Hewlett-Packard to cut at least 25,000 jobs during split

At HP, 25,000 to 30,000 layoffs will coincide with the company’s announced split into a hardware manufacturer and an enterprise services provider. This concerns about 10 percent of the total workforce of the American company.

The layoffs will cost $2.7 billion, according to HP, but should also save $2.7 billion per year, according to HP. The layoffs are mainly at HP Enterprise. There, competition from companies such as Amazon, Google and Microsoft is fierce. After the split, HP Inc. responsible for the production of PCs and printers, and HP Enterprise focuses on business services such as cloud computing.

Last August, the company also made 55,000 layoffs. HP CEO Meg Whitman said this is the final round of layoffs and will prevent the need for future restructuring. An estimated 85,000 jobs have been lost since she took over at HP. Whitman stated in 2012 that the reforms within the company were expected to have put the company back on track by 2016. Meg Whitman ran eBay from 1998 to 2008.