September 15, 2015 / 8:55 PM / 2 years ago

HP says it will cut up to 30,000 jobs

A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo Alto, California January 16, 2013.Stephen Lam

(Reuters) - Hewlett-Packard Co (HPQ.N), which is splitting into two listed companies later this year, said it expects to cut another 25,000 to 30,000 jobs in its enterprise business as part of its efforts to save $2.7 billion in costs.

The 76-year-old company is separating the faster-growing corporate hardware and services operations, to be called Hewlett Packard Enterprise, from its computer and printer businesses.

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

"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," Chief Executive Meg Whitman said.

The total job cuts planned by the company as part of Whitman's multi-year restructuring plan was 55,000 as of October last year. HP had more than 300,000 employees as of Oct. 31, 2014.

In the latest third quarter HP's revenue from personal computer and printer businesses, its largest, fell 11.5 percent. Enterprise services division sales dropped 11 percent, while revenue at the enterprise group rose 2 percent.

Hewlett Packard Enterprise is expected to have more than $50 billion in annual revenue and report adjusted profit of $1.85 to $1.95 per share in 2016, HP said on Tuesday.

The business is expected to report free cash flow of $2.0 billion to $2.2 billion in 2016, at least half of which is expected to be returned through dividends and share buybacks.

The stock fell 1.4 percent to $26.73 in extended trading on Tuesday.

Reporting by Abhirup Roy in Bengaluru; Editing by Savio D'Souza

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