HP Split Imminent, and 30,000+ Employees Will Be Let Go
Subject: General Tech | September 19, 2015 - 03:10 PM | Scott Michaud
Tagged: layoffs, hp inc, hp, hewlett-packard enterprise
As we reported a while ago, Hewlett-Packard is planning to split into two. The move will separate the consumer products into “HP Inc” and enterprise products into “Hewlett-Packard Enterprise”. This makes sense, because enterprise clients know the full name, but many consumers probably do not. At the time, it was expected to result in 5000 jobs lost, resulting in 55,000 since the upper management focused on cutting expenses. Now, about a year later, and right before the split happens, we find out that 5000 is now well over 30,000, bringing the 55,000 figure to between 85,000 and 95,000.
Image Credit: Wikipedia
These are fairly severe cuts, but it depends on how you look at it. A typical corporate restructure is around 10% of employees as a rule of thumb. If you count the slow, rolling job cuts as a single restructure, then the Hewlett-Packard Company has cut about 25% - 30% of their workforce, albeit offset by some hiring and rehiring that naturally won't be reported on as much as cuts.
If you look at this deal as a single restructure however, then it is between 10-15%, which is somewhat normal. Personally, I would say that this is the slightly more honest way of reporting on the issue. These cuts are on the severe side, but I don't think it spells trouble for the companies (although it is terrible for the employees).