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.