HP today confirmed reports that it plans to split itself into two companies, one for PCs and printers and another for business technology and services. HP also said its layoffs, which are already in full swing, will affect 55,000 people by the time they’re done. Yes, that would be like firing everyone at a company like, say, Google.
HP had 317,000 employees as of October 2013. The company got rid of 36,000 people by July of this year. HP was planning total “employee reductions” of 45,000 to 50,000 people, but it will now push that to 55,000 “to fund investment opportunities in R&D and sales,” the company said in a presentation for investors today.
HP plans to break into two by the end of October 2015. One of the new, separate companies will be Hewlett-Packard Enterprise, focusing on “servers, storage, networking, converged systems, services and software as well as its OpenStack Helion cloud platform,” HP said. HP CEO Meg Whitman will be CEO of Hewlett-Packard Enterprise.
Based on current financials, Hewlett-Packard Enterprise would have $58.5 billion in revenue and operating profit of $6 billion. HP Inc. would have $57.2 billion in revenue and $5.4 billion in operating profit. Oh yea, and a hell of a lot less people.