HP Gearing Up to Cut 16% of its Workforce
HP Inc (NYSE: HPQ) shares tumbled 5.92% in Afterhours. On Thursday, HP Inc (NYSE: HPQ) said that it will cut up to 16 percent of its workforce as part of a restructuring plan, aimed to reduce the costs.
U.S. personal computer maker will downsize about 7,000 to 9,000 jobs via a combination of employee exits, and the voluntary early retirement, it was said by the company in a statement.
HP Inc (NYSE: HPQ) estimates that by the end of fiscal 2022, that plan will result in annual gross run rate savings of $1 billion approximately.
HP Inc (NYSE: HPQ) had about 55,000 employees worldwide as of Oct. 31, 2019 as per the filing with the U.S. Securities and Exchange Commission (SEC). Reuters calculation showed that would mean up to 16% targeted in the cuts.
The company said that it expects to incur an overall charge of about $1 billion, In connection with the restructuring, that is of $100 million will be realized, when it reports its fourth quarter earnings.
HP’s incoming chief executive officer, Enrique Lores said,
“We are taking bold and decisive actions as we embark on our next chapter,”
“We see significant opportunities to create shareholder value and we will accomplish this by advancing our leadership, disrupting industries and aggressively transforming the way we work.”