Based on a recent announcement, Hewlett Packard lays off 30,000 employees after company split. This decision was adopted to buffer economic losses as HP is making the transition from PCs to mobile devices.
Hewlett Packard employees are afraid they could lose their jobs as the boarding commission announced they would be drastically reducing the number of workers by the end of the year. In December 2014, the company registered 302,000 employees – a figure that surpassed by far the financial possibilities of the Palo Alto-based company.
The cost-cutting measures were first introduced in 2012 when company’s representatives stated that there will be only 55,000 jobs cut off by the end of October 2015. Recent statistics have revealed that the initial threshold has been exceeded by 5 percent as 30,000 more workers could be laid off in the following period.
Hewlett Packard vows this is the final cut it will make, but workers still worry they could lose their jobs. Managers, on the other hand, think the reorganization of the company should be seen as an improvement. They have explained that the restructuring activities will help employees better focus their activities and create deeper business portfolios.
Meg Whitman, the CEO of the split unit, has explained that a reorganization was necessary to give a more consistent structure to the company. Thus, it is easier for workers and clients to position the company on the market.
At the end of the restructuring period, customers should expect to see two distinct HP units. The original one will focus on PC and printer related operations. The new department will be preoccupied with cloud computing, storage capacity, networking and other integrated technology.
The company sets itself to register a $50 billion annual revenue and regain its leading position through cloud-based technology. The new unit will offer support to businesses, particularly those who rely on integrated technology to carry out their daily activities.
Whitman has further stated that the split will have been completed by the end of October. It marks one of the most significant moments in the history of the company since its founding in 1930. Hewlett Packard was founded by Stanford University graduates, Bill Hewlett and Dave Packard as a developer of electric equipment.
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