HP to cut up to 33,300 jobs over next three years
By Abhirup Roy and Heather Somerville
(Reuters) - Hewlett-Packard Co HPQ.N, which plans to split into two listed companies this year, said it expected to cut about 33,300 jobs over three years as the tech pioneer adjusts to falling demand.
The latest cuts, on top of 55,000 layoffs previously announced under Chief Executive Meg Whitman, will mostly be in HP's faster-growing corporate hardware and services operations, to be spun off as Hewlett Packard Enterprise, or HPE, on Nov. 1.
The latest cuts indicate a reduction of the company's total workforce by at least 10 percent, based on its most recent number of more than 300,000 employees as of Oct. 31, 2014, and reflecting the previously announced reduction of 55,000.
Up to 30,000 of the layoffs will be in the enterprise business and up to 3,300 in HP Inc, the company that will continue to make personal computers and printers, HP said in a regulatory filing on Wednesday.
The restructuring will result in pretax charges of about $2.7 billion at HPE and $300 million at HP Inc, which has been hit hard by a relentless decline in sales of PCs.
The charges will be taken between the current quarter and the end of fiscal 2018, ending Oct. 31.
"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 on Tuesday when HP announced forecasts for the two new companies.
Job cuts have become a way of life at HP in recent years as the company digested a series of acquisitions that failed to revive its fortunes. Continued...