HP will lose 30,000 more jobs

BN-EE799_hp0820_P_20140820164645It looks like HP’s split into two companies will not save jobs – in fact, 30,000 more will go in the restructuring.

The purge will occur within the newly formed Hewlett Packard Enterprise, a bundle of technology divisions focused on software, consulting and data analysis that is splitting off from the company’s personal computer and printing operations.

The spinoff will be completed by the end of next month, dooming 25,000 to 30,000 jobs within HP Enterprise. The target means 10 to 12 percent of the 252,000 workers joining HP Enterprise will lose their jobs as part of the company’s effort to reduce its expenses by $2 billion annually.

About 50,000 workers will remain at HP, which become the new name for the company retaining the PC and printer operations.

This means that since CEO Meg Whitman took control of the company more than 88,000 people have collected their layoff notices. Mostly the problems have been caused by acquisitions that have not panned out and a slump in PC sales.

HP’s layoffs have been demoralizing blow to a company that provided a template for future Silicon Valley entrepreneurs when William Hewlett and David Packard founded it 76 years ago. Hewlett and Packard later embraced an employee-friendly philosophy that became known as the “HP Way.”

The HP Way was more or less killed off by the winsome CEO Carly Fiorina who is now a candidate for the Republican Party’s nomination in the 2016 race for president. Fiorina engineered a $25 billion acquisition of PC maker Compaq that angered many shareholders, including heirs of the company’s founders. She cut more than 30,000 jobs before she was fired.

Still HP remains one of the world’s biggest technology companies. HP Enterprise expects to have more than $50 billion in annual revenue.

“Hewlett Packard Enterprise will be smaller and more focused than HP is today,” Whitman promised in a Tuesday statement.