HP’s Planned Layoffs to Exceed 55,000

HP chief financial officer, Cathie Lesjak, mentioned that the company will have to discharge 5 percent more employees that the originally planned 55,000.

The mass layoff began in 2012 with the initial goal of taking off 25,000 jobs, which later grew to 55,000. At the present, however, there are more people to dismiss as it turned out. Although CFO Lesjak and CEO Meg Whitman did not provide a specific new number, they said that HP won't need to lay off more people than the new plan.

Whitman also promised that the coming layoff is the last one for HP's Enterprise Services unit. ES performs consulting and outsourcing services and has been continuously trimming since 2008. This unit is also among Whitman's major problems since she took office. It can be seen by its shrinking revenues quarter upon quarter that it is affecting the company as a whole. As of the latest, HP ES reported an 11 percent decline in the most recent quarter compared to the previous year.

Whitman even blamed ES as the reason behind HP's inability to show revenues for fiscal year 2015, preventing HP's growth by this year. She said in an interview that without ES, the company should easily demonstrate its growth.

The layoffs are expected to finish by October, which HP predicts to cost them $5.5 billion. As of now, HP has already dismissed almost 52,000 people.

HP will be divided into two companies by November and Business Insider says that this could probably result to more layoffs. The action could be made in order to offset the costs that will result with HP hiring new employees. HP CEO Meg Whitman has also dropped hints about these added layoffs after HP is split.

With HP becoming two companies, they will need two HR, legal, IT and other departments. Whitman and Lesjak will disclose other details about the company's restricting on a Wall Street meeting come September 15.