Hewlett-Packard to cut more than 25,000 jobs

Hewlett-Packard (HP) is to cut between 25,000 and 30,000 jobs as part of a fresh restructuring drive to save costs. The latest job cuts are on top of the 55,000 layoffs announced in 2012.

Under a previously announced plan, the US tech firm is to split into two units. Its software, consulting and data analysis sections will come under the newly-formed Hewlett Packard Enterprise, separate from its personal computer and printer businesses.

Most of the job cuts are to come from the enterprise business, with the spin-off set to be finalised on 1 November. HP says this will save around $2.7bn (£1.8bn; €2.4bn) a year, but the reshuffle will also incur a one-time expense of $2.7bn.

The company's chief executive and president, Meg Whitman, said the restructuring would make HP "smaller and more focused" to better deal with evolving customer demands. Its share price closed 0.3% higher at $27.11 in New York on 15 September.

Radical restructuring

"These restructuring activities will enable a more competitive, sustainable cost structure for the new Hewlett Packard Enterprise," Whitman said in a statement. "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."

Whitman said Hewlett Packard Enterprise would 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".

HP said the enterprise business will have more than $50bn in revenue and likely post earnings per share in the range of $1.85 and $1.95 in 2016. "As a standalone company, Hewlett Packard Enterprise expects fiscal 2016 revenue to grow year-over-year in constant currency driven by continued strength in servers, storage and networking, and stabilization in services and software," it explained.

HP's radical restructuring plans, amid falling personal computer and printer sales, first came to light in 2014.