Hewlett-Packard’s latest job cuts would fill a small city

September 15, 2015, 9:22 PM UTC
Meg Whitman
Meg Whitman, the chairman, president and CEO of Hewlett-Packard, is interviewed on the floor of the New York Stock Exchange Thursday, Aug. 21, 2014. (AP Photo/Richard Drew)
Photograph by Richard Drew — AP

Hewlett-Packard plans to cut another 28,000 to 33,000 jobs as part of a years long restructuring that includes splitting the company in two in November.

The layoffs, announced Tuesday at HP’s analyst day, would save $2.7 billion annually. They represent over 10% of the company’s workforce of 300,000.

Most of the layoffs will come from HP’s enterprise services group, which handles consulting and call center support. Another 3,300 will be trimmed from its personal computing and printing business, with 1,200 of them coming in 2016.

These new job cuts come on top of a series of previously announced staff reductions by the technology giant, which has struggled to keep up in a rapidly evolving industry. With the latest cuts, the company will have eliminated 83,000 to 88,000 jobs since CEO Meg Whitman took over the company in 2011.

“A big step forward will be if enterprise services can stop shrinking,” Whitman said, referring to the business unit is responsible $4 billion in losses over the past several years. Despite the layoffs, Whitman said the enterprise division remains a focus for her company.

And there’s still room for more cuts. Whitman said that there may be “more pruning” after the company splits in two on Nov. 1 as part of a plan to become more nimble. The company will be divided into an enterprise business that sells data center gear and software to corporations and a separate PC and printer business.

During analyst day Tuesday, Whitman reiterated her support for splitting the company and reiterated why it would eventually lead to stronger businesses. Since announcing the split last year, she has signed off on a series of layoffs that continue to whittle away at the once mighty HP.

During its most recent earnings call, Whitman had said she was done with restructuring the enterprise services group. But today’s announcement shows that there’s still work to be done.

Hewlett-Packard must “fundamentally recreate the enterprise services” division, Whitman said, noting that it would will play an important role in landing new customers and selling consulting services.

To hear Whitman tell it, Hewlett-Packard was “in a weak position” when she started on the job four years ago. She pointed to a bloated workforce, a lack of investing in research and development, missed earnings projections and the disastrous $10 billion acquisition of software company Autonomy has led to years of ongoing litigation.

HP’s shares (HPQ) fell 2.3% in after hours trading Tuesday to $26.50.

For more about Hewlett-Packard, watch this Fortune video:

(This story was updated from the original with additional information)

Read More

Artificial IntelligenceCryptocurrencyMetaverseCybersecurityTech Forward