Dive Brief:
- The Hewlett-Packard Co. expects to eliminate between 28,000 to 33,000 more jobs as part of its long-term restructuring, a strategy that pivoted on splitting the company in two in late 2015, according to the company.
- During its quarterly analyst call this week, HP admitted that it will be accelerating its restructuring program and will let about 3,000 people go by the end of fiscal 2016, rather than over three years as it announced in September.
- Most of the 28,000-33,000 layoffs will come from HP’s enterprise services group, which handles consulting and call center support. Another 3,300 will be trimmed from its personal computing and printing business, with 1,200 of them coming in 2016. The move will result in somewhere near $300 million of savings in 2016, the company added.
Dive Insight:
Shannon Cross, an analyst for Cross Research, said HP is facing a "tough pricing" business landscape. For example, HP Inc, the Hewlett-Packard Co's legacy hardware business, reported close to a 12% reduction in quarterly revenue, as demand for PCs and printers remains sluggish.
The HP situation demonstrates how changing market conditions can affect HR strategies in a very short period of time, as HP no doubt would have rather stuck to its original job reduction schedule.
