My prediction... they are losing millions every month on a poorly negotiated contract (which the richly rewarded executives responsible already collected their bonuses for, and likely used inside information to underbid the competition). They will lose more money next year under mandated, involuntary cuts. Meg has publicly stated they cannot keep contracts where they lose money or make low margins, and are better off shedding them. She's clearly directing her talking point at NGEN (formerly NMCI).
Losing NGEN means HP can get rid of thousands of US Citizens with security clearances they are required to keep for the work. Many engineers and first-level managers on the account are already fleeing ahead of the layoff hammer.