HP to announce minimum 3000 job cuts in next three years

HP Inc. has officially confirmed its plans to make 3,000-4,000 jobs redundant over a period of next three years. The company’s chief executive officer Dion Weisler revealed the news at an analyst meeting in New York. He further added that in addition to the 3,000 job cuts announced earlier, the company had to resort to such a step owing to the falling demand for personal computers and printers.

Weisler said –

I’m proud of the progress we have made in our first year as the new HP. Our focus is clear, our execution is solid, and we are positioned well for the next step in our journey. 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.

While details about the upcoming layoffs are still ambiguous, as job cuts will vary by country based on local legal requirements and other employee representatives, according to HP.

If everything goes according to plan, HP is expecting savings of around $200 million to $300 million per year starting in 2020. That said, the company initially has to bear charges worth $350 million to $500 million, out of which $200 million will solely go in favour of labour costs.

HP Inc. is one of two companies created last year after the split of Hewlett-Packard Inc. The other, Hewlett Packard Enterprise Co., essentially sells servers and other data-center technology. While HP Inc. managed to retain the personal computers and printer business. Weisler also mentioned in a statement on Monday that the split has worked in favour of HP Inc., allowing it to become nimble and concentrate on “accelerating growth and reinventing industries.”

Just last month, HP also announced it was acquiring Samsung’s printer business, apparently the largest printer business acquisition in HP’s history in a deal worth $1.05 billion.