Hewlett-Packard has announced that its reorganisation plans will lead to a further 25,000-30,000 job losses, after tens of thousands of employees have been let go in the past year.
No time-table for the lay-offs has been given. The company says that it is having to cope with the move away from traditional personal computers to mobile devices.
Hewlett-Packard, the second-largest PC maker in the world and one of the USA’s biggest high-tech firms, is preparing to split into two separate units: one focused on personal computers and printers and the other on software and enterprise services. Hewlett-Packard said that these job losses will be the last ones.
Chief executive Meg Whitman, who will head the enterprise unit after the split, said: “These restructuring activities will enable a more-competitive cost structure for the new Hewlett-Packard Enterprise.”
The new unit is seeking some $2 billion in annual cost reductions, according to the outlook provided to analysts, plus $700 million in savings related to the spin-off.