HP to Cut 10% of Workforce

Meg Whitman, CEO of HP, has said that the company will need to cut between 25,000 and 30,000 jobs in its process of splitting (HP to Split into Two Companies) – equal to about 10% of the current workforce.

Whitman will become the CEO of HP Enterprise in November, which will have responsibility for servers, storage, software and busineess services. This is the division that will see the most significant cuts – specifically jobs at call centres and other service centres in developed countries. HP plans to automate ‘many jobs’ and relocate others to countries such as India and Costa Rica.

HP Inc., which will look after PCs and printers, will have about 50,000 employees. Its head count will be reduced by 1,200 in 2016, with a further 2,100 to be cut by the end of 2018.

The announcement of the cuts was hidden in a prediction for HPE’s performance next year. The company is expected to see its 2016 revenues grow YoY; it is forecasting $5 billion – $5.2 in cash flow from operations and $2 billion – $2.2 billion in free cash flow.