Tag: restructuring

HP to cut 5 000 jobs in restructure

By Dion Weisler for CNBC 

HP now expects 4 500 to 5 000 employees to leave the company by the end of fiscal 2019 as part of an ongoing restructuring plan, the PC maker said on Tuesday.

In October 2016, HP’s board had approved a restructuring plan to be implemented through fiscal year 2019, under which it had expected around 4,000 job cuts. In May, the company said it expected that number to increase by 1 to 2 percent.

The company employed 49,000 people as of October 31.

HP, formed in 2015 when the then Hewlett-Packard Co was spilt into two, said in a regulatory filing. It now expects pretax charges of about $700 million related to the layoffs, compared with about $500 million forecast earlier.

HP estimates that about half of the expected pretax costs will relate to severance and the remaining costs due to infrastructure, non-labor actions, and other charges.

When Hewlett-Packard Co split up, HP Inc focused on the consumer-facing hardware business, including sales of PCs and printers, while Hewlett Packard Enterprise co-hosted the company’s data-center, software and services units.

HP, which has the top position in worldwide PC shipments in the first calendar quarter of 2018 with a 22.6 percent market share, reported better-than-expected quarterly sales of $14 billion in the quarter ended April 30.

As part of a broad corporate restructuring plan unveiled ahead of the planned spin-off of its Enterprise Services division next March, Hewlett Packard Enterprise announced the retirement of director of Hewlett Packard Labs Martin Fink, effective at year’s end.

Fink, a 30-year veteran at Hewlett Packard, had served in his current role since last November. Previously, Fink, spent three years as the company’s chief technology officer since November, 2012.

In three decades with the tech giant, Fink worked in a variety of roles at Hewlett Packard, including senior vice president and GM of Business Critical Systems and Converged Application Systems.

Fink, 50, has also served as a director with Santa Clara, Calif. based software company Hortonworks, Inc. since July, 2014.

“Martin has had a remarkable career, driving some of our most important initiatives, including our Cloud, open source and Linux strategies and leading the Business Critical Systems division and The Machine,” Hewlett Packard CEO Meg Whitman wrote in a company memo. “Martin will leave a lasting impression on the company, and I know he will be missed.”

Among other changes, Whitman said the company will consolidate its Product Marketing, E-commerce and Consumer Advocacy divisions into a single marketing organization under the leadership of Henry Gomez, the company’s
Chief Marketing and Communications Officer. In addition, Hewlett Packard Enterprise announced that Chris Hsu, the company’s Chief Operating Officer, will now head its IT and Cyber Security teams.

“By having these teams work more closely with Chris, we will further leverage their capabilities across the company to drive process improvement, enhance customer and partner experience and employee engagement,” Whitman adds.

Shares in Hewlett Packard Enterprise were down 5,29% on the back of the announcement.

Source: www.investing.com

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