Global technology company Hewlett- Packard famously know as HP is planning to cut 5000 jobs globally. This move comes as the restructuring plan for the company. 

It can be recalled in the year 2016 the organization had approved a restructuring plan to implement through the fiscal year 2019, under which it had expected around 4,000 job cuts. In May, the company said it expected that number to increase by 1 to 2 percent. The current strength of the company was 49,000 people by the end of October 31. 

According to a filing in the United States Securities Exchange Commission, HP formed in the year 2015 the then Hewlett-Packard Co was split into two and it now expects pretax charges of about $700 million (roughly Rs. 4,700 crores) related to the layoffs, compared with about $500 million forecast earlier.

The company approximates that around 50% of the pretax costs will relate to severance and the remaining costs due to infrastructure, non- labor and other charges. 

The job cuts could also potentially affect those in higher positions such as managers, and they come as part of a larger effort to save money within the company as Tim Stonesifer, the company’s chief financial officer, said the plan is to save HPE $1.5 billion over a three-year period.

This new set of cut backs follows the somewhat recent division of HP, into HP Inc and HPE, which lead to the loss of 30,000 jobs in September of 2015 in a plan to save $200 million to $300 million annually by 2020, and the subsequent announcement in 2016 that HP Inc plans on cutting 3,000-4,000 jobs within the next few years.

HPE explained this is in an attempt to be more competitive in a changing industry, especially in the face of cloud technology, specifically those of Amazon Web Services and Google.

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