HP to shed 3,000 to 4,000 more jobs over the next three years
14 Oct 2016
HP Inc. is cutting between 3,000 to 4,000 more jobs over the next three years as the technology giant grapples with shrinking demand for PCs and printers.
The latest round of jobs cuts are in addition to 3,000 cuts that HP announced in September last year. (See: HP to cut 25,000 to 30,000 jobs in enterprise business) This round of job cuts were aimed at being completed by the end of October this year. Thesr reductions follow its 55,000 job cuts carried out over the past three years as part of a cost-cutting initiative aimed at saving $2 billion per year.
HP, formed in the breakup of Hewlett-Packard Co. a year ago, has about 50,000 employees worldwide.
Speaking at a conference in New York, HP president and CEO, Dion Weisler said the 3,000-plus cuts will affect staff in all sections of the company.
"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," Weisler said in a statement.
The Palo Alto, California-based company said that it expects the restructuring to generate $350 million to $500 million in charges and generate annual savings of $200 million to $300 million starting in fiscal 2020.
HP split its business into two entities, with HP focused on PCs and printers, while the other, Hewlett Packard Enterprise, on commercial technology.