HP announces up to 30,000 layoffs ahead of big split

Mammoth cuts come ahead of November's split date

HP has announced the loss of up to 30,000 jobs as it prepares to divide its company into two new divisions.

The company is attempting to reduce its annual costs by $2.7 billion, as it prepares to combine its PC and printer manufacturing arms into HP Inc, and its business hardware and services groups into Hewlett Packard Enterprise.

The latest round of job cuts represents around 10 per cent of HP's workforce, and while a date has not been revealed for the lay-offs, they are widely expected to come after it splits into two separate entities in November.

It is the latest round in a series of devastating redundancies that has previously seen HP lose around 50,000 staff.

CEO Meg Whitman, who has presided over the cost-cutting, was optimistic about the company's future in a meeting with Wall Street analysts.

"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," she said.

HP plans to officially divide into two businesses on 1 November, allowing Hewlett Packard Enterprise to focus more on its growing cloud and data analytics portfolio.

Similar to Google's Alphabet rebranding, both companies will be listed separately on the New York Stock Exchange, and will report their financial results separately.

Cloud is set to be a major focus for the new enterprise wing, with the company predicting 20 per cent year on year growth in its cloud businesses.

However, HP has focused on a hybrid cloud strategy, admitting that it can't compete with major providers like Amazon, Google and Microsoft.

Featured Resources

BCDR buyer's guide for MSPs

How to choose a business continuity and disaster recovery solution

Download now

The definitive guide to IT security

Protecting your MSP and your customers

Download now

Cost of a data breach report 2020

Find out what factors help mitigate breach costs

Download now

The complete guide to changing your phone system provider

Optimise your phone system for better business results

Download now

Recommended

HP Pro c640 Chromebook review: Nailing the basics
Laptops

HP Pro c640 Chromebook review: Nailing the basics

15 Jan 2021
HP EliteBook 840 G7 review: An elite experience
Laptops

HP EliteBook 840 G7 review: An elite experience

15 Dec 2020
HP E27d G4 review: All work and no play makes a great office monitor
monitors

HP E27d G4 review: All work and no play makes a great office monitor

30 Nov 2020
HP EliteDesk 705 G5 Desktop Mini review: Small in size, big in value
Hardware

HP EliteDesk 705 G5 Desktop Mini review: Small in size, big in value

9 Nov 2020

Most Popular

KPMG offers staff 'four-day fortnight' in hybrid work plans
flexible working

KPMG offers staff 'four-day fortnight' in hybrid work plans

6 May 2021
Dell patches vulnerability affecting hundreds of computer models worldwide
cyber security

Dell patches vulnerability affecting hundreds of computer models worldwide

5 May 2021
16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

29 Apr 2021