HP plans to lay off up to 30,000 employees, split to bring new life (with a review of global corporate layoffs in 2015)

Latest update time：2015-09-17

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In the early morning of September 16, HP plans to lay off up to 30,000 employees. The Silicon Valley pioneer is entering a new era, but will continue the cost-cutting model in the company's recent history.

HP announced the layoffs on Tuesday and will cut jobs within the newly formed Hewlett Packard Enterprise, which will be made up of multiple technology units such as software, consulting and data analysis, and will be separated from HP's PC and printer businesses.

HP plans to complete the split by the end of next month, cutting 25,000 to 30,000 employees within HP Enterprise, meaning 10% to 12% of the 252,000 employees who will join HP Enterprise will lose their jobs. The layoffs are aimed at saving $2 billion in annual expenses, extending HP's years of austerity measures to offset the damage from past acquisitions.

HP has cut 55,000 jobs in the past few years under CEO Meg Whitman, who will become CEO of Hewlett Packard Enterprise after the spinoff. In contrast, many other technology companies are well-positioned to take advantage of the mobile revolution and have been hiring rather than cutting jobs. For example, Google has added 25,000 employees, or 77%, in the past four years.

The spate of layoffs has been a demoralizing blow to the Silicon Valley pioneer founded 76 years ago by William Hewlett and David Packard.

Despite the upheaval, HP remains one of the world's largest technology companies, with annual revenues expected to exceed $50 billion.

Whitman said that splitting up HP will bring new life to both companies, which will be able to better carry out product innovation activities in their respective fields and provide better products to customers.

After the split, HP Enterprise's business focus will be on corporate and government customers, while most of the PC and printer division's revenue will come from the personal consumer market.

“HP Enterprise is a smaller and more focused company than the HP of today,” Whitman said in a statement on Tuesday.

Source: Sina Technology

A review of global corporate layoffs in 2015 (partial)

The data is unconfirmed, only hearsay image data.

[Graphic] Even the Fortune 500 can’t handle the global layoffs

September didn’t start peacefully. First, Phoenix.com released an internal “layoff” email at noon on September 1, saying that the company had problems such as “stock undervaluation”, “overstaffing”, “bloated structure”, and “organizational overlap”, and that it was urgent to downsize and transform. Then, on the 2nd, Bloomberg announced that it would lay off 90 editors. Subsequently, Korean media also revealed on September 8 that Samsung Electronics responded to the Chinese market being taken over by Apple and Chinese manufacturers by “laying off 10% of its headquarters”. With big companies taking the lead, more and more companies are also starting to “sharpen their knives”. (Source: Interface)

Source : Lean News

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