In anticipation of its split into two separate companies, Hewlett Packard Company, as part of its 2015 Securities Analysts Meeting today, outlined plans for the future Hewlett Packard Enterprise Company.
Among its announcements about strategy and financial outlook, the Hewlett Packard Enterprise leadership team disclosed that 25,000 to 30,000 employees will be laid off, primarily in its Enterprise Services business.
The cost-reduction plan is expected to deliver $2.7 billion in ongoing annual savings, according to an HP press release.
“These restructuring activities will enable a more competitive, sustainable cost structure for the new Hewlett Packard Enterprise,” stated Meg Whitman, current HP chairman, president and CEO, who will become president and CEO of Hewlett Packard Enterprise.
“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,” Whitman said.
Enterprise Services is currently headquartered in Plano, Texas, and employs more than 135,000 people worldwide.
HP announced in October 2014 that it would separate into two companies: HP Inc. would produce computers and printers, while Hewlett Packard Enterprise would focus on infrastructure, software, services and cloud.
The split “will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders,” Whitman stated at the time.
The new Hewlett Packard Enterprise will have more than $50 billion in annual revenue and will be focused on delivering integrated technology solutions to a market that has the potential to exceed $1 trillion over the next three years, the press release stated. Hewlett Packard Enterprise will trade under the ticker symbol “HPE.”
“Hewlett Packard Enterprise will be smaller and more focused than HP is today, and we will have a broad and deep portfolio of businesses that will help enterprises transition to the new style of business,” Whitman said Tuesday.
By Palo Alto Weekly staff
By Palo Alto Weekly staff
By Palo Alto Weekly staff
Hopefully this will put some downward pressure on home prices and traffic in Palo Alto. Palo Alto needs some better balance in the jobs/homes ratio.
More shrinkage for the once exemplary brand. HP has not been able to find competent leadership since its founders departed. It’s had an unbroken chain of short-sighted clowns in the driver seat.
Speaking of circuses, does anybody know when Meg plans to run for POTUS?
Downward pressure on home prices and traffic in Plano, Texas.
What Carly Fiorina did to HP has been so damaging they still have not recovered. This has been her enduring legacy.
And she thinks she can run the country?
Any info on where the jobs will be cut? Specifically, how many will be at HP in Palo Alto?
they are running around in circles… the upper management should leave if they want to do the right thing
To “Heloise and Abelard:” You understate Fiorina’s destructive reputation in the high-tech world (something the general public seems largely ignorant of). She left the former Bell Telephone Laboratories a smoking ruin, which apparently then qualified her to manage Hewlett-Packard (where her feud with the founding families led to her removing their full names from signage, officially re-dubbing the firm just “H-P” in graphic logos). One day I got a phone call from a friend, a longtime H-P engineering manager here. “I can barely hear you,” I said — “what’s that commotion in the background?” She answered: “We’re dancing in the hallways here at H-P: Fiorina is leaving at last.”
And yet apart from all this, we must consider not how Fiorina compares with other high-tech managers, but how she compares with other presidential candidates. In that context, she looks far better.
(Also — the writers omitted to mention this background, but the pending split of H-P is just the LATEST “split into two separate companies.” In the late 1990s it happened before, when the original business that Hewlett and Packard founded — making electronic measuring equipment — separated under the new name Agilent, while the computer products, a comparatively late development in H-P’s history, kept the original name. Bill Hewlett and Dave Packard in 1939-40 did not found a “computer” company, though today writers with no clue of its history use that revisionist characterization occasionally.)
“What Carly Fiorina did to HP has been so damaging they still have not recovered. This has been her enduring legacy. And she thinks she can run the country?”
Why shouldn’t she? Her record is identical to Dubya’s and similar to Romney’s.
Whitman is doing the correct thing. She was hired to clean up a bloated company with decreasing revenues. She’s only half way there. Way to Meg!
Today’s WSJ opines that Meg has laid off too many (55,000 laid off previously). There will not be enough employees left to serve customers.
Didn’t Meg Whitman get fired from EBay? If so, it was a bad decision to put her in charge of HP!
A simple Google search would have told you that Whitman was not fired from eBay…It was her own personal plan, and in the process set up a successor to take her place.
Google searches and Wikipedia are not always accurate or complete. That’s why high schools and colleges do not allow them to be used as”sources” for reports.
I have been steered wrong before by both of them,and not just a few times, either.
@Woops, thank you for your sensible post – wish we could make this really clear to students.
– from a librarian