HP to cut up to 4,000 jobs in next three years

The company said the cuts are part of a restructuring plan to boost savings

HP Inc. is cutting between 3,000 to 4,000 jobs over the next three years as part of a restructuring plan worked out by the company.

The PC and printer firm, which was created about a year ago after Hewlett-Packard was split into two companies, said in a filing to the Securities and Exchange Commission on Thursday that it expects about “3,000 to 4,000 employees to exit between fiscal 2017 and fiscal 2019.”

The company's "printing business is challenged right now but the PC business is hitting on all cylinders," said Patrick Moorhead, president and principal analyst of Moor Insights & Strategy. “The PC Group is gaining market share, increasing profits and innovating more than I have seen in years,” he added.

The workforce changes will "vary by country, based on local legal requirements and consultations with employee works councils and other employee representatives, as appropriate,” HP said in the filing.

The company said earlier that it would be cutting 3,000 jobs during the company's 2016 fiscal year ending Oct. 31. It had nearly 50,000 employees as on Nov. 1, according to its website.

The new job cuts are expected to cost HP US$200 million in labor costs related to the workforce reduction out of $350 million to $500 million in total restructuring and other charges. The entire restructuring plan, approved by the HP board earlier this week, has been forecast by the company to generate gross annual run rate savings of about $200 million to $300 million starting in fiscal 2020.

Although its core markets are challenged and the macroeconomic conditions are in flux, the company continues to “see long-term growth opportunities in commercial mobility and services, the disruption of the A3 copier market, and the digitization of graphics and manufacturing through our leading 3D printing solutions,” company President and CEO, Dion Weisler said.

The company is on track to achieve more than $1 billion in savings since the separation, which it will invest back in the business in such areas as research and development, Weisler said at an analyst meeting on Thursday.

HP recently said it would acquire Samsung’s printer business with over 6,500 patents in a $1.05 billion deal, with the aim to push more efficient A3 multifunction printers in the traditional copier market.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?