operation.

“As new technologies come in, we’ve got to restructure that labor force to cheap locations, to much more automation than we have today”, she told CNBC’s “Squawk on the Street.”

Whitman said the companies would return Hewlett Packard to profit next year following the split.

HP officials were not available for comment on how the cuts would impact the public sector business.

Since Whitman took over HP in 2011, there have been several rounds of layoffs at the Palo Alto, California-based company, including 39,000 announced in 2013 and 16,000 past year.

With the company’s failed 2011 Autonomy acquisition by a former CEO, Ms. Whitman must avoid similar missteps.