HP Is Cutting 25,000 to 30,000 Jobs
Hewlett-Packard said it expects to cut 25,000 to 30,000 jobs as part of its restructuring and cost-saving efforts at its enterprise services business.
HP is splitting into two listed companies later this year, separating its computer and printer businesses from its faster-growing corporate hardware and services operations, to be called Hewlett Packard Enterprise.
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.
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"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.