http://www.wsj.com/articles/hp-enterprise-describes-financial-bumps-from-spinoffs-1476840017
Company forecasts revenue decline, also expects hit to cash flow from $2.5 billion pension-fund payment associated with services business
Ms. Whitman’s strategy of spinoffs leaves the company dependent for much of its revenue on sales of server systems, networking and storage devices. She and other executives said those businesses are doing well and benefiting from greater attention from top management and the company’s sales force. Revenue from remaining HP Enterprise businesses should grow slightly in fiscal 2017, the company said.
She indicated that HP Enterprise won’t shrink much more, at least as far as those hardware business are concerned. “We think the portfolio we have needs to be here and needs to stay together,” Ms. Whitman said in response to a question Tuesday.
In an interview last month. Ms. Whitman estimated that the company’s workforce will have declined after the spinoff transactions by some 50,000 to 60,000 employees from about 210,000 a year ago, when HP Enterprise was formed.