H-P on Wednesday announced a further 25,000-30,000 jobs as part of its planned split into two companies.
The troubled U.S. tech giant is in the process of dividing into HP Inc., which will address the PC and print er markets, and Hewlett Packard Enterprise (HPE), a provider of servers, storage, network equipment, software, and enterprise and cloud services.
The job cuts will be made at the latter as part of a plan by HPE finance chief Tim Stonesifer to lower annual costs by US$2.7 billion.
"To achieve these savings, Hewlett Packard Enterprise expects 25,000 to 30,000 people to leave the company," said HPE, in a statement.
This is on top of the previously announced 55,000 redundancies to the end of October this year.
The new job cuts will generate a one-off charge of $2.7 billion, the company said.
"These restructuring activities will enable a more competitive, sustainable cost structure for the new Hewlett Packard Enterprise," said H-P CEO Meg Whitman, who will become CEO of HPE following the separation.
"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," she said.
According to H-P’s 2014 annual report, the company employed approximately 302,000 staff at the end of October.
Also on Wednesday, H-P issued fiscal 2016 guidance for the separate companies.
It expects HP Inc. to generate cash flow from operations of $3 billion-$3.3 billion. Net capital expenditure is expected to be $500 million, resulting in free cash flow in the range of $2.5 billion-$2.8 billion. Earnings per share (EPS) is expected to come in at $1.67-$1.77.
Meanwhile, HPE expects fiscal 2016 free cash flow of $2 billion-$2.2 billion and EPS of $1.85-$1.95.
