Hewlett-Packard announces up to 30,000 in job cuts as it prepares split this year.
According to an article on bbc.com, although Hewlett-Packard continues to be one of the top technology companies, there's been a notable decline in revenues due to huge acquisitions over the years. The company shelled out $25 billion for Compaq in 2002, then $14 billion for EDS Consultants and $11 billion for Autonomy last 2011. By the following year, in 2012, the company no longer became the leading supplier for Lenovo PCs.
In the same article, Charles King, an analyst for Silicon Valley-based IT consultancy Pund-IT said,"The number is sadly larger than some people might have expected, but I think it's a reflection of how much trouble HP has been having with its services. I'm frankly not sure if HP is finished with the layoffs."
In addition, Meg Whitman, Chief Executive and Chairman of HP said: "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."
In another article on reuters.com, the 76-year old technology giant will be in the process of separating its printer and computer business from its corporate hardware and service operations (which will be eventually named as Hewlett Packard Enterprise). The move would result in the layoff of 30,000 personnel and is part of the company's effort to save about $2.7 billion in company costs.
Bloomberg.com also shed light on the company's plans to restructure. "HP absolutely needs to fix enterprise services, PCs and servers across both its companies. Some of the issues are market related and some of them are HP-specific. The solution to revenue growth is not going to come from restructuring actions," says Bloomberg Intelligence analyst Anand Srinivasan.
"A big step forward would be if enterprise services can stop shrinking. Before you can grow you have to fill the bathtub up," HP CEO Meg Whitman added, as mentioned in the same article.
