Tag: HP Inc

HP Inc speeds up job cuts

HP logoThe maker of expensive printer ink HP Inc can’t get enough of job cuts, even though dividing the company into two was supposed to sort it out.

The outfit said it was accelerating its restructuring program and now expects about 3,000 people will exit by the end of fiscal 2016 instead of over three years as it announced in September.

HP had said it expected to cut about 33,300 jobs over three years, of which up to 3,300 were to be cut in what would become  HP inc. It said then that 1,200 people would leave the company by the end of 2016.

The restructuring will result in charges and associated cash payments of about $300 million in the current year, the company said.

HP Inc is the bit of HP that got the legacy hardware business, reported a near 12 percent drop in quarterly revenue, as it struggles with weak demand for PCs and printers.

Revenue in the company’s personal systems business fell 13 percent in the first quarter ended Jan. 31, while it declined 17 percent in its printing division from a year earlier.

PC sales have been falling sharply worldwide, and the launch of Windows 10 has so far failed to rekindle demand.

Printer demand has been hurt as corporate customers cut printing costs and consumers shift to mobile devices.

The company, which is reporting results independently for the first time since being spun off from Hewlett-Packard Co, forecast adjusted profit of 35-40 cents per share for its second quarter ending April 30. HP Inc maintained its 2016 adjusted profit forecast at $1.59-$1.69 per share.

The company’s earnings from continuing operations fell to $650 million in the first quarter from $770 million, a year earlier. Revenue fell to $12.25 billion from $13.86 billion.

All this was in line with analysts expectations.

 

HP splits itself apart

Meg WhitmanHewlett Packard is no more because it has cut itself into two.

And this morning CEO Meg Whitman (pictured) will open trading on the New York Stock Exchange as the CEO of Hewlett Packard Enterprise (HPE).

The other bit of HP will be headed by Dion Weisler.

Over the last three months or so, both companies have been working out how the nuts and bolts of both businesses work, and have already divided their support web sites so that if you need a bug fix or an upload, you get directed to the relevant pages.

HPE will deal as its name suggests with the enterprise side of business, while HP Inc will carry on selling printers, PCs and the like.

The split actually happened yesterday after HP’s Whitman said it would divide itself in two in early October.

HP was formed by Dave Packard and Bill Hewlett and went into business in 1939.

HP had a rough time in the early years of this century under the stewardship of Carly Fiorina. Then followed Mark Hurd, who now works for Oracle, followed in rapid succession by Leo Apotheker, who mastermind buying Autonomy for $10 billion.

He only lasted for just under a year.