Merry Christmas people. HP to cut 16 percent of its workforce, as it simplifies operating model and reduces costs
PC maker HP is to carry out a massive jobs cull in the lead up to Christmas period, when it revealed it would axe 9,000 jobs.
HP announced in a statement that its “fiscal year 2020 restructuring plan to simplify its operating model and become a more digitally enabled company.”
But now the firm is seeking to swing the axe a bit more vigorously when it said it would axe 7,000 to 9,000 jobs, around the world.
It said these job losses would be achieved “through a combination of employee exits and voluntary early retirement.”
HP said that it estimates that it will incur total labour and non-labour costs of approximately $1bn billion in connection with the restructuring and other charges. It also said that the move will reduced its annual run rate costs by $1bn by the end of fiscal 2022.
HP has a workforce of approximately 55,000 people around the world, meaning the 9,000 job cuts will result in 16 percent of its workforce losing their jobs.
There is no word on the exact whereabouts the job losses will occur, except that it is a global reduction.
“We are taking bold and decisive actions as we embark on our next chapter,” said Enrique Lores, incoming President and CEO of HP. “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.”
“We will become an even more customer-focused and digitally enabled company, that will lead with innovation and execute with purpose,” he added.
Lores will take over as CEO of HP on 1 November from outgoing boss Dion Weisler, who said “I’m proud of the progress we have made across our business with cutting edge innovation, disciplined execution and a purpose driven cultur. I have no doubt our team will keep raising the bar under Enrique’s leadership.”
HP was formed in 2015 by the split of Hewlett-Packard into two separate companies.
HPE retained the core enterprise business, such as servers, storage and networking, while HP Inc took on the PC, printer and hardware unit.
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