Hewlett-Packard announced on Tuesday that it is expected to cut-out 25,000 to 30,000 jobs as part of a restructuring.
The Guardian reported that the company's latest job cuts are part of its plan to split into two listed companies - one focused on hardware and services which will be spun off as Hewlett Packard Enterprise and the other on its computer and printer business.
"These restructuring activities will enable a more competitive, sustainable cost structure for the new Hewlett Packard Enterprise," current HP Chairman and Chief Executive Meg Whitman told investors on Tuesday.
Based on the company's most recent number of more than 300,000 employees as of Oct. 31, 2014, the latest job cuts signify a decrease of the company's total workforce by at least 10 percent, Reuters informed.
"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," Meg added.
To recall, Meg said that she is trying to build a new company as early as 2012. She is now set to become the president and chief executive of HP Enterprise.
The job cuts, which will begin in the fourth quarter, will result in a charge of about $2.7 billion, HP stated. It is aimed at saving $2.7 billion a year.
Hewlett Packard Enterprise Chief Financial Officer Tim Stonesifer stated the company has previously identified $2 billion in probable cost cuts. "Adjustments to real estate strategy and reorganization across the company's portfolio should achieve an additional $700 million in ongoing savings," he said.
Reuters also revealed the company's shares fell 1.4 percent to $26.73 in extended trading on Tuesday after the news broke.
HP also released financial forecasts for HP Inc. -- the PC and printer businesses -- late Tuesday. It predicts 2016 earnings for HP Inc. from $1.67 to $1.77 per share, exclusive of items.
The business is anticipated to report free cash flow of $3 billion to $3.3 billion next year, at least half of which is projected to be reverted through share buybacks and dividends.