Hewlett Packard Enterprise (HPE) has confirmed that it will cut another 30,000 jobs from across its business, just under two months before the company is formed from the split of HP.
HPE is the company that will focus more on enterprise technology infrastructure, software and services, and will be led by current HP CEO Meg Whitman.
HP said that Tim Stonesifer, the incoming chief financial officer for HPE, identified the job cuts as a way to save $2.7bn from HPE’s business costs.
HPE said that 25,000 to 30,000 jobs would go as a result, although making these cuts will cost the company $2.7bn upfront.
Whitman explained that this is an important process for the company to go through as it looks to become leaner and more efficient.
"These restructuring activities will enable a more competitive, sustainable cost structure for the new HPE," she said.
"We've done a significant amount of work over the past few years to take costs out and simplify processes, and these final actions will eliminate the need for any future corporate restructuring."
Whitman added that HPE will be well served for the business market once the split is complete.
"HPE will be smaller and more focused than HP is today, and we will have a broad and deep portfolio of businesses that will help enterprises transition to the new style of business," she said.
Meanwhile HP Inc, which will focus on computers, laptops and printers, will be led by Dion Weisler, who said that the company will focus on its core areas as its expects a tough few quarters ahead once the split is complete.
However, he is confident that the firm can thrive in the market. "Executing on our strategy will produce reliable returns and cash flows while having the opportunity for long-term growth," he said.
"The separation enables us to focus our company assets and financial resources on our core businesses, growth opportunities and future while being very disciplined about delivering long-term, shareholder value."
The split is set to come into effect from 1 November.
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