​HP Inc to cut up to 4,000 jobs by 2020

The US computer giant confirmed it will be cutting 3,000 to 4,000 staff company-wide over the next three to four years.
Written by Asha Barbaschow, Contributor

The consumer arm of the newly reshuffled Hewlett-Packard has announced plans to cut up to 4,000 jobs in the next three to four years.

Speaking at a conference in New York, HP Inc president and CEO Dion Weisler said the 3,000-plus cuts will affect staff in departments throughout 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 financial outlook statement.

"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."

According to CNBC, the restructuring plan is expected to save HP between $200 million and $300 million from the start of fiscal 2020, with the board also reportedly expecting to outlay about $350 million to $500 million in restructuring costs and other related charges.

Almost a year ago, HP split its business into two entities, with HP Inc focused on PCs and printers and the other, Hewlett Packard Enterprise, concerned with commercial technology.

HP announced its plan to split almost a year prior, with HP Enterprise CEO Meg Whitman saying at the time that separating into two companies would give each the independence, focus, financial resources, and flexibility needed to adapt quickly to market and customer dynamics.

HP Inc released its third quarter earnings in August, posting net income of $843 million on revenue of $11.9 billion, down 4 percent year-over-year.

In its financial report, it appeared that HP was still struggling to cope with the weakening PC and printer market, even though there are some signs of improvement.

Printing net revenue was down 14 percent year-over-year and total hardware units dropped 10 percent. Commercial printers had the slightest revenue decline at 2 percent, while sales of consumer printers dropped 14 percent.

"Although the markets remain challenged, we have the innovation and executional rigor needed to continue to take profitable share and invest in the right opportunities to drive long-term success for the company," Weisler said at the time.

With AAP.

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