HP Inc will cut around 3,000 to 4,000 jobs over the next three years as demand for its PCs and printers has slowed in recent months. The company originally announced the job cuts in February as part of its restructuring program which will see some 3,000 jobs cut by the end of this year.
Dion Weisler, the president and CEO of HP Inc, spoke out regarding how these cuts will affect every department of the company during a conference in New York.
He argued that the restructuring plan would work out in the company's favour in the long run, saying: “Although our markets remain very challenged, we are committed to innovating in the core and continue to see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitisation of graphics and manufacturing through our leading 3D printing solutions. We are confident in our strategy and believe it will continue to produce reliable returns and cash flow, while also enabling HP to invest in differentiated innovation and long-term growth.”
The decision to split HP into two separate companies in the form of HP Inc and Hewlett Packard Enterprise was initially made with the intention of giving both companies more flexibility so that they could pursue new opportunities and take on riskier business moves. However, not enough time has passed to see either company living up to its full potential.
HP Inc's restructuring plan could save the company between $200 to $300 million from the year 2020 onwards. The company's board understands that saving money in the long term will require some initial sacrifices and it has reportedly set aside $350 to $500 million to deal with any costs or charges incurred from the process of restructuring.
Though the news of these 3,000 job cuts caused the HP Inc's stock to drop 1.3 per cent in after hour's trading, its shares have managed to gain 28 per cent so far this year.
Image source: Ken Wolter / Shutterstock