Hewlett-Packard who has been described as a” technology basket case” that has lost direction, is set to slash another 25,000 to 30,000 jobs in an effort to cut costs.<\/p>\n
In Australia HP has been bleeding losses, as they struggle<\/p>\n to hold onto contracts, globally their PC division is also suffering, when<\/p>\n Lenovo launched back in November the Company reacted to the the new consumer<\/p>\n market entrant by slashing the price of their PC’s. A major supplier to the Commonwealth Bank whose systems<\/p>\n crashed last week leaving millions without access to credit cards or able to<\/p>\n access their accounts the Company will shortly spit into two divisions. About 10 percent of the jobs at the current HP, will be<\/p>\n eliminated, company officials said early this morning. A year ago, Meg Whitman the CEO of HP who was in Australia<\/p>\n recently to meet with Commonwealth Bank executives announced she was cutting<\/p>\n Hewlett-Packard in two. This morning, she detailed job cuts expected at the<\/p>\n company. “We’re looking forward to operating as two industry-leading<\/p>\n companies,” said Ms. Whitman, HP’s chief executive, speaking at a meeting of<\/p>\n financial analysts. “You’ll see us doing more pruning of businesses that don’t<\/p>\n fit.” Ms. Whitman became the head of HP in 2011. As part of a<\/p>\n restructuring announced in 2012, 54,000 jobs have been cut at the company. The<\/p>\n new cuts are on top of that. In November, Ms. Whitman will become the chief executive of<\/p>\n HP Enterprise, or HPE, which will sell things like computer servers, data<\/p>\n storage, software and services to business. The other company, called HP Inc., will focus on printers<\/p>\n and personal computers. Ms. Whitman has said the division will enable both<\/p>\n businesses to react faster to changing markets. The expected job cuts will result in a charge of about<\/p>\n $US2.7 billion, beginning in the fourth quarter. “We’ve done a significant amount of work over the past<\/p>\n few years to take costs out and simplify processes and these final actions will<\/p>\n eliminate the need for any future corporate restructuring,” Chief<\/p>\n Executive Meg Whitman said. The total job cuts planned by the company as part of<\/p>\n Whitman’s multi-year restructuring plan was 55,000 as of October last year. HP<\/p>\n had more than 300,000 employees as of Oct. 31, 2014. In the latest third quarter HP’s revenue from personal<\/p>\n computer and printer businesses, its largest, fell 11.5 percent. Enterprise services<\/p>\n division sales dropped 11 percent, while revenue at the enterprise group rose 2<\/p>\n percent. Hewlett Packard Enterprise is expected to have more than<\/p>\n $US50 billion in annual revenue and report adjusted profit of $US1.85 to<\/p>\n $US1.95 per share in 2016, HP said on Tuesday. The business is expected to report free cash flow of $US2.0<\/p>\n billion to $US2.2 billion in 2016, at least half of which is expected to be<\/p>\n returned through dividends and share buybacks. Hewlett-Packard who has been described as a” technology basket case” that has lost direction, is set to slash another 25,000 to 30,000 jobs in an effort to cut costs.<\/p>\n","protected":false},"author":42,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[28,23],"tags":[],"class_list":["post-90389","post","type-post","status-publish","format-gallery","hentry","category-archive","category-it-hardware","post_format-post-format-gallery"],"yoast_head":"\n