At a meeting for securities analysts, Meg Whitman, current chairman, president and chief executive officer of HP, who will become president and chief executive officer of Hewlett Packard Enterprise, gave an overview of how the new company will build on its leading position in infrastructure, software, services and cloud to help enterprise customers address their most pressing challenges.

Tim Stonesifer, who will become chief financial officer of Hewlett Packard Enterprise (HPE), provided a financial outlook for HPE for fiscal 2016. As a standalone company, HPE expects fiscal 2016 revenue to grow year-over-year in constant currency driven by continued strength in servers, storage and networking, and stabilization in services and software.

Stonesifer presented a plan to deliver $2.7 billion in ongoing annual cost reductions both associated with the separation and specific to the Enterprise Services (ES) business. These new activities will enable HPE to achieve $0.7 billion of ongoing cost savings associated with the separation, including adjustments to real estate strategy and other reorganizations across the portfolio.

In addition, it will enable ES to achieve $2.0 billion of gross annualized cost reductions, helping ES achieve a long-term, sustainable 7-9% operating profit margin. To achieve these savings, HPE expects 25,000 to 30,000 people to leave the company, primarily associated with the ES transformation.

This will result in a GAAP-only charge of approximately $2.7 billion, beginning in the fourth quarter fiscal 2015. The cash impact will be approximately $2.6 billion over the next three years, beginning in fiscal 2016.