HP Provides Outlook For Hewlett Packard Enterprise; To Cut Up To 30K Jobs

(RTTNews) - Hewlett-Packard Co (HPQ) on Tuesday provided fiscal 2016 guidance for Hewlett Packard Enterprise, which is being spun off from the company.

The company expects Hewlett Packard Enterprise to report fiscal 2016 net earnings of $0.75 to $0.85 per share, and adjusted earnings of $1.85 to $1.95 per sharem, which exclude restructuring charges, separation costs and amortization of intangible assets.

Tim Stonesifer, who will become Chief Financial Officer of Hewlett Packard Enterprise, provided a plan to deliver $2.7 billion in ongoing annual cost reductions both associated with the separation and specific to the Enterprise Services ("ES") business. To achieve the savings, Hewlett Packard Enterprise expects 25,000 to 30,000 people to leave the company, primarily associated with the ES transformation.

This will result in a GAAP-only charge of about $2.7 billion, beginning in the fourth quarter fiscal 2015. The cash impact will be about $2.6 billion over the next three years, beginning in fiscal 2016.