HP’s expects to cut 7,000 to 9,000 jobs through a combination of employee exits and voluntary early retirement and save around $1 billion by fiscal year 2022.
U.S. personal computer maker HP Inc stated, it will cut up to 16% of its workforce as part of a restructuring measure aimed at pruning costs.
In a statement, HP Inc stated, it plans on cutting around 7,000 to 9,000 jobs through a combination of employee exits and voluntary early retirement.
As a result of these plans, HP estimates it will save approximately $1 billion by the end of fiscal year 2022.
According to a filing with the U.S. Securities and Exchange Commission, HP Inc has a global employee headcount of around 55,000 as of October 31.
In connection with the restructuring, HP said it expects to incur an overall charge of about $1 billion, of which $100 million will be realized when it reports its fourth-quarter earnings.
“We are taking bold and decisive actions as we embark on our next chapter,” said Enrique Lores, HP Inc’s incoming chief executive officer. “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.”
From November 1, 2019, Lores will take over the company’s CEO from Dion Weisler.
In a separate statement, HP said, its board had approved an additional $5 billion in share buybacks on September 30.
The Palo Alto, California-based company expects to generate free cash flow of at least $3 billion in fiscal year 2020; it expects to return at least 75% of its earnings to shareholders through a 10% quarterly dividend increase and share buybacks, said the company.
It went on to add, it expects its adjusted earnings in the range of $2.22 to $2.32 per share for fiscal 2020.
For its third quarter earnings, it expects its adjusted earnings to be in range of $2.18 to $2.22.