HP To Cut More Jobs: Company Saving $2.7B And Its Enterprise Services Business By Letting 30,000 Employees Go

HP announced more job cuts. As the company plans to bifurcate into two listed companies, it will axe another 30,000 jobs.

In a bid to curtail overheads and restructure its business, Hewlett-Packard Co, is expected to let about 25,000-30,000 people go. In another words, HP is looking to save about $2.7 billion as it splits into two segments. The 76-year-old company is realigning its corporate structure in line with the rapidly evolving technology sector, and soon two business entities will emerge.

Hewlett Packard Enterprise, will be an umbrella brand that will house the faster-growing corporate hardware and services operations, reported MSN. Speaking about the restructure and clearly hinting at the job cuts, HP’s official statement read:

“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.”

What’s worrying is that these job cuts are in addition to the 55,000 layoffs previously announced under Chief Executive Officer Meg Whitman. The restructuring is almost complete and the new companies are expected to be officially announced on November 1.

With the latest layoffs, HP has let go about 300,000 of its employees, a reduction of about 10% of its entire workforce. Though the company confirmed that employees from across the world will be asked to go, it hasn’t confirmed the ratio or the country which will see biggest reductions. However, given the fact that HP is trying to save money and work with a leaner workforce, one can expect significant layoffs in developed countries, where salaries and perks are higher than third-world countries, where companies like HP see their next growth potential.

HP indicated that, apart from Hewlett Packard Enterprise or HPE, HP Inc, will comprise the computer and printer businesses. Needless to say, in the time of tablets, smartphones and cloud storage, it is this segment that has been hit the hardest. The rapid decline in the sales of personal computers has been a point of significant concern to traditional companies like HP.

It’s ironic that in order to save $2.7 billion a year, HP is expected to shell out about $2.7 billion in the fourth quarter of this year, reported Yahoo. If the scenario looks grim, industry experts caution that HP might not be fully done with job cuts and job restructuring along with layoffs could continue well into 2016, as the company attempts to re-establish its grip over the every evolving tech industry.

[Image Credit | Justin Sullivan / Getty Images]