HP will cut its workforce by as many as 30,000 people as it undergoes its split into two separate companies, it was announced at a meeting in San Jose, California.
The job cuts will come in a restructuring bid aimed at saving the company US$2.7bn in annual operating costs, said Tim Stonsifer, incoming CFO of HP Enterprise.
While these cuts represent almost 10pc of HP Enterprise’s workforce, many of the losses will be offset by new hires, with many of the jobs moving to low-cost countries.
Mike Nefkens, head of the HP group, outlined a plan whereby, by the end of 2018, only 40pc of the group’s workforce will be in high-cost countries. This is expected to save the company somewhere in the region of US$2bn per year.
While the bulk of jobs cut will be at HP Enterprise, the other new branch of HP will not be immune.
A further 3,300 jobs will be cut at HP Inc, said its incoming CFO, Cathie Lesjak.
Shares in the company fell by 36 cents to US$26.75 in after-hours trading after the news broke.
HP announced intentions to split into two distinct companies last year. HP Inc will focus on PCs and printing, and HP Enterprise will centre on the corporate computing, software and services side of the business.
Main image via Shutterstock