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

The definitive guide to warehouse efficiency

Get your free guide to creating efficiencies in the warehouse

Free download

The total economic impact™ of Datto

Cost savings and business benefits of using Datto Integrated Solutions

Download now

Three-step guide to modern customer experience

Support the critical role CX plays in your business

Free download

Ransomware report

The global state of the channel

Download now

Recommended

The IT Pro Podcast: Why techies shouldn’t become managers
Careers & training

The IT Pro Podcast: Why techies shouldn’t become managers

10 Sep 2021
Podcast transcript: Why techies shouldn’t become managers
Careers & training

Podcast transcript: Why techies shouldn’t become managers

10 Sep 2021
Over 90% of IT teams feel pressure to compromise security
Security

Over 90% of IT teams feel pressure to compromise security

9 Sep 2021
The IT Pro Podcast: How umbrella companies exploit IT contractors
IT regulation

The IT Pro Podcast: How umbrella companies exploit IT contractors

3 Sep 2021

Most Popular

How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

17 Sep 2021
What are the pros and cons of AI?
machine learning

What are the pros and cons of AI?

8 Sep 2021
Best MDM solutions 2020
mobile device management (MDM)

Best MDM solutions 2020

17 Sep 2021