Dive Brief:
- Hewlett Packard Enterprise expects to have between 50,000 and 60,000 employees after it spins off its IT services unit, CEO Meg Whitman said in an interview with CNBC.
- Earlier this week, HPE announced it plans to spin off and merge its IT services division with Computer Sciences Corp., a deal that could save the company $1 billion in its first year.
- An HPE spokesperson reportedly told Recode that about 100,000 jobs will move from HPE to CSC.
Dive Insight:
With the announcement of the spin off, no additional job cuts were announced at HPE.
When Whitman started, HP employed about 350,000 people worldwide. Since then, HP has announced approximately 85,000 total jobs cuts since Whitman first undertook a five-year plan to reinvent the company, according to a Recode report. That’s about 25% of the total number of employees that worked at HP when Whitman began.
Last September, Hewlett Packard said it would cut about 33,000 jobs over the next three years.
HPE’s profits were up slightly last quarter, which Whitman attributed to her turnaround strategy.
"It was a great quarter for the company as a whole," Whitman told CRN on Wednesday. "I think we can safely say the turnaround is working. We are pleased. And I do think we are going to unlock some real value by merging our enterprise services business with CSC."
