HP To Slash Up to 30,000 More Jobs in Restructuring

It was a downcast day for workers in San JoseEUs tech industry. HP yesterday announced a strategy update and financial outlook that will see the company cut another 25,000 to 30,000 jobs.

At its 2015 Securities Analysts Meeting, Meg Whitman, the current Chairman, president and CEO of HP who will become president and CEO of Hewlett Packard Enterprise (HPE), offered insights into how the new company will leverage its strengths in infrastructure, software services and cloud.

"Hewlett Packard Enterprise will be smaller and more focused than HP is today, and we will have a broad and deep portfolio of businesses that will help enterprises transition to the new style of business," said Whitman. "As a separate company, we are better positioned than ever to meet the evolving needs of our customers around the world."

Massive Cost Cutting

Whitman explained that the new HP will help enterprise customers address what it has identified as the four biggest challenges: transforming to a hybrid infrastructure that gives enterprises greater flexibility and agility without disrupting legacy systems; protecting the digital enterprise from external risk; helping organizations use data that yield necessary insights to forecast risk and opportunity; and driving workplace productivity by delivering the tools optimized for business critical tasks at the right economics.

According to the financial outlook, HPE will have over $50 billion in annual revenue. The company will drive that revenue by focusing on delivering competitive integrated technology solutions to a market that has the potential to exceed $1 trillion over the next three years.

Part of the equation, of course, is cost-cutting. Tim Stonesifer, who will become CFO of HPE, presented a plan to drive $2.7 billion in ongoing annual cost reductions. One of the biggest facets of the cost-cutting campaign is slashing 25,000 to 30,000 people from the company.

"These restructuring activities...

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HP To Slash Up to 30,000 More Jobs in Restructuring

It was a downcast day for workers in San JoseEUs tech industry. HP yesterday announced a strategy update and financial outlook that will see the company cut another 25,000 to 30,000 jobs.

At its 2015 Securities Analysts Meeting, Meg Whitman, the current Chairman, president and CEO of HP who will become president and CEO of Hewlett Packard Enterprise (HPE), offered insights into how the new company will leverage its strengths in infrastructure, software services and cloud.

"Hewlett Packard Enterprise will be smaller and more focused than HP is today, and we will have a broad and deep portfolio of businesses that will help enterprises transition to the new style of business," said Whitman. "As a separate company, we are better positioned than ever to meet the evolving needs of our customers around the world."

Massive Cost Cutting

Whitman explained that the new HP will help enterprise customers address what it has identified as the four biggest challenges: transforming to a hybrid infrastructure that gives enterprises greater flexibility and agility without disrupting legacy systems; protecting the digital enterprise from external risk; helping organizations use data that yield necessary insights to forecast risk and opportunity; and driving workplace productivity by delivering the tools optimized for business critical tasks at the right economics.

According to the financial outlook, HPE will have over $50 billion in annual revenue. The company will drive that revenue by focusing on delivering competitive integrated technology solutions to a market that has the potential to exceed $1 trillion over the next three years.

Part of the equation, of course, is cost-cutting. Tim Stonesifer, who will become CFO of HPE, presented a plan to drive $2.7 billion in ongoing annual cost reductions. One of the biggest facets of the cost-cutting campaign is slashing 25,000 to 30,000 people from the company.

"These restructuring activities...

Comments are closed.