HP split approved by the board, will reduce 30,000 jobs

HP will be split into two entities as Hewlett-Packard Enterprise Co. and HP Inc. It will be completed on Nov. 1. The restructure will slash 30,000 jobs.

HP Board of Directors announced in a news release its split into two independent firms; HP Inc. and Hewlett-Packard Enterprise. HP Inc. will operate the company's printing and personal systems businesses. Alongside, Hewlett-Packard Enterprise will focus on technology solutions including Software and Financial Services, Enterprise Group, and Enterprise Services.

Hewlett-Packard Enterprise will start trading in the NYSE as HPE WI on or around October 19 upon the issuance but will reclaim as HPE starting Nov. 2. HP Inc. will remain in its current ticker symbol. At the same time, shareholders will get a share of Hewlett-Packard Enterprise for every HP Inc. common stock.

Accordingly, Meg Whitman, HP CEO, said the separation will open larger opportunities for both companies. "As two independent, industry-leading companies, Hewlett-Packard Enterprise and HP Inc can drive more focused business strategies, innovation roadmaps, and go-to-market models," Whitman detailed.

In line with that, a memo published by the Re / Code stated there will be changes in its organization as the company develops its Cloud and Software products. Cloud Research & Development organization will be headed by Mark Interrante and Cloud Production Management led by Bill Hilf will be transferred to the Software group. Interrante will report to Hilf while Hilf be under the supervision of Robert Youngjohns, the new business unit head for the Software.

The company's cloud services will be moved to the Enterprise which will center on selling networking hardware, servers, and storage.

On the other hand, HP Enterprise will cut nearly 30,000 jobs which is 10 % of its workforce. It will save them around $2.7B annually, ZDNet reported.

HP came up with the decision after struggling with the decline of PC sales for years. The split aims to align its products and services according to the customers' demand.