Hewlett-Packard Slashing Up To 30,000 Jobs As It Preps For Big Split

Hewlett Packard is getting ready to eliminate as many as 30,000 jobs and likely no less than 25,000 as it splits away from its printer and PC business. All of the job cuts will be associated with the newly formed Hewlett Packard Enterprise (HPE), a separate entity that HP expects will pull in more than $50 billion in annual revenue.

"Hewlett Packard Enterprise will be smaller and more focused than HP is today, and we will have a broad and deep portfolio of businesses that will help enterprises transition to the new style of business," said Meg Whitman, who will become President and Chief Executive Officer of HPE after the split. "As a separate company, we are better positioned than ever to meet the evolving needs of our customers around the world."

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HP anticipates the job cuts will save the company $2.7 billion each year, though at the outset, it will cost the firm that exact same amount to complete the split and carry out the staff reduction.

It's a long game strategy for HP. Whitman sees the restructuring effort as enabling a "more competitive, sustainable cost structure" for the new HPE business. She also believes this will be the last time there's a need for corporate restructuring, though that doesn't mean there won't be more job cuts along the way.

Investors share Whitman's optimism. Shares of HP are up more than 5 percent to $28.49 at the time of this writing and climbing.