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The move will save $2.7 billion for Hewlett Packard Enterprise, but will drive up the number of layoffs under Meg Whitman to about 85,000.
Today, the company announced that this restructuring will involve reducing the workforce by 25,000 to 30,000 people, or 10 percent. Most of those jobs will be eliminated on the HP Enterprise side.
The statement released by HP indicated that Tim Stonesifer, who will become Chief Financial Officer of Hewlett Packard Enterprise, is aiming for $2.7 billion in annual cost reductions, mostly coming from those staff cuts.
As part of the announcement, HP CEO Meg Whitman turned the spotlight on the company’s cloud strategy, indicating that cloud revenue would be $3 billion, and expected to grow 20 percent annually. (Indeed, the company has indicated that some of the layoffs would be offset by new hires, to “reshape the workforce.”) This sounds a lot like IBM’s recent efforts to “rebalance” its workforce to focus on the cloud. It appears to be getting crowded in the virtual skies.
Agencies/Canadajournal
