Following Hewlett-Packard’s dramatic decision to split into two smaller companies, the company has separately announced plans to lay off 5000 more workers. This brings the total for the past two years year to as much as 57,000.
After the split the two H-P companies will each have about US$57 billion in revenues, $5 billion in operating profits and be more “focused and nimble,” CEO Meg Whitman said on a conference call.
“The market is moving incredibly rapidly, and nimbleness may be the defining characteristic” for successful companies,” she said.
Following the split, Whitman will become head of Hewlett-Packard Enterprise, a business focused on corporate hardware and services; while Don Weisler, now a VP in charge of Hewlett-Packard’s PC and printer operations, will become CEO of that business.
Tech analyst Rob Enderle yesterday speculated that the new Hewlett-Packard Enterprise might make an attractive purchase for Oracle, which offers similar products. But he added that H-P’s executives “would revolt” if Oracle made a bid, because Mark Hurd, Oracle’s co-CEO, had resigned as H-P’s CEO in 2010 after a female contractor accused him of harassment.
Other analysts are suggesting a quite different deal that could see H-P moving to buy data storage giant EMC. which reportedly has been in Meg Whitman’s sights for some time.
