HP A "Basket Case" 30,000 Jobs Slashed As PC Sales Slump
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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.


In Australia HP has been bleeding losses, as they struggle

to hold onto contracts, globally their PC division is also suffering, when

Lenovo launched back in November the Company reacted to the the new consumer

market entrant by slashing the price of their PC’s.


A major supplier to the Commonwealth Bank whose systems

crashed last week leaving millions without access to credit cards or able to

access their accounts the Company will shortly spit into two divisions.


About 10 percent of the jobs at the current HP, will be

eliminated, company officials said early this morning.


A year ago, Meg Whitman the CEO of HP who was in Australia

recently to meet with Commonwealth Bank executives announced she was cutting

Hewlett-Packard in two. This morning, she detailed job cuts expected at the



“We’re looking forward to operating as two industry-leading

companies,” said Ms. Whitman, HP’s chief executive, speaking at a meeting of

financial analysts. “You’ll see us doing more pruning of businesses that don’t



Ms. Whitman became the head of HP in 2011. As part of a

restructuring announced in 2012, 54,000 jobs have been cut at the company. The

new cuts are on top of that.


In November, Ms. Whitman will become the chief executive of

HP Enterprise, or HPE, which will sell things like computer servers, data

storage, software and services to business.


The other company, called HP Inc., will focus on printers

and personal computers. Ms. Whitman has said the division will enable both

businesses to react faster to changing markets.


The expected job cuts will result in a charge of about

$US2.7 billion, beginning in the fourth quarter.


“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,” Chief

Executive Meg Whitman said.


The total job cuts planned by the company as part of

Whitman’s multi-year restructuring plan was 55,000 as of October last year. HP

had more than 300,000 employees as of Oct. 31, 2014.


In the latest third quarter HP’s revenue from personal

computer and printer businesses, its largest, fell 11.5 percent. Enterprise services

division sales dropped 11 percent, while revenue at the enterprise group rose 2



Hewlett Packard Enterprise is expected to have more than

$US50 billion in annual revenue and report adjusted profit of $US1.85 to

$US1.95 per share in 2016, HP said on Tuesday.


The business is expected to report free cash flow of $US2.0

billion to $US2.2 billion in 2016, at least half of which is expected to be

returned through dividends and share buybacks.