CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Hewlett Packard announces new job cuts

Article By: ,  Financial Analyst
September 16, 2015 4:36 PM

Hewlett-Packard (HP) announced yesterday (September 15th) it will cut between 25,000 and 30,000 jobs, which is roughly ten per cent of its workforce. It said the move is part of plans to split the company in two, with Hewlett Packard Enterprise (HPE) separating from the printer and PC business.

HP Enterprise will focus primarily on businesses and government agencies, while the PC and printing divisions will target the consumer market.

The tech giant, which had already removed 55,000 jobs earlier this year, said the cuts will save $2.7 billion (£1.76 billion) in annual costs.

Chairman and chief executive Meg Whitman said: "We've done a significant amount of work over the past few years to take costs out and simplify processes and these final actions will eliminate the need for any future corporate restructuring."

Changing environment

Hewlett Packard has faced tougher trade conditions in the past decade, with customers moving away from desktop computers and opting instead for laptops and tablets.

It is now into the fourth year of its five-year recovery plan and the split is an integral part to help it adapt to the changing market. 

As mobile and online computing becomes even more popular, the company has needed to address its areas of weakness and by splitting its operations it believes this will be made possible.

In its fiscal third quarter ended July 31st, HP's revenue from its PC and printer business fell 11.5 per cent.

HPE will have revenue of more than $50 billion this year, and is expected to report an adjusted profit of $1.85 to $1.95 per share in 2016, the company said.

It has recently announced it is selling a 51 per cent stake in its Chinese server business to Tsinghua Holdings for $2.3 billion.

HP shares were up 0.9 per cent at $27.35 in premarket trading today.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024