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| Hewlett-Packard to cut up to 30,000 jobs as it plans split | |
| (about 2 hours later) | |
| Hewlett-Packard says it will cut another 25,000-30,000 jobs, or 10% of its workforce, as it plans to split the company in two. | |
| It follows 55,000 job cuts announced earlier this year. | It follows 55,000 job cuts announced earlier this year. |
| The losses will come in Hewlett Packard Enterprise (HPE), which is splitting from the printer and PC business. | The losses will come in Hewlett Packard Enterprise (HPE), which is splitting from the printer and PC business. |
| The company says the cuts will save $2.7bn (£1.76bn) in annual costs, although the plan will cost $2.7bn to carry out. | The company says the cuts will save $2.7bn (£1.76bn) in annual costs, although the plan will cost $2.7bn to carry out. |
| At a meeting for Wall Street analysts, chairman and chief executive Meg Whitman said: "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." | At a meeting for Wall Street analysts, chairman and chief executive Meg Whitman said: "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." |
| The new structure proposed by Ms Whitman sees HP Enterprise focusing primarily on businesses and government agencies, and the PC and printing divisions on the consumer market. | The new structure proposed by Ms Whitman sees HP Enterprise focusing primarily on businesses and government agencies, and the PC and printing divisions on the consumer market. |
| 'Low-cost locations' | 'Low-cost locations' |
| The company currently has more than 300,000 employees. | The company currently has more than 300,000 employees. |
| "The number is sadly larger than some people might have expected, but I think it's a reflection of how much trouble HP has been having with its services," said Charles King, analyst at the Silicon Valley IT consulting firm Pund-IT. | "The number is sadly larger than some people might have expected, but I think it's a reflection of how much trouble HP has been having with its services," said Charles King, analyst at the Silicon Valley IT consulting firm Pund-IT. |
| "I'm frankly not sure if HP is finished with the layoffs." | "I'm frankly not sure if HP is finished with the layoffs." |
| The company will not say where the cuts will fall, but part of the plan involves changing the nature of the workforce. | The company will not say where the cuts will fall, but part of the plan involves changing the nature of the workforce. |
| The proportion of workers in what HPE calls "low-cost locations" is expected to rise from around 42% now to 60% by 2018. | The proportion of workers in what HPE calls "low-cost locations" is expected to rise from around 42% now to 60% by 2018. |
| The tech company has struggled over the last decade to keep up with changing demands as customers move away from desktop computers. | The tech company has struggled over the last decade to keep up with changing demands as customers move away from desktop computers. |
| Declining fortunes | Declining fortunes |
| However, Hewlett-Packard is still one of the world's largest technology companies, with revenues this year expected to top $50bn. | However, Hewlett-Packard is still one of the world's largest technology companies, with revenues this year expected to top $50bn. |
| The company famously started life in a Palo Alto garage in California in 1939 and grew to be the guiding light of what became known as Silicon Valley. | The company famously started life in a Palo Alto garage in California in 1939 and grew to be the guiding light of what became known as Silicon Valley. |
| Its fortunes started to decline with a series of expensive and much criticised acquisitions including Compaq for $25bn in 2002, consultants EDS for $14bn in 2008 and Autonomy for $11bn in 2011. | Its fortunes started to decline with a series of expensive and much criticised acquisitions including Compaq for $25bn in 2002, consultants EDS for $14bn in 2008 and Autonomy for $11bn in 2011. |
| In 2012 it lost its position as the world's leading supplier of PCs to Lenovo. | In 2012 it lost its position as the world's leading supplier of PCs to Lenovo. |
| The share price peaked at the height of the dot.com boom in 2000, and, despite two surges in 2007 and 2010, it has lost some 60% of its value since then. | The share price peaked at the height of the dot.com boom in 2000, and, despite two surges in 2007 and 2010, it has lost some 60% of its value since then. |