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HP Preps Round of Staggering Job Cuts

HP, which is in the process of splitting into two separate companies, said on Tuesday that it’s preparing to cut up to 30,000 jobs. They’ll come from the enterprise side of the business.

The tech giant needs to cut $2.7 billion per year, HP reported. Eliminating between 25,000 and 30,000 positions means about 10 percent of the company’s workforce will be looking for employment.

If there’s a silver lining, CEO Meg Whitman told financial analysts that she believes this is nearly the end of what’s been a very tough series of layoffs, the Wall Street Journal said. Just four years ago, HP had 350,000 employees. After this new round of cuts, that number will fall to about 270,000.

Profit has fallen steadily since 2010, when it reached a high of nearly $8.8 billion; that number was down to $5 billion last year. Revenue, also, is down about 10 percent since 2010. In response to declining PC sales, the company has been moving toward services that garner higher margins: Think analytics and security.

HP’s split becomes official on Nov. 1. HP Enterprise will sell mostly servers and software to businesses. HP Inc. will maintain the traditional PC and printer sales.

The cloud will represent a significant portion of HP Enterprise’s businesses over the next several years – with growth expected to be 20 percent per year.

Hewlett Packard Enterprise said it sees revenue from its cloud-related businesses growing more than 20 percent annually for the next several years.

HP Inc. also expects to shed jobs – roughly 3,300 over the next three years.

Follow senior online managing editor Craig Galbraith on Twitter.

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