HP Corporate Split Sends Thousands On The Unemployment Heap

Hewlett-Packard has announced that its restructuring exercise will lead to job losses of 25,000 to 30,000.

The American global information technology company headquartered in Palo Alto, California, United States will split into two separate units; one with a focus on personal computers and printers, and the other on software and enterprise services.

The corporate tech giant is seeking some US$2 billion in annual cost reductions, plus US$700 million in savings related to the spinoff, according to press reports.

“These restructuring activities will enable a more competitive, sustainable cost structure for the new Hewlett Packard Enterprise,” said Meg Whitman, the HP chairman and chief executive who will head the unit after the split.

“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.”

The new company will focus on cloud computing, servers, storage, networking and other technology services, with the other unit HP Inc. keeping the personal computer and printer operations.

Hewlett Packard Enterprise will have more than US$50 billion in annual revenue and “will be focused on delivering unrivaled integrated technology solutions” to companies, according to a company statement.