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After three-day shutdown, HP now effectively two companies

James Niccolai | Aug. 21, 2015
HP is nearing 'the last of the restructuring mohicans,' said CEO Meg Whitman.

HP has done a lot of restructuring in the past several years, including laying off 55,000 workers. A financial analyst on the earnings call noted that the restructuring has cost it roughly $1 billion a year for the past several years.

It's not over yet, but it's drawing to a close, according to Whitman. HP wants to cut more costs from its enterprise services business, which likely means more job cuts. HP will describe those plans at its financial analyst summit next month.

After that, she said, there may be smaller restructuring efforts, but they'll be accounted for within the enterprise services group, rather than by HP as a whole.

"We know it’s been a concern, and frankly it's been a concern to us," Whitman said of the restructuring costs. "So this will be the 'last of the restructuring mohicans.'"

HP's shares were down about 1 percent after the results were announced, after falling 1.4 percent in the regular trading day. The company's net profit for the last quarter fell 13 percent to $854 million, on revenue of $25.3 billion, down 8 percent.

 

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