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Hewlett-Packard To Fire 30,000

Just out from Bloomberg:

  • HPE CFO SEES 2.7BN RESTRUCTURING LEADING TO 25K-30K JOB CUTS
  • HP: BY 2018 40% OF ES EMPLOYEES WILL BE IN HIGH-COST LOCATIONS

More details from Bloomberg on the latest restructuring bloodbath out of Hewlett-Packard :

  • sees FY16 FCF $2b-$2.2b, with normalized FCF $3.7b.
  • Sees FY16 adj. EPS $1.85-$1.95
  • Sees FY16 operating cash flow $5b-$5.2b
  • Sees cutting 25k-30k jobs as part of restructuring, with GAAP charges $2.7b
  • Sees returning at least 50% of FCF to holders through ~$400m in dividends and the remaining in share repurchases
  • Says will consider strategic partnerships, investments and M&A “in the right circumstances”
  • Earlier, co. said sees HPE cloud rev. ~$3b in FY2015 growing over 20% with similar pace expected over next “several years”
  • Said enterprise services business on target for 7%-9% oper. margin target and for reducing $1.4b in costs for 2015; sees similar cost reduction pace continuing next year

And so, dear 30,000 formerly-well paid computer engineers and technicians: welcome to the fast-food recovery. And don't forget to BTFD with all that spare cash.

Now, where is that 25bps rate hike because the economy is just too strong...