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HP reveals thousands of job losses

(Image credit: Image source: Ken Wolter / Shutterstock)

HP is looking to cut costs and boosts sales by laying off thousands of staff. 

According to a recent Bloomberg report, anywhere between 7,000 and 9,000 jobs will be cut - equivalent to around sixteen percent of the whole company. Some workers will be immediately let go, others will go into voluntary early retirement.

For HP, this could mean up to $1 billion in saved money, within the next three to four years. Last year, the company had 55,000 employees. HP has also given itself a challenging task in terms of expected profits. While analysts expect $2.23 per share, that’s HP’s lower expectation, as it wants anywhere between $2.22 and $2.32 a share in fiscal 2020.

Before the year ends, HP will also see a change in management. Its long-time CEO, Dion Weisler, is expected to step down on November 1 for private reasons, and will be succeeded by Enrique Lores, who has been an executive at the firm for quite some time now.

“We see ourselves starting a new chapter for HP and we will be announcing bold moves to support that statement,” Lores said in an interview. “We have spent a lot of time building this plan. We can embrace the changes we see happening in the market and that can help us position the company for the future.”

HP expects the reorganisation to cost up to $1 billion, with charges of $100 million in the fiscal Q4 this year, $500 million in the fiscal 2020, and the rest in fiscal 2021 and 2022.