Hewlett-Packard Company Will Cut Up To 30K More Jobs In Restructuring Plan

Hewlett-Packard Co. said Tuesday it will lay off as many as 30,000 more employees as part of a restructuring plan that will split the Palo Alto, California, tech firm into two companies. HP Chief Financial Officer Cathie Lesjak said last month the company could cut up to 5 percent more from its workforce than the 55,000 people it had planned to let go.

The company said in a meeting with analysts that it would incur a $2.7 billion charge related to its restructuring over three years. The company’s Enterprise Services unit, which is involved in outsourcing and other business consultancy services, has been a troubled part of the company’s operations for years.

The spin-off company, Hewlett Packard Enterprise, will be a separate entity with $50 billion in annual revenue, the company said. "Hewlett Packard Enterprise will be smaller and more focused than HP is today, and we will have a broad and deep portfolio of businesses that will help enterprises transition to the new style of business," Meg Whitman, HP's chairwoman, president and CEO, said in a statement.

Stock in the Hewlett-Packard (NYSE:HP) dropped more than 5 percent in after-hours trading Tuesday after the company made its announcement, to $27.11.