The cuts announced Tuesday will be within the newly formed Hewlett Packard Enterprise, which is splitting from the Palo Alto, California, company’s personal computer and printing operation.
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The company told analysts in a San Jose meeting the moves would save $2.7 billion annually. HP Chief Financial Officer Cathie Lesjak said last month the company could cut up to 5 percent more from its workforce than the 55,000 people it had planned to let go.
HP CEO Meg Whitman said the latest job cuts will “enable a more competitive, sustainable cost structure” for the new company.
“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.
Shares of Hewlett-Packard Company (NYSE:HPQ) traded down 0.018% during mid-day trading on Monday, hitting $27.035.
Such splits have become a trend in Silicon Valley and beyond, with companies breaking off or spinning off a portion of their business to be more focused.
The restructuring will result in a GAAP-only charge of about $2.7 billion, beginning in the fourth quarter fiscal 2015.
Hewlett-Packard Company (HP) is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the Government, health and education sectors. The stock has a 50-day moving average of $28.50 and a 200-day moving average of $31.42.
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Investors will be marking 2015-11-24 on their calendars as this is when Hewlett-Packard Company is slated to next issue their quarterly earnings. Citigroup Inc. reaffirmed a buy rating on shares of Hewlett-Packard Company in a report on Friday, June 5th.
